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May 1, 2018 — End of Legislative Session

May 12, 2018 Hawaii Rentals Comments Off on May 1, 2018 — End of Legislative Session

Aloha

In this edition:

  1. Legislature Update
  2. County Update – Big Island

 

  1. Legislature Update

The legislature is all but over for the year.  There are three main bills we were dealing with at the end.  The bill to require local contacts to be real estate agents fortunately was defeated quickly.

SB2963 / HB 2605

This is the latest incarnation of the AirBnB bill, allowing the advertising platform to collect and remit taxes on the owners’ behalf.  It has been around for 3 or 4 years now, always failing to pass.  This year however, the bill took on a lot of additional provisions, including the right of counties to obtain your personal tax information, the right for counties to change the zoning to declare a property to be ineligible for vacation rentals and then seize the property, and requiring AirBnB & HomeAway to immediately cease doing business with any owner who isn’t compliant with all regulations.  The bill originally had language creating a felony for non-compliance, but that has changed to a $25,000 fine.

It essentially assumed all vacation rental operators were criminal until proven otherwise.

We learned yesterday that this bill has been deferred indefinitely.  This is the best possible outcome.

The Senate was very supportive of this draconian bill, however, in the House, reason prevailed and the two houses ultimately could not agree.  The House of Representatives recognized this bill as being over the top and stopped it. The House also recognized what the Senate did not – zoning compliance is a county issue, not a state issue.

AirBnB had already backed away from the bill, so even if it had passed, no advertising platform was going to voluntarily subscribe to the tax collection work.

Here is why we were concerned about this bill:

  1. The advertising broker (i.e. AirBnB) may collect and remit tax on behalf of all advertisers.  However, if they mess up, AirBnB and the owner are jointly and severally liable for all taxes.  So, if AirBnB collects TAT and doesn’t remit it, you are potentially on the hook.
  2. The bill also requires AirBnB to provide details of how many nights were rented, the rates per night, the address and name and number of the local contact – and this information can be made available to the Counties.  The County of Honolulu has been asking for this for years to help with compliance with their complex permitting requirements.  No other tax payer is required to provide this level of information without a subpoena.
  3. The advertising broker is required to share your 1099 information with the county.  The State Department of Tax is, by federal law, strictly forbidden to release this information to anyone.  The bill requires all operators to waive their right of privacy and permit the advertising platform to share all of their information.
  4. All operators must provide proof of compliance with all zoning, land use and tax laws.  Our concern here is in providing positive proof of compliance – how do you prove you are legal in every regard.  The Counties have no system to accommodate this.  Most counties don’t even have current regulations
  5. Failure to comply with any tax or zoning law – or commit any act which the county doesn’t like - may result in a fine of $25000.  Failure to respond within 7 days results in a second $25,000 fine.  This is better than the earlier draft which was a Class C Felony (more than one year in prison).  The bill also provides for not only seizure of the property but also all income earned from operating a vacation rental.
  6. The bill also allows counties to phase out all transient accommodation in any zone for any reason.  This is concerning as county councils and the state legislators are very prone to pressure from unions, neighborhood groups, and anyone else who might vote.

SB2999

The Hawaii Teachers union has once again brought forward the Constitutional Amendment to require the TAT to be increased in order to fund education in the State of Hawaii. We saw this one go right to the bitter end last year before ultimately failing so that the TAT could be increased to pay for the Honolulu rail system.

This year, the bill morphed into a proposed property tax on “investment real property”. The legislators didn’t define any rates and didn’t determine if any properties would be excluded from the definition. The referendum will go to a vote of the electorate, probably this November. After that, it will be up to the legislature to iron out the details.

One other bill will change the way properties owned by non-residents are taxed upon sale. When you sell a property, a percentage of the sales proceeds is withheld until you file your tax returns or other required forms. The withholding rate will go up to 7.25%.

Another bill clarifies that all amounts charged to transient vacation rental guests are subject to TAT. t seems some hotels are charging a resort fee but not collecting tax on the resort fee. RBOAA supports the hotels being required to play on a level playing field with vacation rental owners, however the Senate showed their support to the hotel industry and deferred this measure..

Speaking of hotels, they have had seven consecutive years of increased occupancies and increased room rates. Each of the past seven years has broken all historical records. Yet they are very concerned that we are providing competition to them.

  1. County Update

At RBOAA, we are focused on the state legislature.  We would love to be able to be involved at the county level as well, but, simply put, we need volunteers to take that on.

This isn’t just our normal plea for volunteers.  As we have been saying for many years now, the fight is going to move from the state to the counties.  We are seeing this increasingly become true.  The state is going to be taking some of the TAT revenues it gets and giving it to the counties to enforce their regulations.  So, more and more, the counties are going to play a significant role.

Here is what some our eagle-eyed members have shared with us recently

On the Big Island, the county council was considering a regulatory framework around vacation rentals on the island.  The original proposal seemed fair, but those watching Bill 108 are quite concerned.  This bill goes back to County Council on May 8.  There is a Facebook group called “Hawaii TVR Alliance” involved on this, as are three of our members fortunate enough to have property on Hawaii.

Maui recently passed a bylaw which requires a property to be owned for five years before it can be turned into a vacation rental.  We think this only applies to properties which have never been legal vacation rentals in the past and is primarily focused on restricting growth of vacation rentals in residential areas.  Most vacation rentals on Maui are in “resort zones” and would be unaffected by the new rules.

Maui is also creating a new property classification for vacation rentals.  The rate hasn’t been set, but as my place is on Maui, I know that I already pay significantly higher property taxes than an identical property which is not a vacation rental.  [On Maui, one of the lowest property tax rates is actually reserved for hotels.]

We expect all counties will come up with a new property tax classification for short term rentals.

On Honolulu, there are numerous proposals around to update their 30 year old set of regulations.

Please remember that everyone at RBOAA is a volunteer and is donating their time on top of working regular paying jobs and whatever else they have going on.  These people dedicate countless hours of their personal time to help protect our - and your – investments in Hawaii.

Special thanks to Leslie F who put in countless hours on your behalf. She is truly amazing

Have a wonderful summer!
Mahalo and Aloha

Neal

March 30, 2018 — Update

April 11, 2018 Hawaii Rentals Comments Off on March 30, 2018 — Update

Aloha

In this edition:

  1. Legislature Update
  2. Fake News
  3. County Update

It’s been a while since we have sent out a newsletter.One of the downsides of having a full time job which sometimes becomes a “very full” full time job is that I can’t always dedicate all my time to RBOAA.Be assured, we are still watching and responding to all the bills as they come up

1. Legislature Update

There are three main bills we are currently dealing with.  The bill to require local contacts to be real estate agents fortunately was defeated quickly.

SB2963 / HB 2605

This is the latest incarnation of the AirBnB bill, allowing the advertising platform to collect and remit taxes on the owners’ behalf.  It has been around for 3 or 4 years now, always failing to pass.  This year however, the bill took on a lot of additional provisions, including the right of counties to obtain your personal tax information, the right for counties to change the zoning to declare a property to be ineligible for vacation rentals and then seize the property, and requiring AirBnb & Homeaway to immediately cease doing business with any owner who isn’t compliant with all regulations.  The bill originally had language creating a felony for non-compliance, but that has changed to a $25,000 fine.  So, it is all quite frightening really.

What is interesting is that AirBnB has publicly backed away from the bill.  Additionally, the House committees so far have declined to consider the bill.  In response to the House inaction, the Senate has now twice taken a bill, removed all the language and replaced it with the language they want.  This incredibly undemocratic move is referred to as “gut and stuff”.   But they did this in order to force a showdown with the House when the bills go to conference.

Those of you who list with VRBO and Homeaway would have received an email a few weeks ago about this bill.  We are pleased that Homeaway, after many years of ignored requests from RBOAA, finally stepped up to support the advertisers.  Their message unfortunately came out too late for anyone to do anything.

The Bill is next scheduled to be heard on Tuesday April 3.  We have no doubt it will pass the committee as the chair of the committee has been instrumental in keeping this bill alive.  Keep reading as we do have a small request of you.

Here is why we are concerned about this bill:

  1. The advertising broker ( i.e. AirBnB) may collect and remit tax on behalf of all advertisers.  However, if they mess up, AirBnB and the owner are jointly and severally liable for all taxes.  So, if AirBnB collects TAT and doesn’t remit it, you are potentially on the hook.
  2. The bill also requires AirBnb to provide details of how many nights were rented, the rates per night, the address and name and number of the local contact – and this information can be made available to the Counties.  The County of Honolulu has been asking for this for years to help detect compliance with their complex permitting requirements.  No other tax payer is required to provide this level of information without a subpoena.
  3. The advertising broker is required to share your 1099 information with the county.  The State Department of Tax is, by federal law, strictly forbidden to release this information to anyone.  The bill requires all operators to waive their right of privacy and permit the advertising platform to share all of their information.  (Facebook didn’t ask, but you knew they were doing it anyways!)
  4. All operators must provide proof of compliance with all zoning, land use and tax laws.  Our concern here is in providing positive proof of compliance – how do you prove you are legal in every regard.  The Counties have no system to accommodate this.
  5. Failure to comply with any tax or zoning law – or commit any act which the county doesn’t like - may result in a fine of $25000.  Failure to respond within 7 days results in a second $25,000 fine.  This is better than the earlier draft which was a Class C Felony (more than one year in prison).  The bill also provides for not only seizure of the property but also all income earned from operating a vacation rental.
  6. The bill also allows counties to phase out all transient accommodation in any zone for any reason.  This is concerning as county councils and the state legislators are very prone to pressure from unions, neighborhood groups, and anyone else who might vote.
  7. An amnesty program which was in an original draft has been deleted.  If people want to come in from the cold, it helps if you hold the door open for them.

