Lawmakers Consider Car Registration Fee HikeRaising Fee Would Bring In Nearly $10MPOSTED: 6:00 p.m. HST April 2, 2003 HONOLULU -- State lawmakers are scrambling to find money to balance the budget in the face of Hawaii's poor economy, made worse by the Iraq War.
State senators gave preliminary approval Wednesday to a proposal that could hit every car owner in the state with a new $10 fee. The proposal is to raise money for the budget by increasing the vehicle registration fee.
The bill does not say how much the increase would be, but the number tossed around most often is a new fee hike of $10 for each car registered.
The proposed fee hike would impact the owners of Hawaii's 940,000 cars.
By raising the registration fee for each car by $10, the state could bring in an estimated $10 million.
Under the proposal, the money is used to provide additional emergency medical services, including new helicopter medivac services for Maui.
"We really need this helicopter to provide service not just for Maui but for Molokai, Lanai, and our other island, which is Kahoolawe," Maui mayor's assistant Mele Carroll said.
Emergency medical providers say speedier service is needed for rural areas.
"These services will save lives or decrease disability as well," Donna Maiava said.
However, people waiting in lines to register their cars Wednesday were less than thrilled about the idea of a fee hike even to improve emergency services.
"I think it is kind of expensive already. I drive a Saturn, a very little car, and I am already paying close to $100. It is kind of pretty steep already right now," motorist William Littleton said.
"We are already paying a lot of taxes. I don't really care for it, but I'll tell you what: I would be more than happy to pay that $10 if they don't raise my property tax," motorist Patrick Whang said.
Owners of Hawaii's 30 rental car companies are adamantly opposed to it. They said they'll have to pass on the fee hike to rental customers.
"The cost of operations in Hawaii is already high. We are trying to avoid giving people sticker shock," Jim Stone said.
Other opponents of the registration fee hike say it unfairly targets Oahu drivers.
"Eighty-five percent of the vehicles are on Oahu, so Honolulu drivers would be basically subsidizing a service for neighbor islanders," said Lowell Kalapa of the Tax Foundation.
Gov. Linda Lingle's administration also opposes the car registration fee hike. The governor's budget director said the administration is against creating any new special funds. Lingle also does not see the connection between hiking the car registration fee and improving emergency medical services. Copyright 2003 by TheHawaiiChannel.com All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |








