Honolulu empty homes tax proposal advances out of Council committee

from Grassroot Institute

A Honolulu City Council committee last week narrowly approved Bill 46, which aims to impose a 3% tax on so-called empty homes across Oahu.

Grassroot Director of Strategic Campaigns Ted Kefalas testified in opposition to the bill, citing its administrative challenges and contesting the notion that empty homes increase housing prices or rents.

“Do we really want to create a headache for the city administration and city property owners in hopes of raising an unquantified sum of money — especially when there are easier ways to go about raising revenue?” Kefalas asked.

Also last week, Honolulu Civil Beat published a column by businesswoman and city watchdog Natalie Iwasa that points out flaws in the proposed empty homes tax.

Titled, “A vacant homes tax is not good public policy,” Iwasa's commentary notes that many homeowners who have not filed for a homeowner exemption could see their homes registered as empty if they don’t fill out the correct paperwork, and that would come with severe tax consequences.

Nevertheless, the Housing, Sustainability, and Health Committee voted 3-2 last Wednesday to amend the bill and move it to second reading before the full Council.

And the committee amended the bill, most significantly to dedicate a portion of revenues from the new tax to affordable-housing constructing and addressing homelessness and to exempt bed-and-breakfasts and short-term rentals from the tax.

To read Grassroot’s latest testimony on the Honolulu's Bill 46, go here.

In case you missed it

Grassroot President Keli'i Akina wrote about Honolulu's latest attempt at passing an empty homes tax in his Aug. 17 "President's Corner" column titled "Empty homes tax haunts us again."

More council news

The Grassroot Institute of Hawaii submitted several other testimonies recently to county councils, most of which weighed in on bills related to various permitting regulations.

Hawai‘i County

>> Bill 121: Proposed changes to STR laws need further legal and economic scrutiny

>> Bill 184: Simplify proposed permitting process for street vending, decrease fines

>> Bill 212: Increase value of permit exemption for non-structural repairs

Honolulu County

>> Bill 40: Self-certification for energy projects would help trim permit backlog

>> Bill 53: Reform permit process for special management area to cut backlog

Maui County

>> Bill 115: Extend tax exemption deadline for homeowners renting to fire victims

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HPR: City Council advances bill to establish tax on empty homes | Hawai'i Public Radio