Priced out of paradise
Ed Case Reintroduces Helicopter Noise Bill
Five bills of importance to small business
Average of 259,514 visitors in Hawaii every day
‘Audacious’ tax relief plan advances at Hawaii Legislature
SA: … Several bills that would cut household taxes in Hawaii are advancing at the Legislature, including one promising to save a family of four around $2,000 or more in 2024 and beyond.
The biggest proposed savings are in a bill from Gov. Josh Green that would boost all Hawaii income tax bracket thresholds and increase the standard deduction along with the personal exemption.
The measure, House Bill 1049, also would increase a tax credit for low-income renters, the earned income tax credit, the food excise tax credit and a child and dependent care credit, while also creating a new maximum $500 credit for many public and private school teachers who spend their own money on school supplies.
Another bill from Green, HB 1050, would exempt the state general excise tax from most grocery food purchases, excluding alcohol and hot prepared food, and for over-the-counter drugs and feminine hygiene and incontinence products….
The cost of tax relief under HB 1049 is estimated by the state Department of Taxation to be $313 million in the next fiscal year, and would grow annually by around $20 million to reach $417 million in fiscal year 2029, according to testimony submitted by the state Department of Budget and Finance.
Revenue lost from general excise tax exemptions proposed in HB 1050 is estimated to be $245 million in fiscal year 2025….
The nonprofit Grassroot Institute of Hawaii said in written testimony that HB 1049 would effectuate one of the largest tax reduction proposals in state history.
“We applaud the governor for introducing such a bold plan and thank the Legislature for considering this important proposal, especially considering how skyrocketing inflation on top of Hawaii’s already high cost of living has made it hard for low-income and working-class families to afford basic necessities such as food, rent and medical care,” said Ted Kefalas, the organization’s director of strategic campaigns….
There are also at least a couple of other bills that have advanced at the Legislature and propose tax relief limited to pieces of what Green has proposed.
One, HB 954, contemplates increasing the value of Hawaii’s earned income tax credit, which reduces the tax burden of low- to moderate-income taxpayers and can provide a tax refund to those with little to no tax liability.
Another measure, HB 493, would amend income tax brackets and increase the value for Hawaii’s refundable food excise tax credit.
These two bills passed the House Economic Development Committee but have not yet been heard by the House Finance Committee….
read … ‘Audacious’ tax relief plan advances at Hawaii Legislature
Gov. Green puts cost of new Aloha Stadium at ‘under $500M’, LOL!
SA: … A new Aloha Stadium surrounded by housing and an entertainment district can now be had for “under $500 million,” Gov. Josh Green said Monday.
Previous costs were estimated as high as $440 million.
Green appeared on the Honolulu Star-Advertiser’s “Spotlight Hawaii” livestream program where he initially estimated that a new Aloha Stadium could cost $400 million to $450 million. He then adjusted the estimates to “under $500 million” for an Aloha Stadium that could be used by children, high school students and concertgoers and possibly attract international rugby and “U.S. soccer.”
Green said taxpayers should not bear additional costs and suggested that corporate naming rights on a new stadium could help offset the price tag….
Green suggested that the future of Aloha Stadium is connected to the Senate confirmations of some of his other Cabinet nominees, including Chris Sadayasu to run the state Department of Business, Economic Development and Tourism; and Keith Regan, comptroller for the Department of Accounting and General Services.
DBEDT is already playing a key role in the future of Aloha Stadium, and “I can’t build a stadium if I don’t have a DAGS director and if I don’t have a land use group and if I don’t have the people in place on housing,” Green said.
The future of Aloha Stadium — whether it remains a stand-alone stadium or combination of housing and entertainment district — depends on efforts by Green’s administration to find a united vision over the next 30 to 45 days to find a compromise between the state House and Senate.
Either approach works for Green, who said, “Our team did inherit kind of an impasse between the House and Senate.”
A housing component also will rely on cooperation from the military for housing and infrastructure from the nearby Joint Base Pearl Harbor-Hickam….
In addition to the stadium, Green mentioned that the state will work with the military on the future of Red Hill; the leak of diesel fuel at the Space Force’s Maui Space Surveillance Complex at the summit of Haleakala; the military’s role in housing; and negotiations on upcoming military land leases, which he promised will be transparent.
“All these things are tied together,” he said. “All this stuff is connected.”
The military, he said, needs to be “a much better partner on the infrastructure needs of our state. … What you’re seeing is a larger discussion about how the military coexists in Hawaii.”…
read … Gov. Green puts cost of new Aloha Stadium at ‘under $500M’
Senate Committee Passes Honolulu Rail Tax Extension--Dela Cruz Claims it is a ‘Mistake’
CB: … Ways and Means Chairman Donovan Dela Cruz said he intends to reconsider the decision and kill the bill….
A bill that would allow Honolulu to extend the excise tax surcharge for rail to raise more money for the cash-strapped project was approved Monday in the powerful Senate Ways and Means Committee.
But barely an hour later, Sen. Donovan Dela Cruz said in an interview that the handling of Senate Bill 176 was an “oversight.” He said he planned to hold a new hearing to reconsider the committee’s vote and defer the bill, effectively killing it for this year.
Most of the funding for the rail project comes from an excise tax surcharge of one-half of 1% that is levied on Oahu residents and visitors. That excise tax surcharge raises about $300 million per year, and surcharge receipts are projected to total nearly $6.4 billion to fund rail construction.
The tax surcharge is scheduled to expire in 2030, but rail supporters have argued for years the Legislature should make the half-percent excise surcharge permanent. That would provide more money to build the rail project, and provide cash to cover the operating costs of the system.
