HomeMy WebLinkAboutCOM 0739.014 2020-2022 P /Fc
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COMM.1
KohalaCoast
RESORT ASSOCIATION
September 1,2022
Matt Kanealii-Kleinfelder,Chair o (7.,:
Heather Kimball,Vice Chair ^' `
Committee on Finance t./)
Hawaii County Council ��',
Hawaii County Building -- CTS
25 Aupuni Street,Hilo,HI 96720
RE:Support for Bill 156—providing a 15%cap on certain property tax values
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Dear Chair Kanealii-Kleinfelder,Vice Chair Kimball and Members of the Hawaii County Council Committee on Finance,
The Kohala Coast Resort Association is in full support of Bill 156 and the proposed rate cap of 15%for the:apartment,hotel and
resort,commercial,industrial, agricultural,native forests, and conservation tax classes. Mahalo to Councilmember Sue Lee Loy
for introducing this legislation and for the productive discussion at earlier Finance Committee hearings.
As you know,our hotel and resort members undertook significant deficits in 2020,as we invested in medical benefits and food
programs for our furloughed employees and their families while the visitor industry was completely shut down.Last year was
also a challenge,with the surge of the delta variant,and state leaders encouraging visitors not to travel to Hawaii during the
summer season.We hope that 2022 will continue to be a year of rebuilding and stabilization.And we believe the measured
increases proposed in this bill will help our members further stabilize in fiscal 2023-24 and beyond.
Thank you for understanding that businesses are seeing significant increases in the day-to-day costs of operations in nearly every
arena:salary increases,increases in the cost of family medical benefits,food costs for both our guests and our employee meals,
energy and gasoline costs,construction materials costs and delays,supply chain disruptions,the new Hawaii County TAT
implemented in January 2022,and significant increases in real property tax values in 2022-23.As an example,one hotel along
the Kohala Coast saw the value of its buildings increase by 124%between 2020 and 2022,and seven properties saw their values
increase by more than 50%.These types of increases are not sustainable.
Businesses large and small are relying on you to create appropriate guardrails so we can better forecast overall expenses in
future years.
KCRA members employ 5,000 people,supporting 20,000 Hawaii Island residents at their hotels,timeshares,restaurants,retail
outlets,golf courses and spas.Additionally,in 2022,KCRA members will pay an estimated$60 million in state and county TAT,
and$40 million in state and county GET. Further,KCRA members,and the residents within our resorts, pay nearly$134 million in
property taxes to Hawaii County last year,one third of total property tax collections.
We encourage you to support Bill 156.
Sincerely, •
}6/2/211.414/Stephanie Donoho-
Administrative Director, Kohala Coast Resort Association
PO Box 6991,Kamuela,'HI 96743*(808)747-5762*kohalacoastresortassn@smail.corn*www www.kolefomptterts.com1Y1 '•�
Ref,roPt
,Ref.=Date.. SEP --,6 2022