HomeMy WebLinkAbout2017-02-13 Mayor Harry Kim's testimony re HB 180, HD1 ---•-•
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25 Aupuni Street,Suite 2603 • Hilo,Hawaii 96720 • (808)961-8211 • Fax(808)961-6553
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February 13, 2017
Representative Scott Nishimoto
Judiciary Committee
Hawai'i State Capitol
Honolulu, HI 96813
Dear Chair Nishimoto and members:
RE: HB 180, HD1
As a former teacher myself, I fully appreciate the efforts of this Legislature to properly fund
education. However, I cannot support HB180, HD1 and must speak against it.
Effect on Real property tax. The County of Hawaii, as is true of the other counties, has little
or no control over its revenue except in one area, real property taxes, and the County relies
overwhelmingly on real property taxes to fund its operations. The burden of that tax can be heavy for
many residents, but since it is virtually the only tool we have, we use it the best we can.
A surcharge on residential investment properties would obviously limit County options and
make it even more difficult to balance our budgets. Therefore, we have to jealously guard this taxing
authority, and ask that you not breach this line of authority.
Effect on TAT. Given our County's limited resources, we are fortunate that the Legislature
has seen fit to allow the counties to share in the TAT. That has been a great help, and we thank you
for it. However, this source of revenue is under constant pressure, and even this session the
Legislature will be asked to increase the counties' share of TAT so that we can better serve our
constituents and visitors. The TAT pie can only be divided into so many pieces, and a surcharge on
visitor accommodations, even for the most noble of purposes, will obviously limit what can be raised
and spent elsewhere.
Please do not deprive the counties of this needed source of revenue, by dividing the pie even
further.
R ectfully, t t
Harry Kt .
Mayor
County of Hawai`i is an Equal Opportunity Provider and Employer.