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Home My WebLink AboutCOM 0589.000 2002-2004JAMES Y. ARAKAKI Chairman & Presiding OJfeer April 7, 2004 MEMORANDUM TO: Council Members FROM: James Y. Arakaki, SUBJECT: Ordinance to Amer Hawaii County COUNTY COUNCIL County of Hau'ai'/ //,nsan't County Nuildu/g 25 ,l upuei Sireel Hilo. /hoi ai'i 9h-20 Phone: (808) 961-8272 VAX: (808) 961-8912 of the Weight Tax for Vehicles Registered in Attached please find a bill to amend Chapter 24, Article 4, Section 24-17 of the Hawai'i County Code, relating to vehicles and traffic. The intent of this ordinance is to provide dedicated revenues to fund ongoing maintenance, resurfacing and paving of roads in the County. This ordinance will raise the annual weight tax rate for passenger vehicles by % cent per pound. It will raise the rate for trucks, truck -tractors, road tractors, trailers and semi -trailers weighing 6,500 lbs. or more by I cent. These increases would establish our county weight tax rate at .0075 (3/4 cent per Ib.) for passenger vehicles and .02 (2 cents per lb.) for heavier commercial vehicles. Such increases, if adopted, would still leave Hawai'i County imposing the lowest motor vehicle weight tax rates for net vehicle weight among the four counties, as shown below: City & County of Honolulu Maui Countv Kauai County Hawaii County (Proposed) (I) Passenger Vehicles $.02/16 $.0125/16 $.0125/16 $.0075/16. (2) Trucks or Noncommercial Vehicles $.025/16 $.0125/Ib $.0125/16 $.0075/16 (3) Trucks or Commercial Vehicles $.025/16 $.02/16 $.025/Ib $.02/Ib In proposing these very modest increases for vehicle weight tax computation, I wish to address the needs of our Highways Division to "keep up" with necessary road repairs and resurfacing. Based upon our current motor vehicle weight tax collections, it is estimated that the proposed increases will generate $2,025,634 in additional annual revenue for the work of the Highways Division. Please note that the effective date for this ordinance (January 1, 2005) is tied to the annual schedule for such tax collections as billed by the Department of Finance. Accordingly, the net proceeds of such a tax increase for the 2004-05 fiscal year would be approximately $1,000,000. Attached please see Exhibit A, which reflects the budgetary effect by increasing the Vehicle Weight Tax by .0025 and .01 for passenger vehicles and trucks, respectively. While both the proposed revenues and expenses were provided by the Department of Public Works, the proposed expenses were taken from Communication No. 569.6. Revenues for the last six months of FY2005 were $1,012,817.25 and proposed expenses were $881,069.12, thus reflecting revenues in excess of expenses of $131,748.13. The proposed expenses include 29 Laborer 11 positions, seven 6 -passenger vans, Fringe Benefits and other equipment and maintenance costs. Further, expenses for FY06 and FY07 are also included. 13, / . Z fr G Comm. No. ��51614 Ref. To:_�R O LU4 Ref. Date For purposes of discussion, Exhibit B proposes that the Department of Public Works expend revenues for highway maintenance and paving without the addition of 29 new laborer positions, fringe benefits and equipment. This proposal provides $881,069 in FY2004-05 to be expended at the discretion of the department. I commend this proposal for your consideration as a more equitable alternative to the recently proposed gas tax hike. Presently, as shown in the attached "state -by -state comparison" of combined state and local fuel tax rates prepared by the Washington State Department of Transportation, Hawaii ranks number #I in the nation. Moreover, data compiled in January 2004 (attached) from the AAA Fuel Gauge Report, American Petroleum Institute, CCH State Tax Review, Federation of Tax Administrators and International Fuel