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Hawaii Proposes New Tourist Fees, Targets Vacation Rentals

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Hawaii Proposes New Tourist Fees, Targets Vacation Rentals


Governor Josh
Green today delivered his second State of the State Address at the Hawaii State Capitol, in which he addressed key topics, such
as the efforts underway to recover from last
year’s Maui fires, concerns about short-term rentals, bolstering the
economy by opening to tourism and reducing dependence on fossil fuels. 

The issue of reducing
the state’s reliance on fossil fuels came hand-in-hand with a proposal for
charging tourists a new $25 fee. Green also said that he would be forced to place
a moratorium
on all short-term rentals in West Maui if an adequate number of people do
not volunteer their properties to house families displaced by the Lahaina
fire.

Addressing the state’s affordable housing crisis, the governor said that he
believes constructing new homes won’t solve the problem along. He has therefore
proposed an initiative aimed at the short-term
rental market, a topic that’s become quite controversial in recent years,
as local residents are pushed out in favor of high-earning vacation rentals.

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“Our state is such
a desirable destination, and such a profitable investment for many, that people
from around the world have purchased property to hold as investments or rent as
short-term rentals to visitors—making on average four times what they would if
the property was simply rented to a local family,” Green said.

Aerial shot of Hawaii's Waikiki Beach

Aerial shot of Hawaii’s Waikiki Beach. (Photo via jhorrocks / iStock / Getty Images Plus) (Photo Credit: jhorrocks/iStock/Getty Images Plus)

Tourist Fees in
Hawaii

Two separate
proposals are on the table, which are aimed at raising funds to support climate
change and fire control efforts by passing the cost on to out-of-state tourists.
According to local news outlet Beat
of Hawaii, the first would raise the accommodations tax rate by an undetermined
percentage, while the other is a $25 fee that would be tacked onto the cost of guest accommodations.

The Aloha State
already has the highest taxes on hotels and vacation rentals in the entire U.S.,
charged in three separate parts and totaling approximately 18 percent. In 2023,
the legislature put forth House Bill 820, which proposes a combined tax rate of 33
percent to be charged on short-term rentals, but that bill has been deferred
for the time being. 

Then there’s Senate Bill 304, which puts forth a proposed piece of legislation
that would charge visitors a “Green Fee”, and on which Governor Green based part of his
campaign. If passed, it would assess a $50 impact fee that’s intended to offset the environmental
impacts of tourism (or, more specifically, its chronic
overtourism). 

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The Green Fee
would be assessed to any “person in Hawaii who is not a resident of Hawaii”,
according to the bill. Funds generated by the proposed law would be put toward
mitigating the effects of climate change by tackling such issues as, “coastal
erosion, sea level rise, damage to reefs, ocean acidification, coral bleaching,
damage to land resources, and other impacts.” The bill’s authors wrote that “current
underinvestment in the state’s natural resources poses a significant liability
to the visitor industry”, SF
Gate reported.

Rainbow Falls in Hilo

PHOTO: Rainbow Falls in Hilo. (Photo via Getty Images Plus / iStock / sorincolac)

If the bill passes
into law, the Department of Land and Natural Resources would oversee the
visitor impact fee program, which would go into effect on July 1, 2025. Once
paid, visitors would be issued a license, good for one year. Failure to obtain this
annual license would result in an as-yet-unspecified fine.

A
previous draft of the bill passed through the state’s Senate in 2023, but
failed to advance any further, as House representatives failed to settle on the
details before the year’s legislative session came to a close. The same thing
had reportedly happened in 2022, as environmental groups have been pushing to
institute such a tourist fee for several years now. 

Honolulu Civil
Beat reported that Green forecasted the Green Fee would generate as much as
$600 million per year for the state, while also weeding
out unwanted tourists (i.e., the ones with less money to spend). He
reportedly said that charging such a fee would, “decrease the number of
tourists that would come in at the low end, so we’ll have fewer tourists
overall with this additional revenue.” 

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Hawaii

Hawaii men's basketball team gets important commitment from Xavier transfer

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Hawaii men's basketball team gets important commitment from Xavier transfer


HONOLULU — The Hawaii men’s basketball team gained a potentially crucial commitment for the 2024-25 season on Friday in former Xavier forward Gytis Nemeiksa, a native of Lithuania.

Nemeiska was a part-time starter at Xavier, which competes in the Big East, one of college basketball’s elite conferences, and brings some credibility to a UH roster that is still light on significant Division I experience at the midpoint of the offseason.

He was classified as a senior in 2023-24 and supplied XU with 5.2 points and 4.2 rebounds in 18.5 minutes per game, while starting 20 of 34 contests.

Nemeiksa is the first scholarship commitment in several weeks for coach Eran Ganot and his staff, which still has several holes to fill for the coming season. At a rugged 6 feet 8 and 220 pounds, Nemeiksa should compete for playing time right away at small or power forward for the Rainbow Warriors.

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He shot 46.9% from the field, 36.4% on 3-pointers and 64.7% from the free-throw line in his first Division I season.

The Musketeers went 16-18 overall and 9-11 in the Big East, which includes two-time reigning national champion Connecticut as well as marquee programs like Marquette, Villanova and Creighton.

Prior to his time at XU, Nemeiksa competed for Zalgiris Kaunas II, a reserve team for a professional club in his hometown, from 2020 to 2023. He was credited with 11.3 points, 6.1 rebounds, 1.7 assists and 1.2 steals per game in helping his team to the 2023 NKL Championship.

