STATE LEGISLATORS PASS A BILL TO AUTHORIZE COUNTY COUNCILS TO RAISE THE GENERAL EXCISE TAX 12.5 PERCENT
Updated May 16, 2005

The Tax Foundation of Hawaii estimates that such an increase would add another $450 to the general excise tax burden of a family of four, which is already paying nearly $3,600 a year in GET alone. If this proposal passes on the county level, a family of four will be shelling out an annual total of about $4,000 as they struggle to make ends meet.

An increase in the general excise tax will add to the already skyrocketing cost of living and cost of housing in Hawaii. Most importantly, it is a regressive tax that hits hardest those who can least afford to pay it.

For example, if landlords can pass on the proposed tax increase, tenants will suffer increased rents in an already tight, high-cost rental market. On the other hand, from a business standpoint, if residential landlords cannot pass on the proposed tax increase to tenants, they will have to absorb it and suffer reduced cash flows, which will serve as a deterrent to maintaining or increasing the supply of affordable rentals.

General Excise Tax Information Handout

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HB 1309 Conference Committee Report

HB 1309 Conference Committee Draft