Mayor Tavares
Realtors Association of Maui – Call to Action – We need your Help!
The Maui County Council is currently reviewing a proposal that would significantly increase the property taxes on some non-owner occupied condominiums.
The proposal (which would amend Section 348.305 of the County Code) would require that all condominium owners be taxed at the “highest and best use”- unless they qualify for a “homeowner” exemption. This could mean that instead of paying apartment tax rates, owners who rent out their units long-term or don’t rent them at all could be facing hotel or even timeshare rates. That would mean an increase from a $5/1,000 rate to $8.30 or $14/1,000. “Highest and Best Use” in this case means that whatever is the highest use allowed on a property will become the rate for the whole property. Of particular concern are condo owners who are already struggling to pay maintenance fees, renting long-term, or are on fixed incomes.
RAM opposes this proposed action because:
o This action will cause the loss of additional long-term rentals.
o Our customers will be taxed for how they could use their apartments, instead of how they actually are using them.
o This action will have a negative impact on an already fragile condo market and could actually hurt the county’s income and our economy in the long run.
o The timeshare tax rate is punitive and should not be applied outside of that specific use.
o The county has not thought through the possible negative consequences of this proposal: e.g. more cheating on homeowners claims, another spike in tax appeals, making the tax code less clear.
Once again, those affected by this bill are basically owners who do not qualify for the homeowner exemption and whose unit is on a property where short-term and/or timeshare use is allowed. Their units would be:
o Long-term rental units
o Owners who use their condos as 2nd homes
o Vacant units
The Budget & Finance Committee will be hearing for this proposal at 1:30pm on Tuesday June 1 in the County Council Chamber (8th floor, County Building, 200 S. High Street, Wailuku). Let’s fill the room up with concerned citizens.
Or you can contact the Mayor and Council about this proposal at:
Mayor Charmaine Tavares: mayors.office@mauicounty.gov, 270-7855
Danny.mateo@mauicounty.us 270-7678
Michael.molina@mauicounty.us 270-5507
Gladys.baisa@mauicounty.us 270-7939
Jo_anne.johnson@mauicounty.us 270-5504
Bill.medeiros@mauicounty.us 270-7246
Jospeh.pontanilla@mauicounty.us 270-5501
Wayne.nishiki@mauicounty.us 270-7108
Michael.victorino@mauicounty.us 270-7760
Sol.kahoohalahala@mauicounty.us 270-7768
If the Council approves this measure, we plan to ask that the Mayor veto it.
Questions? Contact RAM Government Affairs Director Dave DeLeon at 243-8585 or gad@ramaui.com
Filed under: Maui Hawaii Real Estate, Taxes | Tagged: Maui Real Estate | Leave a Comment »
