Paying an automatic surcharge raises revenues up to $80 million, Maui County said.
Surcharge: How It Works
Maui County seeking approval of paying an automatic surcharge on everyday purchases. This approval benefits different infrastructures, like housing and so on. Paying an automatic surcharge help county with improvements and projects.
Out of a hundred percent, four percent would be included in the county’s sales tax after paying an automatic surcharge on buying goods and services, The US News reported. Tasha Kama won and acknowledge that 20% of the revenue from paying an automatic surcharge would be allocated to housing infrastructure.
Paying an automatic surcharge needs approval by the first of August. Once approved, it will be applied in the new year. In addition, Honolulu, Kauai, and Hawaii County pay an automatic surcharge.
What is Surcharge?
Consumers are obliged on paying an automatic surcharge when purchasing goods and services. Surcharge added to the purchases you made. It is an additional fee or tax. Paying an automatic surcharge may be fixed amounts or a percentage of the product price.
According to Investopedia, many entities are using surcharges, such as governments, businesses, and more. Paying an automatic surcharge can also be used by drivers. Drivers can add a fuel surcharge when gas prices increase. In the same way, Maui County proposed this plan for improvements and projects in their state.