Posts: 14,114
Threads: 424
Joined: Aug 2012
http://www.hawaiitribune-herald.com/2018...n-rentals/
"While Hawaii County considers its own efforts to address the impacts of short-term rentals, the proposed (bill) provides another tool for the counties to ensure that our residential communities will remain residential and not become single family resorts, and that real property tax rates will be fair and based on actual use," said Hilo Councilwoman Sue Lee Loy.
It's opposed by real estate agents, Airbnb and HomeAway/VRBO, which said in testimony that requiring it to disclose the names and license numbers of rental units without a subpoena is contrary to federal law. Over-regulation could result in a loss of tax revenue to the state, they said.
Consider: making sure vacation rentals "pay their fair share" of TAT
will not result in more revenue for County.
Simple fix: County should just add more brackets to the property tax schedule -- property taxation is entirely within the purview of County.
"Vacation rental with TAT certificate on file" at double the residential rate;
"Unlicensed rental" at (say) 5X residential rate.
Along similar lines: tax roosters. Ag-zoned lots get 1 "free" rooster + 1 rooster per acre, rate goes up at 10, 25, 50. Let the market sort it out -- if the roosters are really that valuable, the breeders can pay taxes on them, or move to a larger lot.
Posts: 11,018
Threads: 750
Joined: Sep 2012
Ag-zoned lots get 1 "free" rooster + 1 rooster per acre
With a yearly RoosterCheck inspection.
At the review an inspector also takes a picture of the rooster farm with his iPad app for submission to the tax office. If a complaint is submitted at a later date concerning excess roosters, tax enforcers can refer to visual evidence when the suspect claims "hey, the RoosterCheck approved my site."
"Sorry, gotta write you up."
Recycle Puna. Humans, although probably not you personally, have already left 400,000 pounds of trash on the moon. - YouTube's Half As Interesting
"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
Posts: 14,114
Threads: 424
Joined: Aug 2012
With a yearly RoosterCheck inspection.
County already collects aerial photos to "discover" unpermitted structures...
Posts: 58
Threads: 9
Joined: Jun 2013
Before adding any additional regulations to existing vacation rentals, the State and County should first make sure they can enforce the regulations already in place. According to the article, 6000 out of 8647 (70%) listed Big Island vacation rentals are NOT registered with the state. I don't know what the average annual GET/TAT/income taxes are for a vacation rental but, if we estimate $just 5000/yr, that is $30 million dollars in tax revenue PER YEAR that is not being collected! And that is just on the Big Island. That could pay for a lot of school air conditioners, affordable housing measures, road projects, etc.
Posts: 1,175
Threads: 12
Joined: Jun 2008
One sometimes doesn't know if one should laugh or cry here.
I just try to laugh through the tears.
Damn it.
We can do so much better.
Posts: 14,114
Threads: 424
Joined: Aug 2012
if we estimate $just 5000/yr, that is $30 million dollars in tax revenue PER YEAR that is not being collected!
County's share of the TAT is fixed at $19M regardless of how much is collected.
What is County's incentive to aggressvely pursue revenue for State?
Hence my suggestion that County tax these properties, which authority is entirely within County purview, and which revenue stays entirely within County.
Posts: 11,018
Threads: 750
Joined: Sep 2012
aerial photos to "discover" unpermitted structures...
Then tax animal occupied outbuildings on one acre properties (or less). By total count, not size. 100 rooster A frames on your property? That will be an additional $50 per unit per year. $5000 please. In addition to your regular property tax.
Recycle Puna. Humans, although probably not you personally, have already left 400,000 pounds of trash on the moon. - YouTube's Half As Interesting
"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
Posts: 998
Threads: 30
Joined: Feb 2012
I'd like to see enforcement of existing TAT and regulations. Let the zoning enforcement be complaint driven. Maybe open up the zoning a bit on 1 acre and up Ag lots - not like a vacation rental in Eden Roc is going to disrupt the neighborhood. More people paying taxes to the county helps us all.
Me ka ha`aha`a,
Mike
Me ka ha`aha`a,
Mike
Posts: 14,114
Threads: 424
Joined: Aug 2012
I'd like to see enforcement of existing TAT and regulations.
Again: that TAT is sent to the State, more enforcement doesn't mean more money for County.
Let the zoning enforcement be complaint driven.
This posture is already failing, especially where undeserved exemptions create a shortage of tax revenue.
County has plenty of tools available, there's no need to waste precious resources creating new regulations.
Posts: 58
Threads: 9
Joined: Jun 2013
Currently, the distribution is capped but I don't believe that will always be the case. The push back against the unfair distribution of TAT revenue continues to grow and become more vocal. Having a system in place to make sure taxes are being collected appropriately will, I believe, help promote a change and subsequently make it much easier on the county if and when a change to the distribution model does actually happen.
