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COUNTY OF HAWAII : •�4 '/:• STATE OF HAWAI I
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RESOLUTION NO. 160 13
A RESOLUTION URGING THE STATE LEGISLATURE AND THE GOVERNOR TO
RESTORE THE COUNTIES' SHARE OF 44.8 PERCENT OF THE TRANSIENT
ACCOMMODATIONS TAX REVENUES.
WHEREAS, pursuant to Hawai`i Revised Statutes, Chapter 237D, the Transient
Accommodations Tax (TAT) is imposed in the State of Hawai`i on certain rental activity, such
as a hotel room, apartment, condominium, house, beach house, or similar living accommodation
that is rented for less than 180 consecutive days; and
WHEREAS, the TAT helps to cover the costs of services associated with tourism and
the impact it has on the islands; and
WHEREAS, according to the Department of Business, Economic Development and
Tourism, the average visitor count for the past two years has been approximately 7.6 million per
year, while the projected visitor counts for this year and the next two years averages 8.5 million
per year; and
WHEREAS, on any given day, thousands of visitors are on Hawai`i Island utilizing
services that the County provides, such as police, fire, lifeguards, parks, water, mass transit,
solid waste disposal, and many other services that our visitors enjoy and depend on; and
WHEREAS, these essential services are provided as part of our agreement with the
State; and
WHEREAS, the County and its taxpayers share in the costs associated with tourism
and, in return, we receive some reimbursement via the TAT; and
WHEREAS, prior to July 1, 2013, Hawai`i Revised Statutes, Section 237D-6.5,
subsection (b),paragraph (3), stated that 44.8 percent of the revenues collected from the TAT
shall be transferred to the four counties, and of that 44.8 percent, Hawai`i County shall receive
18.6 percent (this section was also amended to establish a temporary cap of$93,000,000 for the
period of July 1, 2011 to June 30, 2015); and
WHEREAS, on June 21, 2013, the Governor signed into law Act 161, which removed
the temporary cap and its sunset date and replaced the counties' share of TAT revenues of 44.8
percent to a fixed amount of$93,000,000, of which 18.6 percent goes to Hawai`i County; and
WHEREAS, according to the Tax Research and Planning Office of the State of
Hawai`i, the TAT revenue collected for fiscal year 2012-2013 was $368,556,000 and the
estimated revenues for fiscal years 2013-2014 and 2014-2015 are $391,000,000 and
$412,000,000, respectively; and
WHEREAS, using the figures from the Tax Research and Planning Office of the State
of Hawai`i, the following chart illustrates the counties' lost revenues based on 44.8 percent of
the TAT revenues:
Fiscal Year TAT Revenues 44.8 Percent of Counties' Lost
TAT Revenues Revenues
(based on the
$93,000,000 cap)
2012-2013 $368,556,000 $165,113,088 $72,113,088
2013-2014 $391,000,000 (estimate) $175,168,000 $82,168,000
2014-2015 $412,000,000 (estimate) $184,576,000 $91,576,000
; and
WHEREAS, with Hawai`i County facing increased costs to provide vital services,
limiting our TAT revenues may necessitate curtailing and possibly eliminating services that
impact the health, safety, and welfare of our community; and
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WHEREAS, although the State is struggling to balance its budget, the counties are
going through the same difficulties and are only seeking to retain their fair share of the TAT
revenues; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that it
urges the State Legislature and the Governor to work with the counties to ensure that we receive
our fair share of the TAT revenues by restoring the 44.8 percent Transient Accommodations
Tax revenues to the counties.
BE IT FINALLY RESOLVED that the County Clerk shall forward a copy of this
resolution to the Honorable Governor Neil Abercrombie, the Honorable Senate President Donna
Mercado Kim, the Honorable Senate Vice President Ronald D. Kouchi, the Honorable House
Speaker Joseph M Souki, the Honorable Speaker Emeritus Calvin K.Y. Say, the Honorable
Vice Speaker John M. Mizuno, the Honorable Ways and Means Committee Chair David Y. Ige,
the Honorable Finance Committee Chair Sylvia Luke, all State Senators and Representatives for
the County of Hawai`i, the Honorable Mayor William P. Kenoi, and the Director of Finance.
Dated at Kona , Hawai`i, this 21st day of August , 2013.
INTRODUCED BY:
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COUN MEMBER, COUNTY OF HAWAII
COUNTY COUNCIL ROLL CALL VOTE
County of Hawai`i AYES NOES ABS EX
Hilo, Hawai`i EOFF X
FORD X
I hereby certify that the foregoing RESOLUTION was by ILAGAN X
the vote indicated to the right hereof adopted by the COUNCIL of the KANUHA
County of Hawaii on Au. St 21, 2013 X
KERN X
ONISHI X
ATTEST: POINDEXTER X
WILLE X
, YOSHIMOTO X
9 0 0 0
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Reference: C-380/Waived GREDC
COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER RESOLUTION NO. 160 13
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