HomeMy WebLinkAboutCOM 0926.023 2018-2020 COUNTY CLERK Nftl
COUNTY OF HAWAIII bill f
RECEIVED
Ti1041 CA BY-0 CORKAZ
To Whom it may concern,
Date- MAY 1 2 2020
As a native Hawaiian and someone who has lived their entire life here in Hawaii, I'm writing this letter
to express my opposition to the exorbitant 31% property tax hike on vacation homes valued at$2
Million and above.
A large portion of our island economy is sustained by part-time/vacation homeowners who'd be
impacted by this new proposed tax rate. These are people who typically spend their time on the island
participating in leisurely activities that employ many of our residents, however,their footprint on county
funded resources is comparatively small. The largest concentration of properties where the tax hike will
impact are the resort homes located on the Kona and Kohala Coast of the island. If you look at the 635
part-time/vacation homeowners at Kukio and Hualalai Resort alone they employ 1600 of our residents
on a full time basis and hundreds more that provide other ongoing services to their communities. How
many jobs does one vacation home benefit? Realtors, property managers, landscapers, housekeepers,
plumbers, electricians, pool maintenance,contractors, interior designers, private chefs,event planners,
artists,wood workers, nannies,and the list could go on. These seasonal island residents already pay an
80°1 higher tax rate than our full-time residents. The carrying costs of these properties versus their
enjoyment hold a delicate balance.
Aside from the typical economic benefits that these homeowners provide,their charitable donations
are a large part of many foundations. It's no secret that many local families are struggling just to
survive. According to the most recent published Census data ( pge ZQ cif this rgprt), Hawaii County's
per capita income is$27,870, and over 45%of renters devote at least 35%of their income to their gross
rent(pgg_e 37 of the samq C�Lnsga report). In 2019,The Hualalai Qhana Foundation
haps:JZhualalaighanafoundation.oE./and the Kukio Community Fund http://www.kukio.com/kukio-
community-fund.html,which were created by vacation-homeowners of the two resorts, raised over
$1,500,000 for qualified island residents in need. This is one example of the many foundations who
benefit those struggling with resources from vacation-homeowners.This is not the way to show our
appreciation.
I'm afraid that increasing the carrying cost for these vacation-homeowners by increasing the property
tax, at this rate, will discourage vacation-home ownership. This is a dangerous message to send to those
who are such a big part of our economy. Hilo representative,Aaron Chung estimated this proposed 31%
tax hike would raise an additional $6-$7 million in taxes. This risk outweighs that benefit. Please
consider other avenues to fund our budget.
Sincerely,
Kuuipo Valenzuela,Waimea Resident
Comm. No. '®2 ';;--
Ref.To- P i
Ref. t3ate 2020