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Against eventual national champion Connecticut, Nemeiksa scored 10 points on 4-for-5 shooting and five rebounds on Jan. 10. He posted a career-high 20 points against Washington on Nov. 17.

His playing time was reduced late in the season, however, as he appeared off the bench in his last eight games for XU.

UH’s last player from Lithuania was Petras Balocka from 2008-10. Other past ‘Bows from the Eastern European nation are Vaidotas Peciukas (2002-05), Mindaugas Burneika (2000-02) and Nerijus Puida (1999-01).

UH is believed to have four scholarships still to award for 2024-25. Besides Nemeiksa, UH’s other new scholarship commitments for next season are guard Aaron Hunkin-Claytor, wing A.J. Economou, center Tanner Christensen and guard Marcus Greene.

Brian McInnis covers the state’s sports scene for Spectrum News Hawaii. He can be reached at brian.mcinnis@charter.com.

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Oversight of Biki bikeshare system to be transferred over to the city

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Oversight of Biki bikeshare system to be transferred over to the city


HONOLULU (HawaiiNewsNow) – Starting July, the Biki bikeshare system will now be overseen by the city’s Department of Transportation Services.

The city announced Friday that the nonprofit Bikeshare Hawaii will transfer oversight to the city as the program evolves.

Officials said that there will be no changes to Biki operations during this transition and that riders will not notice any changes in system availability, operations, Biki accounts or customer support.

“Secure Bike Share will continue their effective and efficient operations and maintenance of the Biki Bikeshare system, as they have since system opening in 2017,” said Roger Morton, director of the Department of Transportation Services.

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DTS will oversee a concessions contract beginning July 1, 2024 and running until June 30, 2025.

Officials said this transition will allow the city to expand Biki’s network and achieve greater coverage on Oahu.

“Biki is the 6th most-used bikeshare system in the country, illustrating how critical our kamaaina-based system is to Honolulu’s shared mobility,” aid Greg Gaug, board chair for Bikeshare Hawaii.

The current Biki fleet includes 1,288 bicycles, 136 self-service stations, and 2,500 docked bicycle stalls. In 2023, there were nearly 800,000 rides on Biki, with 62% taken by residents, and nearly 17,000 active members.

DTS said it plans to deploy future federal funding towards the acquisition of replacement bicycles and docks to continue our support of Biki and provide affordable, efficient, and healthy ways for residents and visitors to move around Honolulu.

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A Hawaii judge ordered the demolition of a house after a California woman bought a vacant plot, only to discover the building on her land

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A Hawaii judge ordered the demolition of a house after a California woman bought a vacant plot, only to discover the building on her land


A house mistakenly built on the wrong plot of land in Hawaii is set to be knocked down after a developer got it confused with the neighboring lot. A judge ordered the construction company that made the mistake to foot the bill for the demolition.

Reynolds, who lives in California, previously told Business Insider she had planned to use the land for a home for her children as well as to host women’s retreats, but said in legal filings that she discovered in June 2023 that a house worth roughly $500,000 had been built on the plot.

PJ’s Construction, which was contracted by Keaau Development to build twelve properties in Hawaiian Paradise Park, mistakenly built the property on the wrong plot after using telephone poles to try to identify Lot 115 — but accidentally built it on Lot 114, the other side of the telephone pole, per legal filings.

Patrick John Lawrence, Jr., the owner of PJ’s Construction, said that he was first made aware that the property had been built on the wrong lot when he was informed by the real-estate agent after the house was sold.

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Keaau Development then sued Reynolds, claiming she was “unjustly enriched” by the property.

PJ’s Construction has to pay for the demolition of the house on Reynolds’s property, Judge Robert D. S. Kim wrote in an order on Monday, viewed by BI. The company may seek contribution or indemnity from Keaau Development at a subsequent trial or hearing, Kim wrote.

Reynolds had also asked for the court to order Keaau Development and PJ’s Construction to restore the plot of land to its original state. To build the house, PJ’s Construction had bulldozed the lot, which “removed all of the previously standing native vegetation,” Kim wrote. After this, there was a “long period of neglect,” during which invasive Albizia trees were able to “infest” the lot, he wrote.

As well as building the house, PJ’s Construction also installed a septic tank and a catchment water system.

But Kim wrote that it was ‘”impossible” to return the property to its original state.

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The companies had “seriously disturbed the peaceable use, enjoyment, and possession of real property,” Kim wrote.

Reynolds had testified that her property taxes for the plot shot up after the house was constructed and that she found signs of squatting such as empty drink containers and human waste in the toilet and on the floor.

Keaau Development and PJ’s Construction excavated the lot and built the house without a survey as part of a plan to “cut corners to reduce construction costs,” Kim wrote in Monday’s filing. And because the construction permits were approved for Lot 115, not Lot 114, the house is illegal, he wrote.

The case is still ongoing, with a trial scheduling conference currently set for the end of July.

“We are thrilled with the court’s decision that PJ’s Construction must bear the costs of demolishing the unauthorized structure on Anne Reynolds’ property,” Reynolds’ lawyer, James D. DiPasquale, told BI.

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“This ruling not only preserves Anne’s property rights but also sets a precedent for accountability in the construction industry. While it’s regrettable that the land cannot be restored to its original state, the judgment underscores the importance of meticulous adherence to property and zoning laws.”

Business Insider was not immediately able to contact lawyers for PJ’s Construction, and did not immediately receive a response from Keaau’s attorney.



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