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 about 1 year ago

    Testimony for BFED 35
    Submitted by Thomas Croly

    The three bills that are part of BFED-35 each aim to provide real property tax relief for properties impacted by the wildfires of August 8, 2023. The Mayor used his emergency declaration powers to waive the FY2024 Real property taxes for all properties destroyed by the fires. While he did not expressly extend this to properties that were not destroyed, but left uninhabitable, these properties should also receive the same tax relief for FY2024 because of the destruction surrounding these properties and lack of County infrastructure.

    These properties, in Lahaina burn zone, have not been available to their owners for the past 100 days and, based on the timeline estimates for debris removal and utility restoration, these properties will not be habitable for at least a year and possibly for up to 3 years. Therefore, for the current tax year, ALL of these property owners in the Lahaina burn zone should receive the same tax relief, and that relief may need to be extended to FY2025 as needed.

    The loss of tax revenues that was initially estimated for the Lahaina burn zone, and included in Bill 94, was $19.5 million. Only after excluding the properties that were not fully destroyed, did the RPT department reduce this loss of this tax revenue to $11.5 million. I suggest that the County grant the full tax relief to all the properties in the burn zone and use the $19.5 million loss of revenue estimated in Bill94 to balance the FY2024 budget and plan for a similar loss for FY2025.

    Perhaps benchmarks will need to be established for determining when these properties are eventually declared habitable or when the lots may obtain building permits to allow reconstruction and when this tax relief could be suspended. But these property owners should not be required to pay property tax while their properties are unusable unless they were to sell the property.

    The proposed bills go on to extend homeowner exemptions to properties that were granted a homeowner exemption prior to the fires. And I support this intent, but this is irrelevant for the period when the property taxes are waived and would only become relevant once property tax assessment resumes for these properties. And perhaps this provision should have a requirement that the tax subsidy provided by the homeowner exemption would need to be paid back if the destroyed property does not resume qualifying homeowner use as soon as it is rebuilt or should the property be sold prior to its reconstruction.

    Finally, Bill95 has a section intended to incentivize property owners of second homes and short term rentals to convert their use to house displace Lahaina residents. And I fully support this intent. The Mayor has a program currently in place to pay residents up to $1500/month for housing displaced residents in their own homes, most of which pay less than $1500/year in property tax. So, the tax relief that I support for conversion of STR or second home use to Long term Rental use is similar to this program.

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    Guest User about 1 year ago

    Aloha

    We are Gerald and Arlene Bachecki and own in Puamana, Lahaina since 2000.

    This email is to support Bill 95 and Bill BFED-35 to give victims of the Lahaina fire a property tax exemption because their property is uninhabitable with no potable water and no sewage. This situation will continue for at least several months to come. Singling out home owners who are TVR owners is a form of discrimination. Without any protest, we have paid our taxes for more than 20 years. Without owners like us, where would the Maui economy be? We think you are not only doing us a disservice, but also Maui and Hawaii in general.

    Please consider the TOTAL wellbeing of all the people who love Maui!

    Gerald and Arlene Bachecki
    kdaxo1@gmail.com

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    Guest User about 1 year ago

    I have been following the progression of proposed legislation to provide tax relief to homeowners affected by the fire, specifically those of us with "intact" homes in the fire zone. I emailed and submitted testimony previously; my husband and I are owners of 87-1 Pualei Drive in Lahaina. Our home is still standing but surrounded by homes that burned to the ground. The community in which our home is located is currently one with "limited access" - meaning we have to get the National Guard to approve limited access to the property.

    Our home is NOT INHABITABLE and will not be for months to years. We have significant smoke damage that cannot and should not be remediated until after the surrounding toxic debris is removed, which is at least months away. We have no potable water or sewer. We have heard that it may be years before clean water is available in our home again.

    It appears that the amendment BFED-35 would only provide a tax exemption to owner-occupied properties. It would be terribly unjust to limit the tax exemption only to those homes that were exclusively owner-occupied. Property taxes pay for services, and it sounds like basic services may not be available for years. The home has not been really accessible for three months now, and it will not be inhabitable for months to years to come. Property tax relief is much needed. Our mortgage and HOA obligations remain. Quite frankly, while our unit is still "intact", we too LOST our home for the foreseeable future.

