The proposed increase in property tax for Bed and Breakfast home owners is very high, and comes after a series of other tax increases and expenses. The county recently implemented a county transient accommodations tax (TAT) of 3% of gross earnings from a bed and breakfast. This year they increased the county TAT by 16%, bringing it up to 3.5%. Required county B&B permit renewal fees have gone from $500.00 to $1872.50. Bed and breakfast operators are all full time Maui residents, yet they have been stripped of their $ 300,000.00 property tax exemption.
We have been living on Maui at our current address for 33 years. Near the time of my retirement, we borrowed a lot of money to build our Bed and Breakfast cottage, with the hope of paying down the mortgage and having some retirement income, after paying all the taxes. We feel that the proposed tax increase unfairly punishes a small group of homeowners, who are trying to run a bed and breakfast. We would suggest that a tax rate hike should be limited to $3.50 / $1000.00 of property value. We are already contributing to the island economy and paying taxes in many ways.
We hope you will consider our retirement situation when you consider this property tax rate increase.
I am Jerry Isddale, founder of Maui Makers and the Maui Institute of Art and Technology LLC. I am testifying in support of Maui Economic Development Board’s Economic Development Grant (MEDB)) under the Maui County Office of Economic Development (OED). MEDB has been the dominant force in the Maui technology community. It has a wide variety of worthy programs. I have been a participant in their Tech Ohana and several other programs. While it is small contribution, they have been very supportive of our informal Maui Techies monthly gatherings. All of these provide a social connection for our suprisingly large (to some) and vibrant tech community. Their educational and other programs are a large boost to our youth (of all ages).
Jerry Isdale
Maui Institute of Art and Technology LLC
Haiku, Maui
Aloha Maui county council and budget committee members,
This is Claudia Ledesma and I am writing to you to ask for fair rates for B&B permit holders.
Let me introduce us briefly.
We obtained the very first permit in Maui county, BBPH 2009/0001 and SUP 2007/0001, after many meetings with and visits to our property by the majority of council members in office at that time. Being on ag land, we also had to go through the process of the Special Use Permit and were able to show and prove, that it is possible to conduct proper agricultural activity, all whilst welcoming guests on property. My husband is a landscape contractor and we run a commercial size nursery on property and have fruit orchards and a vegetable garden.
Our daughter, now 21, is born and raised here on property and we are hoping that she will be able to come back to Maui once she has finished her studies as a nurse practitioner.
When obtaining the permit, we were stripped of our $300,000 homeowners’ exemption, despite the fact that we live and work here. The new tax rate we fall into, because we run a B&B on our property, only applies to us, but not our neighbors, who run their businesses out of their homes…. Massage therapists, interior decorators, life coaches, psychiatrists, mechanics, etc. creating much higher impact than our activity.
Our assessment we just received increases our land value by 41% from last year to this year, because of properties in our area that have sold and resold for historically high prices driving our value up at un unsustainable rate.
Adding to this, the proposed increase of the commercialized residential rate would most likely double our tax bill. But most importantly it is 3 times or more the amount that we would pay without the B&B permit. Despite the fact that we are full time residents, homeowners, conducting proper agricultural activity on our property, wanting to pass this on to our daughter, so she could possibly come back to and live on Maui in a much desired profession.
There still are so many people doing whatever they want unpermitted, not collecting or paying taxes like we do and maintaining their homeowner status. Another factor that seems so unfair.
We carefully vet the guests who we welcome, we educate them pre arrival with the many wonderful videos HVCB provides us, invite them to participate in the volunteer programs, we are part of the “Rise above plastics on vacation” program, we educate them personally upon their arrival on how to pay respect to the people, the ‘aina and the ocean, give them a tour of our ag activities and gardens, etc etc. Trying to bring a respectful and valuable guest to Maui. Many of our guests are long time repeats, supporting small businesses, allowing us to provide jobs to others and contributing to the state and now Maui TAT.
We are 66 and 60 years old and are hoping to retire at some point from our physically demanding jobs and pass our property on to our daughter.
Given all the factors of our tax classification plus increased property values, we kindly ask you to not raise the tax rate, in fact it would be fair to adjust it down somewhat since we are true homeowners and residents.
Aloha,
I am writing in support of Ka Ipu Kukui Fellows (KIK). My name is Bailey Spry, I am the grants manager for East Maui non-profit Ma Ka Hana Ka ʻIke and am also in the current KIK cohort. My experience with KIK this past year has been invaluable. The knowledge I have gained about the inner workings of Maui County has empowered me to take on a more meaningful role in civic engagement. Perhaps the most powerful aspect of the program is the social capital I have built. The connections, friendships, and knowledge sharing have made this fellowship one of the most valuable experiences of my adult life.
Mahalo to the County for sustaining KIK as a line item.
