Proposed Kauai Property Tax Increase

[dale7 Senior Member Find all posts View Profile Close dale7]

"Printed with permission from TimeSharing Today www.tstoday.com".


TimeSharing Today

News Alert: Proposed Kauai Property Tax Increase

July 18, 2008

We received several comments asking about what should be said in an email to the the County Council members about the proposed property tax increase in Kauai. Here is a suggested letter submitted by one of our readers for your consideration:

This letter is written to communicate our dismay in the proposed doubling of property taxes on timeshares and rental properties in Kauai . We own two weeks of timeshare at Pono Kai located in Kapa’a. Over the years, our family has spent a great deal of hard-earned money in your community. We have been patrons in your local restaurants and shops and have enjoyed participating in numerous tours and attractions with our children and grandchildren. We appreciate and respect the Hawaiian people and the culture of the island. We cherish the friendships we have made in Kauai .

We understand the County Council of Kauai is considering these increases to the property tax structures in timeshares and rental properties to dramatically reduce property taxes for Kauai residents by an average of 31%. Since the proposal is designed to be “revenue neutral,” timeshare consumers will be taxed unfairly to fill in the gap! As timeshare owners, we feel personally insulted and victimized. We are retired and on a fixed income. If this proposal is passed, we have decided we will travel alone, rather than bring extended family members, to reduce our expenses. Also, if this unfair tax is passed, we will be forced to boycott restaurants and activities, and utilize the resort barbecue grills and/or cook in our units. We will explain to tour guides why we are no longer using their services. If we do go to a restaurant, we will explain to wait staff why their tips are being withheld. We will encourage them to complain to their county council members if they are unhappy with this situation. We feel like we are being treated like second-class citizens on the island of Kauai instead of loyal tourists who return every year to contribute to your local businesses.

Please do not discriminate against timeshare owners by creating this unfair property tax.

We are counting on your Aloha spirit.

The hearing is July 30th. The County Council members' email addresses are:

Mel Rapozo, Council Vice Chair mfrapozo@kauai.gov

Tim Bynum, Councilmember tbynum@kauai.gov

Jay Furfaro, Councilmember jfurfaro@kauai.gov

Shaylene Iseri-Carvalho, Councilmember scarvalho@kauai.gov

Ronald Kouchi, Councilmember rkouchi@kauai.gov

JoAnn Yukimura, Councilmember jyukimura@kauai.gov

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

The government is biting the hand that feeds them. Timeshare owners are an easy target as they are committed to paying maintenance fees and taxes even if they don't come to Hawaii.

I am glad I have always resisted owning any timeshares in Hawaii....it is just too easy of an exchange and getting easier everyday. I feel bad for those that own.

[aliikai2 Super Moderator Find all posts View Profile Close aliikai2]

While I don't like paying extra...

I do feel for the Hawaiians that are trying to hold onto their homes and live on the Island where they were born.

I feel that the increase of non-resident property taxes is fair, and that the lowering of resident taxes is the correct and right thing .

The taxes on our 3 weeks per year at the Pono Kai in our 2 bedroom units will increase about $50 per week.

According to my calculations, that is about the exact amount our fees will decrease once the land is paid off next year.

( Of course, I don't expect to see a decrease, as all other costs are rising there as well as here.)

As one of those that loves Kauai, and tries very hard to be one of the Ohana when we are on island, I do feel that we have contributed to the rise in property values that has caused the locals to have such a hard time finding a rental home that they can afford.

And that this measure may offer some relief to those that live on island.

jmho,

Greg

[taffy19 Gold Contributor Find all posts View Profile Close taffy19]

I agree with you that tourism helped raising RE prices through the roof so the local people need some tax relief which is fair but are they increasing the hotel tax too?

If not, then, I feel, that they are taking advantage of the timeshare owners because we have to return because of the yearly maintenance fees. Hotel guests can easily skip going to the Islands as they have no commitments.

John is right, not owning in Hawaii now is a much smarter choice. Exchanging will only get easier with the high airline fares too.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Hawaii - the next Orlando?

The problem of locals being priced out of property in resort areas is not unique to Kauai or to Hawaii. The same is happening on the Outer Banks, particularly Ocracoke, where families who have lived there for centuries are getting priced out.

The difference is that North Carolina does not engage in rank discrimination to try to social engineer this problem away.

Off the top of my head, I would suspect that there will probably be some litigation over violation of consitutional provisions, state and federal, on equal protection of the laws. I cannot believe that the courts would allow treating these two classes in a different manner.

Maybe, if we really wanted to make things right, we would reverse the 1893 coup d'etat staged with US Marines that overthrew the monarchy. Let them have their king and indepedence back. Sheesh!