Meeting Time: November 16, 2023 at 1:30pm HST
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Agenda Item

BFED-35 Bill 91 (2023) REAL PROPERTY TAX EXEMPTION FOR PROPERTIES IMPACTED BY NATURAL DISASTERS OR WILDFIRES (BFED-35)

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    Guest User 10 months ago

    Konnichiwa Maui County BFED Committee,

    I am here today to support exempting property tax for owner-occupied homes that are located in the fire area and are currently uninhabitable. We would additionally like to ask that if any current investment property is willing to rent at HUD rates, long term, to displaced residents, they can also receive the identical tax benefit. Puamana has very few surviving resident properties however over 100 TVR class properties still stand. If a displaced resident can obtain a long term lease from one of the many intact Puamana investment properties, we ask that the council consider waiving all property taxes for the duration of the lease. The agreement of a long term lease should be a binding contract once the property is available for occupancy. This should allow for immediate tax relief consideration for investment property owners. We ask the council consider waiving the current Long Term Rental tax class in its entirety for the duration of the rental contract. We hope the council can make it clear that residents are the focus of these relief efforts and if you are an investment property owner willing and able to help a resident, you also can receive identical and timely property tax relief from Maui County.

    Approximatly 5 of the more than 200 investment properties in my community participated in long term rentals to help the well known and escalating Maui housing crisis. The fire related housing emergency calls for extra ordinary measures County wide to try and find homes for all of our displaced residents. We hope Maui County can find a way to incentivize and motivate all investment property owners throughout the county to rent affordably and long term to displaced Maui residents.

    In closing, we request the elimination of taxes for owner occupied properties in the burn zone and the temporary reduction to zero of long term rental tax rates for any Maui County investment property willing to affordably house displaced residents.

    Mahalo for your time.

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    Guest User 10 months ago

    Aloha,
    I am an owner at Lahaina Shores Condos. While our building survived the fire it is within the fire zone. We understand water and sewer to the area are compromised, and have heard that it may be a number of years before our property can be utilized by anyone. Many of the units in Lahaina Shores are owned by individuals who rent them out for part of the year, and thus are not classified as "residential." Nonetheless, we, like many others, are not in a position to absorb the losses we have suffered. Given that our property cannot be used for any purpose, we would ask that tax relief be extended to properties, such as ours, that are not residential, that may be standing, but that cannot lawfully be used.
    Mahalo, Donna Butterfield

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    Guest User 10 months ago

    My name is Dave Houston. I am a Puamana owner in Lahaina, and would like to rent long-term to locals who need housing and receive a property tax adjustment from our present status. Thank you. Dave Houston

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    Peter Horovitz 10 months ago

    My name is Peter Horovitz. I am a Wailuku based attorney and resident of Makawao. I submit this testimony on my own behalf. I am in support of tax relief for all properties destroyed or rendered unusable due to the August fires, regardless of location on the island, and regardless of zoning classification. I think exemptions should lapse if properties are sold, and I also support tax relief by way of reclassification, for those TVR, STHR, Hotel, and timeshare properties used to house fire evacuees.

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    Guest User 10 months ago

    Dear Committee Members,
    I am writing to support inclusion in BFED-35 of ALL homeowners affected by the Lahaina wildfire whether owner occupied or not. Our home is not habitable and may not be habitable for over 2 years given the recent estimates for restoring drinking water.

    My husband and I have been supporters of the Islands almost all of our married life - over 24 years. We are environmentally conscious, supporters of locals and natives and we do all we can to love, respect and support our Maui Ohana. We have owned property in Lahaina since 2015 and it is our goal to help Maui rebuild Lahaina in a way that preserves its tradition and culture, supporting Lahaina’s right to retain control of the rebuild. While we cannot live full time on Maui we consider it our home. We are invested not just financially but emotionally. We respectfully ask that we be included in the tax relief despite the fact we cannot live in our home full time. We have been devastated by the loss of our Lahaina Ohana and we have felt the affects as well. We ask only that we be fairly treated and included in tax relief so we do not lose our home as well. Please amend the bill to include ALL owners whose homes are not habitable.

    We will continue to support Maui, Lahaina, and our friends on the island. We ask only the same consideration from the governing body we support and that relief be given to all of us affected.

