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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: October 2, 2018 Re: Comm. No. 1072/Res. No. 690-18 <br /> PLACE: Council Chambers <br /> Hilo, Hawai`i <br /> TIME: 9:30 a.m. <br /> Council Chair and Members <br /> Hawai`i County Council <br /> Hilo, Hawai`i 96720 <br /> Your Committee on Finance, to which was referred Resolution No. 690-18, reports as follows: <br /> Resolution No. 690-18, transmitted by Council Member Eileen O'Hara, via Communication No. 1072 dated <br /> September 13, 2018, requests an amnesty period from January 2019 through the end of fiscal year 2019- <br /> 2020, during which time real property tax rates for properties zoned commercial where a legal business <br /> operates or plans to operate in Pahoa and Volcano Village, that continue to be negatively impacted by the <br /> 2018 lava event, shall be assessed at the minimum tax rate. <br /> This resolution requests relief from the full assessment of real property taxes as a means to support <br /> businesses that report substantial financial losses due to the recent volcanic activity. <br /> Council Member O'Hara explained that this resolution came about through discussions with business <br /> organizations that represent Volcano Village and Mainstreet Pahoa. Ms. O'Hara stated the resolution has to <br /> do with the fact that these areas have experienced serious downturns in business due to the lava events. She <br /> noted that while the lava may have ceased, it has not resulted in the return of business to the affected areas. <br /> Ms. O'Hara requested that the Real Property Tax office analyze the number of commercial properties that <br /> have been impacted this fiscal year and would like to make a floor amendment relating to the following fiscal <br /> year. Ms. O'Hara feels that the businesses in these areas should receive our support. <br /> Council Member Herbert "Tim" Richards, III, stated there have been a lot of other businesses that have been <br /> impacted. He noted an announcement made during May and June 2018, there were $25 million in hotel room <br /> cancelations, which does not take into account the amounts of rental cars, restaurants, activities, and other <br /> financial losses or unrealized businesses that have been affected. Mr. Richards commends Ms. O'Hara for <br /> bringing this forward, but feels the County needs to be fair and equitable going forward. <br /> FC Report No. 142 <br />