HomeMy WebLinkAboutCOM 0722.081 2016-2018M
From: Bill Buabee
To: Eoff, Karen; David, Maile; Kanuha, Dru; Council Testimony; Richards, Tim; Poindexter, Valerie; Lee Loy, Sue;
Ohara, Eileen; Chung, Aaron
Cc: Kim, Harry
Subject: Written Submission - Public Testimony: County Tax Bill 102
Date: Friday, February 16, 2018 4:56:50 PM
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Written Submission - Public Testimony: County Tax Bill 102
CD
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Council members,
Talking about the Aloha spirit is a wonderful thing, but translating that spirit into actionabk1*1E-,7_
progress in government policy is something else, especially when it comes to taxation and
achieving a sustainable social and economic plan for Hawai'i Island that addresses- island life
with all its wonders and vulnerabilities.
Hawaii's taxation system is highly reliant on a statewide Excise Tax system, which is out -of -
balance with fair and equitable distribution of revenue generation sources (from all islands).
Equally wrong is the immoral policy of applying Excise Taxes to food and medicine products
and services, which impacts all income classes - a state policy that is as far from the "aloha
spirit" as could be enacted.
Mayor Kim calls the current Excise Tax system "regressive " and the division of revenue of
Big Island tax receipts between Hawai'i County and the state as "unfair "; and he is correct on
both counts.
The state's high income and property tax rates, coupled to Oahu calling the shots governing
outer island taxation policy leaves few options for County government to raise revenue and
retain that revenue locally raised to address local needs.
Tax Bill 102 is a band-aid that fails to address fundamental County funding issues, and to
correct this problem:
1 - Local elected officials must stand up to the current tax revenue sharing inequality
of TAT between the outer islands and Oahu,
2 - County representatives must work directly with our island -elected state
representatives, and they in turn must coordinate their like-minded efforts with other outer
island representatives, forming a united front calling for reform and change in state policy
governing TAT revenue distribution with outer islands - an effort that will produce a fair and
equitable change to the TAT revenue split between Oahu and the outer islands,
3 - Reform the TAT revenue share - a fundamental step County government must
undertake to balance funding needs with the funding of services based on available revenue.
Candidate Kim ran on a platform of "no new taxes " and a promise of bringing greater
efficiency -and cost effectiveness to County government -- so far the Mayor (and the Council)
have yet to demonstrate the willingness to address the fundamental problems of growth and
our island's infrastructure which is increasingly under stress, addressing growing
environmental degradation, or the social and economic impacts from associated with the
growth management responsibilities of County government.
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A one half percent increase in the Excise Tax dedicated to the County does not address needed
reforms, but only adds to the current inequities of the state's Excise Tax System and fails to do
little more than re-,arrange the deck chairs on the Titanic ... as it sinks.
Mahalo a nui loa for your service to the Community,
Bill Bugbee
North Kona