HomeMy WebLinkAboutCOM 0081.011 2018-2020 p/council•
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Testimony of
Christopher Delaunay, Government Relations Manager
Pacific Resource Partnership
County of Hawaii—County Council
Aaron S.Y. Chung, Chair& Presiding Officer
Karen Eoff, Vice Chair
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Bill 19 Relating To The General Excise And Use Tax Surcharge C
Wednesday, 5711 =
March 13, 2019
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9:00A.M. �n
25 Aupuni Street,Suite 1402
Hilo, Hawaii 96720
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Aloha Chair Chung,Vice Chair Eoff, and Members of the Council:
Pacific Resource Partnership (PRP)supports Bill 19, which increases the County General Excise and Use
Tax Surcharge rate from one-quarter percent(0.25%), that was levied on January 1, 2019,to one half
percent(0.5%)to be levied on January 1, 2020, and to amend the sunset date of December 31, 2020,to
December 31, 2030.
Hawaii County could benefit from an increase in the surcharge from 0.25%to 0.5%to address much-
needed repairs to roads and bridges damaged during the Kilauea eruption and Hurricane Lane. The
Kilauea Eruption estimated $236.5 million in damages to county infrastructure, including roads. Hurricane
Lane caused major flooding in East Hawaii, which resulted in significant damages to roads and bridges.
An increase in the surcharge from 0.25%to 0.5%will provide Hawaii County with more revenue to build
and maintain infrastructure projects supporting various modes of transportation, which include driving,
walking, bicycling, or using mass transit systems like the bus. Had the existing .25%surcharge been levied
in 2017, Hawaii County could have collected $11.1 million towards improving the County's transportation
system. In addition, if a 0.5%surcharge was levied in 2017, Hawaii County could have collected double
this amount at$22.2 million for the same purpose.
Moreover, it is important to note that visitors of Hawaii County will also pay the 0.5%surcharge, so local
residents do not have to shoulder the entire burden of paying for transportation improvements.This
cost-sharing could alleviate some of the pressures on the County to raise property taxes, fuel taxes, or
reduce services in order to build much-needed transportation projects.
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Also, an increase in the surcharge is likely to provide important employment opportunities for local
residents who work on capital improvement projects in transportation. Creating infrastructure is a
permanent form of economic stimulus.
Therefore,we respectfully ask for your favorable passage of Bill 19.Thank you for this opportunity to
submit written testimony.
About PRP
Pacific Resource Partnership(PRP)is a not-for-profit organization that represents the Hawaii Regional
Council of Carpenters, the largest construction union in the state, and more than 240 of Hawaii's top
contractors. Through this unique partnership, PRP has become an influential voice for responsible
construction and an advocate for creating a stronger, more sustainable Hawaii in a way that promotes a
vibrant economy, creates jobs and enhances the quality of life for all residents.
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