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Harry Kim <br />Mayor <br />Wil Okabe <br />Managing Dveclor <br />Barbara J. Kossow <br />Depah, Managing Director <br />County of Hawaii <br />Office of the Mayor <br />25 Aupum Street, Suite 2603 . Hilo, Hawaii 96720 . (808) 961-8211 . Fax (808) 961-6553 <br />KONA. 74-5044 Ane KeohoWole Hwy, Bldg C . Kailua-Kona, Hawar i 96740 <br />(808) 323-4444 . Fax (808) 323-4440 <br />February 4, 2019 <br />Rep. Richard H.K. Onishi, Chair <br />COMMITTEE ON TOURISM & INTERNATIONAL AFFAIRS <br />Hawai'i State Legislature <br />Dear Chair Onishi and Committee members: <br />RE: HB 983, RELATING TO THE TRANSIENT ACCOMMODATIONS TAX <br />Thank you for this opportunity to testify in support of HB 983, the Governor's <br />initiative dealing with the ongoing issue of fair distribution of revenue generated by the <br />transient accommodations tax. <br />HB 983 points out that "a portion [of] these state tax revenues have been shared <br />with our local county jurisdictions in recognition of the impact that the visitor industry has <br />on county provided services, such as police, fire, emergency medical system, and <br />essential infrastructure." One of the bill's purposes is to "maintain annual support for <br />county services impacted by our visitor industry." That is recognition we welcome. The <br />remaining question, however, is whether counties would be helped or hurt by the <br />proposed formula in the bill. <br />HB 983 would maintain the proportionate shares of the TAT among the counties, <br />and for that we are grateful. To do otherwise would pit one county against another and <br />undoubtedly be destructive. <br />The other positive aspect of HB 983 is that it would restore a percentage <br />distribution of the TAT to the four counties. This is a request we have made for years, <br />and we believe it is the fairest approach; State and counties should share the burden in <br />bad times and the benefits when the economy is good. So we are appreciative of this <br />provision. <br />Our apprehension, however, is with the total allocation to the counties, which (we <br />believe for the first time) would be limited to "Of the remaining revenues, 23.1 per <br />County of Hawari is an Equal Opportump, Provider and Employer <br />