Tuesday, April 16, 2024
Hawai'i Free Press

Current Articles | Archives

Sunday, April 17, 2011
How They Voted: House approves Pension Tax and GE Tax Hikes
By Andrew Walden @ 9:19 PM :: 7290 Views :: Taxes

by Andrew Walden

In the Hawaii State House, Tax Day was April 12.  On that day, legislators voted up several key tax increases approved earlier by the Senate and forwarded them to the House-Senate Conference Committees which will be meeting behind closed doors for the next two weeks. 

The Conference Committees will rewrite these proposals and then send them back to the full House and Senate for straight up or down votes. 

A Conference Committee could change the income cutoff of the Pension Tax SB570 down from $100,000 per year back to Abercrombie’s original $37,500 cut off or an intermediate figure. 

Another Conference Committee also could reinstate the 1% GE Tax hike proposal to SB754 or add more categories to which the GE Tax will now be applied.

The Conference Committees do not accept public testimony.  The bills they report back to the full House and Senate cannot be amended, only voted up or down.

But that doesn’t mean that Legislators cannot be influenced.  Be prepared for a two-week barrage of odd articles from the Star-Advertiser.  Much of their government-related coverage will consist of an effort to shape debate in the Conference Committee meetings.  For instance today’s Star-Advertiser included the following:

And no, that last article is not satire.  The Star-Advertiser is straight-facedly claiming that Hawaii government employees violate their union contracts and work late into the night without pay.  The ability to write such a thing without cracking up and rolling on the floor in fits of uncontrollable laughter is why editors and reporters at the Star-Advertiser make the Big Bucks. 

Meanwhile, voters should take note of which representatives voted to raise taxes.  Save this list for Election Day November 6, 2012:

  *   *   *   *   *


Report Title: Taxation; Pension; Deductions; Personal Exemption
Description: Provides for the taxation of certain pension incomes. Eliminates the deduction for state taxes paid for taxpayers with income above specified thresholds. Places temporary limitations on claims for itemized tax deductions. Delays the standard deduction and personal exemption increases approved under Act 60, SLH 2009, while also making those increases permanent. Effective July 1, 2011. (SB570 HD1)

Passed Third Reading In Senate 3-8-11, as amended (SD 2--without the pension tax language):

  • Ayes, 24; Aye(s) with reservations: none .
  • Noes, 1 (Senator(s) Slom).

Passed Third Reading in House 4-12-11 with the pension tax language inserted:

  • Ayes, 28; Representative(s) Har, Ichiyama, McKelvey voting aye with reservations;
  • Representative(s) Belatti, Brower, Carroll, Ching, Cullen, Fontaine, Hanohano, Hashem, Johanson, Keith-Agaran, C. Lee, Luke, Marumoto, Morikawa, Nakashima, Nishimoto, Pine, Riviere, Saiki, Takai, Thielen, Ward, Wooley voting no (23)

  *   *   *   *   *

GE Tax Hikes by removing Exemptions

Report Title: General Excise and Use Taxes; Temporary Suspension; Exemption for Certain Persons and Gross Amounts
Description: Suspends temporarily the exemptions for certain persons and certain amounts of gross income or proceeds from the general excise and use tax and requires the payment of both taxes at a four per cent rate. Effective July 1, 2011, and sunsets on June 30, 2013. (SB754 HD1)

Passed Third Reading in Senate 3-8-11, as amended (SD 1).

  • Ayes, 24; Aye(s) with reservations: none .
  • Noes, 0 (none).
  • Excused, 1 (Shimabukuro).

(Note: Sen Sam Slom opposes this measure, but by voting for it has won the right to serve on the Conference Committee which is responsible to hash out the differences between this bill and the House Bill.)

Passed Third Reading in House 4-12-11 with

  • Ayes, 44; Representative(s) Cullen, Hanohano, Marumoto, Morikawa, Riviere, Souki voting aye with reservations;
  • Representative(s) Brower, Ching, Fontaine, Johanson, Pine, Thielen, Ward voting no (7) and
  • none excused (0).

  *   *   *   *   *

Internet GE Tax

Report Title: GET; Out-of-State Business; In-State Business; Nexus Standard
Description: Creates a nexus standard for taxing out-of-state businesses on their business activities in Hawaii. Includes local affiliate agreements under the General Excise Tax (GET). Allows out-of-state and in-state businesses to file information regarding sales to residents of the State instead of collecting GET. Effective July 1, 2011. (SB1355 HD2)

Passed Third Reading in Senate 3-8-11 as amended (SD 1).

  • Ayes, 24; Aye(s) with reservations: none .
  • Noes, 1 (Senator(s) Slom).
  • Excused, 0 (none).

Passed Third Reading in House 4-12-11 as amended in HD 2 with

  • Ayes, 35; Representative(s) Hanohano, Jordan, C. Lee, Morikawa voting aye with reservations;
  • Representative(s) Belatti, Brower, Ching, Cullen, Fontaine, Johanson, Luke, Marumoto, Nishimoto, Pine, Riviere, Takai, Takumi, Thielen, Ward, Yamane voting no (16) and
  • none excused (0).

  *   *   *   *   *


Report Title: Conveyance Tax Exemption; Low-income Housing Development
Description: Repeals conveyance tax exemption for low-income housing projects certified by the Hawaii Housing Finance and Development Corporation. Effective July 1, 2011. (SB1241 HD1)

Passed Third Reading in Senate 3-8-11, as amended (SD 1).

  • Ayes, 25; Aye(s) with reservations: none.
  • Noes, 0 (none).
  • Excused, 0 (none).

Passed Third Reading in House 4-12-11 as amended in HD 1 with

  • Ayes, 51; Representative(s) Fontaine, Johanson, Marumoto, Pine, Souki voting aye with reservations;
  • none voting no (0) and
  • none excused (0).

  *   *   *   *   *


Motor Vehicle; Weight Tax; State Highway Fund; Operations; Maintenance

Allows for increase in the State motor vehicle weight tax and deposits the money into the State Highway Fund (which the Legislature keeps raiding.) (SB1329 HD2)

Passed Third Reading in Senate 3-8-11 with 24 ayes,

  • Aye(s) with reservations: Senator(s) Dela Cruz, Espero, Kidani, Kim, Ryan, Wakai.
  • Noes, 1 (Senator(s) Slom).
  • Excused, 0 (none).

Passed Third Reading in House 4-12-11 with 39 ayes,

  • Representative(s) Cullen, Yamane voting aye with reservations;
  • Representative(s) Belatti, Fontaine, Johanson, C. Lee, Marumoto, Morikawa, Pine, Takai, Thielen, Ward, Wooley voting no (11) and
  • none excused (0).

  *   *   *   *   *

Marumoto: Pension Tax is a foot in the door towards taxing moderate, low income Pensioners

VIDEO: House GOP speaks up on Pension Tax, GE Tax, Internet Tax, Fees, and Special Funds


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute


Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui


Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii


National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport


OHA Lies

Opt Out Today


Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii



Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii


Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu


West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii