2017-02-27 Letter to Jill Tokuda, Gilbert Keith Agaran re SB 683 SD ! - Surcharge on Residential Investment Property

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�fY os • L ..... Wit Okabe 4''. Managing Director Harry Kim :HAV: Mayor • -`�•z •4 .• Barbara J.Kossow tr m N'�Q• Deputy Managing Director County of!blunt`t ®ffire of the Algot 25 Aupuni Street,Suite 2603 • Hilo,Hawaii 96720 • (808)961-8211 • Fax(808)961-6553 KONA' 74-5044 Me Keohokalole Hwy.,Bldg.C • Kailua-Kona,Hawaii 96740 (808)323-4444 • Fax(808)323-4440 February 27, 2017 Senator Jill Tokuda Ways and Means Senator Gilbert Keith-Agaran Judiciary and Labor Hawai'i State Capitol Honolulu, HI 96813 Dear Chair Tokuda, Chair Keith-Agaran, and members: RE: SB 683, SD 1 Proposing Amendments to Articles VII and X of the constitution of the State of Hawaii to Authorize the Legislature to Establish a Surcharge on Residential Investment Property and Visitor Accommodations to Increase Funding for Public Education As a former teacher myself, I fully appreciate the efforts of this Legislature to properly fund education. However, I cannot support SB 683, SD 1, and must speak against it. Effect on Real property tax. The County of Hawaii, as is true of the other counties, has little or no control over its revenue except in one area, real property taxes, and the County relies overwhelmingly on real property taxes to fund its operations. The burden of that tax can be heavy for many residents, but since it is virtually the only tool we have, we use it the best we can. A surcharge on residential investment properties would obviously limit County options and make it even more difficult to balance our budgets. Therefore, we have to jealously guard this taxing authority, and ask that you not breach this line of authority. Effect on TAT. Given our County's limited resources, we are fortunate that the Legislature has seen fit to allow the counties to share in the TAT. That has been a great help, and we thank you for it. County of Hawaii is an Equal Opportunity Provider and Employer