I am writing to declare my support Bill 95 - specifically provision 3.48.551hat provides a two-year exemption from Real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6.
Our property is located within this district and has been materially and significantly impacted by the devastation of the events of the Lahaina wildfire on August 8th.
The property, while still erect, is without water or sewer, is located in the middle of the disaster zone with limited access, and is most certainly impacted by the presence of toxic ash and material that is to be cleaned up in the future. It is not reasonable to treat these properties any differently than a property that was fully damaged, as our properties are still not useable (and will not be for the foreseeable future as the recovery begins). These partially damaged properties have also suffered a significant devaluation as all of the infrastructure and amenities surrounding us have been destroyed.
Please help support our community and the recovery by providing this necessary relief.
Aloha Mayor and fellow Council Members,
My name is Brittany Hudson, I am an owner of a condo in Lahaina Shores. Since the fires we still have not been allowed into our units and as I am sure you are aware we have no electric, water/sewer. I feel our taxes from 2023 should reflect that. Going forward I feel the taxes should reflect the state of use of the property for the owners. We are without places to live/income for an unforeseen time and when it comes to taxes I feel an assessor should be sent to the property every quarter to see how we should be billed. Obviously, as it stands at this time, our property is uninhabitable and should be billed accordingly.
Mahalo for your time and consideration,
Brittany
Aloha Mayor and Council Members:
I support Bill 95 for a two-year exemption on property taxes. The wildfires have caused significant smoke and ash damage making our home uninhabitable, and our neighborhood has no water or sewer. There is toxic ash and smoke contaminating the soil and water, and it will be months, if not years, before the ground and water reservoirs recover. The property value of our and our neighbors’ homes have been decimated, and it will be years before the infrastructure of our Lahaina Town is repaired and operational. Under these circumstances, it is imperative that our community be granted relief from property taxation.
Mahalo,
Dan Drohan
136 Pualei Drive, Lahaina
1) Our Puamana primary residence of 34 years, 28-1, and our rental unit, 71-2 burned to the ground on 8/8/23. At Puamana Community Association, we have no water or sewer, and our properties are covered and filled with toxic smoke and
ash.
2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and
removed.
3) Our home's property values have been decimated.
4) All of Lahaina Town needs Tax Relief including our unsafe uninhabitable smoker homes.
Additional talking points – smoker homes:
3. Property taxes are based on property values. Our property values have been decimated
by the destruction of Lahaina Town and our neighborhoods.
4. Environmental assessments have discovered numerous toxic cancer-causing pollutants
were released throughout Lahaina Town in the fire.
5. We have recently been told by experts in toxic cleanup that because our homes have
been sitting in the Lahaina heat for months with toxic ash inside and out the porous walls
and siding have soaked up the toxins requiring more than just mitigation cleaning. We
will need to replace the insulation and drywall.
6. Our insurance companies will only pay once for cleaning, painting, and or replacement
of drywall, siding, and insulation.
7. Cleaning and replacement of siding and drywall can't start until all the hazardous debris
and toxins in Lahaina Town are safely removed or we might have to pay twice. Toxic
mitigation cleaning is averaging $35,000 per property.
8. The clean-up of Lahaina Town will take at least a year once it finally starts.
9. Once we have water it will take several months before the water is not toxic.
I support Bill 95 except for the provision in the second section which provides back dated tax relief for those Hotel operators and Property Managers who have profited by charging the Red Cross over $20,000 a month to house our ohana. If you want to encourage short term rental owners to house the displaced for long term, I would suggest that the tax relief be for those who charge less than say 200% of median long term monthly rents. Owners have to apply to the property tax department for the tax relief and show proof that they housed the displaced, just check the rental rate that they charged.
Our home was destroyed in the wildfires and will not be able to rebuild for 2 years
I strongly believe that our property taxes should be extinguished until our home is rebuilt and lived in
Thank you. Bruce Baum 12-1 Puailima Pl Lahaina
I support Bill 95 and specifically the new section 3.48.551 that provides a two-year exemption from Real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6. My property in this area is not habitable and likely may not be for the next 2 years.
