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+--- Thread: New state rules for vacation rental listings (/showthread.php?tid=17254)
RE: New state rules for vacation rental listings - PaulW - 06-02-2016
That article says "some" people aren't paying their share of taxes. Now there's a statement that's always true.
RE: New state rules for vacation rental listings - Carey - 06-02-2016
PaulW...I think that the perception that there are a lot of non-legal accommodations may stem from articles like this one in Honolulu Mag from 2011 (mainly focusing in on the problem in Oahu, but implying the other islands):
http://www.honolulumagazine.com/Honolulu-Magazine/September-2011/The-Bed-and-Breakfast-Battle-in-Hawaii/
And this from from CivilBeat last year when the new laws were going through the legislative process that state:
"Lawmakers are considering bills to crack down on thousands of illegal vacation rentals that operate in Hawaii."
http://www.civilbeat.com/2015/03/state-city-looking-to-crack-down-on-illegal-vacation-rentals/
I am not sure if anyone really knows how many are operated in the non-legal spectrum, but the county SHOULD have the stats on ones that comply..
and here is a TripAdvisor with the difficulties in EASILY finding out if an establishment complies:
https://www.tripadvisor.com/ShowTopic-g29222-i37-k1672777-How_to_verify_if_it_s_a_legal_vacation_rental-Oahu_Hawaii.html
RE: New state rules for vacation rental listings - PaulW - 06-02-2016
Thanks for the links Carey but I didn't see any mention of the Big Island.
I know about the perception and that perception is wrong - as I think you know. Please, anyone, correct me if I'm wrong.
The people who run vacation rentals on this island (and pay their taxes; I'm confident most of them do) are doing both this island and this state a great service. It generates a lot of tax and it makes Hawaii affordable for a lot more tourists.
RE: New state rules for vacation rental listings - Carey - 06-02-2016
PaulW< this article IS Hawaii County centric, but again has no actual #s, just perception...
http://westhawaiitoday.com/news/local-news/council-resolution-tackles-transient-vacation-rentals
The main thing is, since you must have a business license in the state & now must list you Tax # on any advertising, those that are not, would not be in compliance with the state law, as it stands today, so ANY accommodations listing that does not list the tax# today is in non-compliance. If the OP is correct in their check of websites is correct, then there are a lot of rooms offered that are not in compliance.
I would also point out, anyone running a rental establishment without notifying their insurance carrier has the potential of getting a very expensive lesson down the road.... That business plan has wiped out many who thought they could get around regulations. Just one claim can spell financial ruin to a property owner!
RE: New state rules for vacation rental listings - PaulW - 06-02-2016
Good article, thanks.
“They’re not paying their fair share of the taxes,” Osgood said, “and the rest of us are carrying them.”
Yep, some people aren't paying their fair share of taxes. Always safe to say.
“The County of Hawaii does not have any vacation rental laws,” Osgood said. “It doesn’t exist in our county code.”
And yet leilanidude says that only a handful are legal? But how can this be??
Yes, rental owners do have to list their tax number, that is a relatively new rule and a good one. Just because they don't (and in many cases can't, see OP) doesn't mean that they are "illegal" or aren't paying their taxes. They are paying a LOT of tax. If someone rents out at $100 a night for 200 nights a year that's $2600 in tax donated by (mostly) visiting mainlanders from just one property that would otherwise have to come from somewhere else - probably one of us.
RE: New state rules for vacation rental listings - shockwave rider - 06-02-2016
quote:
Originally posted by PaulW
Good article, thanks.
“They’re not paying their fair share of the taxes,” Osgood said, “and the rest of us are carrying them.”
Yep, some people aren't paying their fair share of taxes. Always safe to say.
“The County of Hawaii does not have any vacation rental laws,” Osgood said. “It doesn’t exist in our county code.”
And yet leilanidude says that only a handful are legal? But how can this be??
Yes, rental owners do have to list their tax number, that is a relatively new rule and a good one. Just because they don't (and in many cases can't, see OP) doesn't mean that they are "illegal" or aren't paying their taxes. They are paying a LOT of tax. If someone rents out at $100 a night for 200 nights a year that's $2600 in tax donated by (mostly) visiting mainlanders from just one property that would otherwise have to come from somewhere else - probably one of us.
I cannot find a link to the article now, but during the last legislative session one of the state reps who was pushing for changes on the vacation rental rules had his staff compare the number of listing on Air BnB with the number of people who are licensed and paying all the taxes on vacation rentals and found a huge difference, both statewide and island by island. There are over 300 vacation rentals listed on Air BnB's site in Puna alone, and far more on the Kona side. If you think the majority of those amateur hostelers are really paying their taxes I have some cheap swampland in Florida to sell you.
RE: New state rules for vacation rental listings - Carey - 06-02-2016
PaulW, rom the WHT I linked, the paragraph from above the one you quoted states "The problems are exacerbated because many property owners are hooking up with big vacation-rental networks that aren’t following state law or collecting taxes. Not collecting transient accommodations tax and the general excise tax allows the properties to be rented for less than properties where the owners are complying with the law, said Kona Realtor Gretchen Osgood."
Interesting that you would quote the next line from Osgood, but not this paragraph...
It is now time for YOU to provide the facts on your side of the argument, if you can find the % of renters that are paying...please do so, as you are the one stating that most do!
RE: New state rules for vacation rental listings - pahoated - 06-02-2016
Of course there isn't going to be some poll among transient vacation landlords if they are paying rental tax.
The new law will allow the county to start doing audits, so this issue of whether most vacation rental owners aren't paying rental tax could be resolved over the next months and years. It has been brought to the state and county attention.
http://westhawaiitoday.com/news/local-news/council-resolution-tackles-transient-vacation-rentals
quote:
But the short-term rentals, also known as transient vacation rentals or TVRs, are a source of headaches for neighbors and frustration for on-island companies trying to manage property properly.
The problems are exacerbated because many property owners are hooking up with big vacation-rental networks that aren’t following state law or collecting taxes.
"Aloha also means goodbye. Aloha!"
RE: New state rules for vacation rental listings - PaulW - 06-02-2016
No no no no, if someone says that group X is cheating and not paying taxes then it up to the accusers to come with the facts.
If I say my neighbor is dumping trash on my land, it's not up to him to prove he isn't.
To those who haven't looked on a map lately, this is not Oahu. Vacation rentals are not illegal.
I hope there is strict enforcement and everyone who doesn't pay their taxes get busted and made to pay up for every day they've rented.
But I see no reason to assume that many people are doing this. Why would I? Why would anyone?
Is it something you would do?
RE: New state rules for vacation rental listings - Guest - 06-02-2016
I have some family from the east coast visiting in December and they will be staying Two weeks on Puako beach Dr in a decent vacation rental. They have to book months in advance and pay the $10,000 for two weeks in cash, not by credit card. Would vacation rentals on the kona side typically ask for cash up front, and why?