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HomeMy WebLinkAboutCOM 0905.003 2022-2024P / FG Bill liq G0HR.gOS Statement in support of bill 174 ?1vi Cf_ ' ? �' t.. 59 Aloha Finance Committee Members, " I have owned a home in Hawaii since 2013. Years ago, I split off a portion into a long-term rental. I was allowed to maintain the homeowner tax class while renting this space, 1 was able to provide long-term housing to a family that needed it, and to help with my finances. Last year I got divorced and so I turned in a change form to remove my husband from my homeowner tax class since I was no longer eligible for his age exemption. Even though the code and the home exemption forms support long-term renting (and my new form was filled out exactly like my old form, with long-term renting disclosed) a vigilante at the tax office decided my homeowner tax class should be removed. After a very stressful month of back and forth, Corporation Counsel weighed in and agreed that the code allows homeowners to long-term rent and NOT lose their tax class. Here is the response I finally received from the county tax office; Thank you for taking my call this Morning. It was a pleasure speaking with you and want to thank you again for your patience as we worked through our internal channels to gain clarification. To reiterate, as a result of our research and consultation with corporation counsel, we will be maintaining your homeowner tax classification for your primary residence — I also want to thank you for taking the time to facilitate a robust discussion within our Division on the interpretation of the Hawaii County Code and the intent of the original legislation to encourage additional housing units for our residents. We value the input that our community provides in addition to collaboration with our partners in the real estate community. I have since been made aware that there are some in the tax department who still do not agree that the code allows for this, even though Corporation Counsel weighed in, and they are still willing to remove homeowner's tax class for rentals. The "robust discussion" that was had in the tax office regarding my situation may need to be had for every single property) Because of the need for clarity, I strongly support Bill 174 to try to make the code more clear and prevent the tax office from incorrectly removing the homeowner tax class for long term renting. As everyone knows, we also have a housing shortage. The intent of the code has always been to support long-term rentals. The cost/benefit of tenant wear and tear on the home does not cipher out when the amount earned in rent is less than or equal to the amount lost in home exemption benefits. If the code is not made more clear, and the tax office is allowed to continue removing benefits, we will see homeowners evicting tenants to maintain their benefits, and our under -used housing will grow significantly. Or — you will force homeowners to "hide" their rentals, something that had not been necessary in the past. Will they stop paying GET so they don't get caught? Because of the need for long-term housing, I strongly support Bill 174 to continue to allow homeowners to provide additional long-term housing units in their homes. Sincerely, �yYa 61-oNjoil Kyra Bronson 808-238-6194 Comm. In — Ref. "10s,Ref. To: Date AUL 2 3 2024