    Thank you for your time and consideration, Kristin Tassin, Lahaina homeowner

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    Guest User 10 months ago

    I am an owner at the Lahaina Shores. While our building survived the fire it is within the fire zone. We understand water and sewer to the area are compromised, and have heard that it may be a number of years before our property can be utilized by anyone. Many of the units in Lahaina Shores are owned by individuals who rent them out for part of the year, and thus are not classified as "residential." Nonetheless, we, like many others, are not in a position to absorb the losses we have suffered. Given that our property cannot be used for any purpose, we would ask that tax relief be extended to properties, such as ours, that are not residential, that may be standing, but that cannot lawfully be used.

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    Guest User 10 months ago

    Dear Council Members:
    We own a property at Puamana, Lahaina. We do not rent our unit out as we use it as second home, but we are taxed at the highest rate. It is very fortunate that our property survived the fire. However, we are in the severely burned zone and our home has been uninhabitable for the last 3 months. Without basic services of water and sewer, provided by the County, it is likely that our home will not be habitable for perhaps a year or more. How would you feel if you were in our situation?
    We respectfully ask you to consider extending tax relief to property owners like us, given that our property cannot be used by anyone anytime soon.
    Mahalo for your kokua,
    Carl & Shirley Verley
    48-1 Puamelia Place,
    Lahaina

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    Guest User 10 months ago

    I am an owner at the Lahaina Shores. While our building survived the fire it is within the fire zone. We understand water and sewer to the area are compromised and have heard that it may be a number of years before our property can be utilized by anyone. Many of the units in Lahaina Shores are owned by individuals who rent them out for part of the year, and thus are not classified as "residential." Nonetheless, we, like many others, are not in a position to absorb the losses we have suffered. Given that our property cannot be used for any purpose, we would ask that tax relief be extended to properties, such as ours, that are not residential, that may be standing, but that cannot lawfully be used.

    Mal Jones
    Owner
    Unit 121 Lahaina Shores
    475 Front Street
    Lahaina
    malOHS9823@outlook.com

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    Guest User 10 months ago

    Dear Budget, Finance, and Economic Development Committee,

    We are writing in support of the proposed property tax relief bills (91, 95, and 102), in the hope that the various aspects of these bills will be combined into one that provides relief to all those impacted by the devastating wildfires. Specifically, we'd like to see the provisions from 91 regarding destroyed or uninhabitable/unusable property combined with the relief to hotel owners providing housing to those in need from 95 and the sunset clause from 102.

    We own unit 633 at Lahaina Shores and take an active role there. (Mike currently serves as the president of the association of Lahaina Shores homeowners and Nancy is a member of the Rental Advisory Committee.) We are grateful our building survived the fire, and our hearts go out to those who were less fortunate. But conditions in the area suggest our building may be unusable for the foreseeable future. We haven't even been able to reliably access our building to perform all the needed inspections and repairs.

    Lahaina Shores owners include residents, part-time residents, and those who rent out their units. As one of the few standing buildings in Lahaina, we hope to be a part of the rebuilding of Lahaina and support the local community once our building is inhabitable. In the meantime, we ask that consideration be given to the fact that our property is currently unusable for all owners, for any purpose. We respectfully ask for relief from property taxes, especially since they are based on value and use, at a time when the value and usefulness of our property has been so severely impacted.

    Sincerely,

    Mike & Nancy Landreth
    Lahaina Shores #633
    mlandreth67@gmail.com

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    Guest User 10 months ago

    Dear Council members,

    I'm one of the over 100 individual owners of an apartment at Lahaina Shores Beach Resort. As you know our building is within the fire zone, but survived the fire intact but, at the moment, with unknown damage. We do know:

    * The basement is completely flooded.
    * There's no electricity nor water/sewer to the building
    * Engineers are currently evaluating the structure stability of the building.
    * Extensive smoke damage is evident

    Of course, with the complete destruction of Lahainatown it's obvious that the property cannot be used for years, even it it could be nursed back to health in a shorter time, as there's no reason for tourists to visit without a Front Street marketplace or harbor activities, not to mention all the other wonderful attributes that makes Lahaina so special. Lahaina Shores has a few full time residents, but most units are rented by the owners and therefor the property is not classified as "residental." Unfortunately, we cannot absorb the losses we've suffered. There is now no rental income to offset the ongoing expenses that continue. As an association we still have insurance premiums, reserve fees and other costs not covered by insurance. I know that some owners are wondering how to contend with mortgage payments on their units, without any offsetting revenue.

