pspercy

Maui County is proposing to enforce its laws on TVR (TVR = transient and vacation rental, includes B&B).
Unless a recently filed federal lawsuit is successful, all such rentals will be illegal from Jan 1 2008.
People you contact via VRBO etc will (should) tell you this:
http://www.mvra.net/files/html_docs/...unttoBaisa.pdf

So it's wise to not make any deposits for 2008 rentals unless they can prove they have a proper permit.
To be fair, all that I've queried directly say they can't take any deposits/bookings for 2008 at present.

http://www.mvra.net/index.php?section=48

http://www.mauinews.com/edit/2007/9/30/01deny0930.html

http://www.mauinews.com/story.aspx?id=34611

pspercy

Summary, here on Fodors:
http://www.fodors.com/wire/archives/002779.cfm

dantheman

It really makes me mad. We want to celebrate our 20th anniversary at the place we went to 3 and 5 years ago. It is our favorite place not only on the island but everywhere we've traveled. The owners are being very open and honest with us and will not accept a deposit at this time since they are very unsure of the future. I only hope Maui will change it's mind on this position.

pspercy

Yes, I've a place in mind as well.

Maybe the federal suit will help but it seems the Mayor has a hidden agenda on the subject.

Drlene

Maybe I'm not alone in this, have a rental property in Kaua'i and when I purchased it it years back I had to go to the county permit office to apply for my licenses and they checked that the property was a valid rental property. I pay 11/42% for each night rental ( part of it to Kaua'i the other to Oahu) and also all gross income has to be claimed on April US income tax (Uncle Sam). I disapprove with all the illegal rentals that do not pay any taxes - and just go ahead with fixing up there place, chopping it up into suites or purchasing a place and using illegally for renting it out and think that it is okay not to pay any taxes - but profit in pocket illegally all the money _ ( this is fraud - and people who think that there holiday might be ruined because they want to stay in a certain place are only aiding the person who is cheating - if it was yourself - do you think it would be fine to cheat the government if you were renting your house/condo or cabin and think you should not be shut down or fined. Sorry for those who are now going to be shut down - maybe even fined - but maybe should have had the honesty and integrity before even thinking of renting out their property to unexpected clients who had no idea the place was illegal. You cheat the government and think this is okay I call it dishonest.

dmlove

What has getting a rental permit got to do with paying taxes? Paying taxes has always been based on the honesty of the income-producer. Whether or not you get a rental-unit permit, you should still be paying the appropriate taxes on the income. Conversely, just because you have a permit doesn't mean you ARE paying taxes.

pspercy

Drlene, please read the original posting. Maui effectively turned a blind eye to it in that they never, or rarely, processed permit applications. Now they change their minds arbitrarily.

It's also got zip to do with taxes in this case.

here_today_gone2Maui

You are reading only one very skewed side on that website.

Of course, all of the MVRA members are good citizens, loved by their communities and pay all of their taxes, just like all the offended parents from the Frisky Oyster thread have incredibly well-behaved children.

There is a lot more to the story than is being told by vacation rental owners of the MVRA.

And while some TVR operators may be good citizens, paying taxes etc, many properties are being bought by investors and are being converted to vacation rentals under the radar and certainly not paying the proper property tax scale for a short term rental Maui has various levels of tax and many of these rentals are paying homeowner-occupied rates, versus the higher rate they should be paying.

But, moreover, it is matter of zoning. If I buy a home in a residential area I would certainly not be happy if the rest of neighborhood was turned into transient rentals.

Our current administration is enforcing the law that the previous administration failed to enforce and many people in sleepy neighborhoods and on residential cul-de-sacs are applauding.

Unfortunately, some of the properties that have long been rented short-term are victims of the current enforcement of an existing law. But I don't buy the "we tried to get legal" argument from many of them, because I personally know several who just never bothered. It has been way too easy for people here to throw up a shingle and become a TVR illegally, and, like the other poster, that is simply not fair to those who made the effort to become legal.

Most of the affected properties are on land zoned agricultural. Don't you have zoning laws where you live?

travel472

I just stumbled on your notice here quite by accident and it has me very concerned. We have aranged with a private owner at the Royal Kahana Condo complex in Maui for a two week stay in his condo in March 2008 and we have already paid in full for this rental. Do you know if we have reason to be concerned and should we pursue this with the owner?

Barbara5353

I believe that the problem is with rentals in areas zoned for residential use. It would impact primarily private home/cottage rentals and B&B's. Condo rentals in resort areas are not the issue. I've enjoyed private rentals in Upcountry on Maui and the Windward side of Oahu in the past, but would not be reserving that type accomodation again until the dust settles and the law is defined. I am proceeding with a condo rental from a private party.

travel472

To: Barbara5353:

Thanks for your reply. I did look into the situation more in depth today and now understand what is going on. I also have been in touch with the party we will be renting a condo from at the Royal Kahana and I am convinced that everything will be fine. Thanks again for your response.