BFED-74 GENERAL EXCISE AND USE TAX SURCHARGE – Bill 49 (2023)
Good afternoon, Chair and Members.
I strongly oppose implementing a general excise tax surcharge as proposed in BFED-74. I note that the majority of previous testimony seems to agree with my position.
I was previously supportive of this measure; however, I want to thank Dr. Zachary Thielen for doing the math. His analysis changed my mind about the proposed tax increase, and I sincerely hope it will change yours. It appears that, contrary to statements made by Finance Director Scott Teruya, much of the tax burden will be borne by the residents of Maui County, NOT visitors to our islands.
According to Dr. Thielen’s calculations, on average, each visitor to Maui County would pay additional tax of approximately $10 per year, whereas each resident will pay additional tax of over $300 per year. This tax as proposed will not be felt by the visitor industry, but will most certainly be felt by our residents.
The issue cannot be any clearer. The way the surcharge is currently proposed will hurt the residents of Maui County, for example, by unfairly taxing kupuna on fixed low incomes, and also by further discouraging healthcare providers from settling in the county.
Instead of a GET surcharge, why not take up the long-proposed Impact-Fee ordinance for Maui County, for which studies were completed in 2013 by consulting firms, with an advisory committee of community members.
Please do not pass this version of the bill. If you find that you must pass a bill to add a GET surcharge, I urge you to protect our most vulnerable by exempting food, medicine and healthcare from the payment of a surcharge.
Thank you for considering my testimony.
Livit Callentine
Wailuku, Hawaii
TMK: (2) 3-5-001:066-0001
livit.callentine@gmail.com
(808) 268-5568
Mahalo for accepting testimony on Bill 49, establishing a general excise tax fund that would be used to fund infrastructure projects needed for housing. As you know from previous testimony, House Maui is an initiative of the Hawaiʻi Community Foundation. Our mission is to create a sustainable housing system that generates and keeps homes affordable for our kamaʻāina, enhances natural and cultural resources, and enriches our quality of life.
We strongly support this bill and encourage the County Council to adopt it. This bill matches the intent of Hawaiʻi State Act 48 and we support the County in joining Oʻahu, Kauaʻi and Hawaiʻi counties in collecting funds and directing them to address a significant barrier to housing development in Maui County — infrastructure.
Maui County is experiencing a housing crisis and one of the biggest barriers to producing the housing we need continues to be the lack of available infrastructure to support housing construction. Roads, sewer, water, drainage, waste disposal, and waste treatment systems are all expensive and necessary requirements of any housing project. Historically, this infrastructure was required to be constructed by project developers, adding to the cost of producing the development. As a result, high-end and luxury homes have become easier to produce and affordable and workforce homes are not being constructed at the rate our kamaʻāina need them.
As the governmental entity tasked with protecting the health, safety and general welfare of our residents, it is the County’s kuleana to plan for, construct and maintain critical infrastructure. With this bill, the County is taking its rightful position within the system that creates housing.
In order to fund the full range of needed infrastructure, we ask that the Council add “roads and sidewalks” to the list of infrastructure that can be paid for with these funds. Roads are vital and expensive infrastructure that can increase the cost of a project. Adding them to the list of approved purposes will ensure that this cost will not be passed on to future residents.
Sidewalks are often dismissed as an unnecessary component of a new project, and developers frequently request exemptions from this requirement to save cost. For the people that live in these new homes, however, sidewalks offer safety for pedestrians. According to the Hawaiʻi Department of Transportation, since 2015 30 of our neighbors have been killed walking on our streets, often in places with inadequate sidewalks. The unintended consequence of inadequate sidewalks is increased traffic from residents who feel like its safer to drive than walk and added expense in fuel and vehicle maintenance because there’s no safe alternative to accomplish daily tasks. Sidewalks are part of the roadway system and identifying them clearly in section 3.100.040B ensures that funds can be spent to facilitate their construction in the neighborhoods that need them most.
Mahalo for considering our testimony and for taking up this issue in the Budget, Finance, and Economic Development Committee.
Me ka ʻoiaʻiʻo,
Kate Blystone
Program Officer, House Maui Initiative
I am in agreement with all the reasons for NOT raising the general excise tax. As a family who is struggling to keep our grandchildren on Maui I also totally understand and applaud the need for affordable housing. As older residents the continued exodus of doctors on Maui is very concerning also. Most concerning is the effect on our local families who are already struggling with the high price of remaining on Maui. Please let's look at spending the available funds before taxing the people of Hawaii more.
My only reason for even considering this additional tax is due to my irritation at the State for mandating that you implement this tax or lose the ability to do so at a future time. That could be harmful in the long run. SO if you must use it or lose it, please raise it by the barest minimum they will allow, like 1/10th of 1%. Then when more specific affordable housing plans are available this could be revisited, hopefully with some concrete ways to offset these taxes for our struggling locals (and not just on food) and our medical service providers. Thanks for your hard work and diligence.
