2019-02-04 Letter to Lorraine Inouye re SB 656 - Taxation - Helicopter servicing and repair

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Harry Kim ,Via) or Wil Okabe Managing Director Barbara J. Kossow Depul)• Managing Director County of Hawaii Office of the Mayor 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 February 4, 2019 Senator Lorraine R. Inouye, Chair COMMITTEE ON TRANSPORTATION Hawai'i State Legislature Dear Chair Inouye and Committee members: RE: SB 656, RELATING TO TAXATION (Helicopter servicing and repair) Thank you for this opportunity to testify against SB 656. Helicopters are a valued component of our tourism industry. They also have been a source of endless complaints from communities that lie in their flight paths, and there should be no doubt that noise can constitute both a nuisance and a health hazard, especially in otherwise tranquil rural areas. Helicopter companies are now asking the Legislature to reduce their general excise tax obligation. There is no suggestion of economic hardship; there is no credible argument (that I know of) that new facilities will be attracted to Hawai'i; and there is no suggestion that the industry would use its savings to better accommodate those who live in their fly -over country. The exemption will simply add to the companies' bottom line. This year's bill is slightly better than last year's version, in that it adds a provision that "the exemption provided under this section shall apply only if seventy-five per cent of all helicopters serviced within the aircraft service and maintenance facility are equipped with quiet technology.." But as far as I can tell, there is no definition of "quiet technology" nor a hint as to how effective such technology is. At a minimum, that needs clarification. As you struggle to balance your budget, one must ask whether the added profits for these companies' owners could be better utilized in meeting the multiple needs that Hawai'i faces. To me, the answer is that our transportation, education, social service needs, etc., should be a higher priority. Countv of Hauaf i Is an Equal Opportunity Provider and Emplover