Maui’s mayor pitches tax incentive bill aimed at getting evacuees into vacation rentals, but not everyone is on board

WAILUKU (HawaiiNewsNow) - Maui County Mayor Richard Bissen’s proposal to give tax incentives to short-term rental owners who house fire evacuees is advancing.

Councilmembers heard from dozens of testifiers on Tuesday, both for and against Bill 131.

The special council meeting started at 9 a.m. and wrapped up around 2:45 p.m. Councilmembers took testimony for several hours before making a decision.

Bissen’s proposal is to give property tax exemptions to short-term rental owners who rent long-term to residents displaced by the August fires.

“The concerns that have been sent to me, the emails that come to me, is that they will be losing money, and the answer to that is, that’s right. They will be losing money. But what they will be gaining is much more,” said Bissen.

A vast majority testified in support of the measure.

“I myself am a licensed real estate agent. I have personally benefited from the short-term rental sales in West Maui,” said Courtney Lazo, who lost her home in the Lahaina fire. “And ever since the fires, I’ve had to pivot because I look at my community and my hometown, and it’s sickening. It’s heartbreaking. So, for people who say we can’t make the change. I know what kind of money real estate can bring in. Yeah, you can. You just have to choose, and it’s the community.”

On the other hand, some short-term rental owners testified against the proposal.

“My heart goes out to all of you. You have no idea how much we care. How much we give and how much we love you. But we can’t afford to do that if we don’t have the option of our vacation rental,” said short-term rental owner Eve Hogan.

Bill 131 passed the first reading unanimously with some amendments to include people who are already housing fire survivors. For example, those participating in the Council for Native Hawaiian Advancement’s Host Housing Support Program and other future programs that may develop.

The application must be submitted by Jan. 31, 2024, for exemption from taxation from Feb. 1, 2024, to Jun. 30, 2024. The next application date will be on Mar. 15, 2024, for exemption from Jul. 1, 2024, to Jun. 30, 2025.

The public will have another chance to testify on the bill on Dec. 15.

Then, the mayor will have to sign it for it to become law.

It takes effect on approval.