2020-02-18 Letter to Sylvia Luke and Ty Cullen HB 1776 Proposed HD1 Relating to Taxation

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os M,4, Roy Takemoto ;�5, ••. •�o,.• 7� , Managing Director Harry Kim ft 1. hiaror 4 • -N�9,so)• Barbara J. Kossow 4pE oF•M►r!_' Deputy Managing Director County of Hawaii Office of the Mayor 25 Aupuni Street,Suite 2603 • Hilo, Hawaii 96720 • (808)961-8211 • Fax(808)961-6553 KONA: 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawaii 96740 (808)323-4444 • Fax(808)323-4440 February 18, 2020 Representative Sylvia Luke, Chair Representative Ty J.K. Cullen, Vice Chair Committee on Finance Dear Chair Luke, Vice Chair Cullen, and Committee Members: RE: HB 1776 Proposed HD1 Relating to Taxation Several bills are being considered by this year's Legislature which would extend a County's opportunity to adopt a GET surcharge. As I testified on another bill, Hawaii County has adopted its surcharge on State tax, and therefore would not be affected directly by adoption of such an extension. Nevertheless, I thought that it was appropriate for me to support my counterparts in other counties as they face financial issues unique to their jurisdictions. Then disaster relief was added to the mix in SB 2686, and in that respect Hawaii County would see a direct benefit through flexibility, so I asked that SB 2686, SD1 be approved. Now HB 1776, proposed HD1, would add something new again, the welcome addition of flexibility in the form of spending on affordable housing infrastructure. However, this comes with the limitation that, if the county ordinance is adopted after December 2019, the revenue raised can only be used for such infrastructure. I cannot say whether such a restriction is acceptable to other jurisdictions, and I defer to them on that matter. For Hawaii County, we would welcome maximum flexibility, and if the Legislature were willing to add disaster relief and affordable housing to allowable expenditures, that would be a step—maybe two steps—in the right direction. Thank you for your consideration. Re •-ctfully Submitted, e I Harry Kirit MAYOR County of Hawaii is an Equal Opportunity Provider and Employer.