I am writing to you as 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 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,
Anne Myers and Thomas Myers
Units #125 and #706
Lahaina Shores Beach Resort
475 Front Street
Lahaina, HI 96761
amyers1027@gmail.com
I am writing to express my extreme disappointment that the bill to provide tax relief for those impacted by the Lahaina fires has been amended to deny tax relief to owners of still-standing homes currently in the TVR/hotel tax bracket. As a fortunate owner of an intact unit in a severely burned area, I am anxious to get our home (previously used as a TVR for a portion of the year) cleaned and made available on a long-term affordable lease to a Lahaina neighbor who has lost theirs.
However, we are not expected to be able to do this at least until next year, and likely much longer. During this time our home is still uninhabitable and we are still liable for hotel-rate taxes. Not only is our property value severely diminished, we have no services to warrant those high-rate taxes, and a family who needs a home doesn’t have one. This really does not seem fair, or a real solution to the lack of housing for those displaced. In my small Puamana community alone, there are over 100 standing homes that should be available to those who lost. Equitable tax legislation would enable lower cost rentals.
I sincerely encourage you to consider expanding tax relief legislation to support all of West Maui’s recovery. Otherwise I cannot support this bill.
Jan Schlesinger
139-2 Pualei Drive
Lahaina,HI. 96761
jan.chameleon@gmail.com
My name is Mary Elkins and my husband and I are the owners of Unit 515 at Lahaina Shores Beach Resort located at 475 Front St. Lahaina. While our building survived the fire it is within the fire zone and while our building was not destroyed, it did suffer damage due to the fires. This coupled with the loss of municipal and county infrastructure like water, sewer and other services, our properties are unusable and we have been told it may be a number of years before our property can again be utilized as it has been for almost the five decades. Most of the units at Lahaina Shores are owned by individuals who rent them out for part of the year and may use them personally for some portion of the year, and thus are not classified as "residential" properties. Because of these extraordinary circumstances, we like the other owners find we will have to continue to absorb the costs associated with ownership but without any offsetting income.
Given that our property cannot be used for any purpose, and we are not utilizing county services at the level we would under normal circumstances, we therefore ask for temporary tax relief to be extended to properties, such as ours, that are not residential, that may be standing, but that cannot lawfully be used at this time.
Best regards,
Mary & Kevin Elkins
8203 57th Ave NW
Gig Harbor WA 98332
kmelkins6@comcast.net
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. We have used our home as a vacation/ second home. It would be a true travesty 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
Dear Council Members,
I am writing to you today regarding the three pending tax relief bills, 91, 95, and 102. We own a home and a condo in Lahaina, thankfully neither were lost during the tragic fires however they are currently uninhabitable. Our Lahaina Texaco was one of the many structures that were lost in the fires as well as the homes of many friends, colleagues, and employees. We believe that the bills should encompass all properties, regardless of zoning, which would include properties that are still standing yet uninhabitable. This tragedy has impacted everyone from residents to renters, as well as businesses. We would hope this will not negatively impact the longer-term status of TVRs, STRHs and Hotels. Thank you again for bringing this important issue to the council floor.
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,
Jeanette Louise Matthews and Thomas Eugene Matthews
Unit #508
Lahaina Shores Beach Resort
475 Front Street
Lahaina, HI 96761
lvjmatthews@gmail.com>
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 for your consideration.
Peter Clarkson and Michael Clarkson
Owners Lahaina Shores
To Whom it may Concern at the Maui County Council,
I am writing to you to show my support for the tax relief bills (91, 95, and 102). I am an owner at Lahaina Shores (475 Front St., unit 117) and would like to remind the council members that the units there are uninhabitable and have been since the day of the fires. Lahaina Shores survived the fire but is within the fire zone. Many of us at Lahaina Shores pay a higher tax due to our owning income producing property. However, most would agree that the methods used to assess our property taxes before August 8, 2023 do not or should not apply since that day due to “lack of uniformity or irregularity”. Our taxes cannot/should not be equal to what they were before the fire. It is unknown as to when we or anyone else will be able to occupy our units. There is no water or electric and won’t be for some time. As an owner who uses my property as an income producing property this greatly effects me. I’m asking that the tax relief be extended to properties such as ours, that are not residential, that are still standing but cannot be used as intended nor lawfully.
Mahalo for your time and thoughtful consideration,
Brittany Hudson
Unit #117
Lahaina Shores Beach Resort
475 Front St.
Lahaina, HI 96761
alfini2@aol.com
I know that bills to give some relief to those affected by the Lahaina fire are before the Council at this time. I also know that you have heard testimony to combine these bills into a universal effort to give broad assistance to those affected by the fire.
I am an owner at Lahaina Shores. While the building was spared, and even though our designated area has been opened up, owners at Lahaina Shores remain restricted from accessing the building pending the conclusion of a structural analysis report. This could take many more weeks before we can so much as set foot on the property to see what of our personal effects are lost.
