2017-02-24 Letter to Jill N Tokuda RE SB1290 SD1

Home

Harry Kim Mayor Wil Okabe Managing Director Barbara J. Kossow Deputy Managing Director Offirr of for AnVar 25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 • (808) 961-8211 • Fax (808) 961-6553 KONA: 74-5044 Ane Keohokalole Hwy., Bldg. C • Kailua-Kona, Hawaii 96740 (808)323-4444 • Fax(808)323-4440 February 24, 2017 Senator Jill N. Tokuda Chair, Senate Committee on Ways and Means Hawai'i State Capitol Honolulu, HI 96813 Dear Chair Tokuda and Members: RE: SB1290 SD1 Thank you for this opportunity to testify in support of SB 1290, SD1, which deals with the Transient Accommodations Tax. My understanding is that the TAT was originally established to assist the counties, but the Legislature has always had the prerogative to determine how it will be apportioned. Given Hawaii County's limited resources (and seemingly unlimited needs), we are fortunate that the Legislature has never wavered in allowing the counties to share in the TAT, and we thank you for that. Since the State and the counties serve the same constituents, it is important that we continue to work as partners in meeting the needs of our communities. As demand for services is ever increasing (and so is the cost of those services), it is equally important that revenue be appropriately shared so that the demands can be met to the best of our combined abilities. Although I could hope for even more, SB 1290, SD1 seems to be a reasonable division of revenue among the various parties that are looking for a piece of the TAT pie. S131 290, SD1 recognizes that there should not be a cap on the counties' share, and that without TAT, the counties would be forced to raise property taxes and/or reduce services to levels that most would find unacceptable. Many may not realize how important the TAT is to the County of Hawaii (and to the other counties). It is, in fact, Hawaii County's second largest source of revenue, behind only the property tax. Unless we continue to receive a reasonable share of the TAT, we will be pressed to raise property taxes about $19M (5.1 % of our total budget), and that would worsen the pressures on the portion of the population that is currently managing a paycheck -to -paycheck financial existence. It would hurt a major portion of County of Hawaii is an Equal Opportunity Provider and Employer.