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Documentcenter/View/90393 Resolution No 1445 URGING THE HAWAII STATE LEGISLATURE TO PASS HOUSE BILL 1671 TO INCREASE TRANSIENT ACCOMMODATIONS TAX REVENUE TO TILE COUNTIES WHEREAS House Bill 1671 proposes to remove the current cap on transient accommodations tax TAT revenues to be distributed to the counties and establish the distribution of these revenues as a percentage of TAT collected and WHEREAS in July 2011 the State capped the counties share of TAT revenues as a temporary measure to assist the State with a budget shortfall and WHEREAS the States tax revenues have increased dramatically since that time with Fiscal Year 2013 revenues more than 16 billion or 32 per cent higher than in Fiscal Year 2009 and WHEREAS the economic recovery of the counties lags that of the State with 2013 revenues of Maui County down 4 per cent Hawaii County down 14 per cent Kauai County down 20 per cent and City and County of Honolulu up only 06 per cent when compared with 2009 revenues and WHEREAS the slower recovery can also be seen in the counties real property valuations with Maui County valuations 25 per cent lower than in 2009 Ilawaii County 16 per cent lower Kauai County 18 per cent lower and City and County of Honolulu 6 per cent lower and WHEREAS the Neighbor Islands visitor industries are behind that of Oahu as demonstrated by revenue per available room estimates which show the Neighbor Island estimated revenue per room remaining below 2007 values while Oahus is estimated at 35 per cent higher than in 2007 and WHEREAS private sector wage data shows the same trend with Oahu having 8 per cent wage growth between 2007 and 2012 but Maui County and Hawaii County wages 6 per cent lower and Kauai County I per cent lower over the same period and WHEREAS civilian employment numbers display the relationship as well with Oahu employment 1 per cent higher in 2013 than in 2007 but Maui County 3 per cent lower Hawaii County 5 per cent lower and Kauai County 4 per cent lower and WHEREAS the slower Neighbor Island recovery is also validated by private construction permit figures with the value of permits in 2013 up 11 per cent on Oahu when compared to 2007 and with permit values on the Neighbor Islands much lower Resolution No 1445 including Maui County down 55 per cent Hawaii County down 51 per cent and Kauai County down 68 per cent and WHEREAS as yet another economic indicator illustrating the slowdown in the county economies the number of private residential construction permits was lower on all islands with Oahu down 9 per cent and Neighbor Islands down more than 70 per cent compared to 2007 and WHEREAS the counties use the TAT revenues to cover a portion of their visitor related expenditures as they bear a significant responsibility for providing the array of services and infrastructure necessary to support a vibrant visitor industry and WHEREAS in Hawaii the TAT revenues are turned over to the State while in other tourism destinations in the United States the TATlike taxes are municipal rather than state taxes and WHEREAS the State is urged to view the removal of the TAT cap not as a loss but rather the return of revenues the counties were promised have relied on and have responsibly budgeted for more than 20 years and WHEREAS the State and the counties serve the same constituents and the governments should work together to reduce the burden being placed on residents through real property taxes now therefore BE IT RESOLVED by the Council of the County of Maui That the State House of Representatives and State Senate for the State of Hawaii are urged to pass House Bill 1671 2014 in its original form without a cap which establishes the distribution of transient accommodations tax revenues as a percentage of revenues collected and 2 That certified copies of this resolution be transmitted to the Honorable Joseph Souki Speaker Hawaii State House of Representatives the Honorable Donna Mercado Kim President Hawaii State Senate the Honorable John Mizuno ViceSpeaker Hawaii State House of Representatives the Honorable Ronald Kouchi VicePresident Hawaii State Senate the Honorable Sylvia Luke Chair Committee on Finance Hawaii State House of Representatives the Honorable David Ige Chair Committee on Ways and Means Hawaii State Senate the Honorable Scott Nishimoto ViceChair Committee on Finance Hawaii State House of Representatives the Honorable Aaron Ling Johanson ViceChair Committee on Finance Hawaii State House of Representatives the Resolution No 1445 Honorable Michelle Kidani ViceChair Committee on Ways and Means Hawaii State Senate Members of the Committee on Finance Hawaii State House of Representatives Members of the Committee on Ways and Means Hawaii State Senate the Honorable Mel Rapozo President Hawaii State Association of Counties the Honorable Ernest Martin Chair Honolulu City Council the Honorable J Yoshimoto Chair Hawaii County Council the Honorable Jay Furfaro Chair Kauai County Council the Honorable Shan Tsutsui Lieutentant Governor State of Hawaii and the Honorable Neil Abercrombie Governor State of Hawaii pafcsh14095c COUNCIL OF THE COUNTY OF MAUI WAILUKU HAWAII 96793 CERTIFICATION OF ADOPTION It is HEREBY CERTIFIED that RESOLUTION NO 1445 was adopted by the Council of the County of Maui State of Hawaii on the 4th day of April 2014 by the following vote Gladys C Robert Eleanora Donald G S Stacy Donald S G Riki Michael P Michael B MEMBERS BAISA CARROLL COCHRAN COUCH JR CRIVELLO GUZMAN HOKAMA VICTORINO WHITE ROLL CALL Aye Excused Aye Aye Aye Aye Aye Aye Aye COUNTY CLE K.
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