2017-03-20 Letter to Richard Onishi re SB 1290 SD 2 Relating to the Transient Accommodations Tax

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• ,` Wit Okabe ,Managing Director Harry Kim • +:A�� „,.'��:• lfavor - -0,Tw -_-=_ Barbara J.Kossow r44..of N'��`. Deputy Managing Director CI luntg of Ra ai'i Office of file . .laror 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 March 20, 2017 Rep. Richard H.K. Onishi, Chair Committee on Tourism Hawai'i State Capitol Honolulu, HI 96813 Dear Chair Onishi and Members, RE: SB 1290, SD 2 Relating to the Transient Accommodations Tax Thank you for this opportunity to testify in support of SB 1290, SD2, which deals with the Transient Accommodations Tax, but requesting additional funding. Our 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. SB 1290, SD2, increases the share of TAT funds that goes to the counties from $103M to $108M per year. While we recognize that the State faces a financial dilemma not dissimilar from that faced by the counties, we also must inform you that $108M will leave us far short of what we need to balance our budget and keep our services at a level our residents deserve. An earlier draft of this bill, SB 1290, SD1, provided a reasonable division of revenue among the various parties that are looking for a piece of the TAT pie. That draft County of Hawaii is an Equal Opportunity Provider and Employer.