HomeMy WebLinkAboutCOM 0675.462 2022-2024Policy Committee Hearing OOShort-Term Rentals
August 20.2024
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Thank you for the opportunity to react to the proposed legislation, Bill 121, draft 2.
As written, it still penalizes local residents who host visitors in ohanas attheir primary residence.
Please restore the Homeowner's Tax Classification for Hawaii County residents who host short-
term
The bill rightly makes a distinction for off -island investors who operate short-term rentals on the
island. They should be taxed higher. But you have unfairly punished Hawaii permanent resi-
dents — who host visitors in their own homes — by taking away their Homeowner's Classifica-
tion, even when the area in use is a snla|| fraction of the total home.
Take our example, although there are many others in this category. We operate a small farm in
Koha|e and we host farm h)um, with visitors staying in o etudio, one or two people at time, at-
tached to our primary residence where we live year-round. We greet these guests, interact with
them and introduce them to the important agricultural issues facing our island, including food
suntgiOobi|ity, animal husbaDdry, preservation of lands and yes, fire resistance measures.
The guests eat atlocal restaurants and grocery stores, patronize local shops and come away
with an appreciation for the culture and values that are on display in North Kohala. A fair num-
ber have even moved here after their visits, contributing to the vibrancy of the community and to
the Hawaii County tax base.
The Homeowner's Classification makes a distinction between local residents who host long-
termguests--sixnlonthsor|oOger--andthoseofusvvhohoatshort-kennguests.Long-tenn
ohena operators retain the Homeowner's Classification. Why? Because the county sees value
in their contribution toward mitigating the long-term housing shortage in Hawaii.
Short-termohana operators lose this classification and are penalized bvbeing forced hopay o
higher tax rate. Why? Because the County Council members do not recognize the value we
bring to our communities. We pay GE Taxes, we pay Transient Taxes to the state and b]the
county, and the guests who stay with us learn about Hawaiian cultural values and the im-
portance of agriculture in supplying the hOt8|S. the restaurants and grocery stores with locally
produced food. Why would you penalize us for that by charging us a higher tax rate? Not only
should these efforts not bepunished, kupunalike us should beENCOURAGED. (If the goal isto
force short-term rentals toward fixing the long-term naDƒa| ghortage, this isn't the way. We, for
instance, use our ohana on occasion for ohana, when relatives visit us. If we are forced to stop
short-term renta|s, itwon't add to the long-term housing stock).
During election season, politicians across the island seek the votes of the agriculture commu-
nity. Yet when you make policies that affect farmers such as us who operate fonn toura, you iRl-
|fyouwant to be oOthe right side ofthe issue, remove the penalty onlocal residents bvrestor-
ing thgHo0envvOer'sC|aseifioadonforthosepennanectresidentsoperatingshort-tennnenta|s
in their homes.
We are watching, and we vote.
K8aho|o
Ken and Peggy Wills, U808\ 987-1834. wN|S.keOd8|U@gDl8iiCODl C
Kaou8Gu|dl F@rDSLLC. Kaoa'8u, H| To.