HomeMy WebLinkAbout2017-04-03 Letter to Sylvia Luke rre SB 686 SD2 Relating to Education Funding
WilOkabe
Managing Director
Harry Kim
Mayor
Barbara J. Kossow
Deputy Managing Director
County of Hawai‘i
Office of the Mayor
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) 323-4444Fax (808) 323-4440
April 3, 2017
Rep. Sylvia Luke, Chair
Committee on Finance
HawaiiState Capitol
Honolulu, HI 96813
Dear Chair Luke and Members
RE:SB 686 SD2
Relating to Education Funding
As a former teacher myself, I fully appreciate the efforts of this Legislature to
properly fund education. However, I cannot support SB686, SD2, 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 is being 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
County of Hawai‘i is an Equal Opportunity Provider and Employer.
S. Luke
April 3, 2017
Page 2
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.
Respectfully,
Harry Kim
Mayor
County of Hawai`i is an Equal Opportunity Provider and Employer.