The Honolulu Authority for Rapid Transportation (HART) received $65 million in General Excise and Use Tax (GET) surcharge revenue this past quarter for construction of the Honolulu rail project. GET surcharge revenue for the quarter running from January to March of this year was about $9 million above projections for the quarter based on the project’s financial plan.
According to HART Executive Director and CEO Dan Grabauska, the city has collected nearly $1.47 billion in local revenue funding for rail. While overall collections remain about $30 million lower than projected, this quarter’s installment is welcome news. The half-percent GET surcharge for Oahu, which by law can only be used for Honolulu’s rail system, began in January 2007 and is set to expire at the end of 2022. The surcharge is estimated to fund 70 percent of the project’s cost, with the remaining balance to be paid for with federal funds.
In anticipation of the lower projected revenues, the city was successful in requesting an extension of the surcharge for an additional five year till 2027. After much debate, House and Senate leaders agreed to passing out of conference committee Bill 134. At a minimum, the completion of the rail transit line from east Kapolei to Ala Moana will be completed. Any extension of a line to UH-Manoa must be revisited at a later date.