Tax Association shows that Hawaii ranks number #I in the nation in the "average price by gallon" paid by Hawaii consumers ($2.19) excluding federal, state and local fuel taxes. Given these harsh realities, any additional fuel taxes would only add to the cost -of -living of Hawaii County citizens already struggling to cope with rising gas prices in a volatile international market. As a "flat tax," a vehicle weight tax does not unduly effect small businesses and working class commuters as would a fuel tax hike. Moreover, there is a more rational nexus between the weight of vehicles and the conditions of roads and their needs for ongoing repair and repaving. That is why Chapter 249, Hawaii Revised Statutes, allows the counties to set vehicle weight tax rates. I welcome your questions and thoughtful consideration of this measure. Thank you JYA/rf Attachments EXHIBIT A — PROPOSAL VEHICLE WEIGHT TAX INCREASE PROPOSAL INCREASE OF .0025/.01 FY2005 APRIL 7, 2004 it * 2003 Count Ave Weight (FY05 6 months Total Increase 507,888.75 798.50 385,105 119,025 1, 015, 777.50 1,597.00 770,210.00 238,050.00 Passenger 135,437 3 Motorcycle 3,194 =01 1 increase $ Truck 11,003 71 Trailer 7,935 3, Total Increase 507,888.75 798.50 385,105 119,025 1, 015, 777.50 1,597.00 770,210.00 238,050.00 Fringe Benefits 59.34% 1 217,551.121 435,102.24 Small Tools $100/Lab II 2,900.00 2,900.00 Equipment Repairs $1,000/Eqpt 3,500.00 7,000.00 Fuel/Lubricants $2,000/Eqpt 7,000.00 14,000.00 Equipment Parts $1,000/Eqpt 3,500.00 7,000.00 Total EVenses $01,069.12 1,199;23it a^4 Revenues in Excess of Expenses 031;748:13 $26;396;28 * 2003 Count and Average Weight obtained from the Department of Public Works ** Communication No. 569.6 from the Department of Public Works 11 MOMS rYtrS 6 months; FY06/FY07 S&W Position $ $ $ S. Hilo (5) Lab II 115,885.00 63,210.00 126,420.00 N/S Kohala (2) Lab II 46,354.00 25,284.00 50,568.00 N/S Kona (7) Lab II 162,239.00 88,494.00 176,988.00 Kau (2) Lab II 46,354.00 25,284.00 50,568.00 Puna (13) Lab II 301,301.00 164,346.00 328,692.00 Total S&W (29) Lab II 672,133.00 366,618.00 733,236.00 Equipment Equipment S. Hilo (1) 6 -Pass Van 40,000.00 N/S Kohala (1) 6 -Pass Van 40,000.00 N/S Kona (1)6 -Pass Van 40,000.00 Kau (1) 6 -Pass Van 40,000.00 Puna (3) 6 Pass Van 120,000.00 Total Equipment Total (7) 6 Pass Van 280,000.00 Fringe Benefits 59.34% 1 217,551.121 435,102.24 Small Tools $100/Lab II 2,900.00 2,900.00 Equipment Repairs $1,000/Eqpt 3,500.00 7,000.00 Fuel/Lubricants $2,000/Eqpt 7,000.00 14,000.00 Equipment Parts $1,000/Eqpt 3,500.00 7,000.00 Total EVenses $01,069.12 1,199;23it a^4 Revenues in Excess of Expenses 031;748:13 $26;396;28 * 2003 Count and Average Weight obtained from the Department of Public Works ** Communication No. 569.6 from the Department of Public Works EXHIBIT B — PROPOSAL VEHICLE WEIGHT TAX INCREASE PROPOSAL INCREASE OF .0025/.01 FY2005 APRIL 7, 2004 VeNeW.,1061ght Tax Proposal 2003Coypt Ave Weight FYQ5,6rfion , IN FY06/FY07 $ $ Passenger 135,437 3,000 507,888.75 1,015,777.50 Motorcycle 3,194 200 798.50 1,597.00 .01 IndhWad Truck 11,003 7,000 385,105.00 770,210.00 Trailer 7,935 3,000 119,025.00 238,050.00 Total Increase --f,'01 —2,817,25 2,025,634,50 11 Mon hs FY06 6 mongis Total Expenses to be 881,069.12 1,199,238.24 determined by Public Works Revenues in Excess of 131,748.131 826,396.26 Expenses FUEL TAXES: A State -by -State Comparison On June 30, 2003 the Washington State Department of Transportation released its semi-annual State -by - State Fuel Tax Comparison Report to fairly assess and compare Washington's fuel tax to that of the other 49 states and the District of Columbia. As shown below, Hawaii ranks 41 in the nation in Combined State and Local Fuel Tax Rates. Information was gathered from the Commerce Clearing House Stale Tax