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Japanese Chamber- of Commerce
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April 19, 2022
Honorable Maile David COUNTY CLERK
Chair, Hawai`i County CouncilCOUNTY OF HAWAII
County of Hawaii RECEIVED
25 Aupuni Street Date. ER 1- 2 f22
Hilo, Hawaii 96720
RE: Bill 156—An Ordinance Amending Chapter 19,Article 7, Section 19-53 of the Hawaii
County Code 1983 (2416 Edition, as amended), relating to real property tax valuation
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
cominercial 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 common 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 grateful the Council will consider this 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 government 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 Avenue,Hilo,Hawai`i 96720-4565
Phone: (808)934-0177 •:•Fax:(808)934-0178 Email: c��
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Honorable Maile David
April 19, 2022
Page 2
Again, we implore the Council to exercise their collective wisdom in evaluating the County's
proposed operating budget and the present proposed ordinance. 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 COVIU-19 global pandemic and attempting to restore economic
nonnalcy 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 harm our consumers.
Very truly yours,
Lincoln S. T. Ashida
President