    Aloha,
    Anne Fender
    87-1 Pualei Drive, Lahaina HI
    anne.fender@gmail.com

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    Guest User about 1 year ago

    Maui County Council Members,
    Budget, Finance & Economic Development Committee
    Meeting – November 16, 2023: BFED-35 - Bill 95

    In Support of Property Tax Exemptions for non-owner-occupied property owners

    We are the owners of a property located in the Lahaina burn zone. Our property was not destroyed but is located next to an enormous burn zone of toxic unstable rubble. We still have no water or sewer services. The County’s Director of Water recently stated at it will be 2-3 years before safe water will be available. Our home will require extensive cleaning/remediation to remove the ash/toxins but this cannot be done until the toxic debris has been removed from the surrounding burn zone which may take up to a year to complete. Our home is uninhabitable and there is no timeline as to when it will be safe to live in.

    In addition to property taxes, we are also still responsible for paying our monthly HOA fees and other expenses. Property taxes are based on property values which have been decimated by the destruction of Lahaina Town. It is unjust for ANY property owner of still standing but uninhabitable properties to be required to pay property taxes when basic County infrastructure (water, sewer) is not available due to fire damage, the property itself in uninhabitable, and surrounded by toxic debris which may not be removed for many months.

    In conclusion, it is unfair to exclude any class of taxpayer who continues to be significantly affected by this devastating fire. We respectfully ask that the Committee provide exemptions from property taxes for the next two years to ALL owners of properties (including non-owner-occupied) significantly affected by the Fire.

    Respectfully submitted,
    Peter and Donna Gibson
    dmg@telus.net

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    Guest User about 1 year ago

    Alan & Sondra Currie-Levi

    Nov. 15, 2023

    Dear Maui County Council,
    We are wholeheartedly requesting that you please pass Bills 91, 95 and 102 or any combination thereof. My wife and I are owners at Lahaina Shores (475 Front St., #123). While our building is still standing (albeit with severe damage) 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. We have no water, no sewer operation and at this time no power. And we haven't even been able to get inside at all because of the toxic environment in all of Lahaina to see what our interior heat and smoke damage might be, plus all of our personal losses. Needless to say, we cannot live in it, rent it or even visit our condo.
    Given that our property cannot be used for any purpose whatsoever, we are asking that tax relief be extended to properties such as ours, that are not residential, that may be standing, but that cannot lawfully be used for some time.

    Sincerely,
    Alan & Sondra Levi
    ajl14@aol.com

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    Guest User about 1 year ago

    My name is Michael Cornell and my wife Jana and I have owned two units at Lahaina Shores for nearly thirty years. 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.

    Michael K. Cornell
    michael.k.cornell@gmail.com

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    Guest User about 1 year ago

    BFED Committee:

    Our family has owned a home in Lahaina for over 35 years. While I would love to live on Maui full time, other needs in the states allow me only several months yearly. We have deep love for the island and our friendships there are priceless. We are very involved with our local church, the Church of Jesus Christ of Latter Day Saints which does many community service projects. Additionally, I volunteer at Feed My Sheep, and serve meals to those in need at Thanksgiving. I have worked on beach and highway clean crews and many other worthwhile projects when on the island.

    Please consider that we part-time residents are also good, law-abiding citizens who not only serve the local Maui community, but we have deep connections there. We hug and call you by name and you the same. We are very grateful for our Maui ohana.

    Our home is still standing however we have no water or sewer, and we are surrounded by toxic ash therefore our property is deemed unsafe and is completely unusable. I understand we will not have potable drinking water for possibly two years.

    Please consider our plea to please pass:

    BFED-35, specifically portion Bill 95 that previously created a full exemption from real property tax for ALL properties in Lahaina tax zone 4 sections five and six.