RBOAA is actively opposing this bill, but, we need your help.While we know that the bill will pass through the next committee, we want to let the legislators know that there is opposition to this bill.This will help us at the next stage.

Please, sometime before 10 AM, Hawaiian time April 2, 2018,

  1. Go to https://www.capitol.hawaii.gov/submittestimony.aspx
  2. You will need to sign in / create a sign in, and then enter HB2605
  3. At the very least, click on the button which says Oppose.  If you want to write any comments, you can say you support the testimony provided by RBOOA or you can write any comment you want.  Please keep it polite!

SB2922

The Hawaii Teachers union has once again brought forward the Constitutional Amendment to require the TAT to be increased in order to fund education in the State of Hawaii.We saw this one go right to the bitter end last year before ultimately failing so that the TAT could be increased to pay for the Honolulu rail system. It is hard to get a read on the support, or lack thereof, for this bill at the Legislature, but taxing visitors is politically popular in an election year as most of them don’t vote.

There are a couple other bills still being considered.

One would change the way properties owned by non-residents are taxed upon sale.When you sell a property, a percentage of the sales proceeds is withheld until you file your tax returns or other required forms.The rate will go up and the legislators believe this will increase tax revenue. It is just a temporary increase as you get a refund for any overpayment.The proposal is silly, but perhaps looks good to those who don’t understand tax.

Another bill clarifies that all amounts charged to transient vacation rental guests are subject to TAT.It seems some hotels are charging a resort fee but not collecting tax on the resort fee.RBOAA supports the hotels being required to play on a level playing field with vacation rental owners.

Speaking of hotels, they have had seven consecutive years of increased occupancies and increased room rates.Each of the past seven years has broken all historical records.Yet they are very concerned that we are providing competition to them.

2. Fake News

One of the sad truths of our age is that anyone can say anything and with the benefit of social media and under-staffed media outlets, it can be picked up and spread around without any sort of fact checking.

A social housing group in Hawaii did just that recently, releasing a report which said, amongst many other “facts” that 1 in 7 properties in Maui was a vacation rental.  The real number is closer to 1%.  They made similar fake facts about other islands.  Fortunately, they referenced various reports and surveys and even a very quick look at those sources made it clear that their statements were staggeringly untrue – some of the footnotes contradicted the body of the report.  A junior high student would have received a failing grade if he/she had turned in that paper.  Unfortunately, the original fake news story got a lot of play in the mainstream media (including Fox News) before the counties came out and issued comments.  An F for the Appleseed Center.

3. County Update

At RBOAA, we are focused on the state legislature.  We would love to be able to be involved at the county level as well, but, simply put, we need volunteers to take that on.

This isn’t just our normal plea for volunteers.  As we have been saying for many years now, the fight is going to move from the state to the counties.  We are seeing this increasingly become true.  The state is going to be taking some of the TAT revenues it gets and giving it to the counties to enforce their regulations.  So, more and more, the counties are going to play a significant role.

Here is what some our eagle-eyed members have shared with us recently:

Maui recently passed a bylaw which requires a property to be owned for five years before it can be turned into a vacation rental.  We think this only applies to properties which have never been legal vacation rentals in the past and is primarily focused on restricting growth of vacation rentals in residential areas.  Most vacation rentals on Maui are in “resort zones” and would be unaffected by the new rules.

Maui is also creating a new property classification for vacation rentals.  The rate hasn’t been set, but as my place is on Maui, I know that I already pay significantly higher property taxes than an identical property which is not a vacation rental.  [On Maui, one of the lowest property tax rates is actually reserved for hotels.]

We expect all counties will come up with a new property tax classification for short term rentals.

On the Big Island, the county council was considering a regulatory framework around vacation rentals on the island.  The proposal hit a bit of an obstacle, but in general, the proposals were fair and balanced.  Not perfect, but a good starting point.  Hopefully the proposals come back for further reasoned discussion.

On Honolulu, there are proposals to restrict the number of B&B’s in residential neighborhoods.  Also, one condo association in Waikiki is trying to eliminate vacation rentals from their complex, despite a having permitted vacation rentals since it was built.  Sounds like the owners in that complex need to get themselves organized for their next AGM!

Please remember that everyone at RBOAA is a volunteer and is donating their time on top of working regular paying jobs and whatever else they have going on.  These people dedicate countless hours of their personal time to help protect our - and your – investments in Hawaii.

Please show your appreciation to our team by going to the website and clicking on the DONATE button.

Mahalo and Aloha

Neal

February 18, 2018 — Legislative Update

February 19, 2018 Hawaii Rentals Comments Off on February 18, 2018 — Legislative Update

Aloha!

 

In this Edition

 

Legislature Update  -- Legislature 2018 Now in Session

The legislature started up again in mid-January and originally about 30 bills were introduced which could affect you.  As predicted, most of them fell away, so it probably good we didn’t bore with the full list a few weeks ago.  And one bill we wouldn’t have mentioned three weeks ago is now top of the list.  The bills which remain are quite concerning, as usual.

SB2963
This bill is the latest iteration of the AirBnB as tax collector bill that we have seen for the past three years.  However, it has mutated into something quite frightening.  How AirBnB can continue to support the bill is a complete mystery.  (If you advertise with AirBnB, you might ask them!)

In a nutshell, SB 2963 includes:

  1. An amnesty program for those who haven’t been totally on-board with their zoning permits, GET and TAT collection and remittance.  We have been asking for this provision for year, so good to see it is finally on the table.
  2. The advertising broker ( i.e. AirBnB) may collect and remit tax on behalf of all advertisers.  However, if they mess up, AirBnB and the owner are jointly and severally liable for all taxes.  So, if AirBnB collects TAT and doesn’t remit it, you are potentially on the hook.  The bill also requires AirBnb to provide details of how many nights were rented, the rates per night, the address and name and number of the local contact – and this information can be made available to the Counties.  The County of Honolulu has been asking for this for years to help detect compliance with their complex permitting requirements.
  3. All operators must provide proof of compliance with all zoning, land use and tax laws.  Our concern here is in providing positive proof of compliance – how do you prove you are legal in every regard.  The Counties have no system to accommodate this.
  4. Failure to comply with any tax or zoning law is considered a Class C Felony (more than one year in prison).  The bill also provides for not only seizure of the property but also all income earned from operating a vacation rental.The bill also allows counties to phase out all transient accommodation in any zone for any reason.

RBOAA is actively opposing this bill, but, we need to warn you that the legislators want this bill to pass and have cleared away a lot of procedural steps to ensure that it does go through.This bill has already cleared the Senate and the next step is to be heard by a House Committee (we don’t know which one or when).

SB2922
The Hawaii Teachers union has once again brought forward the Constitutional Amendment to require the TAT to be increased in order to fund education in the State of Hawaii.We saw this one go right to the bitter end last year before ultimately failing so that the TAT could be increased to pay for the Honolulu rail system.It is hard to get a read on the support, or lack thereof, for this bill at the Legislature, but taxing visitors is politically popular in an election year as most of them don’t vote.

SB2641
This bill requires all local contacts to be real estate agents or brokers.This is the fight we fought a number of years ago.  Frankly, we are surprised that the topic has returned as we have heard no concerns about the local contact requirement since it became law.
Other Bills.

There are a couple other bills still being considered.

One would change the way properties owned by non-residents are taxed upon sale. The original draft displayed a surprising lack of understanding as to how the tax system works and so is currently deep in re-writes. This one may not come back until next year

Another bill clarifies that all amounts charged to transient vacation rental guests are subject to TAT.  It seems some hotels are charging a resort fee but not collecting tax on the resort fee.

We will continue to work with the legislators on your behalf and hopefully any legislation which does pass is fair and balanced.  We have a pretty strong track record over the past 6 years.

Please remember that everyone at RBOAA is a volunteer and is donating their time on top of working regular paying jobs and whatever else they have going on.  These people dedicate countless hours of their personal time to help protect our - and your – investments in Hawaii.

Please show your appreciation to our team by going to the website and clicking on the DONATE button.

Mahalo and Aloha,

Neal and Annette
www.rboaa.org
info@rboaa.org

Call for Volunteers — November 28, 2017 Update

December 8, 2017 Hawaii Rentals Comments Off on Call for Volunteers — November 28, 2017 Update

Aloha

November 28 2017 Member Update

  1. Remember – TAT goes up 1% on January 1, 2018
  2. Call for volunteers!!
  3. County of Hawaii ( Big Island )

TAT Increase
Remember that the TAT rate goes up 1% on January 1, 2018 to pay for the new railway from Honolulu Airport to...well, not to Maui.

Call for Volunteers

As we assemble the team to lead us through the 2018 Hawaii legislative session, we have identified a couple of gaps.

