H.R. NO.













urging each county to curb the proliferation of illegal vacation rentals.




     WHEREAS, the illegal rental of housing units for less than thirty days at a time without a valid county permit has become widespread throughout the State; and


     WHEREAS, operators of unpermitted transient vacation rentals in residential areas are able to offer those units for lower prices than legal hotel rooms largely by avoiding the payment of taxes, such as higher property taxes that hotels and resorts pay in order to comply with county zoning requirements; and


     WHEREAS, owners of residential property used for unpermitted transient vacation rentals may also be claiming homeowners exemptions in order to avoid paying higher property taxes; and


     WHEREAS, in addition to avoiding higher property taxes, operators of unpermitted residential transient vacation rentals often fail to report and pay the transient accommodations taxes and general excise taxes that they owe to the State; and


     WHEREAS, by failing to pay their fair share of taxes, operators of unpermitted residential transient vacation rentals effectively force all other taxpayers to subsidize their illegal operations; and


     WHEREAS, the collection of taxes from each individual taxpayer of a transient vacation rental should therefore be made more efficient and reliable, and one method worthy of study is the use of tax lien foreclosures to both curb the proliferation of illegal vacation rentals and generate increased tax revenues to the counties; now, therefore,

     BE IT RESOLVED by the House of Representatives of the Thirtieth Legislature of the State of Hawaii, Regular Session of 2019, that each county is urged to curb the proliferation of illegal vacation rental units by:


     (1)  Conducting expedited foreclosures on illegal vacation rental properties with amounts in arrears over $5,000; and


     (2)  Imposing increased minimum levels of fines to discourage repeat offenses; and


     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Mayor of each county.









Report Title: 

Counties; Real Property Taxes; Foreclosure