Letter for Thursday, January 9, 2020

Bill 2767 an attack on Kauai residents

Attention Princeville, Kiahuna, Poipu Kai residents. Anyone who lives on Kauai and vacation rents part of your property or part time on your property. As a resident, you receive a tax rate halfway between homestead and vacation rental. You also benefit from an annual cap on how fast your assessment can rise. You have to be at your home over half the year, file your taxes from Kauai, and file a resident state tax return to qualify for these benefits.

Bill 2767 takes these benefits away from you. The sponsors of the bill estimate there are about 200 residents in this commercialized, home-use tax category. How long can they stay in their homes if property taxes quadruple in one year and continue on up every year?

Why the attack on Kauai residents? The purpose of the bill is stated to be fairness in tax rates. Why is it fair for all vacation-rental license-holders to pay the same rate? Does the tax rate have the same effect on the off-island investor who generates rental income 12 months per year as it does on the resident of Kauai who tries to make a small income occasionally renting or renting a cottage on their property?

Please be in favor of fair-housing measures and sensible vacation-rental restrictions but against this bill. Public hearing is Thursday, Jan. 16.

Diane Garrison, Kilauea

  1. IKUDIAS January 9, 2020 7:03 am Reply

    Is this really an attack on Kauai residents? I think not. If these people vacation rent, they should pay their fair taxes. These people should not be allowed to offset the cost of living here by renting to tourists at the expense of the county or local people absorbing the costs of their business – legal or not

    This should also apply to the gentleman/woman farmers who purchased ag property and abuse the tax system by applying for ag rates for their large homes with a few fruit trees, and reduced water rates for irrigating their lawn / filling their swimming pools, not to mention the vacation rental / farm stay, business since the rental business is more profitable than farming

  2. JAMES January 9, 2020 7:46 am Reply

    A vacation rental is a vacation rental. Period. Switch to a long term rental if you don’t want to be taxed like all other vacation rentals. And those who live in their unit half of the year, where do you live in the other half. Just live there for the whole year. This law affects such a small number of people it’s a joke to label it an “attack on Kauai residents”. Get into another business if the vacation rental business is not for you.

  3. I saw a Vampire once January 9, 2020 9:53 am Reply

    I’m going on what I know. I do know that some on your county council seat are still young kids and play sports yet and don’t have any knowledge of business or politics. So they represent the public most suited for minimum wage, and not real tax payers. I’m not to name a few county councilmen who fall in this category and representing the poorer or coaches populations. Associated with sports people. So they share similar concerns, no money and poor. Mason Chock, Ron Kouchi, Ross Kagawa, Arthur Brun, Bernard P
    Carvalho jr.,

    Can you see the background and the situation they are getting into? Interest, common interest when growing up. And as an adult, still the same mindset as a politician.

  4. behappy January 9, 2020 1:51 pm Reply

    The tax code in Kauai is very confusing and discriminating. Many if not most states have one tax for residential real estate. No discriminating just a straight tax for everyone. What’s wrong with that? Making some people pay double or triple others is just plain wrong. If they have a rental business or any business involving the property the county or city collects on a business tax, separate issue.

  5. Lucky we live Kaua’i January 9, 2020 10:42 pm Reply

    This new tax affects anyone with an O’hana on their property or in their house whether or not you vacation rent it or you don’t rent it out at all. If you can vacation rental it even if you never have vacation rented it. This affects full time residents as well as part time residents. Seems commenters don’t understand what’s going on here.

    1. JAMES January 11, 2020 7:48 am Reply

      I don’t think that’s true. Please cite the portion of the bill that supports your statement. I believe that the correct fact are that If this bill passes, vacation-rental operators who do not want to pay the $9.85 vacation rental property-tax rate can continue paying the $5.05 commercialized home use rate if they use their unit as a long-term rental home rather than a short-term vacation rental. If you have evidence to the contrary, please cite it and I will stand corrected.

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