1) We have no water or sewer, and our properties are covered and filled with toxic smoke and ash. 2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and removed. 3) Our home's property values have been decimated. 4) All of Lahaina Town needs Tax Relief including our unsafe uninhabitable smoker homes. 4. Property taxes are based on property values. Our property values have been decimated by the destruction of Lahaina Town and our neighborhoods. 5. Environmental assessments have discovered numerous toxic cancer-causing pollutants were released throughout Lahaina Town in the fire. 6. We have recently been told by experts in toxic cleanup that because our homes have been sitting in the Lahaina heat for months with toxic ash inside and out the porous walls and siding have soaked up the toxins requiring more than just mitigation cleaning. We will need to replace the insulation and drywall. 7. Our insurance companies, if they do support us in this area ( many are unfunded for this) will only pay once for cleaning, painting, and or replacement of drywall, siding, and insulation. 7. Cleaning and replacement of siding and drywall can't start until all the hazardous debris and toxins in Lahaina Town are safely removed or we might have to pay twice. Toxic mitigation cleaning is averaging $35,000 per property. 8. The clean-up of Lahaina Town will take at least a year once it finally starts. 9. Once we have water it will take several months before the water is not toxic.
We support Bill 95, and specifically the new section 3.48.551 that provides a two-year exemption from Real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6 for the following reasons, among many others:
1) We have no water or sewer, and our properties are covered and filled with toxic smoke and ash.
2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and removed.
3) Our home's property values have been decimated.
4) All of Lahaina Town needs Tax Relief including our unsafe uninhabitable smoker homes.
5) Property taxes are based on property values. Our property values have been decimated by the destruction of Lahaina Town and our neighborhoods.
6) Environmental assessments have discovered numerous toxic cancer-causing pollutants were released throughout Lahaina Town in the fire.
7) We have recently been told by experts in toxic cleanup that because our homes have been sitting in the Lahaina heat for months with toxic ash inside and out the porous walls and siding have soaked up the toxins requiring more than just mitigation cleaning. We will need to replace the insulation and drywall.
8) Our insurance companies will only pay once for cleaning, painting, and or replacement of drywall, siding, and insulation.
9) Cleaning and replacement of siding and drywall can't start until all the hazardous debris and toxins in Lahaina Town are safely removed or we might have to pay twice. Toxic mitigation cleaning is averaging $35,000 per property
10) The clean-up of Lahaina Town will take at least a year once it finally starts.
11) Once we have water it will take several months before the water is not toxic.
To not support this bill (specifically this section) is extremely inequitable.
Mahalo
Mark James 160-4 Pualei Drive, Lahaina
We support Bill 95 and specifically the new section
3.48.551 that provides a two-year exemption from Real Property taxes for all
properties in Lahaina Tax zone 4, sections 5 and 6. Our property in this area is not habitable and likely may not be for the next 2
years.
1) We have no water or sewer, and our properties are covered and filled with toxic smoke and
ash.
2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and
removed.
3) Our home's property values have been decimated.
4) All of Lahaina Town needs Tax Relief including our unsafe uninhabitable smoker homes.
Additional talking points – smoker homes:
3. Property taxes are based on property values. Our property values have been decimated
by the destruction of Lahaina Town and our neighborhoods.
4. Environmental assessments have discovered numerous toxic cancer-causing pollutants
were released throughout Lahaina Town in the fire.
5. We have recently been told by experts in toxic cleanup that because our homes have
been sitting in the Lahaina heat for months with toxic ash inside and out the porous walls
and siding have soaked up the toxins requiring more than just mitigation cleaning. We
will need to replace the insulation and drywall.
6. Our insurance companies will only pay once for cleaning, painting, and or replacement
of drywall, siding, and insulation.
7. Cleaning and replacement of siding and drywall can't start until all the hazardous debris
and toxins in Lahaina Town are safely removed or we might have to pay twice. Toxic
mitigation cleaning is averaging $35,000 per property.
8. The clean-up of Lahaina Town will take at least a year once it finally starts.
9. Once we have water it will take several months before the water is not toxic.
Please support and pass this very important Bill 95
Mahalo
David Medina
Resident of Maui and our property is in the disastor area.
My name is Alan Schulman and I own 38-1 Pualoke Place in Puamana. My property was completely destroyed in the fire. I support Bill 95 and specifically the new section 3.48.551 that provides a two-year exemption from real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6 for the following reasons: (i) Puamana, and my property, has no water or sewer and it is covered and filled with toxic smoke and ash; (ii) my home won't be safely habitable until the Lahaina town toxins have been cleared and removed; (iii) my home value has been decimated; and (iv) all of Lahaina town needs Tax Relief including my home. Thank you for your consideration of this important bill that will bring economic relief and comfort of mind to your neighbors who have lost so much.
We are Lahaina homeowners writing to express our support for Bill 95, and in particular section 3.48.551 that provides a two-year exemption from real property taxes for homeowners whose homes were not destroyed in the Lahaina August wildfire, but are located in the affected area and have been rendered uninhabitable.
