Five-year extension signed for tax that helps fund Honolulu rail project

Written by Jenifer Nunez, assistant editor

Hawaii Gov. David Ige signed into law a five-year extension authorizing counties to continue the half-percentage point surcharge on state tax to continue funding the Honolulu's $6-billion rail transit project. The surcharge will be effective until Dec. 31, 2027.

 

“The primary reason I signed this bill is because we made a commitment years ago and we must keep this commitment to see rail to its completion,” said Gov. Ige.

The project provides a transit route running from East Kapolei to Ala Moana Center, with stations at 21 key commuter and visitor destinations. The first section of the rail system, from Kapolei to Aloha Stadium, is slated to begin operating in 2017 and the entire route will be operational in 2019 when the remaining segment to Ala Moana Center is completed.

“I, too, have concerns about cost overruns. The excise tax is an investment by the taxpayers of Hawaii and my job is to ensure that their hard earned money is being spent efficiently, effectively and productively. To this end, I hereby ask Honolulu Rail Transit (HART) to provide me with an annual progress report on revenue, costs and progress of the rail project. This report will be shared with not only my administration, but with the legislature and the public and it will be measured against specific goals and targets,” Gov. Ige said.

HART says the annual report will be used as a tool to guide policy makers in the future to ensure the project stays on schedule and on budget and to inform the public of the status of their investment.

 

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