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HomeMy WebLinkAboutCOM 0706.000 2008-2010DENNIS "FRESH" ONES!!! Council Alen her Council Di,sinc( 4 Attultng Addrese. (1-orni _r County Building) 25 cl upum Street lido. Ilmrm'r 96720 MEMORANDUM Hawaii County Council County of Hau'ai TO: J Yoshimoto, Council Chair and Council Members // •• ..'' FROM: Dennis "Fresh" Onishi, Council Member Ci`� DATE: February 2, 2010 SUBJECT: Legislation for Inclusion in the 2010 1 -ISAC Legislative Package. DO /Rk attachment Serrmt thr /Mere. 1: of the People of Our island Ila6(0! 1 Countr IS 00 Equal Oppornuu/1 PrmValer and Lnplc 'et Phone (808) 961-8571 Fun (8081 961 -8912 Entail dontshnmco hmruu In us 13u svness .address 333 AI Flauca : hrnue, Second Floor Hon Frunllm Huddmg lido. / /airm 't 96720 At the January 19, 2010 Hawai'i State Association of Counties (HSAC) Executive Committee Meeting, the following resolution was approved and referred back to each respective County for discussion: • Resolution to urge the Governor and State Legislature to maintain the Counties' share of the Transient Accommodation Tax (TAT). Comm. No. lob Ref. To: F C., Ref. CJote, FEB 0 4 2019 Hawai`i State Association of Counties Counties of Kauai, Maui, Hawai`i and City and County of Honolulu RESOLUTION URGING THE GOVERNOR AND THE STATE LEGISLATURE TO MAINTAIN THE COUNTIES' SHARE OF THE TRANSIENT ACCOMMODATIONS TAX WHEREAS, the transient accommodations tax is a tax levied by the state on the proceeds derived from furnishing transient accommodations; and WHEREAS, in the 1990 legislative session, the Hawaii state legislature enacted Act 185 which gave the counties a share of the transient accommodations tax; and WHEREAS, according to Conference Committee Report 207, the purpose of Act 185 was to provide a more equitable method of sharing state revenues with the counties rather than continuing with the system existing at the time whereby the counties requested financial assistance through grants in aid from the state; and WHEREAS, in Conference Committee Report 207, it was acknowledged that many of the burdens imposed by tourism fall on the counties including the costs of providing police and fire protection, maintaining county parks, beaches, water systems, roads, sewer systems and other tourism related infrastructure; and WHEREAS, the county share of the tax also provides more stability to county finances and enables improved budgeting and planning; and WHEREAS, 44 8% of the total transient accommodations tax collected by the state is distributed to the counties and allocated as follows: and Kauai County Hawaii County City and County of Honolulu Maui County WHEREAS, on Kauai the transient accommodations tax accounts for approximately 7 8% of Kauai's general fund budget, on Hawaii the transient accommodations tax accounts for approximately 5.5% of Hawaii County's general fund budget, on Oahu the transient accommodations tax accounts for approximately 3.2% of Honolulu's general fund budget, and on Maui the transient accommodations tax accounts for approximately 3.9% of Maui's general fund budget, and OCS/010410/11 36 /HM 1 14.5% 18.6% 44.1% 22.8% WHEREAS, in her press release on December 21, 2009, detailing her plans to balance the state budget for the fiscal biennium 2009 -2011, the governor proposes to suspend the counties' allocation of the transient accommodations tax, thus keeping state revenue that would otherwise go to the counties; and WHEREAS, maintaining the current allocation of the transient accommodations tax would allow the counties to continue providing essential government services to visitors and residents without significantly raising property taxes; now, therefore, BE IT RESOLVED by the Hawaii State Association of Counties that it urges the governor and the state legislature to maintain the current allocation of the counties' share of the transient accommodations tax; and BE IT FINALLY RESOLVED that copies of this Resolution be transmitted to the the governor, the president of the state Senate, and the speaker of the House of Reprrsnt ives. DEREK President DENNIS ONISHI Secretary 2 STOR GARCIA Vice President SEP• ONTANILLA reasurer