WE NEED YOU TO BE A PART OF THE GOVERNMENT RELATIONS TEAM FOR THE UPCOMING 2018 LEGISLATIVE SESSION.

Over the last couple of months, I have put out numerous requests for volunteers.  Volunteers are the lifeblood of RBOAA - in fact, that is all we are.  There are no employees here.   They have allowed us, over the last six years, to defeat numerous efforts that would have forced many of us to abandon our investments in the Aloha State.

Our government relations coordinator has been critical to what we do.  She has spent countless hours researching and analyzing proposed state laws.  Because of her, RBOAA and our members have been able to provide credible testimony on bills before the state legislature to counterbalance the money and power of entities such as the Hawai‘i Lodging & Tourism Association, unions, and property management companies.

She cannot continue to do this monumental task alone.  She needs assistance and assistants  and is willing to teach volunteers to do research and analysis on our issues.  Without more volunteers (and this means YOU) RBOAA cannot continue to be the positive force working for you that it has been. Our Government Relations team needs assistance from individuals with an understanding of legal concepts.

The Government Relations team would also benefit from individuals who are willing to do internet research.  For example, there are reports from DBEDTS, Hawaii Tourism Authority, etc. that we use to incorporate into our position.  Anyone who is willing to do directed research would be of tremendous help.

RBOAA’s mandate is to represent the interests of vacation rental owners at the State level.  We do not have volunteers who are representing the interests of vacation rental owners at the County levels.  However, as we have been predicting for a few years now, the focus is shifting from the State to the Counties.

If you are interested in helping RBOAA work at the County level, please let us know.

Otherwise, the best we can do is to share information that we gather.  If we become aware of new groups being formed to address the County specific issues, we will provide that information to our members.

And with that – here is some information to share.  Please refer to our website for our newsletter from earlier in November with updates from the counties of Honolulu and Maui.

County of Hawaii

The County of Hawaii currently has little to no regulation concerning vacation rentals, however, there is movement toward some degree of regulation in the County.  We aren’t sure of the details yet, but there could be restrictions on rentals located on agricultural lands and general restrictions in the name of addressing homelessness and affordable housing.  The latter might be addressed through a basic registration system and/or perhaps a property tax change.  Vacation rentals could be restricted to resort zones.

We don't normally circulate petitions, but in this case, an exception is being made.

https://www.change.org/p/karen-eoff-protect-short-term-rentals-on-hawaii-island

Mahalo and Aloha,

Neal

November 2017 Update

November 14, 2017 Hawaii Rentals Comments Off on November 2017 Update

Aloha!

November 2017 Member -- Update

  1. Remember – TAT goes up 1% on January 1, 2018
  2. Call for volunteers with legal background
  3. County of Honolulu
  4. County of Hawaii ( Big Island )
  5. County of Maui

TAT Increase

Remember that the TAT rate goes up 1% on January 1, 2018 to pay for the new railway from Honolulu Airport.

Call for Volunteers

As we assemble the team to lead us through the 2018 Hawaii legislative session, we have identified a couple of gaps.

Our Government Relations team needs assistance from individuals with an understanding of legal concepts.

The Government Relations team would also benefit from individuals who are willing to do internet research. For example, there are reports from DBEDTS, Hawaii Tourism Authority, etc. that we use to incorporate into our position.   Anyone who is willing to do directed research would be of tremendous help.

RBOAA’s mandate is to represent the interests of vacation rental owners at the State level. We do not have volunteers who are representing the interests of vacation rental owners at the County levels. However, as we have been predicting for a few years now, the focus is shifting from the State to the Counties.

If you are interested in helping RBOAA work at the County level, please let us know.

Otherwise, the best we can do is to share information that we gather. If we become aware of new groups being formed to address the County specific issues, we will provide that information to our members.

And with that – here is some information to share.

 

County of Honolulu

RBOAA is watching, but not responding to, four proposals in front of the Honolulu City Council. This except from the Honolulu Star-Advertiser is an excellent summary of the proposals.

Proponents of vacation rentals, who argue they are a positive for the visitor industry and the communities where they operate, want to lift a moratorium on permits and allow for more units to operate legally.

Opponents argue vacation rentals are a blight on residential neighborhoods and contribute to the island’s housing crunch, and they want tighter enforcement of existing laws, including a crackdown on illegal operators.

A bed-and-breakfast unit by definition is rented for less than 30 days by an owner living in the same dwelling.

Transient vacation rentals, TVUs, are other units rented for less than 30 days. The owner does not live in the same dwelling, but TVUs are allowed without permits in resort districts such as Waikiki.

The city stopped issuing permits for both in 1989-90.

Larry Bartley, executive director of Save Oahu’s Neighborhoods, sent an email to supporters urging them to support the two proposals emphasizing enforcement and oppose the two that would permit more vacation rentals.

“These (proposals) are the showdown for our neighborhoods and housing for everyone living (on) Oahu,” Bartley said. Most of the short-term rentals on Oahu “are illegal under Honolulu zoning law and are removing much-needed rental housing from local families.”

Meanwhile, San Francisco-based Airbnb Inc. sent out an email calling for its supporters to push against more restrictions.

“These regulations could end home sharing on Oahu as we know it, by imposing huge fines on individuals who rely on home sharing to make ends meet,” the email said. “These harsh new regulations will pit neighbor against neighbor and encourage intrusive spying by allowing complaints from neighbors to go directly to judicial review.”

Complicated issue

Council members have tried unsuccessfully for decades to find a compromise position on the issue, most recently in 2015 and 2009.

Council Zoning Chairwoman Kymberly Pine said new legislation is needed to curb the growing number of illegal vacation rentals, which are eating into the island’s residential inventory and making it more difficult for the city to tackle the affordable-housing shortage.

“We have to get control of this or no one will be left living here but rich people,” Pine said in a statement. “I am not opposed to grandma and grandpa renting a room or a studio on the property they live on as they are doing that just to survive in Hawaii. However, I am against the turnover of entire homes especially in residential, non-tourist areas (to vacation rentals).”

Councilman Ernie Martin, in a statement, agreed. “There is an opportunity here to get a handle on an industry that is extremely popular but also threatens to negatively impact Oahu’s rental market,” he said.

“We cannot ignore how attractive and convenient this type of accommodation is to our visitors and the owners who host them.”

One idea, Martin said, is to create a separate tax classification for vacation rentals.

“Whatever policy emerges from these deliberations must consider the realities of our housing and rental market and carve out an appropriate place for the business owners and the consumers,” he said.

Council Chairman Ron Menor said he’s not opposed to vacation rentals, because there should be a diversity of accommodations that visitors can use.

But with the mushrooming of illegal vacation rentals, “the Department of Planning and Permitting has been stretched thin in attempting to enforce the law given their limited resources,” Menor said.

He said stronger enforcement would also allow the city to identify owners and operators of illegal vacation rentals who have not been paying taxes and collect lost revenue for the state and city.

SUMMARY OF THE 4 PROPOSALS

Resolution 17-52, introduced by Council Chairman Ron Menor and Councilman Joey Manahan, would impose additional regulations on vacation rentals, as well as new regulations on online marketplace sites for vacation rentals such as Airbnb. The proposal calls for allowing neighbors of vacation rentals to compel the city to enforce violations. The proposal also allows a neighbor to take legal action against violators.

It also calls for “hosting platforms” like Airbnb to submit to the city reports on the addresses and owners of operators advertising on their sites, and bars operators from advertising their rentals by any other method.

Save Oahu’s Neighborhoods supports this proposal while Airbnb opposes it.

Resolution 17-163, introduced by Councilman Ernie Martin, establishes a process for allowing an unspecified but “limited number” of new B&B and TVU permits to be issued.

Save Oahu’s Neighborhoods opposes this proposal.

Resolution 17-164, also introduced by Martin, allows the city to issue a lien against a property whose owner violates TVU or B&B law, requires advertisements of vacation rentals to include the addresses and certificate numbers, and allows for advertisements to be used as evidence against an operator. It also bars a TVU or B&B permit from being transferred via sale of a property.

Save Oahu’s Neighborhoods supports this proposal while Airbnb opposes it.

Resolution 17-301, introduced by Councilman Ikaika Anderson, establishes a process allowing for a limited number of bed-and-breakfast permits, specifically no more than 0.5 percent of all Oahu residential properties, and for each of the nine Council districts no more than one-third of the citywide total allowed.

Save Oahu’s Neighborhoods opposes this proposal.

County of Hawaii

The County of Hawaii currently has little to no regulation concerning vacation rentals, however, there is movement toward some degree of regulation in the County. We aren’t sure of the details yet, but there could be restrictions on rentals located on agricultural lands and general restrictions in the name of addressing homelessness and affordable housing. The latter might be addressed through a basic registration system and/or perhaps a property tax change. Vacation rentals could be restricted to resort zones.

County of Maui

Governments seem addicted to taxes, especially taxes that are easy to increase without spending political capital. This excerpt from the Maui News:

Last week the Maui Finance and Budget committee recommended a bill to the full council that establishes a new property tax category for short-term rentals. Currently, short-term rental permit holders fall in the commercial classification.

Others facing reclassification to the new category include short-term rentals in hotel-zoned areas and condominium units where short-term rentals are allowed. Those owners currently fall in the hotel and resort classification.

