HomeMy WebLinkAboutCOM 0081.003 2018-2020 PIFs
GOUTY CLERK COMM. SI
HANNA': COUNTY OF HAWAII
ISLD
REALTORS®
7919 FEB -14 AM 9: 'd 2
1321 Kinoole St. Hilo, HI 96720 1808-935-0827
February 4, 2019
Hawai'i County Council Committee on Finance 25 Aupuni Street; Hilo, HI; 96720
Dear Madam Chair David, Vice Chair Richards, and Members of the Hawaii County Council,
Hawaii Island REALTORS® represents 600 active real estate licensees and affiliate
businesses on Hawai'i Island and is strongly opposed to any increase in the General Excise
Tax. We specifically oppose Bill 19 which proposes to increase the general excise and
use surcharge from one-quarter percent to one half percent.
Approximately one year ago we heard the many reasons why the GET surcharge should be increased.
We heard of the road improvements, bike paths and bus service improvements that would occur.
Unfortunately, none of that happened. Of course, we know that no one could have predicted the lava
eruption disaster and disaster recovery from Hurricane Lane but the GET increase was not meant to be
applied to disaster recovery. The funds resulting from a GET increase were to be for the purpose of
transportation only. The announcement now that it will be used for disaster recovery feels like a
betrayal of the public trust.
The Hawaii general excise tax applies to virtually every economic activity imaginable. Unlike the typical
mainland sales tax, our GE tax applies to wholesale transactions, services, rents, interest and other
forms of income." Any increase in the General Excise Tax is an increase to all citizens' cost of living as
well as their cost of doing business.
Furthermore, a tax that is applied uniformly across all citizens, may appear fair but in actuality lower-
income earners pay a higher share of their income in this type of regressive tax. A 2015 study by the
Institute on Taxation and Economic Policy (ITEP) ranked the State of Hawaii as having the 15th
"unfairest"tax system in the country. According to ITEP, payment of sales and excise taxes takes up an
average of 11%of family income for the poorest 20%of earners.
For these reasons, we urge our legislators to vote against any increase of the General Excise Tax for
Hawaii County.
Thank you for your consideration on this important issue.
Sincerely,
Joy Dillon/
gi ch 2 rd'Hevi.deroo-vv
Co-Chairs, Government Affairs Committee g
Hawaii Island REALTORS® Comm. No.
Ref. To: VIFO
Ref. Date FEB 1 3. 2019