HOUSE OF REPRESENTATIVES	H.C.R. NO.	73
THIRTY-FIRST LEGISLATURE, 2022
STATE OF HAWAII

HOUSE CONCURRENT

RESOLUTION

 

 

urging each county to curb the proliferation of illegal vacation rentals.

 

 

 

     WHEREAS, the illegal rental of housing units for less than thirty days at a time without a valid county permit has become widespread throughout the State; and

 

     WHEREAS, operators of unpermitted transient vacation rentals in residential areas are able to offer those units for lower prices than legal hotel rooms largely by avoiding the payment of taxes, such as higher property taxes that hotels and resorts pay in order to comply with county zoning requirements; and

 

     WHEREAS, owners of residential property used for unpermitted transient vacation rentals may also be claiming homeowner exemptions in order to avoid paying higher property taxes; and

 

     WHEREAS, in addition to avoiding higher property taxes, operators of unpermitted transient vacation rentals often fail to report and pay the transient accommodations taxes and general excise taxes that they owe to the State; and

 

     WHEREAS, by failing to pay their fair share of taxes, operators of unpermitted transient vacation rentals effectively force all other taxpayers to subsidize their illegal operations; and

 

     WHEREAS, the collection of taxes from each individual taxpayer of a transient vacation rental should therefore be made more efficient and reliable; and

 

WHEREAS, one method worthy of study is the use of tax lien foreclosures to curb the proliferation of illegal vacation rentals and generate increased tax revenues to the counties; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2022, the Senate concurring, that each county is urged to curb the proliferation of illegal vacation rental units by:

 

     (1)  Conducting expedited foreclosures on illegal vacation rental properties that have an amount in arrears with the applicable county and the State of over $5,000;

 

     (2)  Imposing increased minimum levels of fines to discourage repeat offenses; and

 

     (3)  Refraining from reducing fine amounts for violators; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Taxation and the mayor of each county.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Counties; Real Property Taxes; Foreclosure