Another bill recommended for approval would classify condominium units at their “highest and best use,” which is usually reflected in the property’s zoning, said Scott Teruya, Maui County’s real property tax administrator. This proposed change could affect units being placed into the proposed short-term rental classification because many condominium units are built on properties zoned hotel, are grandfathered in for short-term rental purposes or have received conditional permits to operate short-term rentals.

Those who use their units as their primary residence can claim the homeowner’s exemption and would not be affected by these bills, Teruya said.

Although the budget committee did not set property tax rates in its proposed bills, Tom Croly of the Maui Vacation Rental Association says that, more than likely, taxes would go up for those affected by the changes.

Teruya countered Croly’s comments, saying there are many factors that determine property tax bills, including the rates set by the council, overall property valuation and how much money the county needs in its budget.

Mahalo and Aloha,

Neal

September 9, 2017 — Update

September 10, 2017 Hawaii Rentals Comments Off on September 9, 2017 — Update
Aloha!
Effective January 1, 2018, the Transient Accommodations Tax ( TAT or Hotel Tax ) will increase by 1%  - from 9.25% to 10.25%.  The rate applies to all transient rental accommodations statewide.

The Transient Accommodations Tax is levied upon every operator and plan manager on the gross rental or gross rental proceeds derived from furnishing transient accommodations. Gross rental or gross rental proceeds derived from transient accommodations furnished could be subject to different tax rates depending on the timing of the payments received under the cash basis accounting method and on the outcome of the all events tested under the accrual basis accounting method.

  • Under the cash basis accounting method, gross proceeds from transient accommodations furnished on or after January 1, 2018 will be subject to the 10.25% transient accommodations tax rate if payments are actually or constructively received on or after January 1, 2018.  However, the gross proceeds from the same transactions will be subject to the 9.25% tax rate if the payments are actually or constructively received before January 1, 2018.
  • Under the accrual basis accounting method, gross proceeds from transactions occurring prior to January 1, 2018 will be subject to the 9.25% tax rate if the right to receive such income is fixed under the all events test prior to January 1, 2018, but will be subject to the 10.25% transient accommodations tax rate if the right to receive such income is fixed under the all events test on or after January 1, 2018.

If you have any further questions please free to contact the Department of Taxation Technical Section at (808) 587-1577 or by email at tax.technical.section@hawaii.gov.

The increased tax will be used to pay for the new rail line being constructed from Honolulu airport to Honolulu city center.  I hope guests at my Maui property make good use of the new rail service.

Mahalo and Aloha,

Neal

info@rboaa.org

April 28, 2017 — Update

April 29, 2017 Hawaii Rentals Comments Off on April 28, 2017 — Update
Aloha   In this edition:
  1. Update;
  2. Please take action today;
  3. Legislator Contact Info
Update

So, as you know, I have always said that Hawaiian politics is crazy and unpredictable.  This year has been the craziest and the most unpredictable in all the years I have been involved.   Today was a topper.   Today, without any prior notice, without any consultation, without any discussion with parties affected, the wise legislators in Hawaii decided to raise the TAT.   Currently it is 9.25%.   They decided to raise to 12%.    Why?  To pay for the construction of the rail system in Honolulu that is running massively over budget.   The normally reasonable Representative Luke, Chair of the House Finance Committee commented that it was more fair for tourists to pay for the rail than for seniors and working poor to pay for the rail.   Now, I only go to Honolulu when I absolutely have to and I don’t have full perspective on where this rail line is running from and to, but if it is like most cities, it is being built to move people from their homes to their work and back again.  Yes, it includes Honolulu airport, Pearl Harbor and Waikiki, but it goes far beyond Pearl Harbor into residential areas.  It doesn’t go anywhere near the outer islands.   The Hawaii constitution has laid out processes for setting tax increases and the State legislators did even begin to follow the process.    Perhaps this is seen as a compromise for killing the property tax bill, but in any case, it is outrageous.   By the way – at this late hour, the legislators are still meeting on the tax collector – advertising platform – AirBnB bill.

Please take action today

We need every member to write, email and phone every member of the House of Representatives and every member of the Senate to let them know you are opposed to this tax hike.   The contact information for the Representatives and Senators is at the bottom of this email.   Remember:

  • A 33% tax will seriously impair tourism, Hawaii’s number one economic driver.
  • The tax increase was not subject to normal review and scrutiny and industry participants have not been consulted,
  • Hawaii already “exports” a significant portion of its tax burden by having non-residents pay an unusually high proportion of the State’s taxes.
Legislator Contact Info

Senators:  This table lists the contact information for all Senators.  Below the list is a summary of all email addresses which you should be able to copy and paste into your email To: field.  [Note: Some members have had issues with the emails and email addresses provided below, while others have had no issues.  Apologies to those who have had challenges - I don't know why!]

Baker ,  Rosalyn H. (D) 808-586-6070 senbaker@Capitol.hawaii.gov
Chang ,  Stanley (D) 808-586-8420 senchang@Capitol.hawaii.gov
Dela Cruz ,  Donovan M.(D) 808-586-6090 sendelacruz@capitol.hawaii.gov
English ,  J. Kalani (D) 808-587-7225 senenglish@capitol.hawaii.gov
Espero ,  Will (D) 808-586-6360 senespero@capitol.hawaii.gov
Gabbard ,  Mike (D) 808-586-6830 sengabbard@capitol.hawaii.gov
Galuteria ,  Brickwood (D) 808-586-6740 sengaluteria@capitol.hawaii.gov
Green ,  Josh (D) 808-586-9385 sengreen@capitol.hawaii.gov
Harimoto ,  Breene (D) 808-586-6230 senharimoto@capitol.hawaii.gov
Ihara ,  Les Jr. (D) 808-586-6250 senihara@capitol.hawaii.gov
Inouye ,  Lorraine R. (D) 808-586-7335 seninouye@capitol.hawaii.gov
Kahele ,  Kaiali‘i (D) 808-586-6760 senkahele@Capitol.hawaii.gov
Keith-Agaran ,  Gilbert S.C. (D) 808-586-7344 senkeithagaran@capitol.hawaii.gov
Kidani ,  Michelle N. (D) 808-586-7100 senkidani@capitol.hawaii.gov
Kim ,  Donna Mercado (D) 808-587-7200 senkim@Capitol.hawaii.gov
Kouchi ,  Ronald D. (D) 808-586-6030 senkouchi@Capitol.hawaii.gov
Nishihara ,  Clarence K. (D) 808-586-6970 sennishihara@capitol.hawaii.gov
Rhoads ,  Karl (D) 808-586-6130 senrhoads@Capitol.hawaii.gov
Riviere ,  Gil (D) 808-586-7330 senriviere@capitol.hawaii.gov
Ruderman ,  Russell E. (D) 808-586-6890 senruderman@capitol.hawaii.gov
Shimabukuro ,  Maile S.L.(D) 808-586-7793 senshimabukuro@capitol.hawaii.gov
Taniguchi ,  Brian T. (D) 808-586-6460 sentaniguchi@capitol.hawaii.gov
Thielen ,  Laura H. (D) 808-587-8388 senthielen@Capitol.hawaii.gov
Tokuda ,  Jill N. (D) 808-587-7215 sentokuda@capitol.hawaii.gov
Wakai ,  Glenn (D) 808-586-8585 senwakai@capitol.hawaii.gov

senbaker@Capitol.hawaii.gov; senchang@Capitol.hawaii.gov;  sendelacruz@capitol.hawaii.gov; senenglish@capitol.hawaii.gov; senespero@capitol.hawaii.gov; sengabbard@capitol.hawaii.gov; sengaluteria@capitol.hawaii.gov; sengreen@capitol.hawaii.gov; senharimoto@capitol.hawaii.gov; senihara@capitol.hawaii.gov; seninouye@capitol.hawaii.gov; senkahele@Capitol.hawaii.gov; senkeithagaran@capitol.hawaii.gov; senkidani@capitol.hawaii.gov; senkim@Capitol.hawaii.gov; senkouchi@Capitol.hawaii.gov;  sennishihara@capitol.hawaii.gov; senrhoads@Capitol.hawaii.gov; senriviere@capitol.hawaii.gov; senruderman@capitol.hawaii.gov; senshimabukuro@capitol.hawaii.gov; sentaniguchi@capitol.hawaii.gov; senthielen@Capitol.hawaii.gov;  sentokuda@capitol.hawaii.gov;  senwakai@capitol.hawaii.gov ;

Representatives:  This table lists all the members of the House of Representatives.  Below the list is a summary of all email addresses which you should be able to copy and paste into your email To: field.

