HomeMy WebLinkAbout2018-02-26 Letter to Brian T. Taniguchi re SB 2922 Relating to Constitutional Amendment to Allow SurchargeHarry Kim
Mayor
Wil Okabe
ilianaging Director
Barbara J. Kossow
Deputy Managing Director
25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 • (808) 961-8211 • Fax (808) 961-6553
KONA: 74-5044 Ane Keohokalole Hwy., Idg C • Kailua-Kona, Hawaii 96740
(808) 323-4444 • Fax (808) 323-4440
February 26, 2018
Senator Brian T. Taniguch', Chair
Committee on Judiciary
Hawaii State Capitol, Room 016
Honolulu, HI 96813
Dear Chair Taniguchi and Commfttee Members:
Re: SB 2922 Relating to Constitutional Amendment to Allow Surcharge
Hearing Date: 02/27/18 — 9:30 am; Conference Room 016
As a former teacher myself, I fully appreciate the efforts of this Legislature to properly fund
education. However, 1 cannot support SB 2922, and must speak against it.
Effect on real property taxes. The County of Hawail, 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 bala ce 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 every session the Legislature is
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 even though the TAT is not mentioned in SB
2922, a surcharge on visitor accommodations, even for the most noble of purposes, will obviously limit
what can be raised and spent elsewhere.
further.
Please do not deprive the counties of these needed sources of revenue, by dividing the pie even
Respectfully sub ed,
arry Kim
Mayor, County of Hawaii
County of Hawaii is an Equal Opportunity Provider and Employer.