HomeMy WebLinkAboutCOM 0675.166 2022-2024Ashley L. Kierkie►viez
Office.' (808) 961-8265
Council iViember
Fax: (808) 961-8912
District 4 Puna
a,vhley.kiei-kieii,icz@haii,aiicounty.gov
HAWAI`I COUNTY COUNCIL
Hawaii County Building
25 Aupuni Street • Hilo, Hawaii 96720
DATE: July 5, 2024
TO: Heather Kimball, Council Chairperson
And Members of the Hawaii County Council
FROM:' gorAshley L. Kierkiewicz, Council Member
tv
RE: Real Property Tax Comments on Bill 121
COUNTY CLERK
COUNTY OF HAWAI'I
RECEIVED
Tim 12- D2 ffi—Ey.._
Date l
Please see attached comments from the Real Property Tax Office regarding how Transient
Accommodation Rentals would be taxed based on how Hawaii County Code Chapter 19 is
currently written.
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Comm. *No.s.I'4
Serving the Interests of the People of Our Island Ref. To•Hawai 'i County is an Equal Opportunity Provider and EmployerRef. I}a� . J ZC)Lu
Mitchell D. Rout
Mayor
Deanna S. Sako
Managing Director
Diane Nakagawa
Finance Director
Aaron K.H. Brown
Deputy Director
County of Hawaii
DEPARTMENT OF FINANCE - REAL PROPERTY TAX
Aupuni Center • 101 Pauahi Street • Suite No. 4 a Hilo, Hawaii 96720-4224 • Fax (808) 961-8415
Appraisers (808) 961-8354 • Clerical (809) 961-8201 • Collections (808) 961-8282
West Hawaii Civic Center • 74-5044 Ane Keohokalole Hwy. • Bldg, D, 2nd Fir. . Kailua Kona, Hawai'i 96740
Fax (808) 327-3538 • Appraisers (808) 323-4881 • Clerical (808) 3234880
July 3, 2024
To: Chair and Presiding Officer, Ashley Kierkiewicz
Vice Chair, Holeka Inaba
Members of the Policy Committee on Planning, Land Use and Development
From: Lisa Miura, Real Property Tax Administrator
Keita Jo, Assistant Real Property Tax Administrator
County of Hawai'i
Subject: Comments on Bills 121 and 122
Real Property Tax would like to comment on Bill 121 and 122 specifically in regards to the
definition of a transient accommodation. Bill 121 refers to a transient accommodation of "less
than 180 consecutive days". This should lessen the confusion as Real Property Tax has always
considered long term rental as 180 days or more and short term as anything less than 180 days.
This wording of less than 180 days is consistent with the State of Hawaii TAT and County of
Hawaii TAT.
When "Short Term Rental" was discussed years ago, Real Property Tax shared the concern
regarding the Real Property Tax code. The homeowner tax class (which is the lowest tax rate
with the 3% CAP on assessed value) would not apply to properties that have any rental activity
(including one room) of less than 180 days. Since then, Council members changed, Mayors
changed, Directors changed and county staff have changed.
Owners of a parcel interested in doing a rental of a room, unit or even a dwelling may have
called a County office to see what is required to do a hosted rental. Depending on which office
was called, there would be a different answer. Planning may have said "if you're hosted, the
current STVR does not apply to you". For Planning Department, that was absolutely true. A
taxpayer won't realize this was JUST for Planning Department. Then a few years later, Real
Property Tax is notified either through a complaint or compliance review that there is rental
activity of less than 180 days. Once rental activity is confirmed, the homeowner tax class is
disallowed, taxes are rolled back with a 10% penalty for the past two years and the current year
taxes are adjusted. The owner is understandably frustrated.
We would like to thank the makers of Bill 121 for clarifying how real property taxes are affected.
This will help when either Administration and/or staff change going forward. Real Property Tax
has not changed how rental activity of less than 180 days is handled. For properties that have a
bed and breakfast special use permit, the homeowner tax class was not granted.
Havvai'i County is an Equal Opporfunity Provider and Employer