Our home in Lahaina is located within the area impacted by the fires (zone 16A). While our home was not destroyed, it is not habitable due to the toxic ash and the damage to the surrounding infrastructure, as well as no access to water or sewer utilities. It is a significant struggle to pay the continuing expenses (mortgage, insurance, HOA dues, etc), and this exemption will provide some much needed relief. While our property is zoned for vacation rental use, there will simply be no vacation rental usage in the foreseeable future. Please consider giving us this specific financial relief during this extremely challenging time.
Mahalo,
Michael and Angela Leone
185-1 Pualei Drive, Lahaina
Testimony for BFED committee regarding BFED-35
Submitted by Thomas Croly
I write in support of the policies in Bill 95 that would provide Real Property tax relief for all properties in Lahaina Tax zone 4, sections 5 and 6 for the current tax year and the next. This is only fair! If those property owners are not able to use their properties for habitation, then they should not be required to pay Real property tax. Hopefully, by June 2025, these areas will be cleaned of all hazardous debris and all County services, such as water and sewer and utilities of power and internet will have been restored, and all properties will be either be habitable or ready for reconstruction.
I would suggest adding to Bill 95, the provision in Bill 102 that would require repayment for this exemption should the property be sold prior to January 1, 2027. Maui should be providing tax relief to those intending to continue to own their Maui properties and not to benefit those who would take this opportunity to sell. I prefer the approach in Bill 95 to provide a blanket tax exemption for all properties in the burn zone, rather than assessing the habitability of each individual property, as would be required to administrate Bills 91 and 102.
For properties outside the burn zone, the provisions of 3.48.551 B might also be appropriate. But the administration should be allowed to set the provisions to qualify for the proposed exemption. Not every property may have insurance and the habitability of a given property may be difficult to assess.
Sections 3.48.551 C and D are an attempt to provide tax fairness and incentive for Bed and Breakfast, STR and Hotel classified properties to offer them as long term housing for displaced Lahaina residents. I fully support this intent, but it should also include non-Owner Occupied properties and should not include Hotel properties. The Hotel properties that the Red Cross has been using as temporary housing have been receiving market short term rent for temporarily housing displaced residents for the past 80 days and do not need any form of tax relief for this period.
Going forward, the goal is find long term (6 months or more) housing for these displaced residents and this is not in Hotel classified properties. But please recognize that there are STRs, and non-owner occupied properties who have already been providing housing to displaced residents, sometime without collecting any rent or subsidy.
Maui County receives 86% of its tax revenues from visitor accommodations. In West Maui more than 93% of Maui County tax revenues come from visitor accommodations. And it is properties classified as Short Term Rental (STR) and properties classified as non-owner occupied, used as second homes, that account for the majority of these tax revenues and NOT hotel classified properties.
West Maui has 6501 properties classified as STR (mostly condos) and 3101 properties classified as non-owner occupied. The vast majority of these properties are used by their owners for a portion of the year as second homes. If those second home owners are going to forgo personally using their second home for the next one or two years to house displaced residents, they will need to be incentivized.
This proposed waiver of property tax is perhaps the ONLY thing that Maui County can do to incentivized them to convert their properties to long term rental use. But understand that it will take much more than this to actually create these new housing opportunities for displaced residents. A comprehensive program will need to be developed that makes financial sense to all involved. And the provisions of that program will need to be publicized to these 9,602 property owners in order to find enough who would be willing to participate.
Most of these second home owner’s properties are not set up for long term rental use. Conversion to furnished long term rental and later back to short term rental will be costly for them. And the current property tax charged to these property owners makes it impossible for then to pay expenses and rent for anywhere close to a rent that a displaced family could afford. Even with the waiver of property taxes, some subsidy will need to be found to make this program successful. Hopefully FEMA can make up the difference. These property owners will need assurance that the rent will be paid and their units will be cared for.
When these properties are in short term rental use, they are meticulously cleaned, damages are promptly fixed and sometimes charged to the renting visitor, after each rental period. After a long term rental of years or more, substantial reconditioning would be expected before the unit would be ready for future short term rental.
Recognize that any rental of less than 6 months is subject to a total of 17.95% taxes (including Maui’s new GET). So you are really trying to find long term rentals of 6 months or more. Also, the Real property tax department is required to classify all properties and exemptions by the end of the calendar year for the following fiscal year. So, for a program such as this to work, within the current restrictions found in the County code, an alternate way to fund it would need to be created. I would suggest creating a new fund from which tax rebates could be paid out of, rather than simply exempting the taxes as proposed.
