HomeMy WebLinkAbout2017-02-27 Letter to Jill Tokuda, Gilbert Keith Agaran re SB 683 SD ! - Surcharge on Residential Investment Property �fY os •
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25 Aupuni Street,Suite 2603 • Hilo,Hawaii 96720 • (808)961-8211 • Fax(808)961-6553
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February 27, 2017
Senator Jill Tokuda
Ways and Means
Senator Gilbert Keith-Agaran
Judiciary and Labor
Hawai'i State Capitol
Honolulu, HI 96813
Dear Chair Tokuda, Chair Keith-Agaran, and members:
RE: SB 683, SD 1
Proposing Amendments to Articles VII and X of the constitution of
the State of Hawaii to Authorize the Legislature to Establish a
Surcharge on Residential Investment Property and Visitor
Accommodations to Increase Funding for Public Education
As a former teacher myself, I fully appreciate the efforts of this Legislature to
properly fund education. However, I cannot support SB 683, SD 1, 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.
County of Hawaii is an Equal Opportunity Provider and Employer
Jill Tokuda, Gilbert Keith-Agaran
February 27, 2017
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.
Resrectfully,
(<1
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Harry
Mayor
County of Hower i is an Equal Opportunity Provider and Employer