Status of Bills
Bill 41CD2
This bill passed and is now Ordinance 22-7, with an effective date of 10/23/22.
In July ’22: An injunction to stop implementation of Ord 22-7 until the law suit filed is settled. The law suit was filed in June ’22 against the City and County of Honolulu over provisions in the bill.
The lawsuit requests suspending implementation due to an unconstitutional taking of property rights by changing STR definition from 30 to 90 days. This bill is also pursuing clarification over property rented at min of 30 days according to Ord 19-18.
Sept 7, ’22: At the hearing, the judge asked both parties to meet with a magistrate judge to work out a solution. If unable, the injunction will be decided upon before October 23, 2022.
Bill 4: Property Taxes
Bill 4 is the property tax component of the original Bill 41. It originally taxed TVUs and NUCs in the Hotel classification. This would quadruple taxes for many. Through FOK efforts, the current Bill 4 CD1 includes a separate TVU classification with two tiers. Rates are not included in this legislation and will be established in an annual Resolution at year-end.
FOK has met with the Budget Committee Chair, Council Members and leaders of the Budget & Fiscal Services department. Due to lack of information on the number of TVUs that will register, as well as the timing of budget balancing, Bill 4 is on hold with the Budget Committee. FOK will stay involved and keep you informed on this important piece of legislation.
Bill 9
Referred to as the “Empty House Tax”
This bill has gone through its first reading and passed through the City Council. It is currently with the Budget and Fiscal Committee and pending being scheduled on the calendar.
We will post more information here soon on the details of this bill.
Bill 10
The Bill contains various proposed DPP items. Of interest for STRs are the change to include previously excluded areas within the Ko ‘Olina Resort area as legal TVUs to rent for <90 days, which is now illegal under Ord 22-7. Also, there are changes and clarity added to definitions affecting legal STRs. The Bill passed its second full Council reading and was referred back to the Zoning Committee.