HomeMy WebLinkAboutCOM 0962.007 2018-2020 COUNTY CLERK
COUNTY OF HAWAI'I
RECEIV
Time I By -' �
Dates
J b 2 2 Nt . 6
}i
I
From: Darr
Sent: Tuesday, June 02, 2020 8:28 AM
To: Council Testimony
Subject: RE: Please Vote No on again raising the property Tax on Residential Tier Two Property
Owners
To: Hawaii County Council,
Re: Proposal to consider raising real Property Tax rates on Residential Tier Two Properties above
$2,000,000
I went through all the documentation pertaining to the proposed Budget put forth on behalf of the
Mayor, Mr. Harry Kim, and while the Pandemic issues worldwide have affected how governments are
making revenues to run their respective Governments, this includes the state of Hawaii, or Island of
Hawaii. The pandemic and the economy has put unwanted stress on everyone.
After reviewing the new proposed property tax increase for owners of residential Tier Two property
owners (vacation home owners), these owners again are being targeted for owning a 2nd home and
not their primary residence above a certain amount. No one wants to pay in taxes. As everyone is
aware of, the Kona Kohala Coast has some of the wealthiest and most expensive homes and real estate
in the state. The owners of these homes spend great sums of money to enjoy some privacy and
solitude, which the Big Island of Hawaii has to offer. Owners in this area can spend upwards of
$125,000 to $250,000 in property tax per year per property. Which is a nice chunk of Money for the
County when it is time to collect, pulling in much needed revenues. However, This segment of the
population also chooses to live here and contribute to the economy in a big way other then paying
taxes. They help to maintain and build infrastructure, the Palama Nui Campus, the by pass road
leading to Hokulia from Keauhou Bay side of the Island, etc.. etc.. etc... This segment of the
population chooses to live here and contribute. But we cannot continue to tax, and tax and tax our
way out of the budget problems our government continues to do today. Similarly Like the TAT Tax,
the County and State again are going after the individuals that fund this economy. Tourism and large
property Vacation home owners help bail out the county goverment's economy time and tinge
again. If we are to ever consider proper revenues to collect for the state it cannot be the continued
assault on the Tourism industry and the vacation home industry. The biggest complaint I receive
from Tourists visiting the island and Vacation home owners is the taxes are too high here. If we are to
be competitive in the Travel and Tourism industry/business we can not continue to stick it to those
that are funding the industry.
Here are the main complaints of why you should not raise the property taxes on Residential Tier Two
Properties:
1. Tier Two Residential property owners pay more in property taxes then any classification
Incrementally the Residential tier two property owners or Vacation home owners have had to pay
increased tax rates to help fund our government for many years.
2. Penalizing owners for real estate investments when they are one of the driving engines of our
economy.
i Comm. No. gtl2•�Ref.To:T : uACl
Ptef. Date JUN 2020
s
h
S. Larger property 2nd home'property owners spend more on goods and services then individual
tourists. They are also helping to stimulate more real estate investment, construction industry, as
well as all supporting services. Food costs, utilities, transportation, maintenance industry etc....
4. Negative impacts from punishing property owner tax increases levied on Residential Tier Two
properties will threaten the real estate market, discourage future real estate investment, and force
owners to look elsewhere to invest their money(Punta Mita, Costa Rica, Indonesia, etc.. where they
can invest for less cost). We count on their support of our economy and already spend large sums of
money on their property taxes every year and again the threat of another increase in the middle of a
pandemic and the worst economy the world has ever seen and you want to increase taxes.
Number 4 is the number one impact and the reason not to do a property Tax increase right now. We
risk driving away investment which has been Hawaii's problem since forever. If we want to improve
Hawaii's opportunities, Jobs for our Youth, quality of Life. Please stop Taxing the industries that fuel
the economy, otherwise we risk losing the opportunities right in front of us.
Please vote no on Chapter 19,Article 11, Section 19-go, of the Hawaii County Code and the proposed
property tax increase on Residential Tier Two Property owners. Please, Please Vote no.
Mahalo,
Jim and Mia Dorr
2