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http://www.westhawaiitoday.com/news/loca...on-rentals
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.
"They’re not paying their fair share of the taxes," Osgood said, "and the rest of us are carrying them."
Doesn't this already happen with property taxation? Shipman get a cheap rate, but (theoretically) makes up for it elsewhere in the economy. Shouldn't the same principle apply here, getting "some" tourist dollars instead of "none"?
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There's a big difference.
The county tax office uses their skilled analysis of individual properties to determine which will "make up for it elsewhere" (friends, relatives, business associates, campaign contributions) whereas the non tax withholding vacation rental networks do not follow the county's carefully selected criteria.
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves
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The county tax office uses their skilled analysis ... whereas the non tax withholding vacation rental networks do not follow the county's carefully selected criteria
Exactly: unpublished criteria are used to make a decision behind closed doors, after which the "losers" are called out for "cheating the system".
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Former Council Chairman and mayoral candidate Dominic Yagong had publicly stated his intention to audit the real property tax division. We all got to see what happened to him.
Assume the best and ask questions.
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You do realize that most of the cases of unpermitted B&B and nonreported vacation rentals are in Puna? And that most of the offenders are white people from the mainland. In fact, now that I think of it, I don't know of one local or Hawaiian running an illegal B&B but can find dozens of white transplant ones just by looking at the widely available county records paid for with our property tax dollars. It would be interesting to see where all this "conspiracy corruption" is when the county financial department audits the rest of the county offices. Sometimes, it is a wonder if some people in Puna even completed elementary school with their lack of understanding regarding state and county governments.
"Aloha also means goodbye. Aloha!"
*Japanese tourist on bus through Pahoa, "Is this still America?*
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It would be interesting to see where all this "conspiracy corruption"
One place I've made real estate tax comparisons is on Beach Road between Maku'u Dr and Hawaiian Beaches. There are oceanfront properties owned by local families that pay a few hundred dollars a year in taxes, while across the road a New Yorker with a Manhattan address pays $4000-$5000 a year for a lot assessed at a fraction of the value.
In your research Ted, how do you determine that a B&B is "illegal?" Do you simply call listings on Air B&B and ask whether they they pay their transient accommodations tax and general excise tax? Or do your find out their personal name, business name with Excise tax number, then cross reference with their Hawaii state tax filings?
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves
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where all this "conspiracy corruption" is when the county financial department audits the rest of the county offices
There will never be a complete and/or successful audit.
oceanfront properties owned by local families that pay a few hundred dollars a year in taxes, while across the road a New Yorker with a Manhattan address pays $4000-$5000 a year
In theory, the excessive RPT entitles these "white people from the mainland" to some underreported side income, right? It's exactly how similar "undertaxation" is handled elsewhere in County.
Those "local families" that only pay "a few hundred dollars" are spending the rest of their money in our local economy, unlike those "white people from the mainland".
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Those "local families" ... are spending the rest of their money in our local economy
Unless their disposable real estate tax income is used for out of state tuition for their kids, or stock investments in mainland businesses, or...
those "white people from the mainland"
Who may fly to Hawaii to visit their property, stay at a hotel, build a house, eat at local restaurants...
It's a complicated issue, which could be simplified if everyone paid according to the "rules."
As noted in Animal Farm by George Orwell:
Later, Napoleon and his pigs secretly revise some commandments to clear themselves of accusations of law-breaking.
Eventually, these are replaced with the maxims, "All animals are equal but some animals are more equal than others."
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves
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I would suggest that regarding the issue of "local families" that locally some families are more local (and equal) than others.
Favoritism abounds in Hawaii County.
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simplified if everyone paid according to the "rules."
Whose "rules"? The ones "on the books" that are "for everyone"?
