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REPORT OF THE <br />COMMITTEE ON FINANCE <br />DATE: February 18, 2025 <br />PLACE: Council Chambers <br />Kailua-Kona, Hawaii <br />TIME: 1:31 p.m. <br />Council Chair and Members <br />Hawaii County Council <br />Hilo, Hawaii 96720 <br />Re: Comm. No. 119/Bill No. 27 <br />Your Committee on Finance, to which was referred Bill No. 27, reports as follows: <br />Bill No. 27, transmitted by Committee Members Ashley L. Kierkiewicz and Holeka Goro Inaba via <br />Communication No. 119, dated January 27, 2025, amends Chapter 2, Article 45, Section 2-235, of <br />the Hawaii County Code 1983 (2016 Edition, as Amended), relating to the General Excise and Use <br />Tax Surcharge. <br />This bill adds County -appropriated housing infrastructure costs and the definition of "Housing <br />infrastructure costs" to use of funds to codify the Session Laws of Hawaii 2024, Act 30, which took <br />effect on July 1, 2024. <br />Finance Director Diane Nakagawa, Deputy Finance Director Malia Kekai, and Corporation Counsel <br />Renee Schoen were available for questions. <br />Ms. Kierkiewicz and Mr. Inaba provided background on this matter. <br />Committee Member Michelle Galimba thanked Ms. Kierkiewicz and Mr. Inaba for introducing this <br />measure and asked if housing developers could be reimbursed for infrastructure costs. Ms. Schoen <br />stated that the language of the measure doesn't allow for that, but maybe they could discuss the <br />possibility of a reimbursement with the Finance Department. <br />Committee Member Dennis "Fresh" Onishi requested to see a percentage of the funds dedicated to <br />roads and transportation and housing. <br />Committee Member Jenn Kagiwada asked how these funds will be decided and who will be able to <br />make those decisions. Mr. Inaba replied by stating that it would be up to the administration and once <br />they create a budget the committe would be able to weigh in. <br />Committee Chair Matt Kaneali`i-Kleinfelder expressed concerns with some of the language and asked <br />if there will be tax exemptions for developers. Ms. Galimba shared the same concerns. Mr. Inaba <br />stated that all the definitions are clear and they are not trying to exempt anyone from paying taxes. <br />FC Report No. 29 <br />