How much would this program cost? Figure the average property tax bill for a short term rental is $15,400/year, multiply this by the number of units that might be made available, say 1000 units. That would cost about $15.4 million per year in lost tax revenue.
In regards to Bill 95 Section 3.48.551. I own a home at 272-Puaeli Drive in Lahaina, in the Puamana Community. We have not gotten access to our homes and will probably not have access for habitability for quite some time, There is damage from toxic elements as well as polluted water. We cannot use this property. Its value has plummeted. Please vote in favor of the Bill 95 and Section 3.48.551. It will provide much needed relief
Thank you
Jeffrey Sommers
I am writing to you to voice my support for the tax relief Bill 95 for homes in the Lahaina burn zone. Specifically the new section
3.48.551 that provides a two-year exemption from Real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6.
My husband and I have owned our home in Puamana for 25 years. We are one of the fortunate families whose home escaped the fire. That being said, our home is uninhabitable and may likely not be for the next 2 years.
We have no water or sewer and those services will not be restored in the near future. Our community is a toxic environment and will not be safe for quite some time.
Our home's property value has been decimated and our property taxes are based on our homes value.
These are very trying times and we appreciate all the hard work you and your council members have ahead. I hope you will support Bill 95 and specifically section 3.48.551.
Hello Moui County Representatives:
We own Puamana Unit 30-1 Pualoke Place that is an intact unit after the fires. I support Bill 95 and specifically the new section 3.48.551 that provides a two-year exemption from Real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6. Our property is rental property when our family is not visiting and working. I am retired and the rental income from our unit supports our living expenses. I may not receive any vacation rental income from our unit for up to two years because of the fire's impact.
1) We have no water or sewer, and our property is covered and filled with toxic smoke and ash.
2) We are located in the North end of Puamana which is surrounded by many of the 94 destroyed units.
3) Property taxes are based on property values, and ours has suffered.
4) The clean-up of Lahaina Town will take at least a year once it finally starts.
5) Once we have water and sewer, it will take several months before the water is not toxic.
Thank you in advance for your attention to my request.
Dave and Cheryl Houston
30-1 Pualoke Pl Lahaina
My name is Eric Freeh and I am writing in support of Bill 95, specifically section 3.48.551 as well as Tax Bill 102, Section 3.48.465 which would provide an exemption from Real Property taxes for all Real properties destroyed or damaged in the August 2023 Maui wildfires. My family and I feel blessed to have our unit 201 at Lahaina Roads. We are deeply saddened by the loss of life and property as well as the ecological damage caused by the wildfire that swept through Lahaina Town on August 8, 2023.
Even though Lahaina Roads is "still standing" it is completely uninhabitable. There is no power, water or sewer and the property is covered and filled with toxic ash and smoke. Our home won't be safely habitable until the Lahaina Town toxins have been cleared and removed and we are being told that this could take years. Property taxes are based on property values. Our property values have been decimated by the destruction of Lahaina Town and our surrounding neighborhoods.
We respectively ask that the Budget Committee vote in support of Tax Bill 95, section 3.48.551 and Tax Bill 102, Section 3.48.465. All of Lahaina Town needs Tax Relief, including our unsafe, uninhabitable "standing" properties.
Mahalo for your consideration,
Eric Freeh
1403 Front Street, Unit 201
Lahaina, HI 96761
Thank you for taking the time to understand our concerns. We support this bill because of the unforeseen hardship it has put us in. Personally the income from our unit was to help subsidize my mother-in-law’s care in a San Francisco nursing center. Now that is gone but the bill’s are just mounting. We desperately need some relief so we can survive. We have made Lahaina our home and have loved the aloha of the people
So please help us all.
Pono is all we ask.
We support Bill 95 as owners of 30-2 Pualoke Place in Lahaina.
We have no idea of the damages of the toxins that have seeped into our home rendering an unsafe and toxic interior.
In addition are the following concerns:
1) We have no water or sewer, and our properties are covered and filled with toxic smoke and
ash so we cant even use our property.
2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and
removed.
3) Our home's property values have been decimated.
4) We have unsafe uninhabitable smoker homes.
Please consider this bill 95 as we can not use our property for several years.
thank you
Dan & Barb Schwalbe
30-2 Pualoke Lahaina
Aloha,
I am writing to declare my support Bill 95 - specifically provision 3.48.551hat provides a two-year exemption from Real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6.
