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