A new proposal between the status quo and an outright Maui vacation rental ban. But what are the other implications of this latest proposal? One significant consequence is that it might lead to higher rates for vacation rentals.
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79 thoughts on “Tax Increases for Maui Vacation Rentals: The New Middle Ground?”
Katf, I hope that you are right!
If you can stomach it, you may want to stick around to watch nativist heads roll on the County Council. But if you’ve had enough, I get it. The government encouraged this small minority to turn Maui vibes ugly.
It’s hard to understand why STR’s are being singled out for some sort of punishment. If new or greater taxes are going to be applied as some sort of punishment for running a vacation rental then it should be applied to all vacation accommodations. STR’s, in my lengthy experience, attract guests that have been coming to Maui for a long time and they generally support local small business’ like Times Market, Foodland and frequent locally owned restaurants like Dolly’s, Joey’s Kitchen, Mala and Aloha Mixed Plate. That is the reality and it’s obvious the Governor, Mayor and other elected officials don’t want “rock the boat” with Hyatt, Marriott, Sheraton and other mainland based “deep pocket” hotel chains operating on Maui and funding their campaigns to get re-elected.
My, My, Grandchildren are great,and really intelligent these days. Several of mine figured a response very similar, with, again, similar drawbacks. The eldest of them being 14, the youngest being 6! The answer from UHERO was one of a few that was apparent from the beginning. My favorite was uttered by the Mayor which equates to, “Damn the torpedoes, full speed ahead” first uttered in 1864 by Farragut! Of course that approach would have Bankrupt Maui sooner than the other. I would have expected better results from UHERO!
Is it just me or does it sound like conditions are ripening for a taxpayer revolt?
We will be selling our Maui condo. The extremist nativist movement, and the destruction of Aloha has made Hawaii a place we no longer feel in our hearts.
Decades ago, we purchased our little vacation getaway. It was barely affordable for our middle class family, and of course we had to rent it out when we weren’t there to help pay for it. It was a dream place for our family and extended family to gather and make memories.
Our sale will not add to available housing. By my calculation, the monthly cost of a 6% mortgage, hoa, taxes, insurance, and utilities will cost about $9,200 a month. It will undoubtedly be purchased by a wealthy “outsider” who doesn’t have to rent it out. We see that already with some of our neighbors. The places just stay empty most of the year. Fewer visitors mean fewer jobs. More of Maui’s wonderful people will be leaving the islands to find work. It’s sad to see the result of bad leadership and extremism, but we won’t have to watch any more.
Might be right behind you. 🙂
Well the tax assessor has already raised assessed values beyond the current market value. Our unit is assessed at $1,150,000. Currently it might sell for $750-850,000. So hopefully they will adjust it next year closer to actual value, but the assessor raised the over $300,000 in one year!
The Planning Dept is a viper’s nest of political appointees and their minions. They did the same thing to my STR; they leave my owner-occupied property alone. They target STR’s with these assessment increases, and apparently you have to pay $250 to request a hearing to challenge the assessment. Next year, if they don’t lower the assessments to match the housing market they cratered, there may be a class action suit.
We were on Maui 6 months before the fire. We celebrated our union there. It wasn’t our first time, yet we love the beauty and the serenity. Both of looked on , in horror, of the devastation. Most of us on the mainland se Hawaii as a getaway. We couldn’t afford a month there and love where we are from. The fires that happen here are just as devastating. Homeowners and businesses use their catastrophic insurance to rebuild. Why isn’t the power company stepping up to replace the living units and businesses destroyed instead of unilaterally trying to place the burden on the short term rental owners. It seems draconian.
Yes, let’s tax the rich for the benefit of the poor! Not! We wouldn’t even need a solution if the Maui Government had been responsible and put the excessive taxes they already charge back into the community to build affordable housing. Wake up Hawaii residents, your elected officials have failed you. They line their pockets and then expect responsible land owners to fix the problem.
Something does need to change. Go after those who owner several rentals no the mom and pa that have just one and rents when they are not there. We pay the high property taxes already. They tripled just a couple years ago. We keep giving and giving. Use the taxes we do pay for property and when we rent. Let’s all work together and help not hurt each other.