occupancy tax?

[Kapolei]

Unlike most other places, schools in Hawaii are funded by the state instead of the counties. So property taxes do not pay for schooling. Nobody likes taxes. There is always going to be parts of government that people are going to scratch their heads about. And people will always wonder why they got to pay for other people's choices in life. That is the reality everywhere. Hawaii is not going to win any contests here. But Hawaii remains a top travel destination.

 

[Tamaradarann]

Unlike most other places, schools in Hawaii are funded by the state instead of the counties. So property taxes do not pay for schooling. Nobody likes taxes. There is always going to be parts of government that people are going to scratch their heads about. And people will always wonder why they got to pay for other people's choices in life. That is the reality everywhere. Hawaii is not going to win any contests here. But Hawaii remains a top travel destination.

Since I brought up the issue of low property taxes and poor public schools in Hawaii I need to express my thoughts further. First of all just because schools are presently funded by the state that doesn't mean that it can't be changed. Furthermore, the counties are constantly asking for more aid from the state of Hawaii just as the counties, towns, and school districts on Long Island where we live are constantly asking for more aid from the state of New York. Therefore, instead of the state aiding the counties the state could keep all the funds for better public schools and tell the counties to raise their property taxes, (particularly on high priced properties and investment properties where owners don't live). Because the schools are excellent on Long Island people with high incomes send their children to public schools and have an interest in the quality of the public schools. In Hawaii that is not the case. It is a never ending cycle that keeps the public schools having low quality for the low income people.

Finally, I agree that Hawaii remains a top travel destination. I love being there. However, timeshare owners shouldn't be paying more taxes for their timeshare units than properties in other locations while the property taxes on high priced properties and investment properties are inordinately low and the real estate prices are inordinately high and going higher all the time.

 

[dioxide45]

Occupancy Taxes...Since January 1, 1999

Aloha All!

After some research, the State of Hawaii started charging the timeshare occupancy tax to the person who occupies the unit as of January 1, 1999. The amount varies from property to property since the amount is based on the fair market value of the unit occupied. They have a lot of information on the State of Hawaii's Fact Sheet regarding the TOT at: http://files.hawaii.gov/tax/legal/taxfacts/tf98-04.pdf

Thus as long as MFs keep going up, the tax amount goes up to. Perhaps a good reason for HOAs to try to keep MF increases to a minimum?

 

[tompalm]

More bad news, the legislators just passed a bill yesterday to raise the occupancy tax from 9.25 to 12 percent. I didn't catch when that goes into affect, but once it happens everyone staying in a hotel, Air BnB, or any rental that last less than six months will have to pay it. They had to find more money to pay for the rail and they still don't have enough to finish the rail. So the tax raising is still going to get worse for everyone. There are a lot of other cities that have high hotel tax rates. But most cities don't have high hotel prices like Hawaii. At some point, it will cause tourism to slow down.

 

[taffy19]

Maui property tax for timeshare owners are going up again from $14.31 to $15.43 according to this link here:

http://mauicounty.us/2018budget/

The new rate goes in effect on July 1.

I don't remember how much we paid last year but it was listed on our maintenance fee bill.

There is also a difference between the TAT and TOT fee as I read that the other day on Facebook, I believe. I will try to find that link again.

 

[DeniseM]

Thus as long as MFs keep going up, the tax amount goes up to. Perhaps a good reason for HOAs to try to keep MF increases to a minimum?

BUT - at MF's go up - management fees go up too, so the management companies have little motivation to keep them low and in many cases, they control the HOA's.

 

[taffy19]

BUT - at MF's go up - management fees go up to, so the management companies have little motivation to keep them low and in many cases, they control the HOA's.

True and this is probably also the reason that they have gone over to selling points instead of a deeded week. People can buy a fraction of time in HI or anywhere but the person with the most points will most likely get the earliest reservation rights and then other people will get discouraged so get rid of the points again and the developers can sell the points at another big profit. They sell us flexibility but, IMO, it is one big racket.

Tourism is booming in Hawaii at the moment and they are certainly catering more to the Asian or Global market. I like the decor as it is not as heavy as the old-fashioned American traditional furniture. I was blown away by the newest HGVC tower with the beautiful wooden floors and Monkey pod wooden dining room table and bar counter tops. So much nicer than the stark white island table in the kitchen at the Westin Nanea. What were they thinking?

