2018-04-11 Letter to Valerie Poindexter and Members of the County Council re_ Proposed General Excise Tax (GET) Surcharge

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• A fleet of new buses that we can be proud of, that will serve those most in need, and also provide more accessible services to our rural areas such as Hamakua, Ka'Ci and Puna; • Development of a bus scheduling system that people can rely on to get to work, school, the doctor and shopping. Road Improvements To address the backlog of public road repairs and improvements; To address street lighting problems to improve roadway safety; To address backlog of traffic striping islandwide; To develop new connections or widened roads that could help alleviate gridlock or shorten trips. Trails, Pathways, and Sidewalks • To address improvement of trails and safe routes to school; To develop new trails and pathways to promote an active and healthy lifestyle and alternative modes of transportation, including bicycle and pedestrian facilities. • Private Roads. Of the 60 percent, 2% of the transportation -related revenues could be used to improve private roads that are used by the general public. This is the first time the Legislature has recognized the unique status of these private roads that function as public roads. • General Revenues. The remaining 40% would become part of the general revenues that could be used to pay for other programs and services, such as: • Homeless program and services; • Improved emergency responder services (police and fire); • Parks maintenance; • Other needs. • Visitors Will Contribute. Of the estimated $50 million collected each year, visitors to this island will contribute approximately 25% of that amount, thereby expanding the tax base supporting our County budget. There were about 1.6 million visitors to our island in 2016 whose daily spending would be taxed by this GET surcharge. • Impact to Lower Income Households. The GET surcharge of 0.5% means that the tax on a $100 expenditure will increase by 54 cents, raising the total bill from $104.16 to $104.70. However, several programs reduce this additional tax burden on lower income households: • Housing. If property taxes are raised, this impacts everyone -- homeowners as well as renters. Besides not having to raise property taxes, the GET surcharge would not impact renters who are eligible for Section 8 rental subsidies since any increase beyond 30% of their income is paid by government. • Food. Eligible food purchases under the Federal Food Assistance Programs are exempt from GET. County of Hawai Is an Equal Opportunity Provider and Employer.