HomeMy WebLinkAboutCOM 0675.174 2022-2024July S, 2024
Honorable Heather Kimball
Hawaii County Council
Re: Opppose Bill #121 TAR
# '2
Dear Councilwomen Kimball & Councilmembers: w
Please consider eliminating TAR Bill 121 which is overly restrictive and will ne90sarr`.ly =''
result in a loss of tax revenue and income to owners of homes that provide these rentals. As an operator
of Whitehaven Farm in Pepeekeo which has provided short term rentals for over 15 years, I have seen
a 90% reduction in rentals from 2022 to 2023. My Farm also serves as back-up local housing for
guests that come to Pepeekeo to participate in Angel Farms health retreats and others.
Any community becomes healthier with profitable business activities. With a State that
continues to lose our younger population to better opportunities on the mainland, I don't understand
why leaders like yourselves want to put more barriers to these types of minor `cottage industry' type
activities. The recent doubling of food prices as well the 10.25% TAT tax already keeps some visitors
from coming to Hawaii Island who would be spending money on other amenities. A 2020 study
commissioned by the Hawaii Tourism Authority discovered that STRs are generally less expensive
than hotels and that "30% respondents reported that if there was not a home and vacation rental option
during their recent stay in Hawaii, they would not have made the trip." I recently had a guest who
canceled her booking when the airfare made her trip too expensive.
I am already providing long term rentals (over b months) in one of my units to avoid the
10.25% TAT Tax. I regularly have guests contact me directly to try and book without going through
Airbnb which adds tax and fees. I noticed that my friends in the area who also use Airbnb don't charge
the GET & TAT tax to the guest but absorb it themselves.
Hawaii Island has long been a place of innovation and affordability. This bill will be another
example of government over -reach that unconstitutionally steals revenue opportunities that hard
working people are entitled to from their own property.
The harder you make it for honest people to comply with Short -Term Rentals and the existing
onerous tax laws the more you will find that people choose to rent illegally without remitting the taxes.
Governments should allocate it's resources towards making sure all STR are charging taxes.
Government should be a cooperative partner not a barrier. The current practice of having to remit
separately the TAT tax to the State and the County is an example of poor administration. When you
make enemies of the people working for a living, they find other places that are more friendly to do
business. Please reject this unnecessary and revenue destructive bill.
Comm. No
Sincerely yours, Ref. To:
William Meurer Ref. Date L
8-3311 leach Rd.1 Pepeekeo, H.1 96783 1 Phone: (808)-964-86861 www.WhitehavenRetreat.coin