Aquino ,  Henry J.C. (D) 808-586-6520 repaquino@Capitol.hawaii.gov
Belatti ,  Della Au (D) 808-586-9425 repbelatti@Capitol.hawaii.gov
Brower ,  Tom (D) 808-586-8520 repbrower@Capitol.hawaii.gov
Cachola ,  Romy M. (D) 808-586-6010 repcachola@Capitol.hawaii.gov
Choy ,  Isaac W. (D) 808-586-8475 repchoy@Capitol.hawaii.gov
Creagan ,  Richard P. (D) 808-586-9605 repcreagan@Capitol.hawaii.gov
Cullen ,  Ty J.K. (D) 808-586-8490 repcullen@Capitol.hawaii.gov
DeCoite ,  Lynn (D) 808-586-6790 repdecoite@Capitol.hawaii.gov
Evans ,  Cindy (D) 808-586-8510 repevans@Capitol.hawaii.gov
Fukumoto ,  Beth (R) 808-586-9460 repfukumoto@Capitol.hawaii.gov
Gates ,  Cedric Asuega (D) 808-586-8460 repgates@Capitol.hawaii.gov
Har ,  Sharon E. (D) 808-586-8500 rephar@Capitol.hawaii.gov
Hashem ,  Mark J. (D) 808-586-6510 rephashem@Capitol.hawaii.gov
Holt ,  Daniel (D) 808-586-6180 repholt@Capitol.hawaii.gov
Ichiyama ,  Linda (D) 808-586-6220 repichiyama@Capitol.hawaii.gov
Ing ,  Kaniela (D) 808-586-8525 reping@Capitol.hawaii.gov
Ito ,  Ken (D) 808-586-8470 repito@Capitol.hawaii.gov
Johanson ,  Aaron Ling (D) 808-586-9470 repjohanson@Capitol.hawaii.gov
Keohokalole ,  Jarrett (D) 808-586-8540 repkeohokalole@Capitol.hawaii.gov
Kobayashi ,  Bertrand (D) 808-586-6310 repkobayashi@Capitol.hawaii.gov
Kong ,  Sam Satoru (D) 808-586-8455 repkong@Capitol.hawaii.gov
Lee ,  Chris (D) 808-586-9450 replee@Capitol.hawaii.gov
LoPresti ,  Matthew S. (D) 808-586-6080 replopresti@Capitol.hawaii.gov
Lowen ,  Nicole E. (D) 808-586-8400 replowen@Capitol.hawaii.gov
Luke ,  Sylvia (D) 808-586-6200 repluke@Capitol.hawaii.gov
Matsumoto ,  Lauren Kealohilani (R) 808-586-9490 repmatsumoto@Capitol.hawaii.gov
McDermott ,  Bob (R) 808-586-9730 repmcdermott@Capitol.hawaii.gov
McKelvey ,  Angus L.K. (D) 808-586-6160 repmckelvey@Capitol.hawaii.gov
Mizuno ,  John M. (D) 808-586-6050 repmizuno@Capitol.hawaii.gov
Morikawa ,  Dee (D) 808-586-6280 repmorikawa@Capitol.hawaii.gov
Nakamura ,  Nadine K. (D) 808-586-8435 repnakamura@Capitol.hawaii.gov
Nakashima ,  Mark M. (D) 808-586-6680 repnakashima@Capitol.hawaii.gov
Nishimoto ,  Scott Y. (D) 808-586-8515 repnishimoto@Capitol.hawaii.gov
Ohno ,  Takashi (D) 808-586-9415 repohno@Capitol.hawaii.gov
Onishi ,  Richard H.K. (D) 808-586-6120 reponishi@Capitol.hawaii.gov
Oshiro ,  Marcus R. (D) 808-586-6700 repmoshiro@Capitol.hawaii.gov
Quinlan ,  Sean (D) 808-586-6380 repquinlan@Capitol.hawaii.gov
Saiki ,  Scott K. (D) 808-586-8485 repsaiki@Capitol.hawaii.gov
San Buenaventura , Joy A. (D) 808-586-6530 repsanbuenaventura@Capitol.hawaii.gov
Say ,  Calvin K.Y. (D) 808-586-6900 repsay@Capitol.hawaii.gov
Souki ,  Joseph M. (D) 808-586-6100 repsouki@Capitol.hawaii.gov
Takayama ,  Gregg (D) 808-586-6340 reptakayama@Capitol.hawaii.gov
Takumi ,  Roy M. (D) 808-586-6170 reptakumi@Capitol.hawaii.gov
Thielen ,  Cynthia (R) 808-586-6480 repthielen@Capitol.hawaii.gov
Todd ,  Chris (D) 808-586-8480 reptodd@Capitol.hawaii.gov
Tokioka ,  James Kunane(D) 808-586-6270 reptokioka@Capitol.hawaii.gov
Tupola ,  Andria P.L. (R) 808-586-8465 reptupola@Capitol.hawaii.gov
Ward ,  Gene (R) 808-586-6420 repward@Capitol.hawaii.gov
Woodson ,  Justin H. (D) 808-586-6210 repwoodson@Capitol.hawaii.gov
Yamane ,  Ryan I. (D) 808-586-6150 repyamane@Capitol.hawaii.gov
Yamashita ,  Kyle T. (D) 808-586-6330 repyamashita@Capitol.hawaii.gov

repaquino@Capitol.hawaii.gov; repbelatti@Capitol.hawaii.gov; repbrower@Capitol.hawaii.gov; repcachola@Capitol.hawaii.gov; repchoy@Capitol.hawaii.gov; repcreagan@Capitol.hawaii.gov; repcullen@Capitol.hawaii.gov; repdecoite@Capitol.hawaii.gov; repevans@Capitol.hawaii.gov; repfukumoto@Capitol.hawaii.gov; repgates@Capitol.hawaii.gov; rephar@Capitol.hawaii.gov; rephashem@Capitol.hawaii.gov; repholt@Capitol.hawaii.gov;  repichiyama@Capitol.hawaii.gov; reping@Capitol.hawaii.gov; repito@Capitol.hawaii.gov; repjohanson@Capitol.hawaii.gov; repkeohokalole@Capitol.hawaii.gov; repkobayashi@Capitol.hawaii.gov; repkong@Capitol.hawaii.gov; replopresti@Capitol.hawaii.gov; replowen@Capitol.hawaii.gov; repluke@Capitol.hawaii.gov; repmatsumoto@Capitol.hawaii.gov; repmcdermott@Capitol.hawaii.gov; repmckelvey@Capitol.hawaii.gov; repmizuno@Capitol.hawaii.gov; repmorikawa@Capitol.hawaii.gov; repnakamura@Capitol.hawaii.gov; repnakashima@Capitol.hawaii.gov; repnishimoto@Capitol.hawaii.gov; repohno@Capitol.hawaii.gov; reponishi@Capitol.hawaii.gov; repmoshiro@Capitol.hawaii.gov; repquinlan@Capitol.hawaii.gov; repsaiki@Capitol.hawaii.gov; repsanbuenaventura@Capitol.hawaii.gov; repsay@Capitol.hawaii.gov; repsouki@Capitol.hawaii.gov; reptakayama@Capitol.hawaii.gov; reptakumi@Capitol.hawaii.gov;  repthielen@Capitol.hawaii.gov; reptodd@Capitol.hawaii.gov;  reptokioka@Capitol.hawaii.gov; reptupola@Capitol.hawaii.gov; repward@Capitol.hawaii.gov; repwoodson@Capitol.hawaii.gov; repyamane@Capitol.hawaii.gov; repyamashita@Capitol.hawaii.gov;

Thank you for your continued support.  

Mahalo,

Neal

April 20, 2017 — Update

April 24, 2017 Hawaii Rentals Comments Off on April 20, 2017 — Update
Aloha     In this edition:

  1. Update;
  2. Please get involved tomorrow;
  3. Legislator Contact Info

 

Update

As we mentioned last week, all three bills that we are watching – SB686 to increase property taxes and SB704 and HB1471 on tax collection agents are now in “conference”.  Bills go to conference after passing through both houses but ending up with different versions.  The Senate amended the House bills and the House amended the Senate bills and now the versions need to be reconciled.

In a dramatic display turn of events this afternoon, SB686 – to increase property taxes and SB683 – to change the constitution to allow the counties to collect this tax, both died.  :-)  

According to witnesses, the House Chair, Rep Woodson and the Senate Chair, Senator Kidani got into a heated debate with Senator Kidani abruptly ending the meeting and thereby killing the two bills.  Rep Woodson pointed out all the legal and practical challenges with the bill – what RBOAA has been saying all along.  Sen Kidani, as chair of the Education committee, desperately wanted the bill and was prepared to deal with the problems later.    Expect this to arise again next year, but for now, your property taxes remain unchanged.  This bill, if passed would have cost all of us $1850 a year and for those with properties valued over $2 million, the saving is at least another $15,000 per year.   We don’t expect the teachers union will let this die, but hopefully next year, they will bring forward a more reasoned proposal.   HB 1471, which in our view is the vastly superior version of the two tax collection bills, seems doomed to die.  The Senate has not named conferees yet and no meeting is scheduled.   SB704, which is essentially the same bill that Governor Ige vetoed last year, is moving ahead in committee.  There have been two meetings already and another one scheduled next week.  To date, we haven’t heard anything official about what is being discussed, but we will let you know once we know.

Please Get Involved

As with any organization, people come and people go.  Every organization needs new people to take on responsibilities, provide new energy and new ideas.   RBOAA is no different and some members of your executive team have indicated that they will be stepping down at the end of this term.   This is your opportunity to get involved and take on a role within the leadership of RBOAA.   If you are interested, please contact Neal at president@rboaa.org indicating which areas you would like to get involved with and a brief description of your background.  Please also tell us where your vacation rental is and confirm that it is compliant with both state and county regulations.   Also:  it is never too late to financially support RBOAA.  While all our executive are volunteers, our lobbyist and legal advisor are paid professionals.  Check out the handy “Donate” button at www.rboaa.org

Legislator Contact Info

State Senators.  This table lists the contact information for all Senators.  Below the list is a summary of all email addresses which you should be able to copy and paste into your email To: field.

