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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: February 6, 2018 Re: Comm. No. 722/Bill 102 <br /> PLACE: Council Chambers <br /> Hilo, Hawai`i <br /> TIME: 10:04 a.m. <br /> Council Chair and Members <br /> Hawai`i County Council <br /> Hilo, Hawai`i 96720 <br /> • <br /> Your Committee on Finance, to which was referred Bill 102, reports as follows: <br /> Bill No. 102, transmitted by Finance Director Deanna Sako, via Communication No. 722 dated <br /> January 19, 2018, amends Chapter 2 of the Hawai`i County Code 1983 (2016 Edition, as <br /> amended)by adding a new article relating to transportation surcharge. • <br /> This bill establishes a one-half percent general excise and use tax surcharge to fund <br /> operating or capital costs of public transportation systems within Hawai`i County, to be <br /> levied beginning January 1, 2019. <br /> A presentation was given by Mayor Harry Kim and Finance Director Deanna Sako <br /> regarding the surcharge on the general excise tax (GET). <br /> Mayor Kim commented he does not support the excise tax because it is a regressive tax <br /> and it is still in place and it is the reality of revenues and expenses. There are only three <br /> taxes that we control; property tax, fuel tax, and vehicle weight tax. A couple of things <br /> that has changed his position is the fairness to the people being taxed. The tourists pay <br /> 35-40 percent of the amount collected. Governments try to find sources of revenue where <br /> the taxes are_taken away from residents, and tourist tax is number one. Mayor Kim stated <br /> that there is one element of the GET that he does not care for. If the Council approves it, <br /> it will go forward, but he will fight to change it because it dictates that the money be spent <br /> for transportation and.nothing else. He feels that the County, the ruling body, should have <br /> the determination where our revenues are spent, not the State. <br /> The Mayor asked that the Council consider the GET as a source of revenue. Considering <br /> the GET as a source of revenue, it eliminates the need to seek revenues from one source, <br /> namely property taxes. Also, GET taxes apply to tourists as well as island residents which <br /> according to the State, 40 percent or more collected will be generated from the tourists. <br /> Finance Director Sako showed a PowerPoint presentation of the surcharge on the GET and <br /> fielded questions from Council Members. <br /> FC Report. No. 79 <br />