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EXHIBIT B <br />JUSTIFICATION SHEET <br />PROPOSER: Hawai`i State Association of Counties <br />TITLE: RELATING TO INCREASED GALLONAGE TAX ON LIQUOR. <br />PURPOSE: To increase gallonage tax on liquor by 30 %, collect and transfer this <br />additional revenue to the respective counties, and partially reimburse <br />counties for cost of handling crashes and crash fatalities involving driving <br />under the influence of an intoxicant. <br />MEANS: Amend HRS Chapter 244D -4 to increase the gallonage tax on liquor by <br />30 %. <br />JUSTIFICATION: The high rate of crashes and crash fatalities involving driving under the <br />influence of an intoxicant (alcohol), and the cost of resolving the crash and <br />fatalities falls on the counties which justifies an increase in gallonage tax <br />for liquor. Gallonage tax on liquor has not increased since 1998 while the <br />Consumer Price Index has increased more than 35% in the same period of <br />time. Resolving the crash involves police, fire, EMS, traffic division to <br />clear the wreckage, and prosecution of the case in each county. These <br />costs could be partially covered by an increase in gallonage tax for liquor. <br />6 <br />