2018-02-26 Letter to Brian T. Taniguchi re SB 2922 Relating to Constitutional Amendment to Allow Surcharge

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Harry Kim Mayor Wil Okabe ilianaging Director Barbara J. Kossow Deputy Managing Director 25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 • (808) 961-8211 • Fax (808) 961-6553 KONA: 74-5044 Ane Keohokalole Hwy., Idg C • Kailua-Kona, Hawaii 96740 (808) 323-4444 • Fax (808) 323-4440 February 26, 2018 Senator Brian T. Taniguch', Chair Committee on Judiciary Hawaii State Capitol, Room 016 Honolulu, HI 96813 Dear Chair Taniguchi and Commfttee Members: Re: SB 2922 Relating to Constitutional Amendment to Allow Surcharge Hearing Date: 02/27/18 — 9:30 am; Conference Room 016 As a former teacher myself, I fully appreciate the efforts of this Legislature to properly fund education. However, 1 cannot support SB 2922, and must speak against it. Effect on real property taxes. The County of Hawail, 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 bala ce 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. However, this source of revenue is under constant pressure, and every session the Legislature is asked to increase the counties' share of TAT so that we can better serve our constituents and visitors. The TAT pie can only be divided into so many pieces, and even though the TAT is not mentioned in SB 2922, a surcharge on visitor accommodations, even for the most noble of purposes, will obviously limit what can be raised and spent elsewhere. further. Please do not deprive the counties of these needed sources of revenue, by dividing the pie even Respectfully sub ed, arry Kim Mayor, County of Hawaii County of Hawaii is an Equal Opportunity Provider and Employer.