For a few minutes on Monday it appeared those rail supporters were getting their wish — or something close to it — when Dela Cruz proposed that SB 176 be passed with amendments.
The committee voted 13-0 with almost no discussion to allow Honolulu and the other counties to extend the tax surcharge, a surprisingly relaxed handling of a politically supercharged issue that has bedeviled lawmakers for years.
The bill would scale back the excise surcharge from 0.5% to 0.25%, but would allow the reduced surcharge to continue beyond 2030.
read … Senate Committee Mistakenly Passes Honolulu Rail Tax Extension
Hawaii's state population is expected to continue its steady decline
KITV: … The state's chief economist said Hawaii's population has decreased for the past seven years with 15,000 people moving away in 2022.
According to the U.S. Census Bureau, on average almost 20 people left the state every day last year.
A new survey from Forbes shows the top five states residents are moving to are California with almost 12,000 making the move last year. This is followed by Texas, Washington state, Arizona, and Florida….
President of the Grassroot Institute, Keli'i Akina, Ph.D. said half of native Hawaiians do not live in the islands because of cost of housing.
"one of the major reasons it costs so much is because we have a high amount of regulation that prevents the building supply of housing that we need so there’s a huge shortage. Unfortunately, there are hoops developers have to jump through," said Akina, Ph.D….
State economist, Eugene Tian said the reason some people move is Hawaii's economy is moving at a slower rate than the continent.
"Hawaii’s cost of living has been increasing especially since we experienced an increase in housing prices in 2022," said Tian.
He added the continent has bounced back from the pandemic while the islands are still struggling, and that Hawaii will continue to see declines in population….
read … Hawaii's state population is expected to continue its steady decline
Who Pockets Hawaii Visitors’ Money May Surprise You
BH: … Most of the money spent in Hawaii doesn’t stay in Hawaii. For the large part, it ends up feathering the pockets of big companies with little to some Hawaii connection….
When it comes to Hawaii accommodations, corporate hotels return far less to the local economy than do locally owned ones….
Locally owned hotels and vacation rentals retained more than 90% within the local economy. However, we must point out that non-residents own most Hawaii vacation rentals….
Locally owned hotels and vacation rentals retained more than 90% within the local economy. However, we must point out that non-residents own most Hawaii vacation rentals….
When you stay at a vacation rental, chances are some money remains in Hawaii, depending on the circumstances. If you rent from publicly traded, troubled Vacasa, that isn’t the case, while if you rent from a local management company or a Hawaii-based owner directly, far more of the money stays here. Also, remember that there is a money split between the property owner and the vacation rental management company, and many, if not most, vacation rental homeowners aren’t based in Hawaii. More than three out of four Hawaii vacation rentals are believed to be owned outside Hawaii….
Some restaurants, even chain ones, are locally owned. But that’s not always the case. One example is Roy’s restaurants, which are Hawaii-owned.
And speaking of food, most of the food sold and consumed in Hawaii is not produced here.
Grocery stores are generally unclear in terms of ownership. While there’s no doubt about that when you go to a Hawaii Safeway, local stores are more confusing. Hawaii’s Times Markets, for example, is owned by Tokyo-based Don Quijote Holdings Co., Ltd. Foodland grocery stores, on the other hand, as well as KTA Super Stores, are Hawaii-based company and always have been. ABC Stores are Hawaii owned….
even Hawaiian Airlines is a registered Delaware corporation, not a Hawaii one. And their telephone call center is outsourced to the Philippines.
read … Who Pockets Hawaii Visitors’ Money May Surprise You
Early Release Story: Lunatic Kills Vagrant Outside Police Station, City Gets Sued
HNN: …The estate of a woman who was brutally beaten to death at a bus stop just outside the Kapolei Police station has filed a wrongful death suit against the city.
The suit alleges that police released suspect Michael Armstrong even though he had a violent history.
The lawsuit also claims police did nothing to protect the victim when she was attacked.
“They knew that this man Michael Armstrong was a psychiatric time bomb. He’d already engaged in an assault and they were going to charge him with felonies,” said Eric Seitz, the attorney for victim Linda Johnson’s estate.
“There were several people who saw and heard (the attack). A couple of people tried to alert the police inside, they did not react to do anything.”
The day before he allegedly attacked Johnson, Armstrong was arrested at a Mililani halfway house for attacking a police officer. Armstrong has past arrests for theft and burglary, but was acquitted by reason of insanity.
In 2006, he was convicted on weapons charges and served 90 days in prison….
SA: City sued over beating death of woman outside Kapolei Police Station
read … ‘They did not react’: City sued for woman’s brutal killing outside police station
HB1366: Another Trick to Keep Lots and Lots of Criminals on our Streets
KHON: … HB1366 introduced by Representative Sonny Ganaden would allow for law enforcement officers discretion, to issue citations instead of making an arrest for misdemeanor and petty misdemeanor offenses….
read … Citations vs. arrests: Bill pushes for pretrial reform
Hawaiian Airlines’ COVID vaccine mandate challenge set for trial
SA: … Eight current and former Hawaiian Airlines employees suing the company for allegedly violating their right to refuse the COVID-19 vaccine for medical or religious reasons were given a trial date Tuesday and asked to organize with related cases making similar claims.
There are 12 total civil actions, involving 15 active and former workers, pending against the airline.
On Tuesday, U.S. Magistrate Judge Rom A. Trader urged the parties to collaborate on their efforts to resolve the matter. A trial for a civil action filed Dec. 22 is set for June 3, 2024, at 9 a.m. before U.S. District Judge Jill A. Otake….
read … Hawaiian Airlines’ COVID vaccine mandate challenge set for trial
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