HomeMy WebLinkAboutCOM 0958.010 2016-2018 Pi sP,cfL Cootie..
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Murashige, Laura
From: kohalacoastresortassn@gmail.com
Sent: Wednesday,June 27, 2018 5:09 PM
To: Council Testimony
Cc: Colin Clark; 'Craig Anderson'; david.givens@hilton.com; Kelley Cosgrove; 'Patrick
Fitzgerald'; 'Rodney Ito'; 'Scott Head'; 'Simon Amos'; steve.yannarell@marriott.com
Subject: Testimony in opposition to Bill 159 Draft 2 - Special County Council Session 6/29/18
Attachments: GET Increase -Testimony in Opposition to Bill 159 Draft 2 6.27.18.docx
Aloha Members of the Hawaii County Council,
Attached please find the Kohala Coast Resort Association's testimony opposing the proposed GET increase.
Mahalo,
Stephanie Donoho
Stephanie Donoho,Administrative Director
Kohala Coast Resort Association
PO Box 6991, Kamuela, HI 96743
(808) 747-5762
kohalacoastresortassn@gmail.com t
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KOha Coast
RESORT ASSOCIATION
June 27,2018
Hawaii County Council
West Hawaii Civic Center
75-5044 Ane Keohokalole Highway
Kailua-Kona,HI 96740
Testimony in Opposition to Bill 159 Draft 2 Raising the GET by .025 Percent
Dear Chairperson Poindexter and Members of the Hawaii County Council,
The Kohala Coast Resort Association(KCRA)opposes Bill 159 Draft 2,raising the GET by .025 percent.There are
several reasons we oppose this bill:•
1) Within the last year, the TAT has been raised to 10.25 percent to fund the Honolulu Rail Project.Visitors to
our island feel that increase in the overall price of their stay;
2) County of Hawaii property taxes within the resort zoned areas, and for investment residential properties
experienced the highest increase last year— 10.4 percent;
3) Fuel taxes were also increased last year, and those were supposed to be earmarked for the same areas as this
proposed GET increase;
4) The visitor industry has been severely impacted by the volcanic activity,with cancellations on the Kohala
Coast totaling more than$25 million to date. We are doing our best to protect our employees' positions and
stabilize our industry, and do not feel that this is a prudent time to implement another increase of any kind.
We know that the County of Hawaii has also experienced lost property tax revenues and increased costs as it assists
residents impacted by the volcanic activity. We commend you for all of your efforts.However,we ask that you look at
other areas of revenue generation, including the potential of creating a separate property tax classification for vacation
rentals currently operating in residential and agricultural areas of the island, since they are not currently paying the
same property tax rates as those operating in resort zoned areas, where such use is allowed. We believe-this would
create a more level playing field in the visitor accommodation market, and bring in additional revenues to the county.
The KCRA is a collection of master-planned resorts and hotels situated north of the Kona airport which represents
approximately 3,500 hotel accommodations and an equal number of resort residential units.KCRA member properties
employ more than 5,000 Hawaii Island residents.KCRA member properties annually pay more than$20 million in
TAT, $20 million in GET, and$10 million in property taxes, as shown in our Economic Impact Report 2010-2015.
Copies of that report have been distributed to all members of the Hawaii County Council.
Thank you for your consideration. We encourage your opposition to Bill 159 Draft 2.
Sincerely,
P�
Administrative Director
PO Box 6991, Kamuela, HI 96743*(808)747-5762*kohalacoastresortassnagmail.com*www.kohalacoastresorts.com