HomeMy WebLinkAboutCOM 0739.048 2016-20186 -toy lVc-
UNTY
CLERK
From: Chris Madsen co
TY OF HAWATI
To: Council Testimony
Subject: Short Term Vacation Rentals �� �� � AV, � ��
Date: Sunday, April 22, 2018 3:41:22 PM
Aloha,
I wanted to point out a few things I've noticed. Part of what is driving the homeless
problem/long term housing crisis is the fact so many residential properties are being
used as essentially in a way consistent with commercial activity. I was taught we
essentially subsidize the residential rates at a lower level in the State of Hawaii so
people aren't taxed out of their homes. It sure seems to me that this is giving the
vacation rental industry and unfair advantage as the legitimate hotel industry is paying
way higher rates for commercial activity. They are also forced to just through many
loops to participate in commercial activity.
The question I want to ask does a vacation rental still actually deserve residential tax
rates? Does it need/deserve to be subsidized? Or if a property wants to participate
in short term vacation rentals at all (and remove long housing supply) should it be
taxed at a more fair/higher rate?
I know you are working on enforcing TAT, but the other side of the coin is as they
remove more and more housing supply for residents, shouldn't they be taxed at a
higher rate and funnel that money into housing initiatives or use the income stream to
offset revenue bonds for building condo style housing. To put it quite simply you aren't
going to be able to get more tax out of Hawaii's poor and homeless. They have
nothing left to give. However, if short term vacation rentals are helping drive that
maybe they need to also be part of the solution... This mechanism and the rate at
which they are taxed will allow you to have more control over the long term housing
supply. As it becomes more and more unattractive for people to buy 3 or 4 vacation
rentals that housing will return to a true "residential zoning" or by paying a higher
vacation rental property tax (in a new tax category) help pay to correct the housing
problem they are more than helping create.
Somebody commented, but doesn't the money stay here in short term rentals? Well
some of it does, but if the owner lives elsewhere most of it goes elsewhere.
Somebody asked well don't non -occupants already pay a higher rate by not being
able to -take a homeowner's exemption? Well they do but in my opinion an investor is
supposed to be supplying long term housing. So if they are engaged in commercial
activity, then I don't think they should be subsidized through a "residential" rate. Short
Term Vacation Rentals are Commercial activities even if it is non -conforming to the
zoning use and should be taxed as such.
They need to apply for a conditional use permit and get temporarily approved for the
commercial activities they are trying to do. Neighbors should have a say. Anyone that
doesn't follow should get shut down and doors boarded up. If they cause problems in
the neighborhood when they are up for review t1ta9w0 not be allowed to continue
Ref. To: 1
Ref. pate APR 2 4 201@_
commercial activities in a residential neighborhood. Conducting any form of
commercial activity in a residential neighborhoodood is a PRIVILEGE not a right.
They should also have to display that permit in their place of business visable to the
public (as let's not joke ourselves it is a business). Information should also be readily
available online.
Any Vacation Rental that doesn't pay TAT or a commercial property tax should be
fined and liens put on property if they don't. pay (what they are supposed to). That is
the only way than CAN contribute to the neighborhood by paying their fair share of
taxes. Otherwise they just take, take, take...
Personally, I think the way it is set up right- now the short term vacation rentals are
being allowed to operate at an unfair advantage to the legitimate hotel industry. If
someone buys a property next to a hotel that has been in business for 40 years they
know they are going to have constant transient activity. Currently someone could
own a home for 40 years and have transient commercial activity move in right next to
them.
Mahalo,
Chris Madsen
P.S. I believe this would help mitigate the impact of tourism on residential
neighborhoods/local residents. Residential rates are more subsidized in Honoulu
County vs. Hawaii County. However there is still plenty of subsidation going on in
Hawaii County as properties that pay Agricultural rates are doing full blown
commercial activity. This is a real issue and does need to actually be dealt with
appropriately and needs its own category.
We need to get back to a Hawaii where tourists aren't allowed to wreak major havoc
whether it be through constant helicopter invasions or causing problems by
commercially invading long-standing residential neighborhoods.
Then people might actually wave and smile at tourists instead of wanting to flip them
off for all the problems they are ALLOWED to cause here.
Sent from Yahoo Mail on. Android