Even once that is complete, a lot of repair will be needed to address the effects of the fire. And we also do not have any utilities while being told it may be years before there is potable water.
All the while, we are being asked to not only keep paying our owner fees that are necessary to support the building, but we are also being forced by the County to pay taxes based on what is now a completely unrealistic property valuation at a very high short-term rental rate even though our property is still inaccessable and may not be able to be occupied or produce rental income for years.
This is both unfair and unfeeling. Many of our owners may well reside off island, but they love Maui and Lahaina Shores and were counting on rental income from their investments to fund retirements, educations, and basic living expenses.
Please combine and pass these bills providing relief to everyone directly impacted by the fire. We look forward to the day Lahaina is recovered and Lahaina Shores is operational so that we can afford to pay property taxes on a viable property.
David R. Brown
drbrown26@gmail.com
475 Front Street, Apt 703
Lahaina, HI 96761
336-457-9877
Real Property Tax Relief to facilitate conversion of Short Term Rentals (STR) and second homes to Long Term Rentals (LTR) in West Maui to serve displaced Lahaina fire victims
There is a hope that some of the 6501 STRs and 3101 second home owners in West Maui might convert the use of their homes to Long Term Rentals to serve the West Maui residents who have been displaced by the fires. To date, nothing has actually been done to help facilitate such conversion. Only “Hopes and Prayers”, much like those offered by gun advocates whenever there is a mass shooting. Maui County MUST do more than offer these hopes and prayers to help address this immediate need for rental housing.
The County of Maui funds its operations primarily through the property taxes paid by STRs and second home owners. These property owners alone account for more than 64% of all the property taxes paid in Maui County. This is because the tax rates applied to these property classifications are as much as 10 times that of the rates paid by residents. On average, West Maui STR owners pay $15,456/year in property tax and West Maui non-owner-occupied property owners (second homes) pay $9,747/year. By comparison the average Owner-Occupied property owner pays $1,155/year. While there may be very sound policy behind these tax rates, this high property tax burden is one reason that very few STR or second home owners might even consider changing the use of their properties to LTR, even in the current circumstances.
Maui County offers a 100% tax exemption for “affordable” Long term rental projects and I advocate that it should do the same for STR and second home property owners who are willing to change the use of their properties temporarily to LTR to serve the displaced fire victims. When the property tax obligation is added to the condo maintenance fees, the average STR condo owner has a carrying cost in well in excess of $2500/month EXCLUDING mortgage expense. That being the case, few would be able to even consider renting their units for the HUD fair market rents of approximately $2000/month for a 2-bedroom unit.
Testimony from the Real Property tax department clearly shows how the Long Term Rental tax exemption does little to address this issue and how it is impractical to delay any tax relief for as much as 10 months from now. The Long Term Rental exemption program will not help create any conversion of these STRs. And the requirement of entering into a one year lease today and registering for a long term rental exemption by the end of this year (or even by January 1, 2024) for a $100 to $300 reduction in monthly property tax obligation will do little to incentivize these property owners.
The Governor has stated that the State is “working” with Short Term rentals to make units available, but nothing has really been announced to actually encourage owners to change their use. FEMA has stated that they can offer rent subsidies of up to 170% of fair market rents for 3 months at a time and perhaps for up to 18 months, but what happens to the displaced family in 18 months when the rent subsidy ends?
For reference, HUD published Fair Market Rents (FMR) for Lahaina for 2023 are:
Studio $1,532, One Bedroom $1,606, Two bedroom $1,986 Three bedroom $2,731
The FEMA offer of 170% of the FMR is:
Studio $2,604, One Bedroom $2,730, Two bedroom $3,376 Three bedroom $4,643
HUD published Fair Market Rents (FMR) for Lahaina for 2024 are:
Studio $1,676, One Bedroom $1,701, Two bedroom $2,139 Three bedroom $2,927
The FEMA offer of 170% of the FMR is:
Studio $2,604, One Bedroom $2,892, Two bedroom $3,636 Three bedroom $4,975
While the FEMA offer of 170% of FMR may incentivize someone already in the business of LTR to rent to displaced fire victims, it would barely meet monthly expenses for STR owners without some property tax relief.
The proposal in Bill 95 to provide a tax exemption by the month for properties rented long term to fire victims is good for its intent, but impractical to administrate, given how our Real property taxes are assessed, collected and reported. Instead, I would suggest a $15 million fund be established to provide a Real property tax refund that could be included in next year’s budget. I might further suggest that this property tax refund could be paid out twice per year, only after the property owner has shown that their unit has been rented for at least 6 months to a fire victim. Payments could begin as soon as July 1, 2024 for those accommodated between August 8, 2023 and June 30, 2024.