Our property is located within this district and has been materially and significantly impacted by the devastation of the events of the Lahaina wildfire on August 8th.
The property, while still erect, is without water or sewer, is located in the middle of the disaster zone with limited access, and is most certainly impacted by the presence of toxic ash and material that is to be cleaned up in the future. It is not reasonable to treat these properties any differently than a property that was fully damaged, as our properties are still not useable (and will not be for the foreseeable future as the recovery begins). These partially damaged properties have also suffered a significant devaluation as all of the infrastructure and amenities surrounding us have been destroyed.
Please help support our community and the recovery by providing this necessary relief.
Respectfully,
James Korth
Aloha Mayor and fellow Council Members,
My name is Brittany Hudson, I am an owner of a condo in Lahaina Shores. Since the fires we still have not been allowed into our units and as I am sure you are aware we have no electric, water/sewer. I feel our taxes from 2023 should reflect that. Going forward I feel the taxes should reflect the state of use of the property for the owners. We are without places to live/income for an unforeseen time and when it comes to taxes I feel an assessor should be sent to the property every quarter to see how we should be billed. Obviously, as it stands at this time, our property is uninhabitable and should be billed accordingly.
Mahalo for your time and consideration,
Brittany
Aloha Mayor and Council Members:
I support Bill 95 for a two-year exemption on property taxes. The wildfires have caused significant smoke and ash damage making our home uninhabitable, and our neighborhood has no water or sewer. There is toxic ash and smoke contaminating the soil and water, and it will be months, if not years, before the ground and water reservoirs recover. The property value of our and our neighbors’ homes have been decimated, and it will be years before the infrastructure of our Lahaina Town is repaired and operational. Under these circumstances, it is imperative that our community be granted relief from property taxation.
Mahalo,
Dan Drohan
136 Pualei Drive, Lahaina
1) Our Puamana primary residence of 34 years, 28-1, and our rental unit, 71-2 burned to the ground on 8/8/23. At Puamana Community Association, we have no water or sewer, and our properties are covered and filled with toxic smoke and
ash.
2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and
removed.
3) Our home's property values have been decimated.
4) All of Lahaina Town needs Tax Relief including our unsafe uninhabitable smoker homes.
Additional talking points – smoker homes:
3. Property taxes are based on property values. Our property values have been decimated
by the destruction of Lahaina Town and our neighborhoods.
4. Environmental assessments have discovered numerous toxic cancer-causing pollutants
were released throughout Lahaina Town in the fire.
5. We have recently been told by experts in toxic cleanup that because our homes have
been sitting in the Lahaina heat for months with toxic ash inside and out the porous walls
and siding have soaked up the toxins requiring more than just mitigation cleaning. We
will need to replace the insulation and drywall.
6. Our insurance companies will only pay once for cleaning, painting, and or replacement
of drywall, siding, and insulation.
7. Cleaning and replacement of siding and drywall can't start until all the hazardous debris
and toxins in Lahaina Town are safely removed or we might have to pay twice. Toxic
mitigation cleaning is averaging $35,000 per property.
8. The clean-up of Lahaina Town will take at least a year once it finally starts.
9. Once we have water it will take several months before the water is not toxic.
I support Bill 95 except for the provision in the second section which provides back dated tax relief for those Hotel operators and Property Managers who have profited by charging the Red Cross over $20,000 a month to house our ohana. If you want to encourage short term rental owners to house the displaced for long term, I would suggest that the tax relief be for those who charge less than say 200% of median long term monthly rents. Owners have to apply to the property tax department for the tax relief and show proof that they housed the displaced, just check the rental rate that they charged.
Our home was destroyed in the wildfires and will not be able to rebuild for 2 years
I strongly believe that our property taxes should be extinguished until our home is rebuilt and lived in
Thank you. Bruce Baum 12-1 Puailima Pl Lahaina
I support Bill 95 and specifically the new section 3.48.551 that provides a two-year exemption from Real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6. My property in this area is not habitable and likely may not be for the next 2 years.
