HomeMy WebLinkAboutCOM 0772.002 2014-2016 Margaret WilleNtv,q";,• Phone No. Hilo: (808)961-8027
Council Member
.00 ;�rt ',''•'7•, Phone No. Waimea: (808) 887-2043
District 9-North and South Kohala �` Fax No.: (808) 887-2072
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HAWAI`I COUNTY COUNCIL
County of Hawai`i
Hawaii County Building Holomua Center West Hawaii Civic Center Bldg.A
25 Aupuni Street 64-1067 Mamalahoa Highway, Suite C-5 74-5044 Ane Keohokalole Hwy.
Hilo, Hawaii 96720 Waimea, Hawaii 96743 Kailua-Kona, Hawaii,96740
TO: Dru Mamo Kanuha, Council Chair
And Members of the Hawai`i County Council
FROM: iv Margaret Wille, Council Member
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DATE: April 4, 2016
SUBJECT: Senator Ruderman Report for Communication 772
Please find attached comments from Senator Ruderman for reference during the
Communication 772 discussion on April 5, 2016.
Thank you.
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Serving the Interests of the People of Our Island Ref. Date APR5 2018
Hawai`i County Is An Equal Opportunity Provider And Employer
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STATE CAPITOL
HONOLULU, HAWAII 96813
March 24, 2016
Re: Testimony submitted for April 5, 2016 discussion relating to revenue
sources for the County of Hawaii
Aloha Hawai'i County Council,
Thank you for inviting my input on revenue sources for Hawaii County.
I regret that I cannot be there in person today,but we are busy at the Capitol and
today is an important work day here.
I have shared my opinions on County funding issues in person at previous meetings
at the Council, and today I will be mostly repeating those opinions.
Although counties often look to increased TAT revenue as the solution to more
funding, the difficult reality is that each year these efforts fail. The state is reluctant
to share more of this with counties, no matter how well justified the arguments. I
personally support more money to the counties,as this is where the impacts of
tourism mostly occur,such as police, fire, and road maintenance. But the state
position in response has been that, unlike in most states,the state funds education,
highways,hospitals, airports, and more.
The main point is, no matter the merits, expecting a change in this position is not
likely to result in relief. The counties made a strong effort this year, once again,
speaking clearly for all counties through the Hawaii Association of Counties, and still
came up without results.
Thus the best and the only realistic option is to look to revenues the County
controls, especially property tax.
My recommendation is to look at raising property taxes on certain high income
residents and entities. Unpopular as this may seem at first, there are ways to do so
without harming the poorest and most vulnerable.
Raise property taxes on the following:
• Out of state owners;
• Owners of multiple properties other than primary residences;
• And properties valued at over a certain threshold, such as $1 million or$2
million.
Properties owned by those out of state increase the cost of housing for residents;
such owners are also affluent enough to pay a larger share. The last two categories
target those who can afford a larger share of the burden.
This places the burden solely on those who can afford it, and avoids regressive taxes
such as GET. The county has full control over this and this approach can succeed
where efforts to get more of the TAT will result in repeated disappointment and no
progress.
Thank you for inviting my comments,and I wish you the best. I am happy to answer
any questions, and look forward to addressing you in person, if invited, after session
is over on May 5.
Sincerely,
jr" 7
Russell E. Ruderman,Senator
Hawaii State Senate
District#2: Puna - Ka'u
415 S. Beretania Street, Room #203
Honolulu, HI 96813