HomeMy WebLinkAboutCOM 0675.140 2022-2024 i�
From: SA SASSERcp
Sent: Sunday, January 21, 2024 3:28 PM
To: Council Testimony ---424-
Subject: In Ref to Bill 121 Draft v1 2022-2024 r.)
Dear Council Members, �_..
My family and I have owned a condo in Waikoloa Beach Resort since 2020.This is the place we plan to
retire.As far as I'm concerned there is no other place in the world more beautiful and soul nurturing as
the Big Island. I can not wait to be a full time resident.We use our condo personally for now and rent it
out as a vacation rental when not on the island because we are not an independently wealthy family,just
frugal savers that have invested smartly. I have reviewed the draft for Bill 121 and want to voice my
concerns because in parts it sounds too restrictive and inflexible and comes off as a money grab.
As it relates to the plan for permits. I am fine with having a one time permit fee like we did for transferring
the permit from the previous owner to our name.That does require some minor work on the county's part
to ensure that a new owner gets their permit processed and sent out. No different than getting a permit
for a kitchen remodel. However, adding in an annual renewal fee appears excessive and unnecessary.
Especially when nothing has changed from the previous period in that it is the same ownership and
details on the permit. If anything it appears more like an attempt at a big money grab with no
accountability of how the money will be used. Given the high amount of Transient Accomodation Tax and
General Excise Tax charged to visitors (upwards close to 20% and the highest in the nation) it would
seem the county gets plenty of revenue to accomplish its mission and does not need to squeeze more
out of the people that spend money to attract visitors to the Big Island.That's not how a good partnership
works.
Not to mention that there is also the likelihood that the state will impose higher taxation on vacation
rentals which could add up to 35% on visitors!
Hawaii Vacation Rental Tax Total Of 33% Proposed - Beat of Hawaii
This Bill violates the United States Constitution as well as the
Hawaii State Constitution. It disenfranchises a certain category
of taxpayer. — Hawaii Tax Foundation.
Between property values going up by almost double which also beefed up the property taxes we paid
according to our last assessment along with a historical high TAT/GET rate it sounds like the county and
state is getting plenty of revenue from the owners and the visitor community. I think you all are good on
the money front.We need to see where this money is going and how it is getting spent
as the impacted partners for these assessments.
The fines also sound incredibly excessive.They need to come down substantially.You don't need to
charge an excessive fee to get the message across and get compliance.Again this sounds like anoth r
Comm. N .I U
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Ref. Dote 2 3 2024
money grab and a gross unconstitutional reach of authority. Especially when there is not a lot of
information on the decision making process in how these fines are decided and levied against owners. It
seems like it would be subject to misuse and abuse. It really does seem like our government officials are
trying to villainize us owners as a problem when the vast majority of us are trying incredibly hard to do the
right thing and ensure our guests follow all the rules and regulations while focusing on all the ways we
can help our guests enjoy their time on the island in a positive way for the residents.They pay a lot for
these vacations when you consider the high costs to fly, rent a vehicle, lodging and the costs for food and
entertainment.We have house rules, rental agreements and support staff to cover all possible
scenarios.
I think it is expecting too much for a vacation rental to have the expectation that a guest will call and have
us immediately show up on site for every issue.This may be how hotels and large property managers
respond given their budget to fund a 24/7 staff, but that is not possible for mom and pop types like us.We
respond quickly over the phone and text. If we need ground support we do so at the earliest possible time
based upon what type of issues are happening. Most issues aren't emergencies and don't need us to be
onsite to solve, so the wording of that part of the bill is concerning because it creates this expectation
that guests expect us to show up for minor things that can wait until the next business day. For example, I
had a hot water heater go out at our condo during a guest stay.We called a few plumbers and it really
depended on whether they had availability that day or the next day.This is how it works in real life at your
own home. There is a level of expectation management as it relates to patience that needs to be built
into operating these rentals as not everything works perfectly and on your timeline even during your
vacation.
I also remote manage our cabin in Big Bear, CA and we hosts are experiencing the same negative
sentiment there as well with how the city of Big Bear Lake and the County have made it miserable for
hosts to operate and guests to enjoy their vacation time.We have seen a steady decline in demand
following the pandemic where visitors are seeking more friendly areas to visit. I'm reading on online FB
groups centered on Hawaii that many seasoned annual guests are not feeling the aloha anymore and
have said they don't feel like they will come back. It's the cost and anti tourism sentiment that is
decimating visitor excitement for Hawaii and their sentiments about it.These were once super loyal
Hawaii vacationers.There needs to be the right balance in positive interaction between the city, county
and state officials to not jump to negative conclusions that we are bad operators booking bad guests and
that we only care about profit over the island's well being when at least for us that is far from the truth.
Thankfully, after showing up to council meetings in San Bernardino County with other hosts to help
change this interaction from negative to positive and we have seen such a positive turnaround in attitude
from officials.They too have ridiculous fees for the permit and the fines for properties where the rent
doesn't even come close to covering the mortgage on, but they are working with us to come back down to
reality on what makes sense. By showing up in solidarity they were able to see we are just like them in a
lot of ways with a lot of love for our communities. Code enforcement went down tremendously.Also our
host network recently supported a clean up event in the community and we are constantly trying to add
value in those ways.We showed up when others in the community would not.We are capable of great
things.We just need to be listened to and treated with mutual respect. I wish I could be there in person
for this meeting to communicate all this, so I hope you take the time to read this and take it to heart.
Typically states and counties do not try to understand vacation rentals and their owners and tend to lean
toward villainizing them as the problem for all issues while missing the key point that our
properties provide significant financial power for the government and its people.We don't need to be
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taxed more via permit fees or higher TAT/GET. It's also over the top expensive.You can get compliance
for the rules without tyranny of the fees.We just want to be treated as valuable partners to Hawaii's long
term plan.
Thanks for taking the time to read my letter.
Sincerely,
Sharon Sweat
Property Owner
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