Once the Council can decide on a policy and mechanism for providing this tax relief, the real property tax department could send out a notice of this program targeted to the STRs and non-owner-occupied property owners in West Maui of assessed values that would make sense for the proposed conversion. But this must happen quickly, if units are going to become available in the next couple months. The goal would be to achieve 1000 new long term rentals. At an average tax rebate of $15,000/year this program would cost $15 million per year.
The mayor already screwed up, by not keeping it simple, but what's new in Maui County. All properties within the FEMA designated disaster area should have taxes waived to a certain extent. If you want to separate the still standing structures from the destroyed at least fully exempt the destroyed and only charge minimum tax to those still standing but greatly affected either because of lack of access and/or lack of utilities.
Also, we're looking at 7-10 years here of any sort of rebuild of a "community". All the telephone poles have been cut down so zero utilities in the residential neighborhoods. Sewer lines all need to be redone. Let's not forget the biggest obstacle in this--the planning and permitting departments.
Therefore, just make these property tax codes something that is long-term. You shouldn't have to waste your time every year on counting the pennies you want so squeeze from whatever is left of Lahaina. Spend that time on expediting every process you possibly can to make the rebuild a speedy reality.
My husband and I are owners of a home in Lahaina that was not completely destroyed in the devasting August wildfire. It was our retirement dream to live full time in Lahaina. We fell in love with the community and the beautiful area the first time we visited, 45 years ago. We saved our money so that one day we could live on the beautiful island of Maui. We were able to purchase our home in 2018. Before the fire, we were renting for part of the year until our grandchildren, who live in California, went off to college. Then we planned to move full time to our home in Lahaina. I was already investigating ways that I could volunteer in Lahaina to give back and support the community. For example, I wanted to volunteer at Maui Friends of the Library and King Kamehameha III Elementary School since I am a retired elementary teacher. We were so excited to become a part of the Maui community.
When I first heard about Bill 95’s exemption from property taxes for property owners in Lahaina Tax Zone 4, Sections 5 and 6, I was so thankful for some relief from the devastation. Now, I am extremely disappointed to see revisions to Bill 95 being proposed that nullify tax exemptions for owners of surviving homes, such as ours, that are classified as not owner-occupied.
We are not able to occupy our home because there is not water or sewer service and the estimates of receiving these services is from months to years. Please understand that the impact on those of us whose homes survived is substantial, not just financially, but the emotional loss of the wonderful community. We know many people are suffering and in need of government support. We hope you can also understand our situation and need of support too.
Our property taxes are substantial in particular because our home was not a full-time residence. Our home will probably not be viable for living, given its condition and location, for years. As a result, the property value of our home has been drastically decreased.
I respectfully urge you to extend the property tax exemption in Bill 95 (included in Bill BFED-35) for all homes in Lahaina Tax Zone 4, Sections 5 and 6.
I do not live in Maui permanently but own a home in the Lahaina Burn Zone which, while "intact”, is surrounded by massive devastation resulting from the wildfire. The property does not have any access to County water or sewer currently and, based on advice from your own Water Department, likely will not for years into the future. As a result, the property will be uninhabitable by anyone for a long time.
In these circumstances, it seems both inequitable and unconscionable to continue charging property taxes at least until the County has restored basic services and the home is once again inhabitable. Accordingly, I would respectfully ask that you ensure that the proposed legislation expressly exempts any and all homeowners finding themselves in the situation described above from having to pay property taxes for the next two years.
TESTIMONY OF THOMAS MULVIHILL.
I am an owner of 9-1 Puamelia Place in Puamana. This unit is within the fire zone and has been uninhabitable since the fire. The unit may remain unoccupied for the next two to three years in the absence of safe drinking water.
Bill 95 seeks to avoid doing further harm to those of us who have experienced such a catastrophic loss by temporarily suspending the real property tax in Lahaina tax zone 4 sections five and six where our unit is located. This Bill seems very just and exemplifies the standard of good and compassionate governance to “do onto others as you would have done unto you.”
However, we have just now been made aware that there is a proposed amendment which would limit this exemption to only full time residents.
Respectfully, this is neither a laudable nor compassionate amendment.
Whether the unoccupied unit is owned by a full time resident or by someone who spend most of the year on the island without declaring residency is a distinction without a difference.
In both cases, the ethical rationale for providing tax relief (the avoidance of financially burdening someone who has already sustained such a terrible financial loss; the recognition that the government is not providing multiple essential services in exchange for taxation; the significant loss of inherent property value) is exactly the same.
Accordingly, I would ask that you give kind consideration to the proposal to exempt all currently unoccupied properties in the fire zone for the payment of property taxes until such time as the units can be occupied.
Kind regards
Tom Mulvihill
We support bill 102, as owners of unit 113 at Lahaina Shores Beach Resort to obtain tax relief during the time when our condos can be ready for occupancy. With no income coming in it will be financially devastating to keep paying taxes as if nothing happened in Lahaina. We as others stand ready to use our condo to house displaced Lahaina residents, but we urge you to please give tax relief to owners.
