REPORT FROM MAUI COUNTY – Mayor Alan Arakawa announced today his decision to veto Council bill #16*, which would have affected the Circuit Breaker tax credit for qualified homeowners.
The bill’s intention was to eliminate abuse of the tax credit, but in doing so would also have affected some qualified homeowners.
For example, if an elderly couple had put their son’s name on their house deed during the process of estate planning, they would no longer have qualified for the Circuit Breaker tax credit.
Moreover, elderly individuals needing live-in care would have been required to include their nurse’s income in addition to their own, which could have disqualified them from receiving the tax break.
“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,” said Mayor Arakawa. “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.”
“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. 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.”
* MORE INFO: Maui News story dated 8/6/11 regarding proposed adjustments:
www.mauinews.com/page/content.detail/id/552148/Council-Member-White-offers-tweak-to–circuit-breaker–to-halt-use-by-wealthy.html?nav=10