HomeMy WebLinkAboutCOM 0469.005 1996-1998
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Hawaii Island B & B Association
PO Box 1890, Honokaa, HI 96727
E-mail the Association at: hibba e,aloha.net RECENED ~
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September 16, 1997 ~~~=~".ry F` C
RE: Request to Have Communication 469 Referred to September 16, 1997 Meeting
My name is Millard Owen Sheets, Secretary to the Hawaii Island B&B Association (HIBBA).
The following is in reference to a request from Piper McKern, dated 8/22/97, representing
HIBBA, commenting on the Finance Department-Real Property Division's recent reclassification
of Bed and Breakfast property to "Hotel and Resort."
Ms. McKern is on the mainland, and I was asked to represent HIBBA today.
We are concerned about this reclassification for two main reasons:
1. While Beds and Breakfasts are a business operation, they are primarily homes in which the
owners live. With this new classification, we lose our homeowner's deduction, our senior
citizen deduction, and we must pay business tax rates for the whole property. It would seem
more equitable to establish a "Bed & Breakfast" classification, which accorded homeowner's
tax rates to that portion of the property that is not used for business purposes.
2. Beds and Breakfasts are nearly all in residential or agricultural areas. Neither the community
nor the B&B owners want hotels or resorts in these areas. While we understand that the
"Hotel and Resort" classification does not, in itself, allow these types of businesses by virtue
of the classification, we and our neighbors fear that this could open the door to such uses in
the future.
We realize that this is a complicated situation. We understand that the Real Property Division's
computers may not be able to subdivide these properties into separate homeowner's and business
classifications. Perhaps an average value could be assigned to such properties.
HIBBA hereby requests the opportunity to be involved in the discussions aimed at finding an
equitable solution to the problem.
You may reach Diane Shriner, President of HIBBA at 328-2335 and/or me at 934-9004.
Thank you for the opportunity to present this testimony to you. `
Millard Owen Sheets
Secretary, HIBBA
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Rai. Date SEP 16 199'f