Maui taxes [IMPORTANT - Proposal to RAISE Property Tax - AGAIN!]

Many thanks for your kind words. I appreciate it. I think the timeshare community in Maui needs to meet with County Council members more than once a year, during budget time, to communicate and eliminate any misunderstandings they have about timeshare owners. I will try to meet with the Council members and I will keep you informed.

if the left one won't get than the right one will

This phrase from the song "16 Tons" describes what is happening with Maui property taxes.

Starwood, and others, were successful in lowering the tax bill by establishing that assessed values were overstated. Nonetheless, the tax rate was increased last year to 15%.
Everyone was ecstatic because it was not raised to 17%. ARDA ROC and the resorts were snapping their suspenders.

So, now Maui County is taking all that money back in the form of a yet higher tax rate. "...if the left one won't get than the right one will..."

Seriously! A 2 bedroom condo with an annual tax bill over $30,000? That it serves to further lower the subsidized property tax of resident owners only adds insult to injury.

I have said it before. Unless the basis for the tax rate is legally challenged, timeshare owners will continue to be Maui's piggy bank.

The rest is Kabuki Theater.

eta: Thank you, Syed, for your efforts.

"Don't bite the hand that feeds you. You may need that hand one day."

This is the lesson that needs to be conveyed to the short-sighted Maui County Council. They may think that we are forced to stay in Maui, or Maui is just too much of a paradise destination that they can do anything they please.
They are wrong.

info from ARDA-ROC

There is a county council meeting on Friday April 20th 2012 at 9am at the Maui county council building and all residents or timeshare owners in town are urged to attend.

representatives from ARDAROC will be there to speak, as will representatives from many majory timeshare developers in Hawaii.

I hope some of you can attend to support Syed as well!

We own three annual Maui weeks and only use the kitchen for breakfast. We eat out every meal, go on excursions, go to luaus and shows. And my mother-in-law once again bought over $1,000 in jewelry and clothes for herself and family. She does that every year.

The mayor said something to the effect that timeshare owners are not the visitors he wants on Maui.

It's insulting, but maybe he looks at Maui timeshares on eBay and figures we are all cheap and bought our timeshares for $1.00 with zero closing costs. I bought one fairly cheaply, but the others I paid good money to get.

I dislike hotel rooms and need to know what view I am going to have each year at my own resort.

It seems to me that non-resident homeowners would have a very strong case regarding equal protection under the law. By definition, non-resident homeowners will use less (not more) public services than resident homeowners.

If the Maui County Council can legally do this, why not raise our property taxes by 500% and cut the resident homeowner property tax to zero (or even pay all resident homeowners an annual rebate/credit on top of zero property tax).

This is the worst kind of political pandering imaginable (well, when I think of public employee union payola - maybe not the worst).

If I remember correctly, timeshare units are charged 14X what a whole-owned condo owner pays. I know that Hono Koa taxes are around $260 per year per week, and that is a lot less than other resorts pay, but it's based on value.

I feel Maui's government is sending a loud message to those who own timeshare.

DavidnRobin said:

I vote to give Life-Time TUG membership to Syed...
(we brought our 1st TS - WKORV OFD - from Syed - highly recommend - truly a stand-up guy)

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I bought a Marriott Maui Ocean Club resale week last year.

I had the choice of purchasing on eBay or through literally dozens of timeshare brokers.

I specifically sought out Syed because I was aware of his earlier efforts to combat this abusive timeshare taxation (and I told him so when I purchased).

That's my small way of saying thanks.

Ill take care of him upon his next renewal date

TUGBrian said:

info from ARDA-ROC

There is a county council meeting on Friday April 20th 2012 at 9am at the Maui county council building and all residents or timeshare owners in town are urged to attend.

representatives from ARDAROC will be there to speak, as will representatives from many majory timeshare developers in Hawaii.

I hope some of you can attend to support Syed as well!

Click to expand...

I will be there this Friday. Will keep you informed.

Thanks again, Syed. I've sent my email to the mayor. Hope it helps.

Aloha Kevin,

On the behalf of Councilmember Victorino, we would like to thank you
for your email as your input is welcomed. Councilmember Victorino will
surely take your thoughts into consideration. Please feel free to
contact our office any time.

Mahalo,


Deanna Davis-Hookano
Executive Assistant to
Councilmember Michael Victorino
808-270-7760 - Office


For what its worth here is a response from one of the council members

Crickets from the mayor. Hope his staff read it, though.

alohakevin said:

For what its worth here is a response from one of the council members

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I got the same response. Just a form letter from his secretary.

I attended the Maui County Council meeting held this morning in Wailuku. In attendance were Jason Gamel who is the ARDA Vice President, State Government Affairs and Ken McKelvey representing ARDA-ROC, along with a Diamond Resorts representative, the General Manager from Sands of Kahana, two representatives from Marriott Maui Ocean Club, Angela Nolan, General Manager of Westin Kaanapali Ocean Resort Villas and another Westin Kaanapali Ocean Resort Villas employee, a lawyer representing the timeshare industry and a representative from Worldmark/Wyndham.

While the representatives from the various timeshare resorts and the timeshare attorney focused on the impact of higher taxes for timeshare owners, I addressed the Council as a Maui resident and local businessman who is involved in timeshare resales. I voiced my concerns in regarding how higher timeshare taxes will affect the local economy, employment and other areas of tourism – restaurants, tours, car rentals, etc. My concern is if the taxes continue to rise, there will be more foreclosures which could cause associations to lay off employees and timeshare vacationers will spend less money in the local economy.

