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Hawai‘i State Senate Passes Rail Bill

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Members of the Hawai‘i State Senate passed Senate Bill 4 yesterday on third reading by a vote of 16-9 to provide funding to complete the construction of the City and County of Honolulu’s rail transit project.

SB4 addresses the City and County of Honolulu’s rail construction shortfall of $2.378 billion by extending the General Excise Tax on O‘ahu for three additional years through Dec. 31, 2030, which will provide $1.046 billion.

SB4 also raises the state’s Transient Accommodation Tax (TAT) by 1% to 10.25% for 13 years, to Dec. 31, 2030.

This will provide $1.326 billion.

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SB4 permanently increases the counties’ share of the TAT from $93 million to $103 million.

The measure reduces the State Department of Taxation’s administrative fee on the GET surcharge from 10% to 1%.

The measure creates a Mass Transit Special Fund to review and disburse funds to the city for its costs on the rail project. It also requires a state run audit of the rail project and annual financial reviews.

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SB4 now crosses over to the House for their consideration.

A complete schedule of the hearings can be viewed at www.capitol.hawaii.gov.

RELATED BIN LINKS
Statewide Hotel Room Tax Increase to Help Fund Honolulu Rail Project
Hawai‘i Island Mayor Opposes Permanent County TAT Cap

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