BFED-74 GENERAL EXCISE AND USE TAX SURCHARGE – Bill 49 (2023)
Good afternoon, Chair and Members.
I strongly oppose implementing a general excise tax surcharge as proposed in BFED-74. I note that the majority of previous testimony seems to agree with my position.
I was previously supportive of this measure; however, I want to thank Dr. Zachary Thielen for doing the math. His analysis changed my mind about the proposed tax increase, and I sincerely hope it will change yours. It appears that, contrary to statements made by Finance Director Scott Teruya, much of the tax burden will be borne by the residents of Maui County, NOT visitors to our islands.
According to Dr. Thielen’s calculations, on average, each visitor to Maui County would pay additional tax of approximately $10 per year, whereas each resident will pay additional tax of over $300 per year. This tax as proposed will not be felt by the visitor industry, but will most certainly be felt by our residents.
The issue cannot be any clearer. The way the surcharge is currently proposed will hurt the residents of Maui County, for example, by unfairly taxing kupuna on fixed low incomes, and also by further discouraging healthcare providers from settling in the county.
Instead of a GET surcharge, why not take up the long-proposed Impact-Fee ordinance for Maui County, for which studies were completed in 2013 by consulting firms, with an advisory committee of community members.
Please do not pass this version of the bill. If you find that you must pass a bill to add a GET surcharge, I urge you to protect our most vulnerable by exempting food, medicine and healthcare from the payment of a surcharge.
Thank you for considering my testimony.
Livit Callentine
Wailuku, Hawaii
TMK: (2) 3-5-001:066-0001
livit.callentine@gmail.com
(808) 268-5568
June 27, 2023
Aloha kākou,
Mahalo for accepting testimony on Bill 49, establishing a general excise tax fund that would be used to fund infrastructure projects needed for housing. As you know from previous testimony, House Maui is an initiative of the Hawaiʻi Community Foundation. Our mission is to create a sustainable housing system that generates and keeps homes affordable for our kamaʻāina, enhances natural and cultural resources, and enriches our quality of life.
We strongly support this bill and encourage the County Council to adopt it. This bill matches the intent of Hawaiʻi State Act 48 and we support the County in joining Oʻahu, Kauaʻi and Hawaiʻi counties in collecting funds and directing them to address a significant barrier to housing development in Maui County — infrastructure.
Maui County is experiencing a housing crisis and one of the biggest barriers to producing the housing we need continues to be the lack of available infrastructure to support housing construction. Roads, sewer, water, drainage, waste disposal, and waste treatment systems are all expensive and necessary requirements of any housing project. Historically, this infrastructure was required to be constructed by project developers, adding to the cost of producing the development. As a result, high-end and luxury homes have become easier to produce and affordable and workforce homes are not being constructed at the rate our kamaʻāina need them.
As the governmental entity tasked with protecting the health, safety and general welfare of our residents, it is the County’s kuleana to plan for, construct and maintain critical infrastructure. With this bill, the County is taking its rightful position within the system that creates housing.
In order to fund the full range of needed infrastructure, we ask that the Council add “roads and sidewalks” to the list of infrastructure that can be paid for with these funds. Roads are vital and expensive infrastructure that can increase the cost of a project. Adding them to the list of approved purposes will ensure that this cost will not be passed on to future residents.
Sidewalks are often dismissed as an unnecessary component of a new project, and developers frequently request exemptions from this requirement to save cost. For the people that live in these new homes, however, sidewalks offer safety for pedestrians. According to the Hawaiʻi Department of Transportation, since 2015 30 of our neighbors have been killed walking on our streets, often in places with inadequate sidewalks. The unintended consequence of inadequate sidewalks is increased traffic from residents who feel like its safer to drive than walk and added expense in fuel and vehicle maintenance because there’s no safe alternative to accomplish daily tasks. Sidewalks are part of the roadway system and identifying them clearly in section 3.100.040B ensures that funds can be spent to facilitate their construction in the neighborhoods that need them most.
Mahalo for considering our testimony and for taking up this issue in the Budget, Finance, and Economic Development Committee.
Me ka ʻoiaʻiʻo,
Kate Blystone
Program Officer, House Maui Initiative
I am in agreement with all the reasons for NOT raising the general excise tax. As a family who is struggling to keep our grandchildren on Maui I also totally understand and applaud the need for affordable housing. As older residents the continued exodus of doctors on Maui is very concerning also. Most concerning is the effect on our local families who are already struggling with the high price of remaining on Maui. Please let's look at spending the available funds before taxing the people of Hawaii more.
My only reason for even considering this additional tax is due to my irritation at the State for mandating that you implement this tax or lose the ability to do so at a future time. That could be harmful in the long run. SO if you must use it or lose it, please raise it by the barest minimum they will allow, like 1/10th of 1%. Then when more specific affordable housing plans are available this could be revisited, hopefully with some concrete ways to offset these taxes for our struggling locals (and not just on food) and our medical service providers. Thanks for your hard work and diligence.