HomeMy WebLinkAboutCOM 0817.012 2008-2010Murashige, Laura
From: Todd Miller [carcrunch @aol.com]
Sent: Sunday, June 06, 2010 1:20 PM
To: counciltestimony @co.hawaii.hi.us
Subject: Opposition to increase in property tax rate
t 1 JUN 7 PM 8 11
CCU,
00UNTv i n 41
Page 1 of 1
own a condominium at Kona by the Sea on Alii Drive. I purchased it with the hopes of someday retiring to Kona.
We have owned there for about ten years. This property complex is primarily used for vacation rental with about
80% of the units participating in the rental pool. When we originally purchased we were running about $400 -500
per month negative cash flow based on the income we were able to receive by renting the property. Normally with
most rental properties the cash flow gets better with time. After ten years our negative cash flow is in excess of
$1000 -1500 per month.
After reading about the proposed property tax increase on this type of property I feel a need to voice my strong
opposition to this proposal. With non -owner occupied properties already paying almost double owner occupied
property rates this puts an additional burden on those of us who vacation rent our properties and make tourism
possible.
As I am sure you are already aware there has been a drastic reduction in the tourism industry already. We have
seen our rates drop in excess of 30% over the last several years as well as the occupancy rate go into a free fall.
The county should be doing everything it can to attract tourist to Hawaii, not placing further taxes on us and
therefore driving up rental rates to make a Hawaii visit less and less attractive to the people you need to generate
business revenues.
I do understand the principal of trying to maintain your current revenue levels by adjusting the rate up as the
values fall. However as a property owner, we are watching our earnings drop along with the value of our property.
We have seen several units in our complex go into foreclosure. Raising property taxes on this type of property will
do nothing but increase the probability of more units going into foreclosure, causing property values to fall further.
As this happens are we going to again raise taxes to offset the values of freefalling real estate values?
As far as us non -owner occupied property owners being able to afford it, you need to keep in mind the country is
in a recession. My personal income has dropped drastically. I am in a struggle to keep my bills current and my
mortgage paid. I can assure you I cannot afford additional taxes. I also cannot afford to sell my property at the
reduced price I can get for it today.
I would encourage the county council to once again review its budget and look for places to further reduce costs. I
have noticed for some reason it seems like the police in Hawaii always seen to travel in pairs. I have never seen
this on other parts of the country. I would be willing to bet some drastic reductions could be made there.
Thank you for your consideration.
Todd Miller
Property Owner at Kona by the Sea
(425)922 -5477
6/7/2010
., 817.12_
Ref. To:
Ref. Dote IT T