Council Considers Oahu Gas Tax HikeHomeowner's Property Tax Credit Could DoublePOSTED: 1:28 pm HST May 13,
2009 HONOLULU -- The Honolulu City Council is looking at raising gas taxes on Oahu on motorists who already pay the highest fuel taxes in the country.That is one idea being discussed as the city council tries to fill a $50 million budget shortfall.The council also is looking at reducing the property tax hikes that have been proposed and maybe doubling the property tax credit for owner occupants on Oahu.The proposals come as members of the public say no new taxes and urge the city to cut the cost of government.Oahu drivers pay 52 cents per gallon in federal, state and local gas taxes. With federal and state gas tax proposals, that figure will go up to 72 cents a gallon.City Council Budget Chairman Nestor Garcia proposed a 3-cent-a-gallon increase in city gas taxes, the first since 1989. The current Oahu gas tax is 52 cents a gallon. He said that could take some of the tax pressure off homeowners."Try to transfer some of that pressure, some of that burden over to those who use our highways and byways," Garcia said.A lobbyist for the transportation industry opposed the plan. "It's just an accumulation of the federal, state and county proposals at this point, that we're looking at all of this and we're going we just don't know how we're going to survive at this point," said Gareth Sakakida of the Hawaii Highway Users Alliance.The council, meanwhile, is looking at reducing the proposed property tax hike by anywhere from one half to a third, meaning the average homeowner would pay anywhere from $60 to $40 more.However, some taxpayers testified saying they have had enough."Please do not put more people in hardship way because of these tax increases. Hold the line and cut spending," Ted Kanemori told council members.The council is looking at doubling the owner-occupant tax credit from $75 to $150."Those are the people who are most affected. These are the voters, if you want to put it bluntly. So, we're going to try to give them the breaks that we think they can get," Garcia said.Two council members opposed the tax hikes and said the city must reduce its budget."It's not the time to raise real property taxes. It's not the time," Councilman Duke Bainum said."Raising taxes is generally a bad idea. Raising taxes in a recession is an absolutely terrible idea," Councilman Charles Djou said."We're not going to be looking at raising property taxes or any kind of tax in an election year, so I need to take these measures to the table and to the members now," Garcia said.
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