Baker ,  Rosalyn H. (D) 808-586-6070 senbaker@Capitol.hawaii.gov
Chang ,  Stanley (D) 808-586-8420 senchang@Capitol.hawaii.gov
Dela Cruz ,  Donovan M.(D) 808-586-6090 sendelacruz@capitol.hawaii.gov
English ,  J. Kalani (D) 808-587-7225 senenglish@capitol.hawaii.gov
Espero ,  Will (D) 808-586-6360 senespero@capitol.hawaii.gov
Gabbard ,  Mike (D) 808-586-6830 sengabbard@capitol.hawaii.gov
Galuteria ,  Brickwood (D) 808-586-6740 sengaluteria@capitol.hawaii.gov
Green ,  Josh (D) 808-586-9385 sengreen@capitol.hawaii.gov
Harimoto ,  Breene (D) 808-586-6230 senharimoto@capitol.hawaii.gov
Ihara ,  Les Jr. (D) 808-586-6250 senihara@capitol.hawaii.gov
Inouye ,  Lorraine R. (D) 808-586-7335 seninouye@capitol.hawaii.gov
Kahele ,  Kaiali‘i (D) 808-586-6760 senkahele@Capitol.hawaii.gov
Keith-Agaran ,  Gilbert S.C. (D) 808-586-7344 senkeithagaran@capitol.hawaii.gov
Kidani ,  Michelle N. (D) 808-586-7100 senkidani@capitol.hawaii.gov
Kim ,  Donna Mercado (D) 808-587-7200 senkim@Capitol.hawaii.gov
Kouchi ,  Ronald D. (D) 808-586-6030 senkouchi@Capitol.hawaii.gov
Nishihara ,  Clarence K. (D) 808-586-6970 sennishihara@capitol.hawaii.gov
Rhoads ,  Karl (D) 808-586-6130 senrhoads@Capitol.hawaii.gov
Riviere ,  Gil (D) 808-586-7330 senriviere@capitol.hawaii.gov
Ruderman ,  Russell E. (D) 808-586-6890 senruderman@capitol.hawaii.gov
Shimabukuro ,  Maile S.L.(D) 808-586-7793 senshimabukuro@capitol.hawaii.gov
Taniguchi ,  Brian T. (D) 808-586-6460 sentaniguchi@capitol.hawaii.gov
Thielen ,  Laura H. (D) 808-587-8388 senthielen@Capitol.hawaii.gov
Tokuda ,  Jill N. (D) 808-587-7215 sentokuda@capitol.hawaii.gov
Wakai ,  Glenn (D) 808-586-8585 senwakai@capitol.hawaii.gov

senbaker@Capitol.hawaii.gov; senchang@Capitol.hawaii.gov;  sendelacruz@capitol.hawaii.gov; senenglish@capitol.hawaii.gov; senespero@capitol.hawaii.gov; sengabbard@capitol.hawaii.gov; sengaluteria@capitol.hawaii.gov; sengreen@capitol.hawaii.gov; senharimoto@capitol.hawaii.gov; senihara@capitol.hawaii.gov; seninouye@capitol.hawaii.gov; senkahele@Capitol.hawaii.gov; senkeithagaran@capitol.hawaii.gov; senkidani@capitol.hawaii.gov; senkim@Capitol.hawaii.gov; senkouchi@Capitol.hawaii.gov;  sennishihara@capitol.hawaii.gov; senrhoads@Capitol.hawaii.gov; senriviere@capitol.hawaii.gov; senruderman@capitol.hawaii.gov; senshimabukuro@capitol.hawaii.gov; sentaniguchi@capitol.hawaii.gov; senthielen@Capitol.hawaii.gov;  sentokuda@capitol.hawaii.gov;  senwakai@capitol.hawaii.gov ;

House of Representatives:  This table lists all the members of the House of Representatives.  Below the list is a summary of all email addresses which you should be able to copy and paste into your email To: field.

Aquino ,  Henry J.C. (D) 808-586-6520 repaquino@Capitol.hawaii.gov
Belatti ,  Della Au (D) 808-586-9425 repbelatti@Capitol.hawaii.gov
Brower ,  Tom (D) 808-586-8520 repbrower@Capitol.hawaii.gov
Cachola ,  Romy M. (D) 808-586-6010 repcachola@Capitol.hawaii.gov
Choy ,  Isaac W. (D) 808-586-8475 repchoy@Capitol.hawaii.gov
Creagan ,  Richard P. (D) 808-586-9605 repcreagan@Capitol.hawaii.gov
Cullen ,  Ty J.K. (D) 808-586-8490 repcullen@Capitol.hawaii.gov
DeCoite ,  Lynn (D) 808-586-6790 repdecoite@Capitol.hawaii.gov
Evans ,  Cindy (D) 808-586-8510 repevans@Capitol.hawaii.gov
Fukumoto ,  Beth (R) 808-586-9460 repfukumoto@Capitol.hawaii.gov
Gates ,  Cedric Asuega (D) 808-586-8460 repgates@Capitol.hawaii.gov
Har ,  Sharon E. (D) 808-586-8500 rephar@Capitol.hawaii.gov
Hashem ,  Mark J. (D) 808-586-6510 rephashem@Capitol.hawaii.gov
Holt ,  Daniel (D) 808-586-6180 repholt@Capitol.hawaii.gov
Ichiyama ,  Linda (D) 808-586-6220 repichiyama@Capitol.hawaii.gov
Ing ,  Kaniela (D) 808-586-8525 reping@Capitol.hawaii.gov
Ito ,  Ken (D) 808-586-8470 repito@Capitol.hawaii.gov
Johanson ,  Aaron Ling (D) 808-586-9470 repjohanson@Capitol.hawaii.gov
Keohokalole ,  Jarrett (D) 808-586-8540 repkeohokalole@Capitol.hawaii.gov
Kobayashi ,  Bertrand (D) 808-586-6310 repkobayashi@Capitol.hawaii.gov
Kong ,  Sam Satoru (D) 808-586-8455 repkong@Capitol.hawaii.gov

 

Lee ,  Chris (D) 808-586-9450 replee@Capitol.hawaii.gov
LoPresti ,  Matthew S. (D) 808-586-6080 replopresti@Capitol.hawaii.gov
Lowen ,  Nicole E. (D) 808-586-8400 replowen@Capitol.hawaii.gov
Luke ,  Sylvia (D) 808-586-6200 repluke@Capitol.hawaii.gov
Matsumoto ,  Lauren Kealohilani (R) 808-586-9490 repmatsumoto@Capitol.hawaii.gov
McDermott ,  Bob (R) 808-586-9730 repmcdermott@Capitol.hawaii.gov
McKelvey ,  Angus L.K. (D) 808-586-6160 repmckelvey@Capitol.hawaii.gov
Mizuno ,  John M. (D) 808-586-6050 repmizuno@Capitol.hawaii.gov
Morikawa ,  Dee (D) 808-586-6280 repmorikawa@Capitol.hawaii.gov
Nakamura ,  Nadine K. (D) 808-586-8435 repnakamura@Capitol.hawaii.gov
Nakashima ,  Mark M. (D) 808-586-6680 repnakashima@Capitol.hawaii.gov
Nishimoto ,  Scott Y. (D) 808-586-8515 repnishimoto@Capitol.hawaii.gov
Ohno ,  Takashi (D) 808-586-9415 repohno@Capitol.hawaii.gov
Onishi ,  Richard H.K. (D) 808-586-6120 reponishi@Capitol.hawaii.gov
Oshiro ,  Marcus R. (D) 808-586-6700 repmoshiro@Capitol.hawaii.gov
Quinlan ,  Sean (D) 808-586-6380 repquinlan@Capitol.hawaii.gov
Saiki ,  Scott K. (D) 808-586-8485 repsaiki@Capitol.hawaii.gov
San Buenaventura , Joy A. (D) 808-586-6530 repsanbuenaventura@Capitol.hawaii.gov
Say ,  Calvin K.Y. (D) 808-586-6900 repsay@Capitol.hawaii.gov
Souki ,  Joseph M. (D) 808-586-6100 repsouki@Capitol.hawaii.gov
Takayama ,  Gregg (D) 808-586-6340 reptakayama@Capitol.hawaii.gov
Takumi ,  Roy M. (D) 808-586-6170 reptakumi@Capitol.hawaii.gov
Thielen ,  Cynthia (R) 808-586-6480 repthielen@Capitol.hawaii.gov
Todd ,  Chris (D) 808-586-8480 reptodd@Capitol.hawaii.gov
Tokioka ,  James Kunane(D) 808-586-6270 reptokioka@Capitol.hawaii.gov
Tupola ,  Andria P.L. (R) 808-586-8465 reptupola@Capitol.hawaii.gov
Ward ,  Gene (R) 808-586-6420 repward@Capitol.hawaii.gov
Woodson ,  Justin H. (D) 808-586-6210 repwoodson@Capitol.hawaii.gov
Yamane ,  Ryan I. (D) 808-586-6150 repyamane@Capitol.hawaii.gov
Yamashita ,  Kyle T. (D) 808-586-6330 repyamashita@Capitol.hawaii.gov

