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<br /> Apri13, 2007 <br /> Ordinance #156 <br /> Council Member <br /> Hawaii County Council <br /> Hilo, HI 96720 <br /> Dear Council Member: <br /> I understand that the above Ordinance is being considered for final passage on Wednesday, <br /> Apri14, 2007. This ordinance would subject one part of our community to a very significant <br /> tax increase if they were to build a new facility in a recently zoned business pazk. I have <br /> several problems with this ordinance: <br /> • Housing is either an individual or a community problem. If the community is to <br /> take the problem on through its government -the entire community should be a <br /> part of the solution. Taxing just one part of the community to the affordable <br /> housing problem will not solve the problem but will put an undue burden on one <br /> part of the community. IE, for instance, government itself (at all levels) employs <br /> 20% of the workforce one would expect that government would shaze in the burden <br /> in this percentage. It simply is unreasonable to expel that industries and large and <br /> small businesses trying to establish a foothold should be taxed with this huge burden <br /> themselves. Anew police station is slated to be built in Keeau. Is the County ready <br /> to pay the assessed amount for die added improvement? <br /> • It has been proven many times that the more a product is taxed the less of that <br /> product is produced and used. In this case we are taxing business formulation, <br /> efficiency, and jobs. As a direct result of the proposed ordinance we would have a <br /> significant reduction in all of these. In an economy long known for being dependant <br /> on very few key industries (govemment and tourism in particular) this ordinance will <br /> inevitably work to discourage introduction of new industries vital to our long term <br /> economic health. Why move to the County of Hawaii who will charge you what <br /> amounts to an employment tax? A perfect example is Hoku Scientific, a local <br /> product developed by a Hilo boy moving to Idaho to build a $260 million dollar <br /> construction. Idaho offers huge tax abatements for establishing businesses there. We <br /> can find many examples of communities offering huge tax abatements with the offer <br /> to help the companies build infrastructures as an incentive to move businesses into <br /> their communities. Companies have never looked to locate to a community which <br /> has high taxes. <br /> • The State of Hawaii is offering 100% tax credits for the formation of IT businesses <br /> in order to attract this type of businesses to the State. The County, through this <br /> ordinance, will be adding a huge tax for building a business in this County which will <br /> largely negate the State's tax credit. The result will be to lose out on opportunities <br /> here that the State is working to provide. <br /> Comm. No. ~ ~ l <br /> Ref. To: i0 <br /> Ref. Uate,_APR 0 4 7p117,_ <br /> <br />