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Honolulu Mayor Plans 3 Tax Hikes To Cover Future Rail Costs

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The mayor of Honolulu has proposed a trio of tax increases to cover costs of a forthcoming rail line, a report said.

The budget by Mayor Kirk Caldwell includes tax hikes designed in part to cover the city's rail operations and maintenance, The Honolulu Star-Advertiser reported Monday.

The increases in property taxes on hotels and the most expensive O?ahu homes, as well as a new rubbish pickup fee, will take effect in the budget year beginning July 1 if approved by the Honolulu City Council, according to the Democratic mayor.

The Honolulu Authority for Rapid Transportation estimates costs of $127 million to $144 million a year once the entire 20-mile (32-kilometer) train line opens. The authority plans a partial opening of 11 miles (18 kilometers) of the rail line in December 2020.

If the proposed tax increases pass, the city general fund that will provide the rail subsidy "will be healthy and, I think, sufficient to cover those costs," Caldwell said.

The city also needs the extra tax dollars for other city costs including bus operations and trash pickup and disposal, he said.

Councilwoman Heidi Tsuneyoshi does not expect the refuse fee will pass and said she is surprised the mayor is citing rail operations as a justification.

"That still doesn't answer the basic concerns as far as what is that actual cost that they're looking at," she said.

The City Council is taking up budget proposals today in a special meeting, which is being streamed on ?Olelo Channel 54.

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