repaquino@Capitol.hawaii.gov; repbelatti@Capitol.hawaii.gov; repbrower@Capitol.hawaii.gov; repcachola@Capitol.hawaii.gov; repchoy@Capitol.hawaii.gov; repcreagan@Capitol.hawaii.gov; repcullen@Capitol.hawaii.gov; repdecoite@Capitol.hawaii.gov; repevans@Capitol.hawaii.gov; repfukumoto@Capitol.hawaii.gov; repgates@Capitol.hawaii.gov; rephar@Capitol.hawaii.gov; rephashem@Capitol.hawaii.gov; repholt@Capitol.hawaii.gov;  repichiyama@Capitol.hawaii.gov; reping@Capitol.hawaii.gov; repito@Capitol.hawaii.gov; repjohanson@Capitol.hawaii.gov; repkeohokalole@Capitol.hawaii.gov; repkobayashi@Capitol.hawaii.gov; repkong@Capitol.hawaii.gov; replopresti@Capitol.hawaii.gov; replowen@Capitol.hawaii.gov; repluke@Capitol.hawaii.gov; repmatsumoto@Capitol.hawaii.gov; repmcdermott@Capitol.hawaii.gov; repmckelvey@Capitol.hawaii.gov; repmizuno@Capitol.hawaii.gov; repmorikawa@Capitol.hawaii.gov; repnakamura@Capitol.hawaii.gov; repnakashima@Capitol.hawaii.gov; repnishimoto@Capitol.hawaii.gov; repohno@Capitol.hawaii.gov; reponishi@Capitol.hawaii.gov; repmoshiro@Capitol.hawaii.gov; repquinlan@Capitol.hawaii.gov; repsaiki@Capitol.hawaii.gov; repsanbuenaventura@Capitol.hawaii.gov; repsay@Capitol.hawaii.gov; repsouki@Capitol.hawaii.gov; reptakayama@Capitol.hawaii.gov; reptakumi@Capitol.hawaii.gov;  repthielen@Capitol.hawaii.gov; reptodd@Capitol.hawaii.gov;  reptokioka@Capitol.hawaii.gov; reptupola@Capitol.hawaii.gov; repward@Capitol.hawaii.gov; repwoodson@Capitol.hawaii.gov; repyamane@Capitol.hawaii.gov; repyamashita@Capitol.hawaii.gov;

Thank you for your continued support. 

Mahalo,

Neal

April 15, 2017 — Update

April 15, 2017 Hawaii Rentals Comments Off on April 15, 2017 — Update

Aloha

In this edition:
  1. Update;
  2. Please take action today;
  3. Please get involved tomorrow;
  4. Legislator Contact Info
Update

All three bills that we are watching – SB686 to increase property taxes, SB704 and HB1471 on tax collection agents are now in “conference”.  Bills go to conference after passing through both houses but ending up with different versions.  The Senate amended the House bills and the House amended the Senate bills and now the versions need to be reconciled.   This process takes place behind closed doors and there is no opportunity for testimony.

In the past, RBOAA has sometimes been consulted during the conference process and we have been able to add positively to the final outcome.  Whether we will be asked for input this year remains to be seen.

The two tax collection agent bills are wildly different.  The two bills are different from each other and the two bills are also very different in their current version than in the version they left the originating house in.  Hawaiian politics is wild and unpredictable, but it is difficult to see how either of these two bills will get passed without a significant amount of work.   The property tax bill is even harder to predict.  We learned yesterday that every legislator received 800 postcards from teachers supporting this bill.  That is pretty hard to discount.  But, there are cracks in the support for this bill.  The House significantly amended the Senate bill and some members of the House voted against the bill.  In discussions with certain legislators, there is lukewarm support for this bill.  They recognize the political popularity of the tax, but also recognize that it is poor tax policy and probably the wrong solution to the problem.    There are just two weeks left in the legislative session and your executive team  believes it is still possible to beat the property tax bill.  But we need your help.

Please take action today

SB686.  Increase to property tax   SB686 is a bill to increase property taxes on those who own residential property which is rented out and on vacation rental owners.  We would be hit with both taxes.    The bill was recently amended in committee and now the residential investment tax applies only to properties valued at over $2 million.  This is a huge win for the majority of our members, but a significant new expense for some of our members, but it will be a $15,000+ increase in costs to those with properties over $2 million.

The section applying property tax to vacation rental properties provides for one rate for rental rates over $150 per night, regardless of occupancy and one rate for rental rates under $150, regardless of occupancy.    Now – the House took out all of the tax amounts, which means the increase in taxes could go way up – or they could go down.  Your RBOAA executive has not been able to determine why this amendment was made.  But, before the amounts were stripped out, most of us would have seen an $1825 increase in property tax per year on the vacation rental portion.

We need every member to write, email and phone every member of the House of Representatives and every member of the Senate to let them know you are opposed to this tax hike specifically aimed at you.  If you are in Hawaii, visit their offices!  

The contact information for the Representatives and Senators is at the bottom of this email.   Remember:

  • We already pay property taxes which are 3 to 4 times higher than residential property owners.
  • It is the wrong solution to a problem.  There are other studies on education funding in progress and those should be allowed to be finalized before this bill is considered.
  • The mechanism for collecting the transient accommodation tax through the property tax system is complex and unnecessary.
    • Property taxes are based on property values, not based on transactions.
    • The Counties don’t pay for education, but yet this bill puts the onus on the counties to collect education tax revenue
    • The Counties tell us they can’t enforce their own land use laws on vacation rentals, so asking to them to collect a tax on vacation rentals is silly.
  • We already collect and remit TAT
  • Hawaii already “exports” a significant portion of its tax burden by having non-residents pay an unusually high proportion of the State’s taxes.
  • While education benefits everyone, it puts the burden of the cost of education on a few.
Please Get Involved Tomorrow

As with any organization, people come and people go.  Every organization needs new people to take on responsibilities, provide new energy and new ideas.   RBOAA is no different and some members of your executive team have indicated that they will be stepping down at the end of this term.   This is your opportunity to get involved and take on a role within the leadership of RBOAA.

If you are interested, please contact Neal at president@rboaa.org indicating which areas you would like to get involved with and a brief description of your background.  Please also tell us where your vacation rental is and confirm that it is compliant with both state and county regulations.   Also:  it is never too late to financially support RBOAA.  While all our executive team are volunteers, our lobbyist and legal advisor are paid professionals.  Check out the handy “Donate” button on this website.

Legislator Contact Info

Senate.  This table lists the contact information for all Senators.  Below the list is a summary of all email addresses which you should be able to copy and paste into your email To: field.  [Note: Some members have had issues with the emails and email addresses provided below, while others have had no issues.  Apologies to those who have had challenges - I don't know why!]

Baker ,  Rosalyn H. (D) 808-586-6070 senbaker@Capitol.hawaii.gov
Chang ,  Stanley (D) 808-586-8420 senchang@Capitol.hawaii.gov
Dela Cruz ,  Donovan M.(D) 808-586-6090 sendelacruz@capitol.hawaii.gov
English ,  J. Kalani (D) 808-587-7225 senenglish@capitol.hawaii.gov
Espero ,  Will (D) 808-586-6360 senespero@capitol.hawaii.gov
Gabbard ,  Mike (D) 808-586-6830 sengabbard@capitol.hawaii.gov
Galuteria ,  Brickwood (D) 808-586-6740 sengaluteria@capitol.hawaii.gov
Green ,  Josh (D) 808-586-9385 sengreen@capitol.hawaii.gov
Harimoto ,  Breene (D) 808-586-6230 senharimoto@capitol.hawaii.gov
Ihara ,  Les Jr. (D) 808-586-6250 senihara@capitol.hawaii.gov
Inouye ,  Lorraine R. (D) 808-586-7335 seninouye@capitol.hawaii.gov
Kahele ,  Kaiali‘i (D) 808-586-6760 senkahele@Capitol.hawaii.gov
Keith-Agaran ,  Gilbert S.C. (D) 808-586-7344 senkeithagaran@capitol.hawaii.gov
Kidani ,  Michelle N. (D) 808-586-7100 senkidani@capitol.hawaii.gov
Kim ,  Donna Mercado (D) 808-587-7200 senkim@Capitol.hawaii.gov
Kouchi ,  Ronald D. (D) 808-586-6030 senkouchi@Capitol.hawaii.gov
Nishihara ,  Clarence K. (D) 808-586-6970 sennishihara@capitol.hawaii.gov
Rhoads ,  Karl (D) 808-586-6130 senrhoads@Capitol.hawaii.gov
Riviere ,  Gil (D) 808-586-7330 senriviere@capitol.hawaii.gov
Ruderman ,  Russell E. (D) 808-586-6890 senruderman@capitol.hawaii.gov
Shimabukuro ,  Maile S.L.(D) 808-586-7793 senshimabukuro@capitol.hawaii.gov
Taniguchi ,  Brian T. (D) 808-586-6460 sentaniguchi@capitol.hawaii.gov
Thielen ,  Laura H. (D) 808-587-8388 senthielen@Capitol.hawaii.gov
Tokuda ,  Jill N. (D) 808-587-7215 sentokuda@capitol.hawaii.gov
Wakai ,  Glenn (D) 808-586-8585 senwakai@capitol.hawaii.gov

