REP FC 170 2024/06/18 (2022-2024)

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FC-170 Page 4 June 18, 2024 concern was and asked if her concern was that it could be construed differently other than its plain meaning. Ms. Evans explained that it is unclear if the terms can be two six-month leases and month -to -month and asked if tenants who don't meet the twelve months would be disqualified if it goes month -to -month. Mr. Yoshimoto confirmed. Ms. Lee Loy suggested having a member from the Office of Housing available for questions and recommended that the bill be held in Committee for more discussion. Ms. Kimball agreed with Ms. Lee Loy that the bill should remain in the Committee and felt it still needed tweaking that was essential to get this right. Bill 104, as amended to Draft 4, was postponed to February 6, 2024. Finance Committee Meeting of February 6, 2024 Ms. Kagiwada thanked all the testifiers and stated that due to Ms. Galimba's absence, Bill 104, Draft 4, will be postponed to February 20, 2024. Finance Committee Meeting of February 20, 2024 Ms. Kagiwada and Ms. Galimba provided an update on the bill and gave a brief summary of the proposed amendment. Bill 104, Draft 4, was amended with the contents of Communication 600.31, which was introduced by Ms. Kagiwada, with seven "ayes," with Ms. Villegas and Mr. Kdneali`i-Kleinfelder absent. Bill 104, Draft 4, as amended, was postponed to June 18, 2024. Finance Committee Meeting of June 18, 2024 Real Property Tax Assistant Administrator Keita Jo and Finance Director Diane Nakagawa were present in the Hilo Chambers for questions. Ms. Kagiwada provided an update and proposed an amendment stating the point of this bill is to create a separate tax class for long-term rentals. The amendment would take out what the long-term rental rate shall be and leave that up to this body to decide next May. Ms. Kierkiewicz asked if a placeholder was created with no rate, what the annual revenue would look like for a class without an established rate. Mr. Jo stated that part of the process would be an initial discussion with the administration to establish the rate. Ms. Kierkiewicz further commented that they would be establishing a program for people to sign up without knowing the rates and then hope they stay in it after the rate is established. Ms. Kagiwada responded to her comments by stating that the program would start in January 2026, so the rates would be set prior. Ms. Kierkiewicz noted the information to be helpful and would support the amendment but is unsure about supporting the bill. Ms. Kimball commented on a timing issue if the tax class started in January 2026, and further stated that a rate could not be set in May 2025. Ms. Kimball provided some ideas for this potential timing issue and suggested a proposed initial starting rate and not a locked -in rate. Ms. Lee Loy commented in support of the amendment and urged her colleagues to think about what could be solved by pushing the date back. FC Report No. 170