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:.P.• .^ Wil Okabe• <br /> Managing Director <br /> Harry Kim <br /> Mayor <br /> Barbara J. Kossow <br /> ?i• p or-N'�� .' Deputy Managing Director <br /> County of Hawaii <br /> Office of the Mayor <br /> 25 Aupuni Street,Suite 2603 • Hilo, Hawaii 96720 • (808)961-8211 • Fax(808)961-6553 <br /> KONA. 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawaii 96740 <br /> (808)323-4444 • Fax(808)323-4440 <br /> February 6, 2019 <br /> Senator Clarence K. Nishihara, Chair <br /> COMMITTEE ON PUBLIC SAFETY, INTERGOVERNMENTAL, AND MILITARY <br /> AFFAIRS <br /> Hawaii State Legislature <br /> Senator Glenn Wakai, Chair <br /> COMMITTEE ON ENERGY, ECONOMIC DEVELOPMENT, AND TOURISM <br /> Hawaii State Legislature <br /> Dear Chairs Nishihara and Wakai, and Committee members: <br /> RE: SB 198, RELATING TO THE TRANSIENT ACCOMMODATIONS TAX <br /> (authorizing a County surcharge on the TAT) <br /> Thank you for the opportunity to testify on SB 198, which would authorize each <br /> County to impose a surcharge on the State's transient accommodations tax. <br /> We appreciate the innovative approach this bill bring to the table, and the recognition of <br /> the counties as partners in the affairs of Hawaii governance. We do not shy away from <br /> the responsibilities that this bill would place on the counties to raise their own revenue, <br /> and appreciate that the State would still "levy, assess, collect, and otherwise administer <br /> the county surcharge," because it would be wasteful and prohibitive for each County to <br /> set up parallel structures. <br /> The most important provision of SB 198, for which we are most appreciative, is <br /> that "This surcharge on transient accommodations tax shall not affect the amounts <br /> remitted to a county under section 237D-6.5." This is in marked contrast to other bills <br /> that are circulating (e.g., HB 631 and SB 1376) which would eliminate the annual <br /> allocation to the counties of $103M. <br /> Having recognized the benefits of SB 198, we do have to express concerns. <br /> First, the bill provides that "(f) The taxpayer shall designate the taxation district to which <br /> the county surcharge on transient accommodations tax is assigned..." <br /> County of Hewer'is an Equal Opportunity Provider and Employer <br />