Although there's always an assortment of Kauai happennings, I am going to focus on what I consider the be the biggest news to come down the pike in a LONG LONG time-and that is, the County Council has FINALLY passed a vacation rental bill! This issue, (like many others on the Island) has been around for almost as long as I can remember, and I've been here since 1991!
This issue first sparked controversy back in 2000 when the County was working on the General Plan which is the roadmap for Kauai's future. At that time, they recognized the need to address the unauthorized single family home vacation rentals scattered throughout the Island neighborhoods, primarily in the Hanalei to Haena area
If you have not been reading my blog, this issue is that of vacation rentals outside of Visitor Destination Areas, better known as VDA's. The main VDA areas are Princeville, the Kapaa Coconut Coast, and Kalapaki Bay and Poipu. The controversy stated as homes in non VDA areas, like Hanalei to Haena area, were increasingly purchased by investors and turned into vacation rentals, dramatically changing the fabric of the neighborhoods. What once were sleepy rural areas were now challenged with new people every week as they came and went in the vacation rentals. Land was purchased, newer, bigger vacation homes were built, more guests came to stay, property prices went up, -the full time residents did not like it.
According to the Garden Island, "The County Council unanimously passed a bill Wednesday night ..that prohibits new single-family vacation rentals outside designated visitor destination areas."
"The seven member legislative team took an unprecedented step toward combating the negative impacts of an unchecked proliferation of these units throughout the Island."
Despite passage of the ordinance, the Garden Island newspaper reports that "Residents say they lost their traditional neighborhoods in Haena and Hanalei during the eight years it took the Council to produce a law."
The bill, which only needs the mayor's signature to become law, grandfathers in existing vacation rentals with the right to rent running with the land. These properties must be registered by Oct 15, 2008 and have to be annually renewed. For renewal, the vacation rental must be rented 30 days per year.
My understanding is that proof of GET/TAT payment is needed to register which means those who rented illegally and DID NOT pay their GET (General Excise Tax) and TAT (Transient Accomodation Tax) will not be able to legally continue vacation renting. This bill is great news though for those who were renting outside of VDA's and were paying taxes on the income. And finally, there will be no NEW vacation rentals outside of VDA's. I'll be waiting to see when the Mayor signs the ordinance into law.
Aloha Elaine
Elaine Schaefer (R, GRI, ABR)
Broker in Charge - Princeville Resort Office
Graduate, Realtor's Institute
Accredited Buyer's Representative
Top Producer 100% Club
RE/MAX Kauai
Princeville Resort Office
POB 223632
Princeville, HI 96722
cell: 808 639 2935
home fax: 1 808 440 4552
email:soldonkauai@yahoo.com
website: www.kauairealestatenow.com
......you can have your own piece of paradise
ask me how!
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