Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-02-19

llOHS .,.....- ~, lU,S24.1 rs
Exclusive of net cash balance on
June 30. 1879
1t is impossible to make even an
| approximately accurate estimate of
the principal item, that of the general
property taxes, since the tax rate is
now elastic to meet varying require
ments which are yet to be determined,
but this will not affect the net
amount available for appropriations,
because the deductions made for the
purposes to which the general proper
ty taxes are to be applied offset the
estimated receipts; in other words,
the receipts and disbursements CORE
spond automatically. The estimates
in the foregoing table are based on my
recommendations for appropriations
and the school budget.
Estimates Of Expenditures for Next
Biennial Period.
These, for. both current and loan
funds, for the remainder of the pres
ent period and for the next biennial
period, will be submitted in subse-
Guent messages,
The New Tax System.
The mex tax system referred to
above is proving most satisfactory,
now that 1t is becoming understood,
although it has been in full operation
only year. 1t is simple and adapt
able. 1t was necessity In order to
protect the Territorial treasury
against county demands, and to make
effective the new school law; it was
highly desirable for the proper devel-
opment of sturdy local government;
it has already enlivened interest in
the betterment of county government
by fixing responsibility and showing
to taxpayers the close relation be-
tween their pockets and the persons
whom they elect to office. 1t can be
improved by few minor amendments.
Other laws also require amendments
in order to adjust further the financial
relations between the territory and
the counties. There is still a tend.
ency to assume that those relations
should continue decidedly paternal on
the part of the territory. With some,
this takes the form of too little corr
ffdence In the county governments;
with others, too great readiness to
have the territory relieve the counties
of obligations that properly belong to
them. When functions are transfer
red from the territory to the counties,
it should be with the burdens and re-
sponsibilities as well as the benefits.
One inconvenience under the new
tax system is that in each year IN
which the legislature sits the rates for
the general property taxes are fixed
before the legislature acts. Thus, the
rates have already been fixed for the
present calendar year, although they
are expected to provide for certain ex-
penditures to be fixed by the legis-
lature for the next biennial fisca:
period, which includes the latter half
of the present calendar year. This.
however, does not affect the bulk OF
The expenditures to be made out OF
the general property taxes, such as
the amounts required for county cur
rent expenses and permanent improve
ments. salaries of school teachers, and
sinking fund and interest on bonds
issued by or for the couties; for the
legislature does not act on these. 1t
affects only the expenditures for
school buildings and grounds and the
cost of assessing and collecting taxes.
Nor will it probably make much dif-
ference with these when conditions
become more normal as they are ex-
pected to within few years. The in
convenience, moreover, is far less
though more conspicuous than under
the former system, and, such as it is,
it will be felt only when somewhat
larger expenditures are provided Tor
the ensuing period. 1t may be avoid
ed by providing that the increased ap-
preparations shall not take effect un-
til the beginning of the next calendar
schedule of the affected classes of
be pursued would be to make the tax
expenditures shall continue during the
first half year of the next biennial fis-
cal period. Other sources that might
be pursued would be to make the tax
year correspond with, the fiscal year,
that is, to substitute July for Janu-
airy / as the date as on which prop
erty shall be assessed; or, better stii:,
since there are some serious objec-
tons to that, to have a separate tax
rate fixed for each half years tax pay
ment, each rate 20 be based on the
assessment of January 1. instead of
having one rate fixed for the entire
year, based on the same assessment,
10 be paid in equal half year Install
ments, as at present. This course
would also be fairer than the present
to an incoming board of county super
visors. 1t will probably become more
and more desirable as time goes on to
have the rate-fixing period correspond
with the fiscal period, whether the
date of assessing property comedies
with the beginning OF the fiscal year
or not. 1t is desirable also that the
county fiscal year, which now cores
ponds with the calendar year, should
correspond with the territorial fiscal
year, which is the same as the fed
eral fiscal year.
Again, under the former tax system
the Territory paid TO the counties GER
tain percentages of the tax receipts
monthly, thus carrying the counties
| financially from one taxpaying time
! to the next, or rather for the first four
months in each half year, since the
/ foyas for each half wear are not paid