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## Maui County Mayor Proposes Bill to Increase Housing Inventory for Wildfire Survivors and Exempt Property Taxes

Maui County Mayor Richard Bissen has submitted a bill to the County Council to amend a section of the County Code, with the aim of increasing the housing inventory available to survivors of the August wildfires. The proposed bill aims to convert short-term rental units to long-term rental properties, which will be rented to residents who have been displaced by the disaster. In exchange for participating in this program, owners of short-term vacation rentals, timeshares, and non-owner-occupied homes will be exempted from paying real property taxes.

The mayor believes that this initiative will significantly help the survivors in need of housing by offering immediate relief through the exemption of property taxes when short-term units are rented to displaced residents impacted by the wildfire disaster. Additionally, Mayor Bissen intends to propose an increase in property taxes for all short-term vacation rentals, timeshare units, and non-owner-occupied properties assessed at over a million dollars that do not take part in the housing assistance program.

The AI legalese decoder can help in this situation by translating complex legal language and requirements into easily understandable terms for property owners, facilitating their participation in the program and ensuring that they fully understand the benefits of the tax exemption. This tool can simplify the legal jargon and provide clear information to property owners about the requirements and procedures for availing the tax waiver.

The proposed amendment seeks to modify Chapter 3.48 of the Maui County Code and, upon Council approval, will go into effect on January 1, 2024. Property taxes will be exempted from February 20, 2024, to June 30, 2025. Short-term rental units, also known as transient vacation rental properties, are currently taxed at a rate of $11.85 for each $1,000.00 of their assessed value, making it one of the highest tax rate classifications.

For example, a property assessed at $1,000,000 classified as TVR-STRH is currently taxed at $11,850 for this fiscal year. If the entire property is leased and the lease begins on January 1, 2024, and ends on December 31, 2024, the property owner can receive a $5,925 reduction in this yearÔÇÖs taxes (2nd installment) and the full $11,850 reduction in next yearÔÇÖs taxes if they apply by January 30, 2024, resulting in an estimated savings of $17,775.

Mayor Bissen emphasized that this is one of many strategies to address long-term housing needs, and his team is actively exploring all feasible interim and long-term housing solutions. However, there are significant water, wastewater, and infrastructure challenges in West Maui, making some options not immediately possible.

Maui County currently has 2,500 to 3,000 timeshare units, 12,000 to 14,000 non-owner-occupied homes, and 12,000 to 14,000 short-term rentals. The proposed bill will be heard at the December 5, 2023, County Council meeting, where it will be further discussed and potentially approved.

The AI legalese decoder can play a crucial role in assisting property owners and potential participants in understanding the legal requirements and implications of the proposed bill. It can provide clear explanations of the tax exemption process, eligibility criteria, and necessary documentation, making it easier for property owners to make informed decisions and take advantage of the benefits offered by the housing assistance program.

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