02-16-2017, 03:40 AM
http://www.hawaiitribune-herald.com/news...s-advances
State thinks income taxes are too high, and need to be lowered, which shortfall can be made up by keeping the "neighbor islands' share" of the TAT revenue, justified by the "many services" State provides.
Counties can obviously make up the difference by raising the property tax (which is already 70% of their revenue).
I agree that some "reform" is necessary, but really think the changes need to be about giving the counties more taxation authority. Example: why does a Big Island visitor pay TAT to the State? TAT should really stay on the island where it is collected, with counties able to set their own rate as they see fit...
State thinks income taxes are too high, and need to be lowered, which shortfall can be made up by keeping the "neighbor islands' share" of the TAT revenue, justified by the "many services" State provides.
Counties can obviously make up the difference by raising the property tax (which is already 70% of their revenue).
I agree that some "reform" is necessary, but really think the changes need to be about giving the counties more taxation authority. Example: why does a Big Island visitor pay TAT to the State? TAT should really stay on the island where it is collected, with counties able to set their own rate as they see fit...