1) We have no water or sewer, and our properties are covered and filled with toxic smoke and ash. 2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and removed. 3) Our home's property values have been decimated. 4) All of Lahaina Town needs Tax Relief including our unsafe uninhabitable smoker homes. 4. Property taxes are based on property values. Our property values have been decimated by the destruction of Lahaina Town and our neighborhoods. 5. Environmental assessments have discovered numerous toxic cancer-causing pollutants were released throughout Lahaina Town in the fire. 6. We have recently been told by experts in toxic cleanup that because our homes have been sitting in the Lahaina heat for months with toxic ash inside and out the porous walls and siding have soaked up the toxins requiring more than just mitigation cleaning. We will need to replace the insulation and drywall. 7. Our insurance companies, if they do support us in this area ( many are unfunded for this) will only pay once for cleaning, painting, and or replacement of drywall, siding, and insulation. 7. Cleaning and replacement of siding and drywall can't start until all the hazardous debris and toxins in Lahaina Town are safely removed or we might have to pay twice. Toxic mitigation cleaning is averaging $35,000 per property. 8. The clean-up of Lahaina Town will take at least a year once it finally starts. 9. Once we have water it will take several months before the water is not toxic.
We support Bill 95, and specifically the new section 3.48.551 that provides a two-year exemption from Real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6 for the following reasons, among many others:
1) We have no water or sewer, and our properties are covered and filled with toxic smoke and ash.
2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and removed.
3) Our home's property values have been decimated.
4) All of Lahaina Town needs Tax Relief including our unsafe uninhabitable smoker homes.
5) Property taxes are based on property values. Our property values have been decimated by the destruction of Lahaina Town and our neighborhoods.
6) Environmental assessments have discovered numerous toxic cancer-causing pollutants were released throughout Lahaina Town in the fire.
7) We have recently been told by experts in toxic cleanup that because our homes have been sitting in the Lahaina heat for months with toxic ash inside and out the porous walls and siding have soaked up the toxins requiring more than just mitigation cleaning. We will need to replace the insulation and drywall.
8) Our insurance companies will only pay once for cleaning, painting, and or replacement of drywall, siding, and insulation.
9) Cleaning and replacement of siding and drywall can't start until all the hazardous debris and toxins in Lahaina Town are safely removed or we might have to pay twice. Toxic mitigation cleaning is averaging $35,000 per property
10) The clean-up of Lahaina Town will take at least a year once it finally starts.
11) Once we have water it will take several months before the water is not toxic.
To not support this bill (specifically this section) is extremely inequitable.
Mahalo
Mark James 160-4 Pualei Drive, Lahaina
We support Bill 95 and specifically the new section
3.48.551 that provides a two-year exemption from Real Property taxes for all
properties in Lahaina Tax zone 4, sections 5 and 6. Our property in this area is not habitable and likely may not be for the next 2
years.
1) We have no water or sewer, and our properties are covered and filled with toxic smoke and
ash.
2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and
removed.
3) Our home's property values have been decimated.
4) All of Lahaina Town needs Tax Relief including our unsafe uninhabitable smoker homes.
Additional talking points – smoker homes:
3. Property taxes are based on property values. Our property values have been decimated
by the destruction of Lahaina Town and our neighborhoods.
4. Environmental assessments have discovered numerous toxic cancer-causing pollutants
were released throughout Lahaina Town in the fire.
5. We have recently been told by experts in toxic cleanup that because our homes have
been sitting in the Lahaina heat for months with toxic ash inside and out the porous walls
and siding have soaked up the toxins requiring more than just mitigation cleaning. We
will need to replace the insulation and drywall.
6. Our insurance companies will only pay once for cleaning, painting, and or replacement
of drywall, siding, and insulation.
7. Cleaning and replacement of siding and drywall can't start until all the hazardous debris
and toxins in Lahaina Town are safely removed or we might have to pay twice. Toxic
mitigation cleaning is averaging $35,000 per property.
8. The clean-up of Lahaina Town will take at least a year once it finally starts.
9. Once we have water it will take several months before the water is not toxic.
Please support and pass this very important Bill 95
Mahalo
David Medina
Resident of Maui and our property is in the disastor area.
My name is Alan Schulman and I own 38-1 Pualoke Place in Puamana. My property was completely destroyed in the fire. I support Bill 95 and specifically the new section 3.48.551 that provides a two-year exemption from real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6 for the following reasons: (i) Puamana, and my property, has no water or sewer and it is covered and filled with toxic smoke and ash; (ii) my home won't be safely habitable until the Lahaina town toxins have been cleared and removed; (iii) my home value has been decimated; and (iv) all of Lahaina town needs Tax Relief including my home. Thank you for your consideration of this important bill that will bring economic relief and comfort of mind to your neighbors who have lost so much.
Aloha Mayor and Council Members,
We are Lahaina homeowners writing to express our support for Bill 95, and in particular section 3.48.551 that provides a two-year exemption from real property taxes for homeowners whose homes were not destroyed in the Lahaina August wildfire, but are located in the affected area and have been rendered uninhabitable.
