03-02-2026, 04:24 PM
(This post was last modified: 03-02-2026, 05:11 PM by leilanidude.
Edit Reason: typo
)
I have contacted the Mayor's office with a suggestion regarding the disincentives that Hawaii County has towards encouraging people that own 2nd homes that are not occupied by the owner that may help encourage them to rent them out.
1. Landlord/tenant laws favor the tenant (essentially no evictions are done)
2. We tax owners of rental properties as well as 2nd homes that are not rented out, at the same, higher rate. County is in effect, penalizing people for being landlords which is counter to the goal of being able to have more available housing. When you raise property landlords, you end up raising the rent.
3. Propose changing property taxes so that houses that are rented out for 6+ month leases have reduced property tax rates.
4. Take an approach similar to what Spain is now doing,(similar issues with available housing) in which 2nd homes that are not rented out, are taxed at a higher rate, that provides an incentive to rent it out - or incentivizes the owner to sell the home.
If you own a home in Spain that is not your main home and is not being rented out, your annual property tax rate for 2026 will go from 1.1% of the "cadastral value" to 2.0%. As an example, if the property is given an assessed value of EUR 500k your annual property tax would be EUR 5,500. With the house not rented, the tax would be EUR 10,000. That is enough of a jump (EUR 4,500) for property owners to at least consider renting the property out. Spain has a similar issue to Hawaii in that there are many 2nd homes that sit empty most of the year, with some homes only being occupied 2-3 weeks out of any given year.
Spain also taxes vacation rentals at a higher rate, something that Hawaii County is already doing, because housing is tight in most Spanish cities. Non-citizens have bought flats (condos) and they literally sit empty most of the year or are used for tourists.
I do think that Hawaii County is making a mistake at raising property tax on high-value homes for a couple reasons: Those homes utilize very little County services and employ a lot of people to keep them maintained and those homes will not be turned into any sort of "affordable" rental housing. They are not taking away from the rental housing market.
1. Landlord/tenant laws favor the tenant (essentially no evictions are done)
2. We tax owners of rental properties as well as 2nd homes that are not rented out, at the same, higher rate. County is in effect, penalizing people for being landlords which is counter to the goal of being able to have more available housing. When you raise property landlords, you end up raising the rent.
3. Propose changing property taxes so that houses that are rented out for 6+ month leases have reduced property tax rates.
4. Take an approach similar to what Spain is now doing,(similar issues with available housing) in which 2nd homes that are not rented out, are taxed at a higher rate, that provides an incentive to rent it out - or incentivizes the owner to sell the home.
If you own a home in Spain that is not your main home and is not being rented out, your annual property tax rate for 2026 will go from 1.1% of the "cadastral value" to 2.0%. As an example, if the property is given an assessed value of EUR 500k your annual property tax would be EUR 5,500. With the house not rented, the tax would be EUR 10,000. That is enough of a jump (EUR 4,500) for property owners to at least consider renting the property out. Spain has a similar issue to Hawaii in that there are many 2nd homes that sit empty most of the year, with some homes only being occupied 2-3 weeks out of any given year.
Spain also taxes vacation rentals at a higher rate, something that Hawaii County is already doing, because housing is tight in most Spanish cities. Non-citizens have bought flats (condos) and they literally sit empty most of the year or are used for tourists.
I do think that Hawaii County is making a mistake at raising property tax on high-value homes for a couple reasons: Those homes utilize very little County services and employ a lot of people to keep them maintained and those homes will not be turned into any sort of "affordable" rental housing. They are not taking away from the rental housing market.
