HomeMy WebLinkAbout2019-02-04 Letter to Richard Onishi re HB 983 - TATHarry Kim
Mayor
Wil Okabe
Managing Dveclor
Barbara J. Kossow
Depah, Managing Director
County of Hawaii
Office of the Mayor
25 Aupum Street, Suite 2603 . Hilo, Hawaii 96720 . (808) 961-8211 . Fax (808) 961-6553
KONA. 74-5044 Ane KeohoWole Hwy, Bldg C . Kailua-Kona, Hawar i 96740
(808) 323-4444 . Fax (808) 323-4440
February 4, 2019
Rep. Richard H.K. Onishi, Chair
COMMITTEE ON TOURISM & INTERNATIONAL AFFAIRS
Hawai'i State Legislature
Dear Chair Onishi and Committee members:
RE: HB 983, RELATING TO THE TRANSIENT ACCOMMODATIONS TAX
Thank you for this opportunity to testify in support of HB 983, the Governor's
initiative dealing with the ongoing issue of fair distribution of revenue generated by the
transient accommodations tax.
HB 983 points out that "a portion [of] these state tax revenues have been shared
with our local county jurisdictions in recognition of the impact that the visitor industry has
on county provided services, such as police, fire, emergency medical system, and
essential infrastructure." One of the bill's purposes is to "maintain annual support for
county services impacted by our visitor industry." That is recognition we welcome. The
remaining question, however, is whether counties would be helped or hurt by the
proposed formula in the bill.
HB 983 would maintain the proportionate shares of the TAT among the counties,
and for that we are grateful. To do otherwise would pit one county against another and
undoubtedly be destructive.
The other positive aspect of HB 983 is that it would restore a percentage
distribution of the TAT to the four counties. This is a request we have made for years,
and we believe it is the fairest approach; State and counties should share the burden in
bad times and the benefits when the economy is good. So we are appreciative of this
provision.
Our apprehension, however, is with the total allocation to the counties, which (we
believe for the first time) would be limited to "Of the remaining revenues, 23.1 per
County of Hawari is an Equal Opportump, Provider and Employer
Rep. R. Onishi
Page 2 — February 4, 2019
HB 983 — Relating to TAT
cent..." Under that formula, by the calculations of the State Administration, the counties
will receive more revenue than at present. While we have some concern about the
State's assumptions, we will support HB 983, and trust that this issue can be revisited if
the counties' revenues turn out to be inadequate.
Si nc rely, 1
Harry Kim/
Mayor
County of Hawai i is an Equal Opportunity Provider and Employer