    Given that Lahaina Shores cannot be used for any purpose, estimated to be for a period of several years, we respectfully ask that property tax relief be extended to property such as ours, that are not residential, but cannot lawfully be used. In reality, our property is as much of a loss to its owners as any other that has been decimated by the fire.

    Thank you for your consideration.

    Michael and Ellen Tolzman
    Owner, Lahaina Shores Unit 229.
    tolz24@aol.com

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    Guest User 10 months ago

    Aloha and Mahalo for your time,

    My mother was born in a village on the hill beside the Olowalu stream in 1919. I was born in WA but always vowed to someday live on the island of my mother's and my ancestors.

    My house and ohana are located on Alio St in Lahaina. The property is in the Kauaula subdivision which was decimated by the August 8 fire. My house is one of 6 in my immediate area to have survived.

    I am retired. The house and ohana were long term rentals to local residents. My intent was to move into the ohana in the very near future. I would have already been living there except my former house tenant did not pay anything for all of the COVID protected periods. Now I am not sure I will even be able to financially survive the losses I will continue to incur due to fire. Insurance cannot sufficiently offset costs for the length of time we have been told to expect.

    I initially felt very blessed to have my property still standing. Unfortunately it will not be habitable for the foreseeable future due to the lack of water and power, as well as the contamination surrounding it. I have not been able to determine if there has even been damage to the property. I was not a resident at the time of the fire and cannot move in now. I have no reduction of taxes in sight for property I cannot use in any way. What value does unuseable property have?

    Unlike many in my situation, I have paid my taxes for this year. I will continue to do so until I have to ultimately give up my property. I pray that this will be avoidable.

    I respectfully request any tax relief the council can provide.

    Mahalo for your consideration of this matter as well as for all you do for our island.

    Aloha,
    Rochelle Brosseau
    rochebross@gmail.com

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    Guest User 10 months ago

    I am an owner at Lahaina Shores. While our building survived the fire it is within the fire zone. We understand water and sewer to the area are compromised and have heard that it may be a number of years before our property can be used by anyone. Many units at Lahaina Shores are owned by individuals who rent them out for part of the year and thus are not classified as “residential”. Nonetheless, we like many others are not in the position to absorb the losses we have suffered. Given that our property cannot be used for any purpose we would ask that tax relief be extended to properties such as ours that are not residential, that may be standing but cannot lawfully be used.
    Rita Vanderstoep owner of unit 614
    Lahaina Shores
    rrstoep@gmail.com

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    Guest User 10 months ago

    Aloha Budget, Finance and Economic Development Committee Members and Maui County Council Members,

    My husband and I are blessed to call Lahaina home, but on August 8th, our home was destroyed by the fire. We also own a unit in Puamana that survived the fire, but is uninhabitable. When I first heard about Bill 95, I was thrilled and relieved that the hardship for owners of standing homes, as well as destroyed homes in the burn zone, was being recognized, and that the County understood that charging property taxes without providing services was unreasonable. Unfortunately, within the amendments to Bill 95, there is now an exclusion for homes that are not being used as principal residences. I can no longer support BFED-35 which encompasses Bill 95.

    Currently, the message to owners of non-owner occupied properties, especially those who rent their units short term, is difficult to hear. There is a request in to Mayor Bissen and Governor Josh Green to use emergency actions under state law to convert short-term units into long term rentals and now these properties are being excluded from tax relief in the new form of this bill.

    Short term rental properties are typically in resorts with expensive homeowner fees and high property taxes, and without tax relief from the County, cannot be considered part of the housing solution. Not to mention that all properties in the disaster zone will be uninhabitable for an extended period of time, also precluding these homes from housing the displaced families. Please consider the willingness of non-resident homeowners to be part of the solution, as everyone on the WestSide is part of the same community, sharing the love of the WestSide, specifically LahainaTown. This has been my favorite place in the world since I first visited Maui in 1977. It is gone and it hurts me to see how our community is being divided during this time when we should be collectively working toward a solution while rebuilding our wonderful town. A step in the right direction would be to provide tax relief to ALL properties in the burn zone.

