HomeMy WebLinkAbout2019-02-04 Letter to Lorraine Inouye re SB 656 - Taxation - Helicopter servicing and repairHarry Kim
,Via) or
Wil Okabe
Managing Director
Barbara J. Kossow
Depul)• Managing Director
County of Hawaii
Office of the Mayor
25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 • (808) 961-8211 • Fax (808) 961-6553
KONA 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawaii 96740
(808) 323-4444 . Fax (808) 323-4440
February 4, 2019
Senator Lorraine R. Inouye, Chair
COMMITTEE ON TRANSPORTATION
Hawai'i State Legislature
Dear Chair Inouye and Committee members:
RE: SB 656, RELATING TO TAXATION (Helicopter servicing and repair)
Thank you for this opportunity to testify against SB 656.
Helicopters are a valued component of our tourism industry. They also have
been a source of endless complaints from communities that lie in their flight paths, and
there should be no doubt that noise can constitute both a nuisance and a health hazard,
especially in otherwise tranquil rural areas.
Helicopter companies are now asking the Legislature to reduce their general
excise tax obligation. There is no suggestion of economic hardship; there is no credible
argument (that I know of) that new facilities will be attracted to Hawai'i; and there is no
suggestion that the industry would use its savings to better accommodate those who
live in their fly -over country. The exemption will simply add to the companies' bottom
line.
This year's bill is slightly better than last year's version, in that it adds a provision
that "the exemption provided under this section shall apply only if seventy-five per cent
of all helicopters serviced within the aircraft service and maintenance facility are
equipped with quiet technology.." But as far as I can tell, there is no definition of "quiet
technology" nor a hint as to how effective such technology is. At a minimum, that needs
clarification.
As you struggle to balance your budget, one must ask whether the added profits
for these companies' owners could be better utilized in meeting the multiple needs that
Hawai'i faces. To me, the answer is that our transportation, education, social service
needs, etc., should be a higher priority.
Countv of Hauaf i Is an Equal Opportunity Provider and Emplover
Sen. L. Inouye
Page 2 — February 4, 2019
SB 656 — Helicopters/Taxation
In addition, I don't think it would be unfair to say that tax giveaways should be
reserved for good corporate citizens.
I have met with tour operators and asked them to develop a plan to address
noise and safety. They have taken some initial steps, and I commend them for that.
Moreover, I am hopeful that tour operators and community members can work together.
However, the history laid out in SCR 183 (2018) is eye-opening:
"in 2000, the National Environmental Policy Act, in conjunction with the National
Parks Air Tour Management Act of 2000, required an Air Tour Management Plan
to be implemented at various national parks throughout the country... The
objective of an Air Tour Management Plan is "to develop acceptable and effective
measures to mitigate or prevent the significant adverse impacts, if any, of
commercial air tour operations upon the natural and cultural resources, visitor
experiences and tribal lands ... In 2005, the project was upgraded to an
Environmental Impact Statement, and the Federal Aviation Administration
published a notice of opportunity for commercial air tour operators granted
interim operating authority to review and self -correct annual authorizations. In
2008, Federal Aviation Administration and National Park Service staff met with
Hawai'i air tour operators, and acoustic monitoring of three sites at Hawai'i
Volcanoes National Park was conducted. In 2011, a preliminary draft Air Tour
Management Plan for Hawai'i Volcanoes National Park was published,
but... seven years later, in 2018, there [was] still no final Air Tour Management
Plan for Hawai'i Volcanoes National Park... In addition, after more than sixteen
years, no Air Tour Management Plan for any national park in the nation has been
completed..."
How can our residents be asked to tolerate the status quo when it has been 15
years since the Federal Aviation Administration and National Park Service asked for
comments on an Air Tour Management Plan Environmental Assessment, and eight
years since a preliminary draft Air Tour Management Plan for Hawai'i Volcanoes
National Park was published. That is an outrage.
I would urge a No vote on SB 656, at least until the helicopter industry proves
itself to be a better neighbor, it is established that "quiet technology" actually makes a
difference, and this Legislature determines that the benefits to the broader community of
this tax giveaway outweigh the benefits to the helicopter industry.
Harry Kim
Mayor
Countv of Hawaii is an Equal Opportunity Provider and employer