HomeMy WebLinkAboutCOM 0817.039 2008-2010Murashige, Laura
From: Joyce Murphy [Joyce @konabigisland.com]
Sent: Thursday, May 27, 2010 6:32 PM
To: CouncilTestimony @co.hawaii.hi.us
Subject: Increasing Property Tax
Aloha,
Mahalo for your attention,
6/1/2010
R' . 331 . ss 17
Joyce 1V[t11'phv, R13 KONA IIOMES inc.
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Please modify the size of the large proposed increase in property tax for non -owner occupied Big
Island homes. As proposed it may not only bring real estate recovery to a halt, it may plunge our
island into another downward real estate spiral. Resort real estate sales and property management have
been my specialty for over 25 of my 30 + year career. Unfortunately I've seen excessive taxation and
high insurance rates contribute to a break down in a once vibrant vacation real estate market before.
Put simply, the purchase of a retirement residence, second home, vacation home or resort rental
property are all discretionary purchases. County councils tend to think, since many of these property
owners don't vote where the property is located, there will be little or no push back when they tap this
source for income. That simply isn't true. When the tax burden becomes too great, investors vote by
walking away. While we've started seeing some recovery in the lower price ranges, we are still in a
strong buyers' market. At a time when Realtors are praying the experts are wrong about another wave of
foreclosures coming, does it really make since to put more financial stress on a group of taxpayers who
are already experiencing a heavy negative cash flow? Are you aware that raiding the hurricane fund is
already going to result in increased insurance costs that will hit this same group.
We all understand the money to run our county must come from somewhere. I understand that cutting
the size of government is not a simple task and will generate negative economic consequence too. Please
give us a balanced approach to solving our current economic problem. We need solutions with an eye on
building a stronger tomorrow, not just getting through today. Destroying the tax base
by encouraging non - resident homeowners to walk away and replacement buyers to turn their backs
on our island is not the way. Creating a strong community of retirees, second home owners and vacation
rentals will bring jobs for our unemployed, rental tax and sales tax income for our county. Please modify
the amount of the increase proposed.
I will be happy to sit down with you, one on one, and show you the formulas most buyers use to
determine which properties they will buy and which areas they will walk away from.
Cell: 808 - 443 -4302 - Fax: 800 - 859 -8181
E -mail: Broker @JoyceMurphyREALTOR.com
www.KonaBiglsland.com - www.JoyceMurphyREALTOR.com
Director Kona Board of Realtors, ABR, ePro, ALHS
Licensed Real Estate Broker in Hawaii & Florida
Cornat. S17.
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