    Respectfully,

    Cathy Medina
    355 Front Street
    Lahaina
    cathykmedina@gmail.com

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    Guest User 10 months ago

    My wife and I have been owners on Maui since 1989 and full-time residents for the past several years. We were fortunate to have had our primary residence and an investment property in Lahaina until August 8th when our home was completely destroyed by the fire and our investment property became uninhabitable.
    My intent was to support Bill 95 and Bill BFED-35 to give all the victims of the Lahaina fire a property tax exemption because their property is uninhabitable with no potable water and no sewage. But unfortunately, I oppose Bill 95 and Bill BFED-35 since it does not apply to all homeowners that were affected by this tragic event. This situation will continue for at least several months to come. Singling out homeowners who are not living in their units is a form of discrimination. This is a time when all the people of Maui should work together. It is not the time to have policies that only help a few and hurt so many others.
    Please consider the TOTAL well-being of all the people who love Maui!
    david.w.medina@gmail.com

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    Guest User 10 months ago

    Aloha,

    I am a long time resident of the westside of beautiful Maui for almost 30 years. My sons were raised in Lahaina and I’m a member of our community. Our heart breaks daily as we witness the destruction of our Lahaina town and grieves for all the people who lost their lives. Our community will never be the same and those lives lost will always be remembered. I thank you for all you have done to this far help our community.

    Along with being a resident, I also am an owner of a Lahaina Roads condominium located at, 1403 Front St.

    Although our building was not burned to the ground on Aug 8th, it was subject to extreme heat and deemed uninhabitable.

    The apartments on the south and north sides of the building were heavily damaged. We don’t know if there are cracks in the concrete as a result of the high heat and if our building is structurally sound. A car in the garage melted, burning water/sewer pipes and electrical wires. Our mail box bank melted. Etc. We won’t know the true condition of the property until we are able to access the building and perform viability tests on the concrete as well as the other utility/infrastructure systems.

    I’m wondering when those of us who have buildings still standing but uninhabitable will be addressed?

    I have been laid off and as everyone else the future is uncertain. I have been in the hospitality industry for almost 30 years on the west side. I have been unable to qualify for any of the funds being distributed to help those in need due to the building “ still standing”.

    The Mayor’s decision to waive RE taxes only for ‘improved structures that were completely destroyed’ (https://www.mauicounty.gov/civicalerts.aspx?aid=12718) in the burn zone does a huge disservice to owners blessed enough to have their home survive to some degree. We cannot access our property. We do not have the benefit of infrastructure such as water, sewer, electric service. We cannot use our property at all until all the clean-up work is complete and our building has passed various integrity checks. This is certainly as far out as one year, and could be as much as 2 years. We deserve to be included in the ‘total loss’ burn zone at least for one year.

    As our County Council representatives and Mayor , please advocate for us to be included in the Lahaina wildfire burn zone, complete loss, because at the moment there is no difference between the structure being completely flattened and somewhat standing.

    Your attention and guidance to this matter is greatly appreciated.

    With deep gratitude,

    Madeline “ Vida” Allen
    808 283 4169
    vidaallen@me.com

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    Guest User 10 months ago

    RE: Please approve Bill 95

    We need full property tax relief, for all properties in Lahaina tax zone 4 sections five and six.

    For our Condo on front street that miraculously remained standing after the fire

    1) We have no water, sewer, or electricity, and our property is covered and filled with toxic smoke and ash.
    a. The most significant news from this past week were comments made by the Director of Water supply who said that it will be two to three years before safe drinking water will be available in Lahaina
    2) Our homes won’t be safely habitable until the Lahaina Town toxins have been cleared and removed, normal clean up completed and utilities etc. re-established for all of Lahaina. (maybe 1-2+ yr timeline optimistically)
    3) Numerous toxic cancer-causing pollutants were released throughout Lahaina Town in the fire. Recently we have been told by experts in toxic cleanup that because our homes have been sitting in the Lahaina heat for months with toxic ash inside, walls have soaked up the toxins requiring more than just mitigation cleaning.
    4) Everyone’s property values have been decimated.
    5) ALL HOME OWNERS of Lahaina fire zones needs Tax Relief

    Thank you,
    Connie Maurer
    Lahaina Roads
    1403 Front Street unit #311
    Lahaina, Hi
    chm_nm@yahoo.com

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    Guest User 10 months ago

    Testimony for the BFED committee on Bill 95 that will be up for vote on Thursday.

