Faced with a $1.2 billion shortfall in Hawaii's state budget, Gov. Linda Lingle proposed taking approximately $100 million in hotel room taxes from Hawaii's four counties in each of the next three fiscal years.
According to an Associated Press report, Honolulu County stands to lose the most hotel room tax revenue, giving up $44.5 million per fiscal year. Maui County would lose nearly $23 million, Hawaii County would forfeit $18.6 million and Kauai County would give up $14.5 million.
Honolulu County Managing Director Kirk Coldwell said the governor’s proposed budget plan would place a heavy burden on county services.
"It's very unfair, because the counties provide so many of the services for our tourism," Coldwell said in a Hawaii News Now TV report. "You have police, fire, lifeguards and all the infrastructure servicing all these tourist destinations."
Last spring, the Hawaii Legislature voted to increase its statewide hotel room tax from 7.25% per day to 8.25% beginning July 1. The rate will rise again in July, to 9.25%.
