HomeMy WebLinkAboutREP FC 142 2018/10/02 (2016-2018) REPORT OF THE
COMMITTEE ON FINANCE
DATE: October 2, 2018 Re: Comm. No. 1072/Res. No. 690-18
PLACE: Council Chambers
Hilo, Hawai`i
TIME: 9:30 a.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Your Committee on Finance, to which was referred Resolution No. 690-18, reports as follows:
Resolution No. 690-18, transmitted by Council Member Eileen O'Hara, via Communication No. 1072 dated
September 13, 2018, requests an amnesty period from January 2019 through the end of fiscal year 2019-
2020, during which time real property tax rates for properties zoned commercial where a legal business
operates or plans to operate in Pahoa and Volcano Village, that continue to be negatively impacted by the
2018 lava event, shall be assessed at the minimum tax rate.
This resolution requests relief from the full assessment of real property taxes as a means to support
businesses that report substantial financial losses due to the recent volcanic activity.
Council Member O'Hara explained that this resolution came about through discussions with business
organizations that represent Volcano Village and Mainstreet Pahoa. Ms. O'Hara stated the resolution has to
do with the fact that these areas have experienced serious downturns in business due to the lava events. She
noted that while the lava may have ceased, it has not resulted in the return of business to the affected areas.
Ms. O'Hara requested that the Real Property Tax office analyze the number of commercial properties that
have been impacted this fiscal year and would like to make a floor amendment relating to the following fiscal
year. Ms. O'Hara feels that the businesses in these areas should receive our support.
Council Member Herbert "Tim" Richards, III, stated there have been a lot of other businesses that have been
impacted. He noted an announcement made during May and June 2018, there were $25 million in hotel room
cancelations, which does not take into account the amounts of rental cars, restaurants, activities, and other
financial losses or unrealized businesses that have been affected. Mr. Richards commends Ms. O'Hara for
bringing this forward, but feels the County needs to be fair and equitable going forward.
FC Report No. 142
FC-142 Page 2 October 2, 2018
Your Committee on Finance is not in accord with the purpose and intent of Resolution No. 690-18,
and forwards it to Council with a negative recommendation.
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AYES NOES ABS EX Respectfully submitted,
CHUNG X
DAVID x COMMITTEE ON FINANCE
EOFF X
KANUHA X r .
LEE LOY X
4111141. 40
O'HARA X
POINDEXTER x MAILE DA `, CHAIR
RICHARDS X FC REPORT NO.: 142
RUGGLES X ADOPTED: OCT 1 7 2018