HomeMy WebLinkAboutCOM 0236.081 2024-2026P / courlci I
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From:
Julie Eliason
Sent:
Monday, May 19, 2025 9:28 PM
To:
Council Testimony
Subject:
Testimony on Proposed Bill 47
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Julie Eliason and Robert
Bojorquez
INIZI
59-123 Ka Nani Drive
CD C
Kamuela, HI 96743
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Dear Council Members:
..
We have had a hosted rental in our home on Agriculture -zoned lands at Kohala Ranch since February 2017.
Our business is registered as an LLC and we have been in good standing with the County and have paid all of
the required GET and TAT taxes. We were not required to register as a transient vacation rental (TVR)
previously because the unit we rent is part of our home where we live full time. We voluntarily changed to a
rental period of 31 days or longer to be in compliance per State law, as recommended by the County Planning
Department. The income generated by our vacation rental is critical to making our monthly financial
obligations. With the proposed changes to the Vacation Rental law, we are concerned that we may not be
able to continue renting our unit which would have negative financial consequences for us.
We were very pleased that the County voted to conduct an economic impact study to evaluate the economic
impacts from restricting and eliminating vacation rentals on the island. This economic impact study will
provide valuable data needed to determine how changes to the rental business will affect the economy of the
Big Island. However, we do not understand why the County is proposing Bill 47 before the economic study has
been completed. It makes more sense to delay passage of any TVR bills until after the economic impacts are
evaluated. Many homeowners could be negatively impacted by the proposed requirements and these
impacts need to be considered before any decisions are made.
The taxes generated from vacation rentals contribute to the local economy through GET and TAT taxes, as well
as payments to service providers such as house cleaners, yard maintenance workers, appliance repair and
maintenance services, pool maintenance services, etc. The reduction in TVRs will have negative consequences
for TVR owners as well as their service providers. With the recent decrease in tourist visits to the islands, the
income generated from TVRs will become even more important to the local economy. We do not oppose
regulation, but believe hat the impacts should be evaluated before finalizing any new bills.
We believe that the $10,000 fine for noncompliance is exorbitant. Most homeowners are operating in good
faith and may omit something during the registration process or make an unintended error. They should be
given a grace period to fix any problems before being levied such an expensive fine that would be very difficult
for anyone to pay and would probably drive some people out of business.
For these reasons, we ask that you table Bill 47 until after the economic impact study results are available.
Thank you for the opportunity to present testimony. Comm,.
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1 ref. To:_
Reif. Dote MAY 2 1E25
Sincerely,
Jule Eliason and Robert Bojorquez