GOVERNOR LINGLE INVITES PUBLIC TO VETO CEREMONY
For Immediate Release: May 5, 2009
HONOLULU – Governor Linda Lingle is inviting members of the public to join her at the State Capitol Rotunda on Thursday, May 7, at 3:30 p.m. to express opposition to legislation that will raise taxes on residents, visitors and businesses; cause further job loss; and delay our economic recovery.
On April 23, the Legislature passed five bills (SB1111, HB1741, HB1747, HB895, and HB1175) that will extract a total of $116 million in 2010 and almost $150 million each year thereafter from the pockets of our residents and visitors. The Hawai‘i State Constitution requires the Governor’s decision on these bills by midnight, Thursday, May 7.
Governor Lingle will veto the following tax increases on Thursday:
SB1111 – Increases the transient accommodation tax by 28 percent adding to the cost visitors and residents pay when staying at hotels, time-shares, bed & breakfasts, and motels.
HB1741 – Increases by up to 257 percent the conveyance tax home buyers, businesses, real estate developers, charities, non-profit organizations and other purchasers of all residential and commercial real estate must pay for transactions over $2 million.
HB1747 – Increases the personal income tax rate on 36,399 Hawai‘i income tax filers, sole proprietors and small businesses (S-corporations and partnerships) that file their business income as personal income. There are over 20,000 S-corporations, partnerships and sole proprietorship in Hawai‘i, which includes approximately 6,000 sole proprietors.
The Governor is still reviewing tax increases on cigarettes and tobacco products passed by the Legislature.
“I presented the Legislature with a plan to balance the budget and close an unprecedented $2 billion revenue shortfall without raising general taxes,” said Governor Lingle. “The Legislature ignored my plan and voted to raise taxes anyway. This was unnecessary and unfair to Hawai‘i residents. On Thursday, May 7, I will issue my vetoes. I invite members of the public to join me when I turn down these measures and ask for their support in urging the Legislature not to override my vetoes.”
The Governor plans to issue her vetoes in a public forum with the opportunity for members of the community to fully see and understand the basis for her decisions. This compares to the practice of the Legislature who render their decisions late at night, frequently behind closed doors, and without the opportunity for public scrutiny.
The tax increase measures currently pending the Governor’s action will adversely impact an already weakened economy. According to the latest monthly survey of visitor accommodations, Hawai‘i hotel occupancy sank to a more than two-decade low in March, with about one-third of all hotel rooms empty. Home prices have dropped 8.5 percent, and unemployment is at a 31-year high of 7.1 percent. Many are concerned that the economy will get worse in the months ahead, and that downward decline, if exacerbated by increased taxes, will accelerate by increasing the cost of living in Hawai‘i and discouraging visitors from coming to Hawai‘i.
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For more information, contact:
Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708
Russell Pang
Chief of Media Relations
Phone: (808) 586-0043
