Kauai County Tax Increase Proposed Legislation

Typically, I am one who merely accepts what the "powers-that-be" dictates is the best for everyone.

The ideal philosophical basis for intelligent government is simply this: The greatest amount of good for the greatest amount of the people.

However, the Kauai Council has taken to the opposite principal in a misguided effort to give the "common-man" a lower tax bill.

This short sighted approach completely ignores the bigger-picture impact on Kauai's general economy. Kauai's reputation of being anti-business

has really been endorsed by this most recent tax bill (that will likely get passed). I have tried to not let the county's disdain for non-resident vacation rental owners bother me.

After all, it's a class struggle conflict between different income groups. This is natural. If the county council majority is always on the side of the old-guard. After all, Kauai's "heart" has always been inclined toward the local people.

Further, the county's underlying desire to somehow return to the plantation days of Kauai's yester-year agronomy with the impossible pie-in-the-sky notion of "Diversified Agriculture" as a method of sustaining Kauai's economy.

Meanwhile, as others (haves) are making an income on vacation rentals, the county becomes collectively jealous and plots to take financial revenge.

The passage in March of the TVR Bill was the first phase of the County's new assault on the "Haves." Little did anyone know (or did the county apparently wish to disclose) that the Bill, not only gave

the county a way of monitoring vacation rentals (always a thorn in its side), but it set the stage for the most dramatic real property tax increase ever.

By categorizing any vacation rental on Kauai as being equal in the taxation classification with resort hotels, the county, having consented to the continued non-conforming use

operation of such vacation rentals with the granting of a certificate (plus a hefty annual re-instatement fee) then slaps a 230% increase on the owners RP tax bills. At the same time, Kauai businesses get

hit with a big tax increase to off-set the revenue loss with owner-occupants tax bill reduction. Now, I may not have the keenest grasp on economic theory, but I do know that businesses will increase the cost of their goods and services

when their operating costs go up. So, Kauai residents may pay lower real property tax but higher prices for their goods and services as a result.

On the other hand, for many years Kauai has had the lowest tax rate in the nation. That's because it has such low municipal costs. Now that low tax rate will be raised significantly for many, not because municipal costs have gone up, but because of the misguided and unfair perception and belief that those that have more money should pay more taxes. (This was voiced per se by a council member)

OK . . . it's off my chest !!