Lahaina Shores Beach resort #113
Chri & Dan Major owners
I am a former firefighter forced to retire last year due to a disabling work injury. In June 2022 I sunk my life savings into a massive down payment on a townhome in Puamana Lahaina. It is within the impact zone but miraculously did not burn. However, it is uninhabitable now and for the foreseeable future. I supported the original Bill 95 but can't support it if it excludes homes that were not destroyed by the fire and cannot be occupied by owners, displaced persons as renters, or anyone else.
The Director of Maui's water supply recently said in the media that it will be two to three years before safe drinking water will be available in Lahaina. This means that we will not have access to our home though we will still be required to pay property taxes in full. This represents a very substantial hardship to me as a retired firefighter since I am now obligated to make the massive mortgage payments, HOA payments, and pay for housing elsewhere. It is certainly unfair to grant an exemption for destroyed homes but deny it for homes that still stand but are equally unusable.
I would greatly appreciate an amended version of the Bill that would grant tax relief to all properties in the burn zone, whether habitable or non-habitable until that time when all utilities are restored to permit safe occupancy (i.e. potable water and sewer connections). This is because our home and all other inhabitable properties would not be able to qualify for the tax exemption by owner occupancy or by renting to a family displaced by the fire, as all of these homes would not permit safe occupancy due to the lack of potable water and sewer services. Granting tax relief status to all properties in the burn zone would seem to be a fair and equitable solution.
Mahalo for your consideration.
Trevor Alt
167-4 Pualei Drive
We own property located in Lahaina Tax Zone 4, Section 6. As a result of the recent devasting fire, 92 of 230 homes in our community were destroyed. Our building, comprised of six units, is intact. However, due to the proximity of the fire, the interior of our home suffered considerable damage from intrusion of smoke, soot and ash. Remediation of this damage will require substantial cleanup, removal of toxic substances, and repairs that will cost thousands of dollars and take years to complete.
Although our home now has access to electricity, we do not know when water and sewer services will be restored. Recent news reports indicate that potable water may not be available for up to three years. More importantly, our entire community is a toxic, hazardous and unsafe environment. Our home may not be inhabitable for years, due to environmental cleanup, rebuilding activities, and utility accessibility.
As a result of the above, we believe that our property should be exempt from property taxes until it becomes livable. We fully supported the original Bill 95 since it applied to all properties in Tax Zone 4, Section 6. We oppose Bill BFED-35, in its present form, since the amended Bill 95 excludes properties that are not owner-occupied. If the Bill is amended to apply to all properties in the affected area (including properties that are not owner-occupied), then we would fully support the Bill. This will provide the financial relief we need to begin the long, costly, and emotional recovery process.
Mahalo for your consideration and approval of Bill BFED-35, with inclusion of all properties, as set forth above.
Bruce Sakashita
272-6 Pualei Drive, Lahaina, HI 96761
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 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 for your consideration.
My wife and I are homeowners in the burned region of Lahaina whose home did not burn. It is not accessible and is uninhabitable now and for the foreseeable future. While we supported Bill-95 in its original form (part of BFED-35), we can no longer support the amended bill as it excludes homes that were not destroyed by the fire and cannot be occupied by owners or displaced persons as renters.
We are unable to occupy our home due to the lack of access, absence of potable water and sewer connections. Earlier this week, Maui’s Director of Water supply said that it will be two to three years before safe drinking water will be available in Lahaina. This means that we will not have access to our home though we will still be required to pay property taxes in full. This seems unfair and inequitable as those who are able to occupy their homes within the burn zone will be granted a tax relief exemption while those whose homes did not burn but are inaccessible or cannot be occupied are excluded from the tax relief exemption. Does this seem fair to you? If you were homeowner in the burn zone would you feel that Bill-95 proposes a fair and equitable solution?
Instead, we would support and encourage an amendment that would grant tax relief to all properties in the burn zone, whether habitable or non-habitable until that time when all utilities are restored to permit safe occupancy (i.e. electricity, potable water and sewer connections). This is because our home and all other inhabitable properties would not be able to qualify for the tax exemption by owner occupancy or by renting to a family displaced by the fire, as all of these homes would not permit safe occupancy due to the lack of potable water and sewer services. Granting tax relief status to all properties in the burn zone would seem to be a fair and equitable solution as neither we as owners nor displaced persons could use any uninhabitable home due to the lack of access and habitability for the foreseeable future.
Dear Councilmembers:
I am writing to you as 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 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,
Anne Myers and Thomas Myers
Units #125 and #706
Lahaina Shores Beach Resort
475 Front Street
Lahaina, HI 96761
amyers1027@gmail.com
I am writing to express my extreme disappointment that the bill to provide tax relief for those impacted by the Lahaina fires has been amended to deny tax relief to owners of still-standing homes currently in the TVR/hotel tax bracket. As a fortunate owner of an intact unit in a severely burned area, I am anxious to get our home (previously used as a TVR for a portion of the year) cleaned and made available on a long-term affordable lease to a Lahaina neighbor who has lost theirs.
