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HomeMy WebLinkAboutCOM 0739.075 2016-20186 -ms I Pc- We appreciate the revision to Bill 108, but still have some concerns we would like the council to address. I live in Volcano, and tourism is the lifeblood 'of our community. From places to stay, to places to eat, art galleries, shops, and Volcanoes National Park — almost everyone in our area relies on tourist dollars to pay our mortgages, grocery bills, and taxes. My husband and I own several small vacation rentals. When my job on the mainland required moving back or quitting, we had no choice but to figure out a way to stay. Our very small rentals, located just a street or two from our home, allow us to have the kind of life we've always dreamed of. We work hard, but are working to make a better life. This is our second year in business, and we were overjoyed to be able to hire someone to clean one of our homes. We've replaced roofs and have regular lawn maintenance done. We purchase almost all our items at local retailers. We pay our taxes. We believe in giving back to the community, with both our money and time. We tried a long term rental. Unfortunately, even though our renters were very nice people and we kept constant communication, they broke their lease and the home required extensive cleanup after their 9 month stay. Short term allows us to clean top to bottom every 2-3 days, and the small size of the house encourages quiet couples and small families, which our neighbors appreciate. There are several positive items in this version of Bill 108. We agree that the date for being in business should be a future date. The first bill was unfair in requiring 'a past date that took everyone by surprise. This allows us to prepare. There are a few items we believe need clarification. We greatly appreciate the grandfathering provision, but would like to see the permit process simplified. We would like to see the permit price reduced — when you are renting a home for less than $100 a night and have to take 15% in GET and TAT taxes plus all your business expenses from that amount, an extra $500 fee every year is burdensome. Also, there is currently no specification of how much the initial certificate will be for Residential and Ag zones. We would like to see the Residential and Ag zone permits valid for 2 years. I believe the combination of the increased compliance, less administration work, and more time to focus on the task of enforcement, would balance any income loss. There is some confusion over the time to get a permit. The current revision of Bill 108 says 180 days. Is that to get the permit or to apply for the permit? In my experience, things do not move quickly and if it answer is "get a permit", there needs to be a timeframe on how long that process will take. The simplest solution would be a 180 day period to apply. Lastly, there should be a path for future home owners. A sensible process for applying for a permit would assure current business owners that the value of their business could be maintained. It would also provide reassurance to the County that income from vacation rentals (taxes as well as permit fees) would continue to flow into the coffers, even after the current owners have retired. Again, I appreciate your work on this topic and look forward to a successful bill for all concerned. Mahalo nui loa, Comm. No. Ref. To: .Ref. Dote COV T Y C L E R'K From: Lucretia Worster CMTY OF HAWA To: Council Testimony Subject: Bill 108 Revision Testimony Zoll i U iii 27 9 Date: Monday, April 23, 2018 9:42:30 AM Attachments: 108 Revision Testimony.pdf ATT00001. htm We appreciate the revision to Bill 108, but still have some concerns we would like the council to address. I live in Volcano, and tourism is the lifeblood 'of our community. From places to stay, to places to eat, art galleries, shops, and Volcanoes National Park — almost everyone in our area relies on tourist dollars to pay our mortgages, grocery bills, and taxes. My husband and I own several small vacation rentals. When my job on the mainland required moving back or quitting, we had no choice but to figure out a way to stay. Our very small rentals, located just a street or two from our home, allow us to have the kind of life we've always dreamed of. We work hard, but are working to make a better life. This is our second year in business, and we were overjoyed to be able to hire someone to clean one of our homes. We've replaced roofs and have regular lawn maintenance done. We purchase almost all our items at local retailers. We pay our taxes. We believe in giving back to the community, with both our money and time. We tried a long term rental. Unfortunately, even though our renters were very nice people and we kept constant communication, they broke their lease and the home required extensive cleanup after their 9 month stay. Short term allows us to clean top to bottom every 2-3 days, and the small size of the house encourages quiet couples and small families, which our neighbors appreciate. There are several positive items in this version of Bill 108. We agree that the date for being in business should be a future date. The first bill was unfair in requiring 'a past date that took everyone by surprise. This allows us to prepare. There are a few items we believe need clarification. We greatly appreciate the grandfathering provision, but would like to see the permit process simplified. We would like to see the permit price reduced — when you are renting a home for less than $100 a night and have to take 15% in GET and TAT taxes plus all your business expenses from that amount, an extra $500 fee every year is burdensome. Also, there is currently no specification of how much the initial certificate will be for Residential and Ag zones. We would like to see the Residential and Ag zone permits valid for 2 years. I believe the combination of the increased compliance, less administration work, and more time to focus on the task of enforcement, would balance any income loss. There is some confusion over the time to get a permit. The current revision of Bill 108 says 180 days. Is that to get the permit or to apply for the permit? In my experience, things do not move quickly and if it answer is "get a permit", there needs to be a timeframe on how long that process will take. The simplest solution would be a 180 day period to apply. Lastly, there should be a path for future home owners. A sensible process for applying for a permit would assure current business owners that the value of their business could be maintained. It would also provide reassurance to the County that income from vacation rentals (taxes as well as permit fees) would continue to flow into the coffers, even after the current owners have retired. Again, I appreciate your work on this topic and look forward to a successful bill for all concerned. Mahalo nui loa, Comm. No. Ref. To: .Ref. Dote