Kauai Councilmembers vote to keep TVR room rates lower and postpone new investments in affordable housing

Words suitable for a family audience cannot express my reaction upon reading Guthrie Scrimgeour’s piece in Sunday’s TGI which started out: “By a 4 – 3 vote, the County Council voted down a measure Friday that would have increased the tax rate on vacation rental units and used the funding for affordable housing.”

According to the article Council Chair Arryl Kaneshiro justified his opposition by saying, “It’s money that’s not necessarily needed at the time…When the county really needs the money, then we can increase the tax rates.”

Then I took the time to actually watch the Council meeting and listen to the arguments made by the 4 Councilmembers who spoke against raising $4.5 million for affordable housing and in favor of protecting the interests of tourists and their innkeepers.

It was appalling really.

Councilmembers Carvalho, Cowden, and DeCosta joined Chair Kaneshiro in refusing to support the additional funding for affordable housing, either mimicking Kaneshiro’s argument (we don’t really need the money) or talking in circles, grasping at straws only tangentially related to the core issue.

A majority of our Councilmembers believe we don’t need the money?

What world are they living in?

Each and every affordable housing project on the island has a waiting list. We have people sleeping in the bushes at the side of the road. Our homeless shelters are full.

I know personally people who are working full time, and who live in their cars because they cannot find an affordable place to rent. They drive from beach park to beach park every night seeking a safe quiet place to spend the night.

Transient Vacation Rentals (TVRs) are houses or condos that are operated as hotels. In addition to taking long-term rentals away from local residents, TVRs add to the overall burden of the tourism industry on County parks and roads.

Councilmember Luke Evslin proposed the measure, which would have generated $4.5 million in new revenue by increasing the TVR tax rate by $1 to $10.85 per $1,000 of taxable income, bringing it even with the rate for resorts and hotels. Armed with the facts, he obviously had done his homework and did an excellent job articulating the need and justifying the ask.

Councilmember Kuali‘i and Vice-Chair Chock were both passionate and articulate in their support as well.

TVRs on Kauai should pay a property tax rate equal to or even exceeding that of hotels – just like they do on Maui.

The Maui County Council recently approved their property tax rates, setting the TVR rate on Maui at $11.85, slightly more than their hotel/resort rate of $11.75 – (per $1,000 of value), and not one single Maui Councilmember voted no.

Unfortunately here on Kauai, Council Chair Arryl Kaneshiro along with Councilmember Carvalho, Cowden, and DeCosta all said no.

We don’t need the money they said. Maybe at some point in the future, we might need it, but for the moment we are fine, was the message justifying their votes.

We don’t need an additional $4.5 million that could have been used for affordable housing, homelessness, open space acquisition, and other vital services – and paid for by tourists.

$4.5 million annually is what we are talking about.

$4.5 million annually that could leverage municipal bond funding to pay for the infrastructure needed for thousands of new housing units.

$4.5 million annually that would have been paid for by people on vacation, who don’t live here, who choke our roads, beaches, and trails daily, and whose very presence on our island drives up the costs and take away much-needed housing for local residents.

I encourage all to watch the Council meeting yourself and make up your own mind on this.
Start at around 2:40. Check out their attitudes and listen closely to their words.

Then, please contact the Councilmembers directly and share your thoughts. You can use councilmembers@kauai.gov to reach all of them with one message or send each one an individual note.

Please be courteous and professional.

Those 4 who voted against increasing the tax on TVRs and using the money for affordable housing:
Council Chair Arryl Kaneshiro – ajkaneshiro@kauai.gov
Councilmember Bernard Carvalho – bcarvalho@kauai.gov
Councilmember Felicia Cowden – fcowden@kauai.gov
Councilmember Bill DeCosta – bdecosta@kauai.gov

Those 3 who voted in favor of increasing the tax on TVRs and using the money for affordable housing:
Council Vice-Chair Mason Chock – mchock@kauai.gov
Councilmember Luke Evslin – levslin@kauai.gov
Councilmember KipuKai Kuali‘i – kkualii@kauai.gov

About garyhooser

This blog represents my thoughts as an individual person and does not represent the official position of any organization I may be affiliated with. I presently serve as volunteer President of the Hawaii Alliance for Progressive Action (H.A.P.A.) www.hapahi.org I am the former Vice-Chair of the Democratic Party of Hawaii. In another past life, I was an elected member of the Kauai County Council, a Hawaii State Senator, and Majority Leader, and the Director of Environmental Quality Control for the State of Hawaii - in an even earlier incarnation I was an entrepreneur and small business owner. Yes, I am one of the luckiest guys on the planet. Please visit my website AND sign up for my newsletter (unlike any email newsletter you have ever gotten, of that I am sure) - http://www.garyhooser.com/#four “Come to the edge.” “We can’t. We’re afraid.” “Come to the edge.” “We can’t. We will fall!” “Come to the edge.” And they came. And he pushed them. And they flew. - Christopher Logue (b.1926)
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3 Responses to Kauai Councilmembers vote to keep TVR room rates lower and postpone new investments in affordable housing

  1. pamela burrell says:

    this is appalling… Incentiifizing mainland investors over local residents! I did write to the Council with my concerns. Thank you Gary for keeping your eye on the issues.

  2. scottypoppins says:

    Aloha Gary, I sent an email specifically to Felicia Cowden, and one generally to the entire Council. I am aghast at their decision to not raise taxes on the wealthy. I am a progressive, and I will vote for Progressive members who are true to my values. I thought Felicia was true to my values, but after watching her talk in circles, I do not support her anymore.Thank you so much Gary for informing me of this disastrous decision by our current council. I generally agree with 99% of everything that you support. Please keep these Progressive emails and notifications coming…as the election approaches, I want to make sure that I’m not voting for any dinos. Sincerely Scott Valkenaar 

    • garyhooser says:

      Thank you Scott for the comment. I too am extremely disappointed. For me this issue is at the top. I’m getting calls regularly from people who are getting kicked out of homes they have lived in for years because the home was sold, and they have no options at all. There is not even a safe parking lot that is legal to park their car in and get a good night’s sleep. The excuses for voting no on this measure are all woefully inadequate.

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