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February 19, 2019
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Hawai'i County Council No cp—
West Hawaii Civic Center mac)
74-5044 Ane Keohokalole Highway, Building A =�"
Kailua-Kona, Hawaii
Dear Chair Chung,Vice Chair Eoff and Members of the Hawai'i County Council, Ps,
Hawai'i 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.
Hawaii Island Realtors® are generally opposed to all tax increases but most notably any increase in the
General Excise Tax. This regressive and egregious tax puts tax upon tax and affects all economic activity.
In addition, we still do not know what this proposed increase in the GET is to be used for. As we all do
know,the opportunity for this increase was originally tied to the Oahu rail project and was to be used
only for transportation costs. However,there are currently 3 bills being heard at the state legislature
that propose different uses for the increase. These range from the vague "broadening" of the purpose
(HB 183),to possibly using only "50%for transportation" (HB 429),to using it for"infrastructure and
public safety" (HB 1394) which in itself is a broad term. We also know that the increase may now be
used for disaster recovery. We would like to know the definition of"disaster recovery." The public
deserves to know what this tax that affects our cost of living as well as our cost of doing business will be
used for.
It has been said that visitors to our island will pay 25%to 35%of this tax. However, as previous testifiers
in the visitor industry have noted, our tax rates for tourists is now at a tipping point. Increasing taxes on
visitors,even a small amount, may drive them to other destinations just when the tourist industry is still
suffering here on Hawai'I island.
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 DCUOii
Government Affairs Committee Chair
Hawai'i Island REALTORS®
Comm. No. U( 4
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