HomeMy WebLinkAboutCOM 0739.017 2020-2022 FC
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RESORT ASSOCIATION
October 18, 2022
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Matt Kanealii-Kleinfelder,Chair = :
Heather Kimball,Vice Chair —�-s --i
Hawaii County Council Finance Committee —�
Hawaii County Building
25 Aupuni Street,Hilo,HI 96720
411
la./RE:Support for Bill 156—providing a 15%cap on certain property tax values
Dear Chair Kanealii-Kleinfelder,Vice Chair Kimball,and Members of the Hawaii County Council Finance Committee,
The Kohala Coast Resort Association is in full support of Bill 156 and the proposed rate cap(both ceiling and floor) 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.2022 has been 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$40 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
propertytaxes to Hawaii County last year,one third of all property tax collections for our community.
We encourage you to support Bill 156.
Sincerely, P
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Stephanie Donoho
Administrative Director,Kohala Coast Resort Association
PO Box 6991,Kamuela,HI 96743*(808)747-5762*kohalacoastresortassn@gmail.com*www.kohalacoastresorts.coml -11
Comm. No.
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Ref.Odte. OCT 1 R 2022