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I wanted to comment on a letter to the editor in the last Weekender. It is from a doctor who lives in Utah who purchased a condo on Maui that he uses infrequently and rents out as a vacation rental; obviously an investment.
He is concerned about increases in his property taxes, the main source of revenue to support Maui County government services to the community. He proposes reducing property taxes and assessing a new, what he calls, a "tourist fee or port-of-entry fee on tourists."
Residential vacation rental property on Maui is subject to the highest property tax rates. If you live on your property, your tax rate is much lower. As the market value of your property increases, the assessed value increases, and your property taxes increase, even without an increase in the tax rate. So, this person's investment has increased in value, but perhaps he has fewer vacation renters to pass on the property tax increase to in his rental rates, so he wants someone else to pay the tax increase instead of him. The value of my investment has increased, but I want someone else to pay my taxes. Seems fair to me.
Is there any way it can be made illegal for non-Hawaii residents to own residential property in Hawaii? It would reduce prices and make it more affordable for Hawaii residents to own property. Non-residents would not be bidding up property prices.
Richard C. Moss
Kihei