    This bill includes important provisions for property owners in the fire disaster zone that have been deprived of the enjoyment of their property but continue to be liable for short term rental real estate taxes.
    It is now obvious that Lahaina will not be inhabitable for quite some time, while electrical connections can be restored, water hooked up again, and toxic debris cleared away. Recent comments by John Stufflebean, the director of Maui County’s Department of Water Supply suggest this may be two to three years.
    Short term rentals in the devastated town may be even longer to return.
    It is only fair to suspend Real Estate taxes until the property can be enjoyed as intended.
    I ask that you vote for Bill 95 as amended by Ms. Paltin as a fair way to accommodate the significant losses incurred by owners whose properties are unusable, yet who want to continue their special connection to Lahaina.
    Thank you for working through this terrible time for Lahaina and helping rebuild Maui for future generations.
    Mahalo and aloha,

    Nick Seiersen
    Author of “le Bon Accord Avec le Bon Fournisseur” The Right Deal with the Right Supplier
    Sustainable value for every supply chain dollar through the right deals with the right trading partners
    647 299 8360
    nseiersen@hotmail.com

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    Guest User 10 months ago

    Good evening County Clerk of Maui,
    I am one of the owners of Unit 305 at Lahaina Shores Hotels. There are about 200 units in the hotel. Fortunately our building survived the horrible fires in August 2023, but we understand that we are not able to enter as of today. I was told that our water and sewer has been compromised and that it could be a few years before our property can be used by anyone.
    Many of the owners at Lahaina Shores rent out their units some of the time during the year and therefore should not classified as "residential". At this time we still do not know if there is damage to our interior units.
    Since our units cannot be used by owners or guests, we are not in a position to absorb financial losses and have lost revenue since August 2023. We are asking that all tax relief be extended to Lahaina Shores owners. The building is trending but no one is allowed to enter or reside there.

    Thanks,
    Irene Yamagata
    homesbyirene@gmail.com

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    Guest User 10 months ago

    Aloha Council Members,

    Mahalo for taking your time to read my letter.

    I have been a fulltime resident of Maui county for over 40 years, my children were born here, my grandchildren also and are of Hawaiian Ancestry. I write to you today to ask for your kind consideration on the amendments to the original council bill 95 for all fire affected zones.

    While my home still stands it is uninhabitable due to the remediation that needs to happen before my family or any other persons can live there. We are displaced as well and jobs and income impacted.

    As you are aware, there is no consumable water and as I understand from what I hear from the authorities it is not expected to be for 18 mos. or more.

    Also, there is no sewer and again up to 2-3 years from what I am told.

    We are all hurting from this devastation and tragedy and will be for years to come, therefore I ask for your kind consideration to vote NO on the amendments.

    Mahalo,
    Laine Assid

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    Guest User 10 months ago

    Aloha,

    When Maui County Council initially proposed council bill 95 and property tax relief for all, I was struck by your wisdom, compassion, empathy, sense of fairness and good common sense. You seemed to understand that still standing homes were, in most cases, were uninhabitable and not suitably safe for owners or housing displaced families. Unfortunately, amendments as proposed will adversely or indirectly affect all Maui families and actually reduce housing availability.

    All experts we have talked to regarding the damage on the exterior and interior of our home, as with the majority of standing homes in all the affected areas will require 6 to 10 months to mitigate the fire damage.

    The most significant news from the past few weeks were comments made by Maui’s Director of Water supply saying that it will be two to three years before safe drinking water will be available in Lahaina. Additionally, we hear the sewer system will not be operable for 2-3 years. https://www.civilbeat.org/.../it-will-be-years-before.../

    Please show the same wisdom, compassion and empathy, fairness and good common sense shown in the original bill as regionally introduced. Please vote No on the proposed amendments.

    Thomas Clements