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Home My WebLink AboutCOM 0449.017 2020-2022 1I W q, L I November 15,2021 t Maile Medeiros David,Chair µxm Aaron Chung,Vice Chair &g Hawaii County Council 25 Aupuni Street Hilo, HI 96720 RE: Comments on Bill 81 Draft 2 and Communication 449.11—Hawaii County Transient Accommodations Tax Dear Chair David,Vice Chair Chung and Members of the Hawaii County Council, Thank you for your deliberations in the Finance Committee on Bill 81, which amends Chapter 2 of the Hawaii County Code, by adding a new article to implement a Hawaii County Transient Accommodations Tax (TAT). i I While the Kohala Coast Resort Association was adamantly against the 'gut and replace'tactics used by the Hawaii State Legislature to strip the counties of their TAT,we have always been strong supporters of Hawaii County's efforts to receive its fair share of TAT collected by the state.We understand the impacts that visitors have on services provided by the county, know that the visitor industry directly supports position across critical sectors of both our state and local government, and also understand the vital role our industry plays in our state's overall economy. We would appreciate your consideration of the following as you deliberate the best way to proceed: It is essential that Hawaii County have an accurate and complete list of all visitor accomodations located on Hawaii Island,across all sectors-hotels,timeshares, condos, bed and breakfasts,and STVRs. s STVRs should include those within allowable zoning;those hosted in residents' homes which currently fall outside of the scope of Ordinance 2018-114;those that have received non-conforming use certificates from the Hawaii County Planning Department to operate outside of areas where they are legally zoned; and those that are currently operating illegally. o Hawaii Tourism Authority(NTA) only includes properties who self-report in their annual visitor plant inventory.According to their 2020 report, Hawaii County has a total 11,123 rooms.We believe this is an under count, based on the experience within our resorts. ■ Kohala Coast Resort Association members total 3,940 hotel and timeshare rooms. { ■ Estimates are that full and part-time residences within our resorts,some operating legal STVRs, contain more than 3,500 rooms. ■ Data aggregator AlltheRooms.com shows that there were more than 4,600 active STVRs units rented on Hawaii Island during the last year. Many of those units are entire houses containing multiple bedrooms,therefore more than 10,000 STVR rooms may be available. Taxes must be collected equitably from all units.With state and county taxes and allowable administrative fees, visitors will pay nearly 18%on their accommodations,one of the highest tax rates in the nation. The start date for this new TAT must take into consideration the fact that future bookings are constantly occurring. We would appreciate as much advance notice as possible,so that the taxes can be appropriately assessed. COMM. W '' ILtRef, To: Ref. Date Nov 182_221 i i The taxes collected from this Hawaii County TAT should in no way legitimize STVRs that are operating illegally. j Using its list of all visitor accommodations,the county should actively pursue and enforce current rules and shutdown illegal operations. I We recommend there be transparency on how these funds will be spent.We understand that past TAT funds provided by the state have gone into the general fund.This makes it very difficult to see the myriad of ways the visitor industry supports Hawaii County's operations. • We therefore support Communication 449.11 providing specific funding for administrative staff for Hawaii j County's TAT program,Research and Development's efforts in tourism,and Parks and Recreation's maintenance of park facilities utilized by residents and visitors. • We would also like to request utilizing a portion of these funds to address larger scale infrastructure needs important to Hawaii County's workforce including: roads,water,wastewater,expanded mass transit,and the development of more affordable workforce housing. I In addition to the hotel,timeshare and residential units mentioned above, KCRA also represents shopping, entertainment,golf,spa,and restaurants along the Kohala Coast. KCRA members employ more than 5,000 Hawaii Island residents,supporting 20,000 community members. Estimates are that with the passage of this bill, in 2022, KCRA members will pay more than$60 million in state and county TAT,and $25 million in state and county GET. Further, KCRA members, and the businesses and residents within our resorts, pay$73 million in property taxes to Hawaii County,one fourth of total collections. In addition, between 2018 and 2021, KCRA members invested more than $450 million in infrastructure and property upgrades,which supports Hawaii Island's construction industry. Thank you for the opportunity to comment on Bill 81, Draft 2 and Communication 449.11. Sincerely, f .y Stephanie Donoho Administrative Director, Kohala Coast Resort Association Pat Fitzgerald, CEO, Hualalai Investors-President, KCRA Scott Head,VP Resort Operations,Waikoloa Land Company—Vice President, KCRA Craig Anderson,VP Operations, Mauna Kea Resort—Secretary/Treasurer, KCRA Charlie Parker,General Manager, Four Seasons Hualalai—Board of Directors Charles Head,General Manager, Fairmont Orchid—Board of Directors Simon Amos, Hotel Manager, Hilton Waikoloa Village—Board of Directors Rob Gunthner,Area VP Resort Operations, Hilton Grand Vacations—Board of Directors Sanjiv Hulugalle, VP and General Manager, Mauna Lani,Auberge Resorts Collection—Board of Directors Steve Yannarell,General Manager,Waikoloa Beach Marriott—Board of Directors PO Box 6991,Kamuela,H!96743*(808(747-5762*kohafacoastresortassn gmA .com*www.kohalacoastresorts.com