2018-02-22 Letter to Donovan M. Dela Cruz and Gilbert S.C. Keith-Agaran re SB 3088, SD 1 Relating to GET Surcharge

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Harry Kim Mayor (f,triattfil ffirr u nut 25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 • (808) 961-8211 • Fax (808) 961-6553 KONA: 74-5044 Ane Keohokalole Hmi., Bldg C • Kailua-Kona, Hawaii 96740 (808) 323-4444 • Fax (808) 323-4440 Wil Okabe Alanagitig Director Barbara J. Kossow Deputy Managing Director February 22, 2018 Senator Donovan M. Dela Cruz, Chair Committee on Ways and Means Hawaii State Capitol, Room 211 Honolulu, HI 96813 Senator Gilbert S.C. Keith-Agaran, Vice -Chair Committee on Ways and Means Hawaii State Capitol, Room 211 Honolulu, HI 96813 Dear Chair Dela Cruz, Vice -Chair Keith-Agaran and Committee Members: Re: SB 3088, SD 1 Relating to GET Surcharge Hearing Date: 02/28/18 — 10:00 am; Conference Room 211 On February 21, the Hawai`i County Council postponed action on a proposal to adopt a GET surcharge. At that moment, S 3088, SD 1, went from a "nice -to -have safety valve" to being crucial for our budget deliberations. I want to thank the author of the bill, as well as the Transportation and Energy Committee Chair, for having the wisdom to keep this option alive for us. As you may know, I opposed increasing the GET in awail County for as long as I have been Mayor. However, I have had to come to terms with the fiscal vise that makes it nearly impossible to (1) balance our County budget, and (2) provide the services that our communities need, without increasing our tax revenue. I therefore am now a full-throated advocate for the surcharge, and willingly taking the heat for that change in position. The Council wants to act after the Legislature completes its 2018 session, and scheduled the ordinance for further hearing in May. I hope you can understand that it is a tough vote to take, and that Hawaii County needs this additional time to make the difficult decision to adopt the surcharge. Therefore I ask that you give this bill, SB 3088, SD 1, your favorable consideration. A drop -dead date of June 30 will give adequate time for us to adopt the ordinance, while also allowing the Department of Taxation enough time to prepare appropriate forms for Calendar Year 2019. Please pass SB 3088, SD 1. pectfully submitted, Harry Ki Mayor, County of Hawaii County of Hawaii is an Equal Opportunity Provider and Employer.