Our home in Lahaina is located within the area impacted by the fires (zone 16A). While our home was not destroyed, it is not habitable due to the toxic ash and the damage to the surrounding infrastructure, as well as no access to water or sewer utilities. It is a significant struggle to pay the continuing expenses (mortgage, insurance, HOA dues, etc), and this exemption will provide some much needed relief. While our property is zoned for vacation rental use, there will simply be no vacation rental usage in the foreseeable future. Please consider giving us this specific financial relief during this extremely challenging time.
Mahalo,
Michael and Angela Leone
185-1 Pualei Drive, Lahaina
Testimony for BFED committee regarding BFED-35
Submitted by Thomas Croly
I write in support of the policies in Bill 95 that would provide Real Property tax relief for all properties in Lahaina Tax zone 4, sections 5 and 6 for the current tax year and the next. This is only fair! If those property owners are not able to use their properties for habitation, then they should not be required to pay Real property tax. Hopefully, by June 2025, these areas will be cleaned of all hazardous debris and all County services, such as water and sewer and utilities of power and internet will have been restored, and all properties will be either be habitable or ready for reconstruction.
I would suggest adding to Bill 95, the provision in Bill 102 that would require repayment for this exemption should the property be sold prior to January 1, 2027. Maui should be providing tax relief to those intending to continue to own their Maui properties and not to benefit those who would take this opportunity to sell. I prefer the approach in Bill 95 to provide a blanket tax exemption for all properties in the burn zone, rather than assessing the habitability of each individual property, as would be required to administrate Bills 91 and 102.
For properties outside the burn zone, the provisions of 3.48.551 B might also be appropriate. But the administration should be allowed to set the provisions to qualify for the proposed exemption. Not every property may have insurance and the habitability of a given property may be difficult to assess.
Sections 3.48.551 C and D are an attempt to provide tax fairness and incentive for Bed and Breakfast, STR and Hotel classified properties to offer them as long term housing for displaced Lahaina residents. I fully support this intent, but it should also include non-Owner Occupied properties and should not include Hotel properties. The Hotel properties that the Red Cross has been using as temporary housing have been receiving market short term rent for temporarily housing displaced residents for the past 80 days and do not need any form of tax relief for this period.
Going forward, the goal is find long term (6 months or more) housing for these displaced residents and this is not in Hotel classified properties. But please recognize that there are STRs, and non-owner occupied properties who have already been providing housing to displaced residents, sometime without collecting any rent or subsidy.
Maui County receives 86% of its tax revenues from visitor accommodations. In West Maui more than 93% of Maui County tax revenues come from visitor accommodations. And it is properties classified as Short Term Rental (STR) and properties classified as non-owner occupied, used as second homes, that account for the majority of these tax revenues and NOT hotel classified properties.
West Maui has 6501 properties classified as STR (mostly condos) and 3101 properties classified as non-owner occupied. The vast majority of these properties are used by their owners for a portion of the year as second homes. If those second home owners are going to forgo personally using their second home for the next one or two years to house displaced residents, they will need to be incentivized.
This proposed waiver of property tax is perhaps the ONLY thing that Maui County can do to incentivized them to convert their properties to long term rental use. But understand that it will take much more than this to actually create these new housing opportunities for displaced residents. A comprehensive program will need to be developed that makes financial sense to all involved. And the provisions of that program will need to be publicized to these 9,602 property owners in order to find enough who would be willing to participate.
Most of these second home owner’s properties are not set up for long term rental use. Conversion to furnished long term rental and later back to short term rental will be costly for them. And the current property tax charged to these property owners makes it impossible for then to pay expenses and rent for anywhere close to a rent that a displaced family could afford. Even with the waiver of property taxes, some subsidy will need to be found to make this program successful. Hopefully FEMA can make up the difference. These property owners will need assurance that the rent will be paid and their units will be cared for.
When these properties are in short term rental use, they are meticulously cleaned, damages are promptly fixed and sometimes charged to the renting visitor, after each rental period. After a long term rental of years or more, substantial reconditioning would be expected before the unit would be ready for future short term rental.
Recognize that any rental of less than 6 months is subject to a total of 17.95% taxes (including Maui’s new GET). So you are really trying to find long term rentals of 6 months or more. Also, the Real property tax department is required to classify all properties and exemptions by the end of the calendar year for the following fiscal year. So, for a program such as this to work, within the current restrictions found in the County code, an alternate way to fund it would need to be created. I would suggest creating a new fund from which tax rebates could be paid out of, rather than simply exempting the taxes as proposed.
