HomeMy WebLinkAboutCOM 0600.004 2022-2024 BIL Ia4
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From: Debbie H
Sent: Friday, December 01, 2023 11:40 AM
To: Kagiwada,Jennifer; Michelle Galimba;Villegas, Rebecca; Inaba, Holeka; Kierkiewicz,
Ashley; Evans, Cynthia F.W.; Council Testimony; Kimball, Heather; Kanealii-Kleinfelder,
Matt; Lee Loy, Sue
Subject: Bill 104- a guarded optimistic YES but what are the requirements?
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I like Bill 104, so I applaud a reduction in property taxes who make housing available to local people with lorteterrt
leases.
I saw this Bill 104 but really didn't understand at all,this Bill gives the county free reign to create a new, potentially''c.
cumbersome program. A big mahalo to Shannon Matson and Jenn Kagiwada who were very helpful.
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I make much of my income off of rental property with long term leases and the property taxes have been going up and
up. AN EXAMPLE with my property:This is a 2 bedroom 2 bath Kona Coffee Villas condo Your current taxes for 2023 are
actually showing in the Real Property Tax website as$4,856.67 a year, as you are in the Apartment Class, which is
$11.70.
If this bill goes into effect this same property would go down to$3,196.27, if you applied for the Long-Term Rental Class,
which is$7.70.
This would create a$1,660 savings.
Please keep in mind these are just estimates based on the current assessed values and every year those values can
fluctuate.Also important to note is that this new class will require people to opt-in to the program with an application
and/or providing a copy of your lease(actual requirements will be determined by the Real Property Tax Office, but should
be pretty straightforward). The easiest way I can think to explain it is that right now you are in the$11.70 rate and you
would move to the$7.70 rate if Bill 104 is passed. Regardless of your current or future assessed values that would be a
significant savings.
It is VERY unclear as to what the Bill would do. It would be good to have the county submit their requirements BEFORE
you all vote on this and include it in the Bill,otherwise you are giving the county free reign to do what they
want....never a good idea in my opinion.
I hope the County doesn't make the filing law too complicated, cumbersome and hard to support.
Many questions:
• Maybe a long term pledge to keep it in long term rentals would be enough to qualify and then the county could
verify with a spot check?
• Many leases have clauses to become month to month after a year if people forget to extend it for a few
months,then what happens? would your taxes go up for those months?
• Will there be a clause required by the county to qualify for the property tax reduction?
• Will there be a refund in taxes for past years?
I think this would be a great"reward"for long term rentals that provide housing for island residents, but WHAT WOULD
THE REQUIREMENTS BE? Please WAIT until the County Department of Finance presents their program and forms..M
1 Comm. No. W•.
Ref.To:
Ref.-Date• .DEC - 5 2023
Please consider voting on this but deferring it until you get that information from Dept of Finance to include in the
legislation OR form a PING to write the documents and outline the program and then include the information in the Bill
? I would be happy to help the PING group.
Mahalo for all you do.
With warm aloha,
Debbie Hecht
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