senbaker@Capitol.hawaii.gov; senchang@Capitol.hawaii.gov;  sendelacruz@capitol.hawaii.gov; senenglish@capitol.hawaii.gov; senespero@capitol.hawaii.gov; sengabbard@capitol.hawaii.gov; sengaluteria@capitol.hawaii.gov; sengreen@capitol.hawaii.gov; senharimoto@capitol.hawaii.gov; senihara@capitol.hawaii.gov; seninouye@capitol.hawaii.gov; senkahele@Capitol.hawaii.gov; senkeithagaran@capitol.hawaii.gov; senkidani@capitol.hawaii.gov; senkim@Capitol.hawaii.gov; senkouchi@Capitol.hawaii.gov;  sennishihara@capitol.hawaii.gov; senrhoads@Capitol.hawaii.gov; senriviere@capitol.hawaii.gov; senruderman@capitol.hawaii.gov; senshimabukuro@capitol.hawaii.gov; sentaniguchi@capitol.hawaii.gov; senthielen@Capitol.hawaii.gov;  sentokuda@capitol.hawaii.gov;  senwakai@capitol.hawaii.gov ;

House of Representatives.  Below the list is a summary of all email addresses which you should be able to copy and paste into your email To: field.

Aquino ,  Henry J.C. (D) 808-586-6520 repaquino@Capitol.hawaii.gov
Belatti ,  Della Au (D) 808-586-9425 repbelatti@Capitol.hawaii.gov
Brower ,  Tom (D) 808-586-8520 repbrower@Capitol.hawaii.gov
Cachola ,  Romy M. (D) 808-586-6010 repcachola@Capitol.hawaii.gov
Choy ,  Isaac W. (D) 808-586-8475 repchoy@Capitol.hawaii.gov
Creagan ,  Richard P. (D) 808-586-9605 repcreagan@Capitol.hawaii.gov
Cullen ,  Ty J.K. (D) 808-586-8490 repcullen@Capitol.hawaii.gov
DeCoite ,  Lynn (D) 808-586-6790 repdecoite@Capitol.hawaii.gov
Evans ,  Cindy (D) 808-586-8510 repevans@Capitol.hawaii.gov
Fukumoto ,  Beth (R) 808-586-9460 repfukumoto@Capitol.hawaii.gov
Gates ,  Cedric Asuega (D) 808-586-8460 repgates@Capitol.hawaii.gov
Har ,  Sharon E. (D) 808-586-8500 rephar@Capitol.hawaii.gov
Hashem ,  Mark J. (D) 808-586-6510 rephashem@Capitol.hawaii.gov
Holt ,  Daniel (D) 808-586-6180 repholt@Capitol.hawaii.gov
Ichiyama ,  Linda (D) 808-586-6220 repichiyama@Capitol.hawaii.gov
Ing ,  Kaniela (D) 808-586-8525 reping@Capitol.hawaii.gov
Ito ,  Ken (D) 808-586-8470 repito@Capitol.hawaii.gov
Johanson ,  Aaron Ling (D) 808-586-9470 repjohanson@Capitol.hawaii.gov
Keohokalole ,  Jarrett (D) 808-586-8540 repkeohokalole@Capitol.hawaii.gov
Kobayashi ,  Bertrand (D) 808-586-6310 repkobayashi@Capitol.hawaii.gov
Kong ,  Sam Satoru (D) 808-586-8455 repkong@Capitol.hawaii.gov

 

Lee ,  Chris (D) 808-586-9450 replee@Capitol.hawaii.gov
LoPresti ,  Matthew S. (D) 808-586-6080 replopresti@Capitol.hawaii.gov
Lowen ,  Nicole E. (D) 808-586-8400 replowen@Capitol.hawaii.gov
Luke ,  Sylvia (D) 808-586-6200 repluke@Capitol.hawaii.gov
Matsumoto ,  Lauren Kealohilani (R) 808-586-9490 repmatsumoto@Capitol.hawaii.gov
McDermott ,  Bob (R) 808-586-9730 repmcdermott@Capitol.hawaii.gov
McKelvey ,  Angus L.K. (D) 808-586-6160 repmckelvey@Capitol.hawaii.gov
Mizuno ,  John M. (D) 808-586-6050 repmizuno@Capitol.hawaii.gov
Morikawa ,  Dee (D) 808-586-6280 repmorikawa@Capitol.hawaii.gov
Nakamura ,  Nadine K. (D) 808-586-8435 repnakamura@Capitol.hawaii.gov
Nakashima ,  Mark M. (D) 808-586-6680 repnakashima@Capitol.hawaii.gov
Nishimoto ,  Scott Y. (D) 808-586-8515 repnishimoto@Capitol.hawaii.gov
Ohno ,  Takashi (D) 808-586-9415 repohno@Capitol.hawaii.gov
Onishi ,  Richard H.K. (D) 808-586-6120 reponishi@Capitol.hawaii.gov
Oshiro ,  Marcus R. (D) 808-586-6700 repmoshiro@Capitol.hawaii.gov
Quinlan ,  Sean (D) 808-586-6380 repquinlan@Capitol.hawaii.gov
Saiki ,  Scott K. (D) 808-586-8485 repsaiki@Capitol.hawaii.gov
San Buenaventura , Joy A. (D) 808-586-6530 repsanbuenaventura@Capitol.hawaii.gov
Say ,  Calvin K.Y. (D) 808-586-6900 repsay@Capitol.hawaii.gov
Souki ,  Joseph M. (D) 808-586-6100 repsouki@Capitol.hawaii.gov
Takayama ,  Gregg (D) 808-586-6340 reptakayama@Capitol.hawaii.gov
Takumi ,  Roy M. (D) 808-586-6170 reptakumi@Capitol.hawaii.gov
Thielen ,  Cynthia (R) 808-586-6480 repthielen@Capitol.hawaii.gov
Todd ,  Chris (D) 808-586-8480 reptodd@Capitol.hawaii.gov
Tokioka ,  James Kunane(D) 808-586-6270 reptokioka@Capitol.hawaii.gov
Tupola ,  Andria P.L. (R) 808-586-8465 reptupola@Capitol.hawaii.gov
Ward ,  Gene (R) 808-586-6420 repward@Capitol.hawaii.gov
Woodson ,  Justin H. (D) 808-586-6210 repwoodson@Capitol.hawaii.gov
Yamane ,  Ryan I. (D) 808-586-6150 repyamane@Capitol.hawaii.gov
Yamashita ,  Kyle T. (D) 808-586-6330 repyamashita@Capitol.hawaii.gov

repaquino@Capitol.hawaii.gov; repbelatti@Capitol.hawaii.gov; repbrower@Capitol.hawaii.gov; repcachola@Capitol.hawaii.gov; repchoy@Capitol.hawaii.gov; repcreagan@Capitol.hawaii.gov; repcullen@Capitol.hawaii.gov; repdecoite@Capitol.hawaii.gov; repevans@Capitol.hawaii.gov; repfukumoto@Capitol.hawaii.gov; repgates@Capitol.hawaii.gov; rephar@Capitol.hawaii.gov; rephashem@Capitol.hawaii.gov; repholt@Capitol.hawaii.gov;  repichiyama@Capitol.hawaii.gov; reping@Capitol.hawaii.gov; repito@Capitol.hawaii.gov; repjohanson@Capitol.hawaii.gov; repkeohokalole@Capitol.hawaii.gov; repkobayashi@Capitol.hawaii.gov; repkong@Capitol.hawaii.gov; replopresti@Capitol.hawaii.gov; replowen@Capitol.hawaii.gov; repluke@Capitol.hawaii.gov; repmatsumoto@Capitol.hawaii.gov; repmcdermott@Capitol.hawaii.gov; repmckelvey@Capitol.hawaii.gov; repmizuno@Capitol.hawaii.gov; repmorikawa@Capitol.hawaii.gov; repnakamura@Capitol.hawaii.gov; repnakashima@Capitol.hawaii.gov; repnishimoto@Capitol.hawaii.gov; repohno@Capitol.hawaii.gov; reponishi@Capitol.hawaii.gov; repmoshiro@Capitol.hawaii.gov; repquinlan@Capitol.hawaii.gov; repsaiki@Capitol.hawaii.gov; repsanbuenaventura@Capitol.hawaii.gov; repsay@Capitol.hawaii.gov; repsouki@Capitol.hawaii.gov; reptakayama@Capitol.hawaii.gov; reptakumi@Capitol.hawaii.gov;  repthielen@Capitol.hawaii.gov; reptodd@Capitol.hawaii.gov;  reptokioka@Capitol.hawaii.gov; reptupola@Capitol.hawaii.gov; repward@Capitol.hawaii.gov; repwoodson@Capitol.hawaii.gov; repyamane@Capitol.hawaii.gov; repyamashita@Capitol.hawaii.gov;

Thank you for your continued support. 

Mahalo,

Neal

info@rboaa.org

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