Maui News

Maui Mayor Vetoes Bill Amending Circuit Breaker Tax Credit

April 20, 2013, 8:34 AM HST
* Updated April 22, 8:55 AM
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Mayor Arakawa. File photo by Wendy Osher.

Mayor Arakawa. File photo by Wendy Osher.

By Maui Now Staff

Maui Mayor Alan Arakawa has vetoed the council’s bill that would have amended the County’s Circuit Breaker tax credit, according to announcement.

In a press release issued today, Mayor Arakawa said, “In six years as a mayor, this is the first veto I have issued because I believe that the unintended consequences of this bill are severe enough to merit further consideration.”

Council Bill 16 was intended to eliminate abuse of the tax credit, but according to the mayor, it would have also affected some qualified homeowners.

“I support the Council’s work in proposing legislation to address abuse of this important tax credit, but the flaws contained in this bill have not been adequately addressed,” said Mayor Arakawa.

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According to the Mayor’s Office, if an elderly couple had put their child’s name on their house deed during the process of estate planning, they would no longer have qualified for the Circuit Breaker tax credit.

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In addition, elderly individuals needing “live-in care” would also have been required to claim their nurse’s income in addition to their own, which the administration claims, could have disqualified them from receiving the tax break.

“We must continue to work toward eliminating abuse of this tax credit, but in doing so we must be careful to avoid causing harm to the very people the Circuit Breaker was designed to help,” said Mayor Arakawa.  “Although I am vetoing this bill, I hope to see an amended version of it in the near future, one that is more prudently crafted,” he said.

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