Bailey
Dear Council Members and Budget Committee,
The proposed increase in property tax for Bed and Breakfast home owners is very high, and comes after a series of other tax increases and expenses. The county recently implemented a county transient accommodations tax (TAT) of 3% of gross earnings from a bed and breakfast. This year they increased the county TAT by 16%, bringing it up to 3.5%. Required county B&B permit renewal fees have gone from $500.00 to $1872.50. Bed and breakfast operators are all full time Maui residents, yet they have been stripped of their $ 300,000.00 property tax exemption.
We have been living on Maui at our current address for 33 years. Near the time of my retirement, we borrowed a lot of money to build our Bed and Breakfast cottage, with the hope of paying down the mortgage and having some retirement income, after paying all the taxes. We feel that the proposed tax increase unfairly punishes a small group of homeowners, who are trying to run a bed and breakfast. We would suggest that a tax rate hike should be limited to $3.50 / $1000.00 of property value. We are already contributing to the island economy and paying taxes in many ways.
We hope you will consider our retirement situation when you consider this property tax rate increase.
Thank you!
Dave and Brigitte Nelson
Testimonies received from BFED Committee.
I am Jerry Isddale, founder of Maui Makers and the Maui Institute of Art and Technology LLC. I am testifying in support of Maui Economic Development Board’s Economic Development Grant (MEDB)) under the Maui County Office of Economic Development (OED). MEDB has been the dominant force in the Maui technology community. It has a wide variety of worthy programs. I have been a participant in their Tech Ohana and several other programs. While it is small contribution, they have been very supportive of our informal Maui Techies monthly gatherings. All of these provide a social connection for our suprisingly large (to some) and vibrant tech community. Their educational and other programs are a large boost to our youth (of all ages).
Jerry Isdale
Maui Institute of Art and Technology LLC
Haiku, Maui
Aloha Maui county council and budget committee members,
This is Claudia Ledesma and I am writing to you to ask for fair rates for B&B permit holders.
Let me introduce us briefly.
We obtained the very first permit in Maui county, BBPH 2009/0001 and SUP 2007/0001, after many meetings with and visits to our property by the majority of council members in office at that time. Being on ag land, we also had to go through the process of the Special Use Permit and were able to show and prove, that it is possible to conduct proper agricultural activity, all whilst welcoming guests on property. My husband is a landscape contractor and we run a commercial size nursery on property and have fruit orchards and a vegetable garden.
Our daughter, now 21, is born and raised here on property and we are hoping that she will be able to come back to Maui once she has finished her studies as a nurse practitioner.
When obtaining the permit, we were stripped of our $300,000 homeowners’ exemption, despite the fact that we live and work here. The new tax rate we fall into, because we run a B&B on our property, only applies to us, but not our neighbors, who run their businesses out of their homes…. Massage therapists, interior decorators, life coaches, psychiatrists, mechanics, etc. creating much higher impact than our activity.
Our assessment we just received increases our land value by 41% from last year to this year, because of properties in our area that have sold and resold for historically high prices driving our value up at un unsustainable rate.
Adding to this, the proposed increase of the commercialized residential rate would most likely double our tax bill. But most importantly it is 3 times or more the amount that we would pay without the B&B permit. Despite the fact that we are full time residents, homeowners, conducting proper agricultural activity on our property, wanting to pass this on to our daughter, so she could possibly come back to and live on Maui in a much desired profession.
There still are so many people doing whatever they want unpermitted, not collecting or paying taxes like we do and maintaining their homeowner status. Another factor that seems so unfair.
We carefully vet the guests who we welcome, we educate them pre arrival with the many wonderful videos HVCB provides us, invite them to participate in the volunteer programs, we are part of the “Rise above plastics on vacation” program, we educate them personally upon their arrival on how to pay respect to the people, the ‘aina and the ocean, give them a tour of our ag activities and gardens, etc etc. Trying to bring a respectful and valuable guest to Maui. Many of our guests are long time repeats, supporting small businesses, allowing us to provide jobs to others and contributing to the state and now Maui TAT.
We are 66 and 60 years old and are hoping to retire at some point from our physically demanding jobs and pass our property on to our daughter.
Given all the factors of our tax classification plus increased property values, we kindly ask you to not raise the tax rate, in fact it would be fair to adjust it down somewhat since we are true homeowners and residents.
Sincerely
Claudia Ledesma
Aloha,
I am writing in support of Ka Ipu Kukui Fellows (KIK). My name is Bailey Spry, I am the grants manager for East Maui non-profit Ma Ka Hana Ka ʻIke and am also in the current KIK cohort. My experience with KIK this past year has been invaluable. The knowledge I have gained about the inner workings of Maui County has empowered me to take on a more meaningful role in civic engagement. Perhaps the most powerful aspect of the program is the social capital I have built. The connections, friendships, and knowledge sharing have made this fellowship one of the most valuable experiences of my adult life.
Mahalo to the County for sustaining KIK as a line item.
Bailey