HomeMy WebLinkAbout2017-02-10 Letter to Richard Onishi re HB 1586 os...... Okabe
Director
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Harry Kim \.'itt s
Mayor -_z- +'!S
Barbara J.Kossow
Deputy Managing Director
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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 10, 2017
Representative Richard H.K. Onishi
Tourism Committee
Hawai'i State Capitol
Honolulu, HI 96813
Dear Chair Onishi and members:
RE: HB 1586
Thank you for this opportunity to testify in strong opposition to the provisions in
HB 1586 that would reduce and then eliminate the counties' share of TAT.
The stated purpose of HB 1586 is to address the high cost of living by reducing
the tax burden on low- and middle-income earners. While I fully support that purpose, I
cannot agree that HB 1586 offers a reasonable solution to the problem. The "low- and
middle- income earners" that HB 1586 refers to are citizens of both the State and a
county. We represent and serve the same people. Decimating the budgets of the
counties in order to reduce the State tax burden would not be beneficial; it would simply
force the counties to drastically reduce services or increase other taxes for our shared
constituents.
TAT is a very important source of revenue to the County of Hawaii (and the other
counties), and we rely on it to balance our budget and maintain services for our citizens
and visitors. HB1586 would deal a punishing blow to us, and therefore to our taxpayers.
Please remember that TAT was established in part to help the counties, but the State of
Hawaii already gets the major portion of the TAT revenues. Without the limited share
that we currently receive, we would be pressed to raise property taxes about $19M
(5.1% of our total budget), and that would worsen the pressures on the portion of the
population that is currently managing a paycheck-to-paycheck financial existence. It
would hurt a major portion of our population, affecting renters and homeowners alike.
Property taxes, after all, are not simply absorbed by a landlord, they are passed on, in
whole or in part, to the tenant.
My priority this session is to seek an increase in the TAT, not a reduction. The
current portion of TAT revenues received by Hawaii County is too low, not too high. The
chart below reflects how small a portion of the TAT comes to Hawaii County, and how
the percentage has shrunk over the years.
County of Hawai'i is an Equal Opportunity Provider and Employer.
Richard Onishi
Page 2
February 10, 2017
Please help us help our fellow citizens by increasing, not decreasing, this vital
component of the County budget.
TAT — Total vs. Hawai'i County Portion
500,000,000 25.00%
400,000,000 20.00%
300,000,000 15.00%
200,000,000 III ■ — Il I 10.00%
100,000,000 5.00%
.r.r w ar ma U r. LW MornIww w 1 4. °00.00%
1 ^0� 0 0,y0 0titi �tiO �N. hti0 yA* ti�
MINI TOTAL TAT min Hawai'i County HI County%of total
Respectfully submitted,
C
Harry Ki
Mayor
County of Hawai'i is an Equal Opportunity Provider and Employer.