HomeMy WebLinkAboutCOM 0645.011 2020-2022 / ►tllbill 1%
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Japanese Chamber of'Commerce
& Industry of Ha wa i`i ` a
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April 11, 2022
COUMCLERK
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Honorable Maile David 3
Chair, Hawai'i County Council
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County of Hawaii
25 Aupum Street
Hilo, Hawaii 96720
RE: Bill 126—Operating Bu(lget for the County of Hawai'i for FY2022-23
Dear Chair David and Members of the Hawaii County Council:
This letter is submitted on behalf of the over 300 members of the Japanese Chamber of
Commerce and Industry of Hawaii. At the onset, we thank the Council and County Administration for
their collaborative effort in working towards the implementation of a balanced budget for our County of
Hawaii.
A major issue that has recently developed is the dramatic and unprecedented increase in real
property assessments over the past one year, resulting in 40-100% increases in tax liability for many
commercial and industrial properties. Many of our member businesses are small, and these increases
will have dire adverse impacts on their operations and may result in consumers and tenants having to
bear this financial burden. A cominon sentiment among our business members has been, "why didn't
the County warn us about this?" Had the increases been gradual, businesses would have been more
adept in making the necessary adjustments. However,this sudden financial burden of unprecedented
value presents the very real possibility of businesses having to close or reduce their staff.
We recognize the elimination of the county share of the transient accommodations tax caused a
major reduction in a revenue stream for our County. We also recognize that user fees throughout our
County are not sufficient to offset the cost of providing fundamental government services. However,
balancing the County budget on the backs of businesses that simply cannot afford to pay such a dramatic
increase in real property taxes is counterproductive to the County providing an economically sustainable
community, since businesses are at the heart of a thriving economy with low unemployment.
We are gratefiil the Council will consider upcoming legislation seeking to incorporate a"cap"on
assessments for each taxable year for commercial properties. The passage and implementation of this
sensible ordinance, together with responsible reduction in govermnent spending, will ensure that
businesses continue to pay their fair share,while not disproportionately burdening these businesses
which are the lifeblood of our local Big Island economic community.
714 Kanoelehua Avenne,Hilo,Hawaii 96720-4565
Phone:(808)934-0177 ,0 Fax:(808)934-0178 ':'Etruzil: cilE{cry c�:ITa,c r � �'
2981032vl
Comm. No.
Ref. To: e
Ref, Date APR I �,�
Honorable Maile David
April 11, 2022
Page 2
3
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Again, we implore the Council to exercise their collective wisdom in evaluating the County's j
proposed operating budget. Although a kneejerk response to the unprecedented rise in assessments may
be, "that's what the market is,"this fails to take into account the other contributory factors in the
reduction of revenue for our County. It also ignores the reality of what damage an abrupt and dramatic
increase without warning may cause our local businesses who are just now beginning to emerge from
the COVID-19 global pandemic and attempting to restore economic normalcy to our Big Island
community.
The Japanese Chamber of Commerce and Industry of Hawaii thanks the Council for your
leadership during these difficult times. We have faith in you that your collective efforts will result in
fair and equitable relief for all local businesses, and not hann our consumers.
Very truly yours,
Lincoln S. T. Ashida
President