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is being provided, and the County could charge a fee for that if the money is being used for the <br />processing and disposal of waste. Tentatively, without looking into it further, taxing a product <br />that is being purchased is the power of the State. <br />Director Mansour asked if we could put a user fee on the real property tax bill. <br />Counsel SalasFerguson, describing a typical budget process,said the Administration would <br />request a certain amount of money to properly dispose of waste, and you put that forward to <br />the budget. That’s the regular process. The Department says, we need this amount of money, <br />and does the real property tax revenue cover that? If it doesn’t, they will have to raise the tax a <br />little bit. That’s the process that funds your department, he said. <br /> <br />Director Mansour said he was wondering from a legal point of view. Because in different states <br />they allow assessment fees to be tacked to the property tax bill, not as a tax , but as a user fee. <br />In California you go through a Proposition 218 process, and for collection purposes, it’s easier <br />to collect a property tax rather than to send a bill to all the homes. But from a legal point of <br />view in Hawaii, he didn’t know. He had asked Deputy Corporation Counsel Diana Mellon-Lacey <br />to see if we could assess a fee on the property tax bill for solid waste or wastewater services. <br /> <br />Counsel SalasFerguson said that is an interesting question. Counsel Mellon-Lacey would need to <br />look into that deeper for him. But for real property tax, we just adjust it higher or lower <br />depending on the needs of the County. So that would be the time, during the budget process, <br />when the department says, I need this amount of money to properly dispose of my waste, and <br />then the Council either approves the money or it doesn’t. <br /> <br />Director Mansour said our goal is to not make it a tax, because that’s misleading. It’s a service. <br />A service is not a tax. And he was trying to make a distinction on this by attaching a service fee <br />from a same property tax bill. <br /> <br />Commissioner Cardwell said the issue with it being treated as a tax is that it becomes an <br />invisible cost, and people are not associating the amount of trash they are producing with <br />having to pay for it. But with the PAYT program, people pay for the amount of trash they are <br />producing, which then could potentially incent them to produce less trash. That’s the incentive <br />behind the PAYT program. There is a direct correlation between the amount of trash a person is <br />producing and what that person is having to pay for it. That is a smarter way of doing it, as <br />opposed to having this hidden cost attached to property tax. We are losing the potential <br />incentive possibility. <br /> <br />Commissioner Robinson said the Director’s idea was really creative, but she was concerned <br />there would be pushback on the difference between someone who owns a single home with <br />two people in it, versus 10. And obviously the household with more people will have more <br />waste. So there will be an unequal perspective on having a user fee based on the real property <br />tax value. But the Director also mentioned something about putting this on the developers of <br />new subdivisions. Can you talk a little bit more about that, she asked. <br />16 <br /> <br /> <br />