HomeMy WebLinkAboutCOM 0722.058 2016-20182018 ,Board of
Directors
President
Lance Owens, RS
Past Nesidetit
Mike•Drittar, RB.
President -elect
Mike Despard,: RS'
Vice.President
Karen Osilie.RS
Secretary
Ronny Jacobson;,RB
Treasurer
Cindy Barnett; RB
<Treasurer=Elect.
tulle .Wettstein; RB
D.`ir�ecCor s;
Leiola Augustine,, RB
Andee Bem�Qse,.RR;
Ramona C nhoi nj RB
Lisa FoWn,-RS,
Joyce, Murphy,, RB
Srivahnall Scott, RB
Executive Officer
K&Hia Shaw
g9egWVe Assistatit
Diane Marsh'(41
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February 13; 201$
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
'�'T N AWA I I
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Dear'Madam Eoff, Mr. 'Kanuha, and Members of the Hawai*'i County Council,
West Hawai'.i Association of REALTORS®, representing nearly 800 active real estate
licensees and: affiliate 'businesses, is _strongly opposed .to any increase in the General"
Excise Tax (GET). We specifically oppose Bill 102 which proposes a. one�half percent
GET surcharge to be used forrfunding "the operating and capital costs ,of public transportation:.
In a. 2.011 Civil Beat article titled Hawaii Tax Debate: Don't.lncrease the. GET, Ron Heller;
Attorney and CPA, informs, us :that, "in most states., the sales tax,covers. only the final retail
sale of goods — it does not apply to wholesale transactions, nor does .it apply to services,
rents, interest, commissions, or other forms of income. In contrast; the..Hawaii GET applies, in
the words of the Hawaii Supreme.Court, to 'virtually every economic activity imaginable."'
Unlike typical sales tax, our GET applies to,wholesale transactions, services,'and rents,
interest, commissions, and other forms of income." Any increase in the GET ia'an `increase
to our cost of living as well as our cost of doing business.
When considering the price of goods and services that go into building a house, and: the
added tax that the consumer will :pay should the GE rate. increase, it will be in -the thousands,.!
Ulti.mately,. this impacts affordable housing in Hawaii County, which should be "top of mind''
when: considering this measure.
A strong real estate .market is. good :for Hawai'i's_economy. Every home sold in Hawaii
generates new revenue for many other industries - stimulating .business:. When taxes go up,,
consumer confidence — and the willingness to make.rnajor purchases `goes down.
Furthermore., a tax that'is applied uniformly across all citizens; results in lower. -income earners
paying a higher share of their income in this type of regressive tax. policy.
Hawaii County has.nearly 20% of its population living in poverty. It would be .a shame for our
Hawaii County legislators to raise the GET rate on a population already impacted by
the regressive nature of this tax.
is
We urge our legislators to VOTE AGAINST any:increase of the GET for Hawaii County. Thank
you for your consideration on this important issue.
Sincerely,
Lance Owens
2018 President
Vilest Hawaii Association of REALTORS°
75-5995 Kuakini Hwy., Ste. 2211 Kailua-Kana, HI 9674Q Phone: (808) 329=4874 1 Fak: (808) 329-5191 1,
http:l/www.konarealtors.coni I diane@koriaLgL(tors.org