    Thank you for your consideration,

    Roxanne Whitbeck
    100-4 Pualei Drive
    Lahaina, HI. 96761
    rox.whitbeck@gmail.com

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    Guest User about 1 year ago

    Dear County Clerk, I own unit 428 at Lahaina Shores Resort. 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. I have incurred a significant cost in monthly revenue as well as a lack of home to call my own in beautiful Maui. Thank you for your attention to this detail, Celeste Herrick Doe
    cjhdoe@gmail.com

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    Guest User about 1 year ago

    Aloha,
    I am an owner of a unit in Puamana that was not destroyed by the wildfire.
    While I previously supported Bill 95, I want it known that I do not support the bill it in it's current state. It has been revised to exclude owners of surviving homes that are non owner occupied.
    It is not reasonable for owners of property that is uninhabitable and is expected to be unusable for years to have to pay property taxes. My property taxes are $ 30,000. The public services (water and sewer) are not being provided and it could be two to three years before they are. This in itself is a travesty!
    In addition, all owners of property in the fire zones face similar financial burden including clean up of toxic material and replacement of personal property. It is not just limited to a select few.
    In fairness to all affected properties, I urge you to extend the property tax exemption to all residential property in Lahaina.
    Respectfully,

    Corene Pearl
    226-4 Pualei Drive
    Lahaina, Hi
    puamana@aol.com

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    Guest User about 1 year ago

    I implore the council to approve both parts of Bill 95 to remove property taxes for all standing homes in the Lahaina Fire Zone. Lahaina will not have usable water for at least 2 years. Any home or condo left standing CANNOT be occupied with out water and sewer. Therefore, the county will not be providing any property services to owners/residents until the water system can be replaced and Waste plants replaced or repair. Electric alone will not get people back into their homes.
    This is only the first of many challenges we will have as we rebuild Lahaina. Please begin this process by approving all of Bill 95.
    Kathy Clarke

    Kathy Clarke Hawaii
    808-885-8060 Corp Office
    808-885-8045 Fax
    808-960-2275 Cell
    POB 2245, Kamuela, HI 96743
    kathy@kathyclarkehawaii.com

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    Guest User about 1 year ago

    I implore the BFED Committee to approve both parts of Bill 95 to remove property taxes for all standing homes in the Lahaina Fire Zone. Lahaina will not have usable water for at least 2 years. Any home or condo left standing CANNOT be occupied without water and sewer. Therefore, the county will not be providing any property services to owners/residents until the water system can be replaced and Waste plants replaced or repaired. Electric alone will not get people back into their homes.
    This is only the first of many challenges we will have as we rebuild Lahaina. Please begin this process by approving all of Bill 95.

    --
    Aloha,
    Kawehi Clarke

    Kawehi Clarke
    Spankys Riptide
    Operating Partner

    kawehiclarke@gmail.com

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    Guest User about 1 year ago

    To whom it may concern,

    My family has owned in Puamana since 1968. My grandmother was a resident of Maui and my wife and I have taken over the family home.

    We spend roughly six months each year on Maui.

    We are blessed in that our home is still standing.

    Since the fire our property has not been livable as we have no sewer or potable water. There is also the issue of toxins from the burned areas.

    My understanding is that we will, most likely, not have drinkable water for roughly five years - which means that our home will not be habitable for that time period.

    The situation in Paradise, CA is confirmation of this time estimate as they are, five years later, just getting water to all properties.

    We had hoped to rent, long-term, to friends who were displaced by the fire but, with no drinking water, it doesn't look like that will be a possibility for some time.

    My ask is that you please waive property taxes on all properties in the fire zone until they are habitable - with power, water and sewer and a clean air certification from the EPA. Our properties are simply not usable and won't be for years.

    Thank you for serving Maui County!

    Best regards,

    Pete Whitbeck
    100-4 Pualei Drive
    Lahaina
    925-324-9616
    peter.whitbeck@gmail.com

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    Guest User about 1 year ago

    Dear Maui County Council:

    RE: BFED-35 Bill 91 (2023) Real Property Tax Exemption

    My parents purchased Unit 119 at 475 Front Street in Lahaina, "Lahaina Shores” 23 years ago. They have both just passed and we were in the process of transferring the unit to my sister. She is retired and was planning to live there and prior to that we had just put the unit into the rental program to offset the costs while it was not occupied by my parents. While our unit in Lahaina Shores 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.