However, we are not expected to be able to do this at least until next year, and likely much longer. During this time our home is still uninhabitable and we are still liable for hotel-rate taxes. Not only is our property value severely diminished, we have no services to warrant those high-rate taxes, and a family who needs a home doesn’t have one. This really does not seem fair, or a real solution to the lack of housing for those displaced. In my small Puamana community alone, there are over 100 standing homes that should be available to those who lost. Equitable tax legislation would enable lower cost rentals.
I sincerely encourage you to consider expanding tax relief legislation to support all of West Maui’s recovery. Otherwise I cannot support this bill.
Jan Schlesinger
139-2 Pualei Drive
Lahaina,HI. 96761
jan.chameleon@gmail.com
To: The County Clerk of Maui County,
My name is Mary Elkins and my husband and I are the owners of Unit 515 at Lahaina Shores Beach Resort located at 475 Front St. Lahaina. While our building survived the fire it is within the fire zone and while our building was not destroyed, it did suffer damage due to the fires. This coupled with the loss of municipal and county infrastructure like water, sewer and other services, our properties are unusable and we have been told it may be a number of years before our property can again be utilized as it has been for almost the five decades. Most of the units at Lahaina Shores are owned by individuals who rent them out for part of the year and may use them personally for some portion of the year, and thus are not classified as "residential" properties. Because of these extraordinary circumstances, we like the other owners find we will have to continue to absorb the costs associated with ownership but without any offsetting income.
Given that our property cannot be used for any purpose, and we are not utilizing county services at the level we would under normal circumstances, we therefore ask for temporary tax relief to be extended to properties, such as ours, that are not residential, that may be standing, but that cannot lawfully be used at this time.
Best regards,
Mary & Kevin Elkins
8203 57th Ave NW
Gig Harbor WA 98332
kmelkins6@comcast.net
To the Mayor and Council Members:
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. We have used our home as a vacation/ second home. It would be a true travesty 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
Dear Council Members,
I am writing to you today regarding the three pending tax relief bills, 91, 95, and 102. We own a home and a condo in Lahaina, thankfully neither were lost during the tragic fires however they are currently uninhabitable. Our Lahaina Texaco was one of the many structures that were lost in the fires as well as the homes of many friends, colleagues, and employees. We believe that the bills should encompass all properties, regardless of zoning, which would include properties that are still standing yet uninhabitable. This tragedy has impacted everyone from residents to renters, as well as businesses. We would hope this will not negatively impact the longer-term status of TVRs, STRHs and Hotels. Thank you again for bringing this important issue to the council floor.
Mahalo,
Kylie Seifert
Project Coordinator
LAHAINA PETROLEUM LLC
916-719-9633 MOBILE
916-488-3666 OFFICE
kseifert@lahainapetroleum.com
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,
Jeanette Louise Matthews and Thomas Eugene Matthews
Unit #508
Lahaina Shores Beach Resort
475 Front Street
Lahaina, HI 96761
lvjmatthews@gmail.com>
Hello
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 for your consideration.
Peter Clarkson and Michael Clarkson
Owners Lahaina Shores
Unit #526
Lahaina Shores Beach Resort
475 Front Street
Lahaina, HI 96761
760-521-7831
808-280-1278
cptpete@sbcglobal.net>
To Whom it may Concern at the Maui County Council,
I am writing to you to show my support for the tax relief bills (91, 95, and 102). I am an owner at Lahaina Shores (475 Front St., unit 117) and would like to remind the council members that the units there are uninhabitable and have been since the day of the fires. Lahaina Shores survived the fire but is within the fire zone. Many of us at Lahaina Shores pay a higher tax due to our owning income producing property. However, most would agree that the methods used to assess our property taxes before August 8, 2023 do not or should not apply since that day due to “lack of uniformity or irregularity”. Our taxes cannot/should not be equal to what they were before the fire. It is unknown as to when we or anyone else will be able to occupy our units. There is no water or electric and won’t be for some time. As an owner who uses my property as an income producing property this greatly effects me. I’m asking that the tax relief be extended to properties such as ours, that are not residential, that are still standing but cannot be used as intended nor lawfully.
Mahalo for your time and thoughtful consideration,
Brittany Hudson
Unit #117
Lahaina Shores Beach Resort
475 Front St.
Lahaina, HI 96761
alfini2@aol.com
Aloha Council,
I know that bills to give some relief to those affected by the Lahaina fire are before the Council at this time. I also know that you have heard testimony to combine these bills into a universal effort to give broad assistance to those affected by the fire.
