HomeMy WebLinkAboutCOM 0236.184 2024-2026P /Count+ 1
ail ( L1
{ COMM.23�
From: Ken Wills
Sent: Monday, June 2, 2025 10:22 AM
To: Council Testimony c =`C
Subject: Testimony in opposition to Bill 47 in its current form
r�s o <
-n,r;
� z r•-
Thank you for considering my testimony, humbly offered at this hearg.,'
I am a homeowner in North Kohala, and we operate a short: -term vacation Y
rental in an ohana attached to the home where we reside. We operate a
small farm, and we supplement our income by renting our ohana unit as a
short-term rental because small-scale farming alone is not sustainable in
Hawaii.
Short-term rentals also fill an important gap in the affordable housing
options for tourists who want to experience life in Hawaii's neighborhoods,
and not be forced to pay exorbitant prices at Big Island resorts. In the
process, STR operators deliver millions of dollars of tax revenue to the
county and state, through transient accommodation taxes, general excise
taxes and higher property taxes. Our guests contribute to the local economy
by patronizing our neighborhood shops, restaurants and stores.
Our council member is the honorable James Hustace. I trust he and the
other council members will consider these comments.
I and many other operators of short-term rentals on the Big Island are
seeking one thing: Common sense.
-We understand there are abuses of the STR system. And we are not
opposed to sensible, targeted solutions.
-We think it is important to distinguish between hosted STRs, like ours, and
the abused privilege of out-of-state investors buying multiple condominiums
for use as short-term rentals via un-hosted STRs. It's EASY to make laws
distinguishing between these two types of users. Let's do that. Bill 47 does
not define these two types of users.
-We oppose the current, selective, and abusive application of property tax
penalties SELECTIVELY imposed by the Department of Finance on some
operators of STRs but not others. The current law is not being applied B0.14.
-
1 Comm. N
Rea. Tc: PIMP,
Ref. Dale JUG — 4 20
uniformly or fairly. We — I mean You, the council members — need to
clarify what regulations apply to hosted and non -hosted units and STOP
penalizing those of us who are trying to operate legally. To be specific,
because we operate a short-term hosted rental, the Finance Department
unilaterally removed our favorable Homeowner Tax Class, thereby raising
our entire property tax by more than 84 percent, even though our STR
covers only 12 percent of our home. That is not common sense. We should
receive the same tax status as those who rent similar units for six months or
longer. Fix that glaring error.
The Council has moved Bill 47 forward in order to "bring clarity" to the
short-term rental landscape.
However, it does not:
Protect good -faith registrants from enforcement
Define what is or isn't a hosted unit
• Include an amnesty period or enforcement limits
Guarantee intent will remain unchanged under future
administrations
The County itself commissioned an economic impact study, and it has not
yet been released. Why legislate before reviewing the findings?
I support the recommendations of the The Hawaii Island Rental Property
Alliance, of which I am a member.
i. Deferral of Bill 47 until the economic study is released.
2. Amendments that codify protections, not promises.
3. A limited -time amnesty for registration and code compliance to
recognize the economic and structural realities many local families
face.
4. Clear interdepartmental guidance —not just general
statements from Council.
Thank you for the opportunity to give feedback from the community. We
know you take your responsibility seriously, and we trust you will make wise
decisions.
Aloha,
Ken Wills
Homeowner and STR host in Kapa'au
3