    As you consider Bills 91, 95, and 102 that if voted into law would help extend property tax relief until we can lawfully use our unit again, we’d be eternally grateful. I lost my home in Santa Rosa, CA in 2017 and Sonoma County enacted a moratorium on the Property Taxes during the clean-up and rebuild phase and it helped ease the financial burden while we were moving through the rebuild process.

    Please consider this when you are deciding whether or not to support the pending bill

    Warm regards,

    Julie Golden
    julie@goldenvineyards.com

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    Guest User about 1 year ago

    Aloha

    I am an owner at Lahaina Shores. Our unit is our sole income and retirement plan. With the fire our financial future is at risk.

    While our building survived the fire it is within the fire zone and the engineers have not yet advised if it is safe for occupancy.

    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.

    While some think of folks with stvr as “off island investors” with big pockets, we are lahaina residents who are suffering the loss of our community, our friends and neighbors, our income and asset. We have collected and contributed to the tax base for years and hope to have our unit be part of the recovery if it able. Please consider our plea for some tax relief since it is unusable at this time.

    Mahalo

    Lisa and Gary

    Lisa Berg and Gary Wellen
    Lberg808@gmail.com

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    Guest User about 1 year ago

    Dear Sirs,

    We have owned our unit in Lahaina Shores since the mid 1980's and have paid all taxes as required by the County and State. Our unit has been in a rental pool since we acquired it, although we try to use it 6 weeks a year ourselves because we really like Lahaina and Maui.

    Our unit has been uninhabitable since August 8, with estimates of 1 to 3 years before it can be occupied. Insurance adjusters have not been able to enter the building, thus we have no idea of how much it may cost to make it habitable again - this applies to our unit as well as the building and property as a whole.

    Any relief you can provide in the years the unit remains uninhabitable would be greatly appreciated.

    Sincerely,
    Willet Bushnell & Ida McMahon
    Owners Unit 328
    Lahaina Shores Beach Resort
    willet@matnet.com

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    Guest User about 1 year ago

    Aloha

    We were forced to move to the mainland due to Lahaina Shores not being able to be occupied. It has been our residence for 6-7 months out of the year for the last 12 years. Please accept this testimony in absentia.

    While the building survived the fire, it is within the fire zone and not able to be occupied. 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, such as ours, and thus are not classified as “residential" for tax purposes. Nonetheless, we like many others are not in a position to absorb the losses currently being suffered. Given that our property cannot be used for any purpose, we request that tax relief be extended to properties, such as ours that are not classified residential, that may be standing but that cannot lawfully be used.

    Mahalo
    Dr Charles Stratton
    cestratton@aol.com

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    Guest User about 1 year ago

    We are owners at Lahaina Shores. While our building survived the fire it is within the fire zone and suffered significant structural and utility damage. 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. Like many of the units in Lahaina Shores owed by individuals, we rent them out our unit for part of the year when we're not on the island, 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 property tax relief be extended to properties, such as ours, that are not residential, that may be standing, but that cannot lawfully be used. Thank you for your consideration during this difficult time for all of West Maui.

    Michele and Jeff Griepentrog, 847-804--5525, 475 Front Street, Unit #317, Lahaina
    magriepentrog@comcast.net

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    Guest User about 1 year ago

    Greetings:

    These are sad and unprecedented times for Lahaina, Maui and all who live there. I own two condos at Lahaina Shores. My daughter lived in one and the other was a rental unit (not "residential"). While our building survived the fire it is within the fire zone. Water and sewer to the area are compromised, and it may be a number of years before our properties can be utilized by anyone. Like many others, we are not in a position to absorb the losses we have suffered. Given that our property cannot be used for any purpose, we 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.

    Thank you for your consideration.

    Be well, SAM
    ____________________________________________
    Sam L. Teichman

    Luck is what happens when preparation meets opportunity
    -Seneca

    slteichman@gmail.com

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    Guest User about 1 year 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.

    Sincerely,
    Catherine and Vaughn Blumenthal
    Owner of Unit 621 Lahaina Shores
    Cathy_Blumenthal@msn.com

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    Guest User about 1 year 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.

    Thank you,
    Gary Folk
    cell # 253-208-1990
    e-mail garyfolk7@gmail.com
    web site www.Homehelper.info