Real Estate Agent · Honolulu, HI · Member since 2018 · 37 posts · 11 votes
I have noticed lots of properties, where the owners were running Airbnb or Vacation Rentals, are for sale. When I dig deeper, I noticed that almost majority of these properties had one thing in common. They are all slapped with a higher property tax rate compare to what owner was paying in previous years. After doing more research, I noticed a trend that C&C is making the homeowners pay taxes for the previous years as well. In some cases, the effective tax rate is huge.
Looks like C&C is using some type of mechanism or enforcement task force which is tracking the properties listed on Airbnb or VRBO sites, and then doing their checks if the property owner is paying taxes for "resort " zoning or not. I think this is going to be a game changer, as with these rates, it is not possible for an average Airbnb operator to make money.
Has anyone else noticed this or want to share your input?
Rental Property Investor · Honolulu, HI · Member since 2015 · 143 posts · 61 votes
7y
Only select portions of the island permits vacational rentals. The last permit issued was in the 70s I believe. The news and a few big names had a role also in creating uproar on vacation rentals and blames them for the lack of affordable homes. whatever your stance. Hotels love it. Same with any third party service that is changing the game and cutting costs such as Uber or Lyft. Few years ago they said they received funding to create a task force exclusively to hunt down illegal rentals. If that was your question? I'm really sorry if I misunderstood. You're very right. They are back dating the accomodation tax too. Most locals hate the idea of them also so they ended up creating a hotline also and a website I know off the top of my head is stay neighborly(dot)com. I secretly wonder if people are knocking out competition this way lol.