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Hawaii governor proposes using hotel taxes for state budget

December 30, 2009

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%.

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#2January 08, 2010
They need to use this money to fund education and get the children back into classrooms everyday! It's the children of Hawaii that suffer and the educators by having Furlough Fridays!
#1December 31, 2009
It's hard to blame Governor Lingle for the mess that Hawaii is in today; the parallels between her state and California are obvious. Liberal politicians will always set their budgets based on the best year's tax receipts, and then raise taxes, borrow more, and steal from the counties to make up the difference when inevitably tax receipts fall. Thus begins the downward spiral and no one knows where the bottom is. I would feel sorry for Hawaiians but wait, I live in a state that's just as bad. We can rightfully blame the politicians of course, this is their doing after all, but in doing so we are also blaming ourselves, because we voted them in. Rick Garrett/Travel Pacific/Aptos, CA

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