The City Administration is fast tracking the fixed rail project by holding heavily decked public hearings on possible routings for the thing. The City Council is to make a decision on which transit alternative will be chosen for Honolulu. The hand is heavily in favor of rail, all cost estimates not-withstanding.

Opponents like myself to the rail and tax scheme continue to lobby against the project by supporting new legislation like Bill 83 proposed by Councilman Charles Djou to delay the implementation of the tax. Ultimately the defeat of the rail project is the goal.

To finance Honolulu's rail project the massive 12.5% increase to the GET will be the first of several new financial burdens placed upon the taxpayers of Honolulu and the state. Further tax increases are sure to follow if rail is approved.

I have been an opponent of this tax increase and of the fixed rail transit option. I voted against the GE tax increase bill (HB 1309 / Act 247) in the 2005 legislature. The Governor let the bill become law without her signature with the "promise" that the City & County of Honolulu would administer and collect the increased portion of the tax. The city later balked at the idea and now the State Dept. of Taxation has the added task of collecting the extra tax. A webpage has been set up with information pertaining to the new tax:

http://www.hawaii.gov/tax/surcharge

Those who have to pay the added tax include all businesses and landlords doing any transactions on the island of Oahu. Neighbor island and out-of-state businesses that deliver goods or services to Oahu and have a physical presence on Oahu will be subjected to the additional tax. Neighbor island landlords who have a physical presence on Oahu are also subjected to the additional tax.

Consumers only have a few weeks to close deals new property, buy a new car, computer, HDTV set or wardrobe under the current 4.16% rate. Now is the time to stock up on essentials such as non-perishable food, supplies, paper towels, canned drinks, bottled water (the latter 2 already subjected to the bottle tax in addition to GET), batteries or anything else. Do it all before January 1 because after that nearly everything consumed on this island is going to be taxed at the higher rate. Lucky you live Hawaii!

For more information on the new tax, call the State Dept. of Taxation at 587-4242 or at their website at hawaii.gov/tax.