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HomeMy WebLinkAbout2017-03-14 Letter to Roy Takumi re SB 683 SD 2 - Surcharge on Residential Investment Property and Visitor Accommodations to Increase Funding for Public Education Wil Okabe ,��+Y� Managing Director Kim •'$k i- �t •, Mayor = Barbara J.Kossow !:•� Deputy Managing Director • County of!Muni`i ®ffirs of the Amor 25 Aupuni Street,Suite 2603 • Hilo,Hawai`i 96720 • (808)961-8211 • Fax(808)961-6553 KONA 74-5044 Ane Keohokalole Hwy,Bldg.C • Kailua-Kona,Hawai`i 96740 (808)323-4444 • Fax(808)323-4440 March 14, 2017 Representative Roy Takumi Consumer Protection & Commerce Hawai'i State Capitol Honolulu, HI 96813 Dear Chair Takumi and members: RE: SB 683 SD 2 Constitution authorizing 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. 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 County of Hawaii is an Equal Opportunity Provider and Employer Roy Takumi March 14, 2107 Page 2 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. If this bill does pass, we would ask that the wording of the question posed to voters more clearly reflect the impact it would have on counties and real property taxes. Saying "Shall the legislature be authorized to establish, as provided by law, a surcharge on residential investment property and visitor accommodations to fund a public education for all of Hawaii's children?"skews the issue unfairly in favor of a "Yes" vote. Language explaining that counties will probably have to raise property taxes overall, to offset some or all of this earmark, would level the playing field. Respectfully, R...)-"Yr% Harry Kim Mayor County of Hawaii is an Equal Opportunity Provider and Employer.