Hawaiʻi gov intends to veto dozens of bills, likely triggering a special session

Ige also signaled he may scrap one of the legislature’s last major tax increase proposals.

House Bill 58 sought to raise taxes on the sale of multi-million dollar homes. State officials estimate it would raise an additional $2 million to $3 million a year for the state general treasury. The bill also would suspend various general excise tax exemptions that some businesses and industries claim each year.

“Hawaiʻi’s fiscal situation has changed so much since this bill was introduced that there is no longer the pressing need for the extraordinary revenue actions proposed in HB 58,” Ige wrote in his explanation.

During a Monday press conference, the governor also cited a recent decision by the Council on Revenues to raise projected tax collections for the state over the next six years, a sign of better economic conditions. HB58 was the last major progressive tax proposal lawmakers pushed through to the end of session.

Beth Geisting, executive director of the Hawaiʻi Budget and Policy Center, said not advancing measures to shore up the budget is shortsighted. While federal relief funds may be helping the state now, Hawaiʻi still has a multitude of fixed costs like retirement, health and personnel payments that could grow in the coming years, Giesting said.

“We’ve got to figure out some ways to make sure we have some steady stream of revenues,” Giesting said. “Not only for the things we need to pay for, but want to pay for.”