I am an owner at Lahaina Shores. While the building was spared, and even though our designated area has been opened up, owners at Lahaina Shores remain restricted from accessing the building pending the conclusion of a structural analysis report. This could take many more weeks before we can so much as set foot on the property to see what of our personal effects are lost.
Even once that is complete, a lot of repair will be needed to address the effects of the fire. And we also do not have any utilities while being told it may be years before there is potable water.
All the while, we are being asked to not only keep paying our owner fees that are necessary to support the building, but we are also being forced by the County to pay taxes based on what is now a completely unrealistic property valuation at a very high short-term rental rate even though our property is still inaccessable and may not be able to be occupied or produce rental income for years.
This is both unfair and unfeeling. Many of our owners may well reside off island, but they love Maui and Lahaina Shores and were counting on rental income from their investments to fund retirements, educations, and basic living expenses.
Please combine and pass these bills providing relief to everyone directly impacted by the fire. We look forward to the day Lahaina is recovered and Lahaina Shores is operational so that we can afford to pay property taxes on a viable property.
David R. Brown
drbrown26@gmail.com
475 Front Street, Apt 703
Lahaina, HI 96761
336-457-9877
Testimony for BFED-35
Submitted by Thomas Croly
Real Property Tax Relief to facilitate conversion of Short Term Rentals (STR) and second homes to Long Term Rentals (LTR) in West Maui to serve displaced Lahaina fire victims
There is a hope that some of the 6501 STRs and 3101 second home owners in West Maui might convert the use of their homes to Long Term Rentals to serve the West Maui residents who have been displaced by the fires. To date, nothing has actually been done to help facilitate such conversion. Only “Hopes and Prayers”, much like those offered by gun advocates whenever there is a mass shooting. Maui County MUST do more than offer these hopes and prayers to help address this immediate need for rental housing.
The County of Maui funds its operations primarily through the property taxes paid by STRs and second home owners. These property owners alone account for more than 64% of all the property taxes paid in Maui County. This is because the tax rates applied to these property classifications are as much as 10 times that of the rates paid by residents. On average, West Maui STR owners pay $15,456/year in property tax and West Maui non-owner-occupied property owners (second homes) pay $9,747/year. By comparison the average Owner-Occupied property owner pays $1,155/year. While there may be very sound policy behind these tax rates, this high property tax burden is one reason that very few STR or second home owners might even consider changing the use of their properties to LTR, even in the current circumstances.
Maui County offers a 100% tax exemption for “affordable” Long term rental projects and I advocate that it should do the same for STR and second home property owners who are willing to change the use of their properties temporarily to LTR to serve the displaced fire victims. When the property tax obligation is added to the condo maintenance fees, the average STR condo owner has a carrying cost in well in excess of $2500/month EXCLUDING mortgage expense. That being the case, few would be able to even consider renting their units for the HUD fair market rents of approximately $2000/month for a 2-bedroom unit.
Testimony from the Real Property tax department clearly shows how the Long Term Rental tax exemption does little to address this issue and how it is impractical to delay any tax relief for as much as 10 months from now. The Long Term Rental exemption program will not help create any conversion of these STRs. And the requirement of entering into a one year lease today and registering for a long term rental exemption by the end of this year (or even by January 1, 2024) for a $100 to $300 reduction in monthly property tax obligation will do little to incentivize these property owners.
The Governor has stated that the State is “working” with Short Term rentals to make units available, but nothing has really been announced to actually encourage owners to change their use. FEMA has stated that they can offer rent subsidies of up to 170% of fair market rents for 3 months at a time and perhaps for up to 18 months, but what happens to the displaced family in 18 months when the rent subsidy ends?
For reference, HUD published Fair Market Rents (FMR) for Lahaina for 2023 are:
Studio $1,532, One Bedroom $1,606, Two bedroom $1,986 Three bedroom $2,731
The FEMA offer of 170% of the FMR is:
Studio $2,604, One Bedroom $2,730, Two bedroom $3,376 Three bedroom $4,643
HUD published Fair Market Rents (FMR) for Lahaina for 2024 are:
Studio $1,676, One Bedroom $1,701, Two bedroom $2,139 Three bedroom $2,927
The FEMA offer of 170% of the FMR is:
Studio $2,604, One Bedroom $2,892, Two bedroom $3,636 Three bedroom $4,975
While the FEMA offer of 170% of FMR may incentivize someone already in the business of LTR to rent to displaced fire victims, it would barely meet monthly expenses for STR owners without some property tax relief.
The proposal in Bill 95 to provide a tax exemption by the month for properties rented long term to fire victims is good for its intent, but impractical to administrate, given how our Real property taxes are assessed, collected and reported. Instead, I would suggest a $15 million fund be established to provide a Real property tax refund that could be included in next year’s budget. I might further suggest that this property tax refund could be paid out twice per year, only after the property owner has shown that their unit has been rented for at least 6 months to a fire victim. Payments could begin as soon as July 1, 2024 for those accommodated between August 8, 2023 and June 30, 2024.
