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' y <br /> COUNTY COUNCIL - OFFICE OF THE COUNTY CLERK <br /> Jay Furfaro,Chair o% <br /> Mason K.Chock,Sr.,Vice Chair p x. Ricky Watanabe,County Clerk <br /> Tim Bynum " +� _ �^ Jade K.Fountain-Tanigawa,Deputy County Clerk <br /> Gary L.Hooser <br /> Ross Kagawa ��ts►a���; �� <br /> Mel Rapozo �,�� 41'71 Telephone(808)241-4188 <br /> JoAnn A.Yukimura of Fax (808)241-6349 <br /> Email cokcouncil®kauai.gov <br /> Council Services Division <br /> 4396 Rice Street,Suite 209 <br /> Lihu`e,Kauai,Hawaii 96766 <br /> January 14, 2014 <br /> URGENT AND IMPORTANT <br /> Via E-mail <br /> RE: COUNCIL OF MAYORS PROPOSAL FOR "UP TO 1% EXCISE TAXING <br /> POWER" <br /> Dear HSAC colleague: <br /> Happy New Year! <br /> As you may know, the four mayors of Hawai`i's four counties have agreed to <br /> go before the 2014 Legislature requesting excise taxing authority for the each <br /> county up to 1% for general fund purposes—that is, to be used for any legitimate <br /> county expenditure and not earmarked and limited to transit, as is the existing <br /> 1%2 % power to the City and County of Honolulu. <br /> Tomorrow, (or today, depending when you read this) Wednesday, January 15, <br /> 2013, the Hawai`i State Association of Counties (HSAC) Executive Committee will <br /> be meeting at 3 p.m. at Honolulu Hale to decide whether HSAC will align with and <br /> support the mayors' request. <br /> Under HSAC's rules, while the State Legislature is in session, the Executive <br /> Committee is able to take a position on revenue or home rule issues without <br /> ratification by every county council. I believe the purpose of the rule was to allow <br /> quick response to revenue and home rule issues that emerge unexpectedly during a <br /> legislative session. This is not the case with the 1% taxing power as the HSAC <br /> Executive Committee has already had three meetings on the subject in the last <br /> three months'. At their last meeting in.December, the HSAC Executive Committee <br /> decided to wait till Opening Day of the 2014 Legislature, apparently in order to <br /> meet;the letter of the law. <br /> I am writing you because I believe it is premature for HSAC to take a stand <br /> in favor of an unrestricted 1% excise taxing power, especially if it hasn't been <br /> endorsed by all county councils. The following are my reasons: <br /> 1. We, as individual county councils, and we, as the HSAC, have not had a <br /> chance to fully discuss this issue among ourselves nor to get sufficient <br /> input from our respective constituencies. It is a far-reaching proposal <br /> that will have significant and serious impacts on our island economies <br /> and on our people, especially those who already struggle with the high <br /> cost of living in Hawaii. HSAC and its member county councils have not <br /> fully discussed the proposal among ourselves or our constituents; nor <br /> have we discussed alternatives. (Please see Attachment "A" for one <br /> alternative that I have floated for discussion.) <br /> AN EQUAL OPPORTUNITY EMPLOYER <br /> O <br />