# Kauai Property Tax on Timeshares



## Kauai Kid (Dec 22, 2015)

At the Alii Kai II resort property taxes were $37.99/wk in 2014
They were $48.56/wk in 2015 up $10.57 and 27.8%
Property tax for 2016 projected $72.26/wk up $23.70 and 48.8%
Grand Total for the two years:  up $34.37 and 90.2%  

Your Holiday gift from the Kauai politicians.

Sterling


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## DaveNV (Dec 22, 2015)

Kauai Kid said:


> At the Alii Kai II resort property taxes were $37.99/wk in 2014
> They were $48.56/wk in 2015 up $10.57 and 27.8%
> Property tax for 2016 projected $72.26/wk up $23.70 and 48.8%
> Grand Total for the two years:  up $34.37 and 90.2%
> ...




I'd heard they were trying to make Kauai t/s taxes like they are on Maui - where the t/s owners subsidize the entire island economy.

Dave


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## Ralph Sir Edward (Dec 29, 2015)

Famous conversation between two US Senators many years ago.

"Don't tax you, don't tax me. Tax that fellow behind the tree..."

The timeshare owner is the fellow behind the tree. Taxation without representation...


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## jacknsara (Dec 29, 2015)

Ralph Sir Edward said:


> . . . Taxation without representation...


Aloha,
Many major size cities finance their pet prjects (e.g. sports stadiums) by taxing things (e.g. rental cars picked up at airports) primarily used by visitors not from the taxing authority.  It has become the American way.  
We are fortunate to be able to live almost 10% of our time on Kauai.  We can see how off island visitors impact the islands.  Kauai needs the tax revenue to address real needs.  Most locals are substantially below the income level of most visitors.  We just hope that the politicians manage the expenditures more wisely than they have in the past.
Jack


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## Tamaradarann (Dec 31, 2015)

*Real Estate Taxes, Occupancy Taxes, Sales Taxes*



jacknsara said:


> Aloha,
> Many major size cities finance their pet prjects (e.g. sports stadiums) by taxing things (e.g. rental cars picked up at airports) primarily used by visitors not from the taxing authority.  It has become the American way.
> We are fortunate to be able to live almost 10% of our time on Kauai.  We can see how off island visitors impact the islands.  Kauai needs the tax revenue to address real needs.  Most locals are substantially below the income level of most visitors.  We just hope that the politicians manage the expenditures more wisely than they have in the past.
> Jack



I don't know what taxes you are talking about but I assume it is the Occupancy taxes which timeshare owners or exchangers pay when they stay in a timeshare using points and not paying sales taxes.  This is a tax that only believe exists in Hawaii since I have been to a number of other states and have not had to pay it.  I resent this tax because it is directed directly at timeshare owners and have written to legislative representative in Honolulu about how I felt this was unfair.

Timeshare owners pay real estate taxes already on their property.  The real estate tax in Hawaii is really low.  It is about 1/10 of what I pay on Long Island in New York.  My house is assessed at about 250K and I pay over 7K in real estate taxes  I have looked at Condos in Hawaii that are going for 700K and the real estate tax is about 2K.  If the State of Hawaii feels they need more income  they should raise the real estate tax.  That way timeshares, hotels, houses and condos would all pay more in taxes to support the government.

Since we are on the issue of taxes, the items which are subject to sales tax is another issue in Hawaii that I don't agree with and is very regressive.  In New York you don't pay sales tax on supermarket food.  In Hawaii everything you buy incurs sales tax.  People who have very limited income use a much greater portion of their income on supermarket food than visitors or more wealthy residents.  Therefore, they are paying this very regressive sales tax.  The sales tax should be raised on restaurants and other non-essential purchases and the essential items like supermarket food should be except from sales tax.  Again if the State of Hawaii needs more income they should raise the sales tax for discretionary purchases for everyone.


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## Tamaradarann (Dec 31, 2015)

*Added to my Previous Post*



Kauai Kid said:


> At the Alii Kai II resort property taxes were $37.99/wk in 2014
> They were $48.56/wk in 2015 up $10.57 and 27.8%
> Property tax for 2016 projected $72.26/wk up $23.70 and 48.8%
> Grand Total for the two years:  up $34.37 and 90.2%
> ...



I read Jacknsara's post but not yours when I made my comment.  From what you wrote they have done a good job on raising your property taxes.  Now they need to raise the property taxes on Hotels, Houses and Condo to get sufficient income instead of clobbering you.  See my previous post.


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## stratcats (Jan 1, 2016)

Hawaii residents receive a tax credit on the excise tax paid on purchased groceries (food).  The higher the income, the less received back. This credit is available even to those who don't have to file taxes, but they'll receive the refund if they file.


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## slum808 (Jan 2, 2016)

A note on this refund. A married couple making $50k or more gets $0 from this credit. A person making $5k or less can receive  $110. For my family of 4, I estimate I pay $500 a year in excise tax on groceries.


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## Kauai Kid (Jan 2, 2016)

slum808 said:


> A note on this refund. A married couple making $50k or more gets $0 from this credit. A person making $5k or less can receive  $110. For my family of 4, I estimate I pay $500 a year in excise tax on groceries.



I was on Kauai in December and thought I paid sales tax on groceries not excise tax.  I'm confused as usual.

Sterling


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## Kapolei (Jan 3, 2016)

Kauai Kid said:


> I was on Kauai in December and thought I paid sales tax on groceries not excise tax.  I'm confused as usual.
> 
> Sterling



Excise tax is different because it is applied to goods and services.  The net effect is that it looks like you are getting a lower sales tax.  But the net cost of goods may be higher because excise tax is being paid by those providing services and there is also a small amount at the wholesale level.  Bottom line, is that it regressive because it effects those the most that least can afford it.


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## Tamaradarann (Jan 4, 2016)

*Sales Tax or Excise Tax*



Kauai Kid said:


> I was on Kauai in December and thought I paid sales tax on groceries not excise tax.  I'm confused as usual.
> 
> Sterling



I could be wrong but I always thought that a sales tax was that which a final customer pays when they but an item in a retail outlet which is what the 4-5% you pay on everything in Hawaii.

Excise tax is that what businesses in the supply chain pay on the good or service before it is marketed to the final customer.  

In any case taxing food is a regressive tax no matter what.  I didn't know about the rebate but it seems to small to reimburse low and middle income residents for the true cost.  Giving a rebate to residents is in my opinion a deceptive and ridiculous practice.  Don't tax food and raise the sales tax on other taxable items to compensate.


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