2018-04-02 Letter to Donovan M. Dela Cruz and Gilbert S. C. Keith-Agaran re HB 2587, HD 1, SD 1 Relating to GET Extension

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Harry Kim A /c,or (fintilfg (1)ffive a agar 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 Wil Okabe A fanaging Director Barbara J. Kossow Deputy Managing Director April2, 2018 Senator Donovan M. Dela Cruz, Chair Committee on Ways and Means Hawail State Capitol, Room 211 Honolulu, HI 96813 Senator Gilbert S.C. Keith-Agaran„ Vice -Chair Committee on Ways and Means Hawaii State Capitol, Roo 211 Honolulu, HI 96813 Dear Chair Dela Cruz, Vice -Chair Keith-Agaran„ and Committee Me bers: Re: HB 2587, HD 1, SD 1 Relating to GET Extension Hearing Date: 04/04/2018 — 10:30 am; Conference Room 211 Please accept this testimony in support of HB 2587, HD 1, SD 1, extending the opportuni y for a county to add a surcharge to the State GET. I regret that I must ask for one further amendment. I have come to terms with the fiscal vise that makes in nearly impossible to provide the services that our communities need, without increasing our tax revenue. Furthermore, I have been educated as to how much revenue can be generated from a small surcharge on the GET, and how much of that revenue would be paid by non-residents. Therefore, 1 have sent a proposal to our County Council calling for the surcharge. The Council has postponed action until May. Since Hawaii County cannot meet the current deadline for deciding whether or not to adopt a surcharge, HB 2587, HD 1, SD 1 has gone from "nice -to -have" to "must -have" legislation for us. I also have to reckon with political realities. Asking the Hawaii County Council to increase taxes between now and June 30 is probably not realistic. Therefore, I have to ask you to indulge us with some greater flexibility. Please amend HB 2587, HD 1, S• 1 to allow a county until March 2019 or later to adopt he surcharge, with the tax being effective in calendar year 2020. That would keep this bill alive for conference, in case anything changes between now and then. We appreciate your consideration, and ask for your continued understanding and support. Raspy subs suhn itted, Harry Ki Mayor, County of Hawaii Co my of Hawaii is an Equal ()pportunity Provider and Employer.