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Home My WebLink AboutCOM 0739.067 2016-2018From: Pea Doo To: Council Testimony Subject: Bill 108 Testimony Date: Monday, April 23, 2018 11:37:30 AM Pamela Small PO Box 44413" Kamuela, HI 96743 April 23, 2018 Re: Bill 108 Dear Council Members: I write today to strongly oppose Bill 108. Under no circumstances do I support this bill. As a resident of Hawaii County, this is a ludicrous measure. If this is an attempt to try and help the housing shortage issue, it fails), miserably. That is an issue that is entirely separate. Until the landlord tenant laws are addressed, the housing issue will never be solved by limiting short term rentals. The legislature/County Council is unwilling to address the larger problem and is attempting to scapegoat the short-term vacation rental market. If I wanted to evict a deadbeat tenant, I would have to fly in a sheriff's deputy from Maui because the sheriff's department on Hawaii Island has not evicted anyone in over two years. I have a friend who has been trying to evict a non-paying tenant in Pahoa for three years. There is no resolution in sight. As for taxation, laws must be consistent with the Hawaii State Constitution and the Taxpayer's Bill of Rights, which are guaranteed to all people. Transient accommodation operators should not be deprived of these fundamental rights. Since the counties do not administer the tax collection function that the Department of Taxation does, it is not appropriate that they be deemed entitled to private information of taTavers. This provision violates taxpayers' rights to confidentiality and privacy. It also creates an inconsistency in tax policy by divulging information on only one form of taxpayer; taxpayers collecting transient accommodation tax. This inconsistency makes it discriminatory in nature. Comm. No. Im .0 Ref. To: L Ref. date �pR 2 4 `�� According to Bill 108 - "The applicant seeking a short-term rental nonconforming use certificate shall have the burden of proof in establishing that the property was in use and in good standing prior to [ January 20, 2018.] July 20, 2018. Evidence of prior use that shall be provided to the director may include tax documents for the relevant time period, including: State of Hawaii general excise tax filings; 2 transient accommodations tax filings; and federal and State of Hawai' i income tax returns." The DOT Bill of Rights provides: "Taxj2a3�ers have a right to be assured that them dealings with the Department of Taxation will be kept confidential. Tax avers have a right to be assured that their tax returns and tax information will not be disclosed. " The State of Hawaii Constitution provides "the legislature shall take affirmative steps to implement the right of the people to 12rivacv" and "The right of thT le to be secure in their Persoas, houses, 12apers and e-fects against unreasonable searches seizures and invasions o f�rivacv shall not be violated. " Operators of TA should not be excluded and disenfranchised from these protections afforded all other taxpayers. An agent should not be providing confidential tax information to any county personnel as they are not designated tax personnel for state TAT or GET receipts. This would violate TA operators of the rights of privacy afforded to other taxpayers. This information should only be obtainable through proper subpoena power. Per Hawaii's Home and Vacation Rental Market: Impact and Outlook Prepared for Hawaii Tourism Authority December 29, 2016: • Home and vacation rentals appear to be growing the pie ratherthan purely taking share from hotels. • In major urban markets (non -resort markets) that JLL surveyed, this proportion was higher, suggesting that the business model of staying in home/vacation rentals in Hawaii is more established and mature, and as such not seeing as high of a growth rate as in New York, Austin, San Francisco, Nashville, etc. • One-third of visitors surveyed indicated they chose to stay at home and vacation rentals because it enables them to stay- outside of traditional hotel zones and because they enjoy the greater individuality. • The two most common reasons for using home or vacation rentals are the relatively lower cost and more flexible/larger accommodations, which suggests those travelers would be less likely to travel to Hawaii if this option were not available • 15% of respondents indicated they would not have made the trig had it not heen-f—or the alternative accommodations option 061% of visitors surveyed paid less per night for home and vacation rentals than the state's hotel average daily rate. • This proportion is deemed to represent induced demand resulting from the existence of the home/vacation rental market. Our elected officials are ignoring the fact that residents depend upon the income from vacation rentals to help pay their mortgages and living expenses. The guests who stay in those units follow the recommendations of the owners for local restaurants, shops, tours, scuba/snorkeling, grocery stores, farmer's markets, local massage therapists, and the like. Without TVR's the local economy suffers. Guests who stay in resorts rarely leave the resorts and do little to spend their dollars in the local economy. The resorts are owned by large multi- national corporations while small vacation rentals are owned by local homeowners who spend their money within the community. The economic hardship of an annual $500.00 fee to operate a Transient Vacation Rental is a burden that many local citizens of the Big Island cannot afford. To ask them to navigate the government bureaucracy in order to obtain a Non -Conforming Use Permit within 180 days is ridiculous. A deadline of 180 days is unreasonable and unlikely to be attainable for anyone who has ever dealt with a government agency of the Big Island. By limiting Vacation Rentals to the Resort Areas of the island, the council would insure that the majority of the owners would be from off -island, second homes, or investors. Isn't that what you are trying to avoid? Hawaii has significantly bigger problems on its plate than vacation rentals. Per a report published April 23, 2018 in Hawaii News Now by The U.S. Department of Housing and Urban Development an individual earning up to $49,450 is now considered "low income" statewide. Keep in mind: Teachers in Hawaii who are just starting out their career and have a bachelor's degree but no additional training make about $36,000. Mahalo, Pamela Small Kamuela, Big Island, Hawaii