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Home My WebLink AboutCOM 0817.072 2008-201005/29/2010 08:06 3294786 Post -it"° Fax Note 7671 To Co. /Dept, Phono !I Fax at Q&'/ rrom Go Phone # Fax # County of Hawai'i Mayor William Kenai Councilor Kelly Greenwell County Council of Hawai'i County Hilo Hawaii Aloha Mayor Kenoi and Councilor Greenwell, KCO u of Date J CJ pages Tune 4, 2010 2011 JUN t; PIT► 3 t : s ou i Marie Aguilar P.O. Box 1874 Kailua Kona, Hawai'i 96745 808 334 -0562 In the next few weeks the County of Hawaii will seek way: to reduce the next budget. There are issues at hand that must be considered. The raising of property tax on Non rc.idents owners could result in a tremendous loss to lorai businesses and local renters. There is enormous number of condos and homes that are rented from visitors (tourists) on the West Hawai'i, Districts of North Kona., South Kona, and Kohala, during peak seasons from October to August. Each year the numbers increase because the economy supports lower room costs for families and accommodations work well for families who prefer to have a kitchen. The vacation condo and home rentals in West Hawai'i allow for a fantastic visitor count for our County. Their vacation spending in West Hawai'i include renting a car, dining out, shopping, & - ocery buying, and even purchasing real estate. If the County of Hawai'i elects to raise property taxes on these properties, the local businesses will suffer a great deal. Local businesses in West Hawai'i depend on sales from visitors who travel here for vacations. The number of visitors to Hawaii Island has decreased in recent years, which has caused a huge number of business closures and, higher unemployment. Hour fewer visitors come due to higher condo and home rentals, this County will suffer. There are ache:: destinations that people will elect to travel to such as Costa Rico, Mexico, and Da:.ari'as. PAGE 01 Comm LEO. &(1.72 Ref. Tot t Ref. Date JIM 0 7 2010 05/29/2010 08:06 3294786 Non - resident owners have been renting their condos and homes out as long term rentals to residents. The raising of these taxes will raise the rent of each unit and it will deeply affect those who rent them year around. There are residents iluoughout our County who will be faced with higher rents and will cause a huge crisis. Some will be forced to leave the County of Hawai'i. With the recent recession, no one can afford any additional living expenses Property owners would be faced with first trying to sell off their property, or maybe even end up in foreclosures. As a business owner for sixteen years in Kailua Kona, and have membership in several business organizations, and I can speak first hand of the hardship of this Recession. The number of business closures in Kailua Kona and Kohala would shock each of you. In a three month pc,iod, there were closures of eleven restaurants There are commercial space vacancies throughout the entire County of Hawai'i. It is essential that each Councilor re - think the process of reducing the budget. Making cuts are difficult. I ask that responsible budget decisions be made for the residents, ofthis County. We can not afford to decrease the visitor level of this County. Raising the tax on non- resident properties is not recommended at this time. It would cause an economic tail spin for residents and businesses. R spectfully, i Yi : \l e Agui KCO PAGE 02