How much would this program cost? Figure the average property tax bill for a short term rental is $15,400/year, multiply this by the number of units that might be made available, say 1000 units. That would cost about $15.4 million per year in lost tax revenue.
Please see attached testimonies. Mahalo.
In regards to Bill 95 Section 3.48.551. I own a home at 272-Puaeli Drive in Lahaina, in the Puamana Community. We have not gotten access to our homes and will probably not have access for habitability for quite some time, There is damage from toxic elements as well as polluted water. We cannot use this property. Its value has plummeted. Please vote in favor of the Bill 95 and Section 3.48.551. It will provide much needed relief
Thank you
Jeffrey Sommers
Dear Budget, Finance and Development Committee,
I am writing to you to voice my support for the tax relief Bill 95 for homes in the Lahaina burn zone. Specifically the new section
3.48.551 that provides a two-year exemption from Real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6.
My husband and I have owned our home in Puamana for 25 years. We are one of the fortunate families whose home escaped the fire. That being said, our home is uninhabitable and may likely not be for the next 2 years.
We have no water or sewer and those services will not be restored in the near future. Our community is a toxic environment and will not be safe for quite some time.
Our home's property value has been decimated and our property taxes are based on our homes value.
These are very trying times and we appreciate all the hard work you and your council members have ahead. I hope you will support Bill 95 and specifically section 3.48.551.
Mahalo,
Bethany Knapp
Bill 95 section 3.48.551
Hello Moui County Representatives:
We own Puamana Unit 30-1 Pualoke Place that is an intact unit after the fires. I support Bill 95 and specifically the new section 3.48.551 that provides a two-year exemption from Real Property taxes for all properties in Lahaina Tax zone 4, sections 5 and 6. Our property is rental property when our family is not visiting and working. I am retired and the rental income from our unit supports our living expenses. I may not receive any vacation rental income from our unit for up to two years because of the fire's impact.
1) We have no water or sewer, and our property is covered and filled with toxic smoke and ash.
2) We are located in the North end of Puamana which is surrounded by many of the 94 destroyed units.
3) Property taxes are based on property values, and ours has suffered.
4) The clean-up of Lahaina Town will take at least a year once it finally starts.
5) Once we have water and sewer, it will take several months before the water is not toxic.
Thank you in advance for your attention to my request.
Dave and Cheryl Houston
30-1 Pualoke Pl Lahaina
Aloha Maui Elected Officials,
My name is Eric Freeh and I am writing in support of Bill 95, specifically section 3.48.551 as well as Tax Bill 102, Section 3.48.465 which would provide an exemption from Real Property taxes for all Real properties destroyed or damaged in the August 2023 Maui wildfires. My family and I feel blessed to have our unit 201 at Lahaina Roads. We are deeply saddened by the loss of life and property as well as the ecological damage caused by the wildfire that swept through Lahaina Town on August 8, 2023.
Even though Lahaina Roads is "still standing" it is completely uninhabitable. There is no power, water or sewer and the property is covered and filled with toxic ash and smoke. Our home won't be safely habitable until the Lahaina Town toxins have been cleared and removed and we are being told that this could take years. Property taxes are based on property values. Our property values have been decimated by the destruction of Lahaina Town and our surrounding neighborhoods.
We respectively ask that the Budget Committee vote in support of Tax Bill 95, section 3.48.551 and Tax Bill 102, Section 3.48.465. All of Lahaina Town needs Tax Relief, including our unsafe, uninhabitable "standing" properties.
Mahalo for your consideration,
Eric Freeh
1403 Front Street, Unit 201
Lahaina, HI 96761
Thank you for taking the time to understand our concerns. We support this bill because of the unforeseen hardship it has put us in. Personally the income from our unit was to help subsidize my mother-in-law’s care in a San Francisco nursing center. Now that is gone but the bill’s are just mounting. We desperately need some relief so we can survive. We have made Lahaina our home and have loved the aloha of the people
So please help us all.
Pono is all we ask.
We support Bill 95 as owners of 30-2 Pualoke Place in Lahaina.
We have no idea of the damages of the toxins that have seeped into our home rendering an unsafe and toxic interior.
In addition are the following concerns:
1) We have no water or sewer, and our properties are covered and filled with toxic smoke and
ash so we cant even use our property.
2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and
removed.
3) Our home's property values have been decimated.
4) We have unsafe uninhabitable smoker homes.
Please consider this bill 95 as we can not use our property for several years.
thank you
Dan & Barb Schwalbe
30-2 Pualoke Lahaina