Gov. Josh Green, D-HI, on Monday proposed several initiatives aimed at increasing housing availability to Hawaii residents following the devastating effects of the Maui fire in August last year.
During a State of the State Address, Green proposed a two-year "tax amnesty" to owners of vacation rentals who would sell their properties to owner-occupants or long-term rental landlords. Under his tax amnesty proposal, vacation rental owners who participate in the housing initiative would be exempt from capital gains, conveyance, and general excise taxes. Owners who want to participate can email mauihousing2024@fema.dhs.gov.
"There are 27,000 short-term rental units on Maui alone, and - if we can dedicate just 10% of these homes to displaced Lahaina families - we can house them all," Green said. "This is the right thing to do - and I urge you to join us."
Should not enough vacation rental owners join the initiative, Green reiterated his pledge to impose a moratorium on all short-term rental properties by March 1 to address the housing needs of wildfire survivors.
"If not enough partners step forward to join us as we approach March 1st, I will be forced to declare a moratorium on all short-term rentals in West Maui, until we find enough housing for the displaced families," he said.
That initiative can support the state's Maui Interim Housing Plan, a $500 million program that aims to move all families displaced by the wildfire into long-term housing by July this year.
What Are His Other Initiatives?
In addition to tax relief, Green said he is asking the Legislature to allocate a budget of over $370 million for infrastructure and housing. Green also proposed charging travelers a $25 "climate impact fee" when they check in to their hotel or short-term rental.
If enforced, the environmental fee is expected to generate about $68 million annually. The funds would then be used toward beach preservation efforts, firebreaks, and other measures to prevent another tragic wildfire.
"I believe this is not too much to ask of visitors to our islands. I am open to other proposals that would achieve the same goals, including an increase in the transient accommodation tax - but we must do something now," Green said.
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