Once the Council can decide on a policy and mechanism for providing this tax relief, the real property tax department could send out a notice of this program targeted to the STRs and non-owner-occupied property owners in West Maui of assessed values that would make sense for the proposed conversion. But this must happen quickly, if units are going to become available in the next couple months. The goal would be to achieve 1000 new long term rentals. At an average tax rebate of $15,000/year this program would cost $15 million per year.
The mayor already screwed up, by not keeping it simple, but what's new in Maui County. All properties within the FEMA designated disaster area should have taxes waived to a certain extent. If you want to separate the still standing structures from the destroyed at least fully exempt the destroyed and only charge minimum tax to those still standing but greatly affected either because of lack of access and/or lack of utilities.
Also, we're looking at 7-10 years here of any sort of rebuild of a "community". All the telephone poles have been cut down so zero utilities in the residential neighborhoods. Sewer lines all need to be redone. Let's not forget the biggest obstacle in this--the planning and permitting departments.
Therefore, just make these property tax codes something that is long-term. You shouldn't have to waste your time every year on counting the pennies you want so squeeze from whatever is left of Lahaina. Spend that time on expediting every process you possibly can to make the rebuild a speedy reality.
My husband and I are owners of a home in Lahaina that was not completely destroyed in the devasting August wildfire. It was our retirement dream to live full time in Lahaina. We fell in love with the community and the beautiful area the first time we visited, 45 years ago. We saved our money so that one day we could live on the beautiful island of Maui. We were able to purchase our home in 2018. Before the fire, we were renting for part of the year until our grandchildren, who live in California, went off to college. Then we planned to move full time to our home in Lahaina. I was already investigating ways that I could volunteer in Lahaina to give back and support the community. For example, I wanted to volunteer at Maui Friends of the Library and King Kamehameha III Elementary School since I am a retired elementary teacher. We were so excited to become a part of the Maui community.
When I first heard about Bill 95’s exemption from property taxes for property owners in Lahaina Tax Zone 4, Sections 5 and 6, I was so thankful for some relief from the devastation. Now, I am extremely disappointed to see revisions to Bill 95 being proposed that nullify tax exemptions for owners of surviving homes, such as ours, that are classified as not owner-occupied.
We are not able to occupy our home because there is not water or sewer service and the estimates of receiving these services is from months to years. Please understand that the impact on those of us whose homes survived is substantial, not just financially, but the emotional loss of the wonderful community. We know many people are suffering and in need of government support. We hope you can also understand our situation and need of support too.
Our property taxes are substantial in particular because our home was not a full-time residence. Our home will probably not be viable for living, given its condition and location, for years. As a result, the property value of our home has been drastically decreased.
I respectfully urge you to extend the property tax exemption in Bill 95 (included in Bill BFED-35) for all homes in Lahaina Tax Zone 4, Sections 5 and 6.
Mahalo for your consideration,
Sue Sakashita
I do not live in Maui permanently but own a home in the Lahaina Burn Zone which, while "intact”, is surrounded by massive devastation resulting from the wildfire. The property does not have any access to County water or sewer currently and, based on advice from your own Water Department, likely will not for years into the future. As a result, the property will be uninhabitable by anyone for a long time.
In these circumstances, it seems both inequitable and unconscionable to continue charging property taxes at least until the County has restored basic services and the home is once again inhabitable. Accordingly, I would respectfully ask that you ensure that the proposed legislation expressly exempts any and all homeowners finding themselves in the situation described above from having to pay property taxes for the next two years.
Thank you for your consideration,
Peter Gibson
TESTIMONY OF THOMAS MULVIHILL.
I am an owner of 9-1 Puamelia Place in Puamana. This unit is within the fire zone and has been uninhabitable since the fire. The unit may remain unoccupied for the next two to three years in the absence of safe drinking water.
Bill 95 seeks to avoid doing further harm to those of us who have experienced such a catastrophic loss by temporarily suspending the real property tax in Lahaina tax zone 4 sections five and six where our unit is located. This Bill seems very just and exemplifies the standard of good and compassionate governance to “do onto others as you would have done unto you.”
However, we have just now been made aware that there is a proposed amendment which would limit this exemption to only full time residents.
Respectfully, this is neither a laudable nor compassionate amendment.
Whether the unoccupied unit is owned by a full time resident or by someone who spend most of the year on the island without declaring residency is a distinction without a difference.
In both cases, the ethical rationale for providing tax relief (the avoidance of financially burdening someone who has already sustained such a terrible financial loss; the recognition that the government is not providing multiple essential services in exchange for taxation; the significant loss of inherent property value) is exactly the same.
Accordingly, I would ask that you give kind consideration to the proposal to exempt all currently unoccupied properties in the fire zone for the payment of property taxes until such time as the units can be occupied.
