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OS- <br /> � <br /> -' v os <br /> r S—. . I'rr�� <br /> .,'.. Wil Okabe <br /> 6� <br /> Managing Director <br /> Harry Kim siNk."t--at. <br /> — Barbara J. Kossow <br /> i••Se,: : <br /> 'r.or.w•'� Deputy Managing Director <br /> County of Hawai`i <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 5, 2019 <br /> Rep. Richard H.K. Onishi, Chair <br /> COMMITTEE ON TOURISM & INTERNATIONAL AFFAIRS <br /> Hawaii State Legislature <br /> Dear Chair Onishi and Committee Members: <br /> RE: HB 419, Relating to TAT <br /> Thank you for this opportunity to comment on HB 419, offering the counties $1M <br /> each to enforce "all applicable laws and ordinances relating to transient <br /> accommodations." <br /> We appreciate the motivation behind this bill, which is to provide the counties <br /> with needed support in our efforts to contain the growing conversion of residential <br /> dwellings into commercial short term vacation rentals. We also appreciate the changes <br /> that have been made from last year's bill (HB2605). Moreover, given our county's <br /> financial difficulties, it is hard not to support an opportunity to acquire $1 M. However, <br /> the bill raises a number of concerns. <br /> We think a better approach would be to provide $1 M to each county to assist in <br /> enforcement of all applicable laws and ordinances relating to transient <br /> accommodations. A report afterwards, as to how the counties spent those funds, could <br /> then be provided. <br /> With respect to specific requirements in the bill, we would note the following: <br /> 1. We do not have a current vacation rental permit or specific appeal process for it, <br /> so we would have to design a system that would fit the criteria. Where other <br /> islands need to tweak their systems, we would have to create them and then <br /> implement. Also, we do not yet have a separate real property tax class for <br /> vacation rentals. The class cannot be created for FY 2020--it will be for FY 2021. <br /> We may seta rate in FY 2020, but it won't be effective until 2021. <br /> County of Hawaii is an Equal Opportunity Provider and Employer <br />