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HomeMy WebLinkAboutREP FC 029 2025-02-18 2024-2026REPORT OF THE COMMITTEE ON FINANCE DATE: February 18, 2025 PLACE: Council Chambers Kailua-Kona, Hawaii TIME: 1:31 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 119/Bill No. 27 Your Committee on Finance, to which was referred Bill No. 27, reports as follows: Bill No. 27, transmitted by Committee Members Ashley L. Kierkiewicz and Holeka Goro Inaba via Communication No. 119, dated January 27, 2025, amends Chapter 2, Article 45, Section 2-235, of the Hawaii County Code 1983 (2016 Edition, as Amended), relating to the General Excise and Use Tax Surcharge. This bill adds County -appropriated housing infrastructure costs and the definition of "Housing infrastructure costs" to use of funds to codify the Session Laws of Hawaii 2024, Act 30, which took effect on July 1, 2024. Finance Director Diane Nakagawa, Deputy Finance Director Malia Kekai, and Corporation Counsel Renee Schoen were available for questions. Ms. Kierkiewicz and Mr. Inaba provided background on this matter. Committee Member Michelle Galimba thanked Ms. Kierkiewicz and Mr. Inaba for introducing this measure and asked if housing developers could be reimbursed for infrastructure costs. Ms. Schoen stated that the language of the measure doesn't allow for that, but maybe they could discuss the possibility of a reimbursement with the Finance Department. Committee Member Dennis "Fresh" Onishi requested to see a percentage of the funds dedicated to roads and transportation and housing. Committee Member Jenn Kagiwada asked how these funds will be decided and who will be able to make those decisions. Mr. Inaba replied by stating that it would be up to the administration and once they create a budget the committe would be able to weigh in. Committee Chair Matt Kaneali`i-Kleinfelder expressed concerns with some of the language and asked if there will be tax exemptions for developers. Ms. Galimba shared the same concerns. Mr. Inaba stated that all the definitions are clear and they are not trying to exempt anyone from paying taxes. FC Report No. 29 FC-29 Page 2 February 18, 2025 Your Committee on Finance is in accord with the purpose and intent of Bill No. 27, and recommends its passage on first reading. Hil AYES NOES ABS EX GALIMBA x HUSTACE x INABA x KAGI)NADA x KANEALI'l-KLEINFELDER x KIERKIEWICZ x KIMBALL x ONISHI X VILLEGAS x Respectfully submitted, COMMITTEE ON FINANCE MATT KANEALY'l-KLEINFELDER, CHAIR FC REPORT NO.: 29 ADOPTED: MAR 0 7 2025