Tax boost, lack of bus plan concern 2 Kauai Council members

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Kauai

LIHUE >> Two Kauai County Council members have concerns about the proposed budget for fiscal year 2017-18.

For Councilwoman JoAnn Yukimura it’s the lack of plans to expand The Kauai Bus.

“We could do one expansion right now, even without completing the Short-Range Transportation Plan, and it’s really needed — increasing the frequency of the bus on weekends and holidays,” she said.

Mel Rapozo, Council chairman, said he’s not happy to see a proposal to raise real property taxes.

“I have always been a strong opponent of raising taxes and fees unless it is a last resort,” he said.

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On Thursday, Mayor Bernard Carvalho highlighted some of the main objectives of the operating and capital improvement budgets for FY 2017-18.

Included in the $204 million budget is an increase in real property taxes, which will generate an additional $3.6 million in revenue.

The proposed increase is necessary to generate funds for road repair and maintenance projects, Carvalho said.

Rapozo said it is unfortunate that the state’s decision to continue to cap the counties’ share of the transient accommodations tax has forced the mayor to propose an increase in property taxes.

“As I have stated for quite some time, if the TAT cap is not removed, the county may find itself needing to raise revenues through taxes and fees,” he said.

While Rapozo said he is sure the Council will be able to identify reductions in the proposed budget, the fact is that capping TAT money will have some consequences for the people of Kauai.

In 2014 the state capped the counties’ allocation of TAT revenue at $103 million. A year later the Legislature passed a measure that would allow the counties to increase the general excise tax as a way to generate revenue.

“I still maintain that counties should be provided our fair share of Transient Accommodations Tax — or TAT revenues, which support critical needs such as parks and public safety operations, including police, fire and emergency management services — which consumes 60 percent of our operating budget in the general fund,” the mayor said.