Small Business News
September 2005 | Online Edition
Poll Indicates Strong Public
Opposition to the GE Tax Increase
The Hawaii Business Roundtable and the Pacific Resources Partnership on Wednesday, August 10, 2005, released results of an opinion poll these organizations commissioned.
The poll of 700 people conducted by OmniTrak documented the public's overwhelming opposition to an increase to the State's General Excise Tax.
The poll was released the same day seven of nine Honolulu City Council members voted to pass Bill 40, which increases the General Excise Tax by 12.5 percent. The revenue collected will be used to fund a mass transit system and will likely cost the average family around $450 a year. The other three Hawaii counties could also have increased the GE Tax by 12.5 percent, but opted not to.
On Oahu, where the tax hike will go into effect in January 2007, the results showed 54 percent of the people polled are opposed to the increase, and 39 percent are in favor.
In Maui County, where county officials opted not to pursue a tax hike, 56 percent polled are opposed to the tax hike, with 35 percent in favor.
In Hawaii County, where the GE tax increase is not being pursued, 63 percent are opposed and 27 are in favor.
And finally in Kauai County, 64 percent are opposed to the tax hike and 34 percent are in favor. Kauai's council also declined the tax option.
Honolulu City Council Members were well aware of the public opposition to the GE tax increase before voting for it. They buckled to pressure from construction trade union lobbyists, major developers and big landowners, despite the fact that Hawaii already has the highest overall taxes in the nation.
GOP's Tanonaka Pleads Guilty
Former Republican congressional candidate, businessman and CNN newsman, Dalton Tanonaka, pled guilty to 3 felonies last month, related to campaign finance charges during his failed bids for Lt. Governor (2002) and US Rep. (2004).
Tanonaka also previously headed the Pacific Basin Economic Council (PBEC) which at one time was headquartered in Honolulu.
The state Campaign Spending Commission began investigating a complaint by a former campaign manager last year that Tanonaka violated state campaign contribution laws. Under a plea agreement, Tanonaka pleaded guilty to three felonies - two counts of making false statements in a bank loan application related to illegal campaign donations that he received and one count of making false statements on a required financial disclosure .
The first two counts carry a maximum penalty of 30 years in prison each and a $1 million fine. He will be sentenced on Nov. 3.
How To Get Rid Of It
By Walt Harvey (R), East Oahu Realty, ABR, CRS, GRI, SRES, ePRO, QSC
If you've got it you know it! PMI (Private Mortgage Insurance) is added to your mortgage payment, usually when buying a home and making a down payment of less than 20%. It insures your lender if you default on your mortgage and without it, the availability of zero and low down home loans might vanish. But you may be able to remove it.
If you've owned your home for at least a year, the value has probably increased around 20% so the PMI is no longer needed to protect the lender. You should now have sufficient equity and may be able to have the PMI removed. Review your mortgage terms and contact your lender. In most cases, they have a procedure in place but you have to ask.
The lender will usually charge a fee around $150 to process the request and the fee should include a brokerís price opinion (BPO) to establish the new value of your home. The lender will order the BPO from their approved real estate broker so donít order your own ahead of time. The real estate broker will contact you and set an appointment to inspect your home and take some interior and exterior pictures. This takes about five minutes and the broker will then submit the BPO and pictures electronically to the lender within 24 hours. The entire PMI removal process from start to finish should be less than 30 days and if your home's value is sufficient, the PMI will be removed. Good riddance!
Walt Harvey is an SBH Director and a real estate broker with East Oahu Realty and works with his wife Arla. They specialize in residential real estate and can be reached on their website: http://www.coastalhawaii.com. E-mail them at: walt@coastalhawaii.com. or call (808) 375-8959.
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