Hawaii Senate Passes Rail Bill

Members of the Hawai‘i State Senate today passed Senate Bill 4 on third reading by a vote of 16-9 to provide funding to complete construction on 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 Oahu for three additional years through December 31, 2030 which will provide $1.046 billion. It also raises the Transient Accommodation Tax (TAT) by one percent to 10.25 percent for 13 years, to December 31, 2030. This will provide $1.326 billion. 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 percent to one percent. 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.

SB4 now crosses over to the House for their consideration.

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

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