Guide, data from individual states, and telephone interviews with officials in selected states. WHERE WE RANK IN FUEL TAXES State -by -State Combined State and Local Fuel Tax Rate Comparison K June 30, 2003 Hawull-t nllrnls-2 -3 New New yam -4 114soorWn d CelaaNa -e Mma 1410-4-7 Fb, S Nentr .9 Olaaw-10 Incur -11 Perray9aNe -12 V"VMpw -13 Whom -14 Nebraeka 15 Connaetleut-16 lour -17 Utah -16 Ka+ras-19 6oulh D&AaM -20 Norm Camlhr -21 MwyWW -22 Oelawre -23 Colons& 45 Beer -26 Mlnnosob -27 0No .26 Aauraa-26 Tenneraw -31 1u -32 H&VI DoWto -33 Tem -35 t/aeeadn1aeft-34 VIMM -36 L.aaeiur .37 Veminnt+W OWL o7 Columba �30 AWboma -38 New Hampehae-41 An1ar-42 New Matloo -43 OeelgW -44 .. -43 Olhhome 48 9eum CamWr ■7 Kweac y-48 New Jersey J9 Nryominp -M AWalm -61 u: sl se4 31.08¢ 31.004 29.474 27.754 77.dk � -26.684 26.004 �-125.6 25.200 129.004 ------------12s 004 24.604 —� 24.x04 123,650 23324 123.004 —23.004 22.69¢ 22-rk – – – – – — – – 122,04 --------- 122M0 �- — 121704 X21.404 21 M4 X121-100 21.M0 120.000 121.004 121.004 120.604 —120.364 20.04 20-004 20.m{ 19304 119.004 ----I 1fla64 --'–I 16.974 ;=1714 17.004 =1fl734 =16.4041 14-544 34 104 154 204 24 304 3641 404 434 SOURCR Washington State Department of I ransportation. Office of Strategic Planning and Programming WHERE WE RANK IN GAS PRICES EXCLUDING TAXES info.mation compilied Vorn: AAA FUCA GaUge kepart An-partan Felroiaum Instflu k- GGH State Tax ReAM FederalM Interriatlonal Fuel TSXAsswlal= ,91819 Representatives Prepare-cl by: Teresa -T,--rrl- p.gi"sp! mriget & Finance Sectlon Controller DIAE;Ion Hebraqxz Leparimfl[C-41303CIS P.O. Box 94759 Llwoki, NE MSEQ-4759 402-479-3.439 MOTOR. FIJU GAS TAX PAN KING RANKED 9YGASTAX RATE EXCLUDING ADDITIONALFEDERAL, STA'TF-. AND LOCAL TAXES January 2004 ADDITIONA1. NOTES (gj RAMICRY AVE RAG 6 GAS TAX RASE BASE BASE PRICE RANK PATE EXCL. GAS DIESEL GASOHOL PER A-'VMAGI1 OTH ER :STATE E- TAX RATE TAX RATE TJAX RATE GALLON PRICE PER TAXES STATE GENT&GAL C-EfJTSir-,AL C 94T&GAL IlIV2004 GALLON ;MOTES WAI Y --:fl K 3 1, W M. M MM .117, r, 3 A, R-40 Le € CLAN D MAM MM �330 31'a 11 Of: V11RzrAWm 121a, M 2�11-0 Im �� 0� TM MWATAM YT EQ �j .GA ti PENWSYLIJAMA -' 2SM Stil T vim iv F if Irm. M:A A�m M.013 A,,,,j.c4 N* 00 ZSM a m 22"M1,55 10 P K ARU X1.3 2CM, S" 6� 11 NNW b4,C42 M, TO x'4,69 '-p s0 12 LMAH 2A:93 YAM 24:V3 . �g! s- 20 is Mf TT H CA POL M M"N Y.A.V Nlja M 55 ar< 9 14 ?WMIS 24M Zar-Q M�Z-19 3153 9 ailo ZAM YA,.� 74)m StV A as McGr-N 24M 74-M 10M -•:l ..6s 11 17 MARY1 A M MM 241N stru as 2100 22.03 28 Is W -VADA 2q.0q 27 ZO Do 2 6 20 Cr-toRAM. 21 m'',w W ,ffw 31 20 -SOM14 CMDTA 21CO 221M rAso 2E, n'. AWAUMS '21M N11 2110 x154 H m Qq LLS E 7 7 s 2trt3 a 1cou 14. k M W,RIH DAKDT A IM 2"Im > I FA 3155 3b 2s M4 212M M24 34 ma 12,144 2.5'..09 MCC ";N1 2s LOMMA ZID] Mm MCQ S4 39 2s, MMINEKIA -2111CO Mcq 11M %.I ST91 IRMESSFE11M.03 I M TA qcm Al X. -TEYAr, 24M4 Moa 21 0.0 11 .51 46 31 LIMM 4.3,A 21M 1 � fA 31.0 is A 3 1 MCHMM SMA M T 21 VERMONT, 0 X 34 ARIDGM isoi SI -62 IP CALIFOWIV� 19.00 Mce TIN .-0.T3 4 A NDAVA 96.19 i �.ca 1'3,'M 51 MA 26 214 "MIASOPPI 1WN MCM -MM �0 M1, 45 w - Alb kLFSHRE 1944 Mm 115:1 15. 17,M 17;93 Si SA 4T T17M %I AT S0 40 42. WW mak: t AARAMA iSh 3 17;7A ifz,C t '11„53 20. 41 4k �M%g i OM - _5I€ T7 (3 U N A 117 1 1071 16,0a AH aG 43 KENIUCK't isf)@ '12-M ISM X1.%39 "a 47 iink -L-nm--v 14,.3 i .4 1i3: T1.55 71 FLURVA MIA V's -M Wag 51 M is. 13,C4 7f.1 59 V SO ALASKA elm °3.w W ria sn 2 E I Ima W-3 A Tso 7M Ts -0 5fl A Ki 0' A. info.mation compilied Vorn: AAA FUCA GaUge kepart An-partan Felroiaum Instflu k- GGH State Tax ReAM FederalM Interriatlonal Fuel TSXAsswlal= ,91819 Representatives Prepare-cl by: Teresa -T,--rrl- p.gi"sp! mriget & Finance Sectlon Controller DIAE;Ion Hebraqxz Leparimfl[C-41303CIS P.O. Box 94759 Llwoki, NE MSEQ-4759 402-479-3.439