Reso 11-91
4
CITY COUNCIL CI TYAND COUNTY OF HONOLULU N o 1 1 91 HONOLULU, HAWAII RESOLUTION URGING THE HAWAII STATE LEGISLATURE TO PROVIDE T HE CITY AND COUNTY OF HONOLULU A LL PROCEEDS OF T H E COUNTY SURCHARGE ON STATE EXCISE T A X N O T NEEDED TO ADMINISTER T HE SURCHARGE. WHEREAS, th e Council enacted Ordinance 05-027, establishing a one-half percent surcharge o n the state generalexcise a n d u s e ta x (hereinafter “county surcharge”) to fund a mass transit project pursuant to A c t 247, Session Laws of Hawaii (hereinafter “SLH”) 2005 (hereinafter “Act 247”), th e proceeds of which a re collected b y th e State; a n d WHEREAS, Act 247 provides that th e State shall deduct te n percent of th e gross proceeds of a respective county’s surcharge to reimburse th e State fo r th e costs of assessment, collection, a n d disposition of the county surcharge incurred b y th e State; a n d WHEREAS, th e City began receiving county surcharge proceeds in Fiscal Year 2007; and WHEREAS, according to a department of taxation report, the State collected $187,903,947 of county surcharge proceeds fo r fiscal year 2008 a n d retained $18,790,395 of that amount a s i ts reimbursement fo r the costs of assessment, collection, and disposition of th e county surcharge; and WHEREAS, according to th e department of taxation figures fo r th e fiscal year 2009, the State collected approximately $178,729,000 of county surcharge proceeds a n d retained ten percent of those proceeds; a n d WHEREAS, the most recent department of taxation annual report required b y Ac t 213, S LH 2007, details th e level of staffing and funding necessary to administer county surchargecollections, identified 23 positions costing $749,876 fo r fiscal year 2008 a n d 2 0 positions costing $700,508 for fiscal year 2009 that support the collection of th e surcharge; a n d WHEREAS, based o n th e above, the amounts being retained by th e State each year are grossly in excess of th e funding needed to collect the surcharge, amounting to between $ 1 7 million to $18 million in unwarranted payments in the most recent years fo r which data o n th e county surcharge a re available; a n d OCS/022511/12:45/HM 1
-
Upload
star-advertiser-politics -
Category
Documents
-
view
222 -
download
0
Transcript of Reso 11-91
8/7/2019 Reso 11-91
http://slidepdf.com/reader/full/reso-11-91 1/3
CITY COUNCILCITYAND COUNTY OF HONOLULU No 1 1 9 1
HONOLULU , HAWAI I
RESOLUTION
URGING THE HAWAII STATE LEG ISLATURE TO PROV IDE THE C ITY AND COUNTYOF HONOLULU ALL PROCEEDS OF THE COUNTY SURCHARGE ON STATEEXCISE TAX NOT NEEDED TO ADMINISTER THE SURCHARGE.
WHEREAS, th e Counci l enacted Ordinance 05-027, establishing a one-hal fpercent surcharge on the s ta te genera l exc ise and use ta x (hereinafter “countysurcharge”) to fund a mass t ransit p ro jec t pu rsuan t to Act 247, Session Laws of Hawaii(hereinafter “SLH”) 2005 (hereinafter “Act 247”) , th e proceeds of which are collected byth e State; and
WHEREAS, Act 247 p ro vides that the State shall deduct ten percent of th e grossproceeds of a respect ive coun ty ’s su rcharge to reimburse th e State fo r th e co sts o fassessment , collection, and disposit ion o f th e c ounty surcharge incurred by th e State;and
WHEREAS, th e City began receiving county surcharge proceeds in Fiscal Year2007; and
WHEREAS, acco rd ing to a depar tment of taxation r epo rt, the S ta te collected$187,903,947 of county surcharge proceeds fo r f iscal year 2008 and retained$18,790,395 of that amoun t as i t s re imbursement fo r th e c os ts of assessment ,
co llect ion, and disposit ionofth e county surcharge ; and
WHEREAS, accord ing to th e depar tment of taxation f igures fo r th e fiscal year2009, th e S ta te colle cted approximately $178,729,000 of county surcharge proceedsand re ta ined ten percent of those proceeds; and
WHEREAS, th e m o st re ce nt depar tment of taxation annual report required by Ac t213, SLH 2007, details th e level of staffing and funding necessary to adminis ter countysurcharge col lec t ions, identified 23 posit ions costing $749,876 fo r f iscal year 2008 and20 posit ions costing $700,508 fo r f isca l year 2009 that suppor t the co llec tion of th esurcharge; and
WHEREAS, based on th e above, th e amoun ts b ein g re ta ined by th e State eachyear are gross ly in excess of th e funding needed to col lect th e surcha rge, amounting tobetween $17 mil l ion to $18 mill ion in unwarranted payments in th e m o st re ce nt years fo rwh ic h data on th e county surcharge are available; and
OCS/02251 1/12:45/HM 1
8/7/2019 Reso 11-91
http://slidepdf.com/reader/full/reso-11-91 2/3
CITY COUNCILCITYAND COUNTY OF HONOLULU No 1 1 9 1
HONOLULU , HAWAI I
RESOLUTION
WHEREAS , th e Counci l f inds it unconscionable that th e S ta te annual ly keepsmillions of dollars of county surcharge proceeds to reimburse itself fo r costs related toadminister ing th e surcharge which are fa r less than th e te n percent re ta ined by th eState; and
WHEREAS , the Counci l further finds that retention by th e S ta te of millions o ftaxpayer dolla rs in tended to fund a mass transit system but no t used fo r th e transitsystem undermines th e justif ication fo r es tab lish ing the coun ty surcharge and weakensthe c it y’s ability to imp lement a successful mass t ransit system; and
WHEREAS , the Counci l further finds that the re ten tion of th e ten percent of
county proceeds is simply a way fo r th e S ta te Leg is la tu re to deal with the S ta te ’sfinancia l p rob lems without th e Legislature assuming th e responsibil i ty of ra is ing taxes orcutting government services, or bo th , to do so ; now, therefore,
BE IT RESOLVED b y th e Counci l of th e City and Coun ty of Hono lu lu tha t it urgesth e Hawai i State Legislature to immedia te ly amend State la w to re du ce th e amoun t ofth e county surcharge retained by th e S ta te to more c lose ly approx im a te th e cost o fco llec ting and disbursing th e county surcha rge ; and
BE IT FURTHER RESOLVED that in o rde r to determine th e amoun t needed, theLegislature is requested to p ro vide that th e cost of administer ing th e surcharge be
sub jec t to verifica tion by independent audit; and
2
8/7/2019 Reso 11-91
http://slidepdf.com/reader/full/reso-11-91 3/3
CITY COUNCILCITY AND COUNTY OF HONOLULU
HONOLULU, HAWAII
RESOLUTION
No. 1 1 — 9 1
BE IT F INALLY RESOLVED that copies of t h is Reso lu tion be t ransmit ted to a llmembers of th e Hawai i State Legislature, th e Governor , th e Mayor, th e ManagingDirec to r, and th e Director of th e Depar tment of Budget a nd Fiscal Services.
INTRODUCED BY:
M A R 2 3 2 0 1 1Honolulu, Hawaii Councilmembers
DATE OF INTRODUCTION:
3