Kind regards
Tom Mulvihill
We support bill 102, as owners of unit 113 at Lahaina Shores Beach Resort to obtain tax relief during the time when our condos can be ready for occupancy. With no income coming in it will be financially devastating to keep paying taxes as if nothing happened in Lahaina. We as others stand ready to use our condo to house displaced Lahaina residents, but we urge you to please give tax relief to owners.
Lahaina Shores Beach resort #113
Chri & Dan Major owners
I am a former firefighter forced to retire last year due to a disabling work injury. In June 2022 I sunk my life savings into a massive down payment on a townhome in Puamana Lahaina. It is within the impact zone but miraculously did not burn. However, it is uninhabitable now and for the foreseeable future. I supported the original Bill 95 but can't support it if it excludes homes that were not destroyed by the fire and cannot be occupied by owners, displaced persons as renters, or anyone else.
The Director of Maui's water supply recently said in the media that it will be two to three years before safe drinking water will be available in Lahaina. This means that we will not have access to our home though we will still be required to pay property taxes in full. This represents a very substantial hardship to me as a retired firefighter since I am now obligated to make the massive mortgage payments, HOA payments, and pay for housing elsewhere. It is certainly unfair to grant an exemption for destroyed homes but deny it for homes that still stand but are equally unusable.
I would greatly appreciate an amended version of the Bill that would grant tax relief to all properties in the burn zone, whether habitable or non-habitable until that time when all utilities are restored to permit safe occupancy (i.e. potable water and sewer connections). This is because our home and all other inhabitable properties would not be able to qualify for the tax exemption by owner occupancy or by renting to a family displaced by the fire, as all of these homes would not permit safe occupancy due to the lack of potable water and sewer services. Granting tax relief status to all properties in the burn zone would seem to be a fair and equitable solution.
Mahalo for your consideration.
Trevor Alt
167-4 Pualei Drive
We own property located in Lahaina Tax Zone 4, Section 6. As a result of the recent devasting fire, 92 of 230 homes in our community were destroyed. Our building, comprised of six units, is intact. However, due to the proximity of the fire, the interior of our home suffered considerable damage from intrusion of smoke, soot and ash. Remediation of this damage will require substantial cleanup, removal of toxic substances, and repairs that will cost thousands of dollars and take years to complete.
Although our home now has access to electricity, we do not know when water and sewer services will be restored. Recent news reports indicate that potable water may not be available for up to three years. More importantly, our entire community is a toxic, hazardous and unsafe environment. Our home may not be inhabitable for years, due to environmental cleanup, rebuilding activities, and utility accessibility.
As a result of the above, we believe that our property should be exempt from property taxes until it becomes livable. We fully supported the original Bill 95 since it applied to all properties in Tax Zone 4, Section 6. We oppose Bill BFED-35, in its present form, since the amended Bill 95 excludes properties that are not owner-occupied. If the Bill is amended to apply to all properties in the affected area (including properties that are not owner-occupied), then we would fully support the Bill. This will provide the financial relief we need to begin the long, costly, and emotional recovery process.
Mahalo for your consideration and approval of Bill BFED-35, with inclusion of all properties, as set forth above.
Bruce Sakashita
272-6 Pualei Drive, Lahaina, HI 96761
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 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 for your consideration.
My wife and I are homeowners in the burned region of Lahaina whose home did not burn. It is not accessible and is uninhabitable now and for the foreseeable future. While we supported Bill-95 in its original form (part of BFED-35), we can no longer support the amended bill as it excludes homes that were not destroyed by the fire and cannot be occupied by owners or displaced persons as renters.
We are unable to occupy our home due to the lack of access, absence of potable water and sewer connections. Earlier this week, Maui’s Director of Water supply said that it will be two to three years before safe drinking water will be available in Lahaina. This means that we will not have access to our home though we will still be required to pay property taxes in full. This seems unfair and inequitable as those who are able to occupy their homes within the burn zone will be granted a tax relief exemption while those whose homes did not burn but are inaccessible or cannot be occupied are excluded from the tax relief exemption. Does this seem fair to you? If you were homeowner in the burn zone would you feel that Bill-95 proposes a fair and equitable solution?
Instead, we would support and encourage an amendment that would grant tax relief to all properties in the burn zone, whether habitable or non-habitable until that time when all utilities are restored to permit safe occupancy (i.e. electricity, potable water and sewer connections). This is because our home and all other inhabitable properties would not be able to qualify for the tax exemption by owner occupancy or by renting to a family displaced by the fire, as all of these homes would not permit safe occupancy due to the lack of potable water and sewer services. Granting tax relief status to all properties in the burn zone would seem to be a fair and equitable solution as neither we as owners nor displaced persons could use any uninhabitable home due to the lack of access and habitability for the foreseeable future.
Brad Henley (owner)
226-2 Pualei Dr
Lahaina
Please see attached. Mahalo.