The representatives from the timeshare resorts noted that they employ a large number of people and pay a lot of property taxes, much higher taxes than any other real estate property taxes on the island. These resorts provide steady employment and contribute many tourist dollars to the economy. Timeshare owners pay taxes and spend money not just during high season, but year round and the majority of the timeshare resorts on Maui maintain an average of 90%+ occupancy year round.

The timeshare attorney stated that after Hurricane Iniki hit Kauai in 1990, the timeshare owners associations on Kauai were the first to rebuild. They were the driving force in the Kauai economy because timeshare owners continued to vacation. He addressed the unfairness of the tax system when it comes to timeshare taxation and noted that if timeshare taxes continue to go up in Maui, potential timeshare buyers will look elsewhere to vacation and spend their vacation dollars. He stated that in general, if you tax people unfairly they will lose faith in the government.

I again state that the proposed increase of timeshare taxes comes without any rational explanation or justification from the Maui County Council.

Nice job, Syed. Keep up the good fight.

Thanks for representing us people with no vote, Syed.

Thanks, Syed! Your work is greatly appreciated!

Thanks Syed.

We love staying at our unit in WKORN and were close to purchasing another week last year (from Syed on the resale market, of course). But then the Council tried to unfairly (in my opinion) onto the backs of the Time Share owners, so we did not make a purchase.

We were thinking about it again this year, when the council proposed this new shifting of taxes onto Time Share owners. While we are not able to avoid any increased taxes on the unit we already own, are unwilling to take on more of the burden by purchasing additional weeks.

What I find amazing is the complete lack of respect, and even animosity, that the Council shows towards Time Share owners. Fortunately for all, this disrespect is not shown by the local merchants nor the staff at the resort. We have always found them welcoming and very friendly.

So I wonder why the Council has such an anti-Time Share bias?

Greg

It's not really anti-timeshare - it's actually anti-tourist. Tourists are a necessary evil in Hawaii.

It just might have something to do with the fact that the US conquered Hawaii, removed their lawful queen from the throne, and forced Hawaii to become part of the US - out of financial greed. Yes - they still care about that. Much like some Southerners and the Civil War.

DeniseM said:

It's not really anti-timeshare - it's actually anti-tourist. Tourists are a necessary evil in Hawaii.

It just might have something to do with the fact that the US conquered Hawaii, removed their lawful queen from the throne, and forced Hawaii to become part of the US - out of financial greed. Yes - they still care about that. Much like some Southerners and the Civil War.

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Denise, I beg to differ. The inordinate tax burden that the Council is trying to shift onto Time Share owners is more than just dislike of tourists. Time Shares tax rates are way higher than hotels or condos, which both bring in tourists. I understand that tourism is a two edged sword. Yes, they get the tourist dollars. But they also have to put up with the crowds of tourists.

But the extreme difference in tax rates for Time Shares compared to other tourist related businesses, shows that the Council seems to have a special enmity for Time Share owners. Either that, or a completely cavalier attitude about how tax burdens should be shared by all.

Greg

In a previous council meeting, it was openly expressed that Hotel Guests are the preferred type of Hawaii guest, and that Hotel Guests spend more money on vacation. There seems to be an impression that timeshare owners are low-budget vacationers who sit at the resort, cooking in their kitchens, and do not spend money on activities or dining out, so little of their money goes into the local economy.

As far as condos, they are more likely to be owned by locals, and would get favorable treatment, as well.

DeniseM said:

In a previous council meeting, it was openly expressed that Hotel Guests are the preferred type of Hawaii guest, and that Hotel Guests spend more money on vacation. There seems to be an impression that timeshare owners are low-budget vacationers who sit at the resort, cooking in their kitchens, and do not spend money on activities or dining out, so little of their money goes into the local economy.

As far as condos, they are more likely to be owned by locals, and would get favorable treatment, as well.

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Denise, I think your statement lends support to my contention that there is a significant anti-Time Share bias on the Council.

As for Condos, it depends on the condo. Owner occupied condos are certainly owned by locals, by definition. However, condo developments like the Whaler that have sold partial ownership interests, are most likely owned by non-residents. Since many of those partial year condo shares are for multiple week periods, I would guess that those folks are more likely than traditional Time Share owners to behave as the Council believes. That is not spending as much as on the local economy as hotel visitors. Let's face it, guests that stay at Time Shares like WKOR are more likely to spend like hotel visitors than partial year Condo owners. But the condo owners get the tax break.

Greg

I have spoken with a few general real estate brokers on Maui and they all believe over 50% of the condos and apartments in West Maui and South Maui are owned by non residents.

The proposed tax rate is addressed on page 13 in the link below

http://www.mauicounty.gov/documents...udget/FY2013 Proposed Budget/Operating Budget

I was impressed by the passionate speeches given by the timeshare employees, developers, vendors etc at the Lahaina Civic Center a couple of weeks ago and by ARDA, ARDA ROC, developers, employees last Friday in Wailuku. It is also election year for the Maui County Members. We will find out about the tax rate increases next month.

Syed said:

I have spoken with a few general real estate brokers on Maui and they all believe over 50% of the condos and apartments in West Maui and South Maui are owned by non residents.

The proposed tax rate is addressed on page 13 in the link below

http://www.mauicounty.gov/documents...udget/FY2013 Proposed Budget/Operating Budget

I was impressed by the passionate speeches given by the timeshare employees, developers, vendors etc at the Lahaina Civic Center a couple of weeks ago and by ARDA, ARDA ROC, developers, employees last Friday in Wailuku. It is also election year for the Maui County Members. We will find out about the tax rate increases next month.

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Thanks Syed, Unfortunately, your link doesn't work for me.

Greg