2009 Legislative Session Adjourns

After a relatively short veto override session today, the 2009 legislative session adjourned, Sine Die. This session was marred by a struggling economy and party politics, yet lawmakers were able to pass a balanced budget that largely preserved jobs and wages for public sector employees.

The following bills that were vetoed by Governor Lingle in her public ceremony yesterday were overridden by a large majority in both the House and Senate today:

HB 1747 HD1 SD1 CD1 (Income Tax increase): Raises the state income tax from the existing 8.25 percent to up to 11 percent on single taxpayers who make $150,000 or more a year, heads of households who earn $225,000 or more a year, and couples who make $300,000 or more a year. The tax increase would apply to roughly the top 2.6 percent of state taxpayers. Starting in fiscal year 2012, the bill would also increase the standard deduction and personal exemption, which would provide a tax break for many taxpayers.
Revenue estimate over the two-year budget: $96.6 million.
Revenue estimate over the six-year financial plan: $245.8 million.

SB 1111 HD1 SD1 CD1 (Hotel room tax): Raises the transient accommodations tax by 1 percentage point in July — from 7.25 percent to 8.25 percent — and another 1 percentage point in July 2010 — from 8.25 percent to 9.25 percent. The tax increase would apply to operators of hotel rooms, apartments, condominiums, beach houses and other places rented to visitors or local guests. The increase would likely be passed on to consumers. It is estimated that it would roughly amount to an increase of $9 for a 5-day stay.
Revenue estimate over the two-year budget: $88.9 million.
Revenue estimate over the six-year financial plan: $367.2 million.

HB 1741 HD1 SD1 CD1 (Conveyance tax): Raises the conveyance tax on the sale of properties of $2 million or more and on second-home purchases. Reduces for three years the distribution of conveyance tax revenues into the rental housing trust fund and the natural area reserve fund.
Revenue estimate over the two-year budget: $8 million.
Revenue estimate over the six-year financial plan: $24 million.

HB 895 HD2 SD2 CD1 (Non-cigarette tobacco tax): Raises the state's tax on the wholesale price of tobacco products, such as chewing tobacco or pipe tobacco, from 40 percent to 70 percent starting at the end of September. The state's tax on the wholesale price of cigars would increase from 40 percent to 50 percent, and smaller cigars that resemble cigarettes would be taxed like cigarettes.
Revenue estimate over the two-year budget: $3.2 million.
Revenue estimate over the six-year financial plan: $18.6 million.