I found two other links again about the difference between the TAT and TOT tax. Another racket too but once the economy turns, the timeshare owners are the people who keep them afloat. They should treat us better but we are a cash cow to them. One day they will regret it, I hope.

http://files.hawaii.gov/tax/legal/brochures/transient_accomodations.pdf

and:

By TUGger Syed Sarmad but from a good year ago.

 

[taffy19]

Hmmm, we paid $4.12/day tax on for our two week stay on Maui. Wonder why the difference? We are owners at the resort, but weren't staying during the week we own.

Honestly, I didn't think it was bad. I've stay other places with a much higher per day fee.

I just looked at our two bills from our stay in Maui. The Marriott charged us $16.20 a day for a 2 BR and the Hyatt $8.58 for a 1 BR. I haven't seen the other two bills yet.

 

[PamMo]

Maui property tax for timeshare owners are going up again from $14.31 to $15.43 according to this link here:

http://mauicounty.us/2018budget/

The new rate goes in effect on July 1...

Ugh!!! Again, owners are asked to pay a disproportionate share.

 

[lynne]

More bad news, the legislators just passed a bill yesterday to raise the occupancy tax from 9.25 to 12 percent. I didn't catch when that goes into affect, but once it happens everyone staying in a hotel, Air BnB, or any rental that last less than six months will have to pay it. They had to find more money to pay for the rail and they still don't have enough to finish the rail. So the tax raising is still going to get worse for everyone. There are a lot of other cities that have high hotel tax rates. But most cities don't have high hotel prices like Hawaii. At some point, it will cause tourism to slow down.

I believe that the tax increase is for Honolulu County only.

 

[Tamaradarann]

Ugh!!! Again, owners are asked to pay a disproportionate share.

View attachment 3767

I don't understand why timeshares are charged more tax than hotels. $15.43 vs. $9.37. The tax on hotels brings in 3 times as much as timeshares since there are more of them. If they charged them the same rate they would collect about $60,000,000 more or about a 20% increase in revenue. That could prevent them from having to raise taxes again for a number of years.

 

[alohakevin]

Seems as though there is still time to way in on this if so desired. I realize we go through this every year but at what point is enough. This is absurd. We pay 5.4 times more in taxes than a local on top of TOT for property we own. I was seriously considering picking up another 2bm/ LO on Maui but can't stomach this. Hawaii is paradise but I am very close to marginal return. It's infuriating being the butt of their illegitimate extortion. I am a past Mayor and am very familiar with Municipal and County taxing authorities and am in awe of the arrogance of - and disdain with which the board treats timeshare owners. If one of their constituents was being treated this way they would be screaming from the mountain tops. Ohh the injustice- unless your a timeshare owner from the mainland.

 

[alohakevin]

Just an FYI


Schedule by Department (subject to change)

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• March 31 – Department of Housing and Human Concerns, excluding Animal Management, Department of Water Supply
• April 4 – Department of Parks and Recreation
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• April 17 – Office of Economic Development, Department of Transportation
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• April 24 – 28 – Decision-making
• May 12 – Public Hearings
• May 19 – First reading
• May 30 – Second reading
• June 10 – Council’s deadline to approve the FY 2018 budget

Testimony will also be accepted at any of the posted meetings in the Council Chambers throughout the deliberations and decision-making process. Each meeting agenda will be available at MauiCounty.us/agendasand testimony will also be accepted via email at bf.committee@mauicounty.us.

 

[taffy19]

I doubt if it will make a difference unless many timeshare owners will come to the meeting and voice their objections or all of us send an email instead.

We went to a meeting once a few years ago and there were many Westin timeshare owners present because they were hit the hardest of all timeshare owners on Maui. I believe that they ended up having to pay up anyway or it may still be fought in court.

I tried to find the old link of that meeting and I also Googled for the person who was involved with the Timeshare Ohana Pac and there are several links to read about it still how politics work.

Here are also a few links about the rail project on Oahu today that will go ahead and the taxes involved for that project.

http://www.hawaiinewsnow.com/clip/1...n-to-extend-funding-for-honolulu-rail-project

http://www.hawaiinewsnow.com/clip/1...down-todays-major-financing-agreement-on-rail