A good government implies two things: first, fidelity to the objects of the government; secondly, a knowledge of the means, by which those objects can be best attained. ~ Joseph Story, Former Associate Justice of the Supreme Court of the United States

1. Taxes are the lifeblood of government and no taxpayer should be permitted to escape the
payment of his just share of the burden of contributing thereto.
̶ Arthur Vanderbilt
The purpose of a tax cut is to leave more money where it belongs: in the hands of the
working men and working women who earned it in the first place.
̶ United States Senator Bob Dole̶ ̶
TIERED PROPERTY TAX RATES PROPOSED
Mayor Alan Arakawa’s budget
proposes a tiered scheme for property taxes designed to increase income from second homes and investment
properties, is a growing trend that many say aggravates Maui County’s housing crisis.
By Melissa Tanji. The Maui News. March 24, 2017
http://www.mauinews.com/news/local-news/2018/03/tiered-property-tax-rates-proposed/
The City and County of Honolulu has a similar tiered tax rate for second homes.
In addition, the Maui County Council will implement its initiative, approved last year,
to separate short-term rental units from hotels and resorts tax classifications. A
property tax rate has yet to be decided for the new short-term rentals category.
̶ Maui County Budget Director Sandy Baz ̶
The proposed tiered system would affect four property tax categories: residential,
apartment, agricultural and conservation. It would ease the tax burden for owners' first
$500,000 of assessed value, keep it the same for $500,000 to $1.5 million and increase it by
50 percent for those portions of values that rise above $1.5 million.
The homeowner category would remain unchanged at $2.86 per $1,000 for the entire
amount of assessed value, after the homeowner exemption. Tax rates in other categories
would stay the same as well. Real property valuations are up, reflecting rising single-family
home and condominium sales prices.
Tiered rate details include:
• Residential. Now at $5.54 per $1,000 assessed value, the tax rate would drop 25 cents, or
4.5 percent, to $5.29 per $1,000 for the first $500,000 of residential value; it would remain
unchanged for the portion of homes’ value between $500,000 and $1.5 million; and rise
$2.77, or 50 percent, to $8.31 per $1,000 for amounts more than $1.5 million.
• Apartment. Now at $6.32 per $1,000, the tax rate would fall 42 cents, or 6.6 percent, to
$5.90 per $1,000 for the first $500,000 of value for apartments; it would stay the same for
the next $500,000 and $1.5 million; and go up $3.16, or 50 percent, to $9.48 for amounts of
more than $1.5 million.

2. • Agricultural. Now at $6.01 per $1,000, the tax rate would decline 56 cents, or 9.3 percent,
to $5.45 per $1,000 for the first $500,000 of agricultural properties’ assessed value; it
would not change for amounts between $500,000 and $1.5 million; and increase $3.01, or
50.1 percent, to $9.02 for amounts more than $1.5 million.
• Conservation. Now at $6.37 per $1,000, the tax rate would drop $3.87, or 60.8 percent, to
$2.50 per $1,000 for the first $500,000 in property value; it would keep the status quo for
properties’ value from $500,000 and $1.5 million; and rise $3.19, or 50.1 percent, to $9.56
per $1,000 for amounts in excess of $1.5 million.
2017/2018 REAL PROPERTY TAX RATES
Hawaii Life Real Estate Brokers
http://www.localrealestatehawaii.com/resources/property-taxes/
COUNTY CLASS TAXABLE BLDG TAXABLE LAND
PER/$1000 PER/$1000
MAUI * Agricultural 6.01 $6.01
Apartment $6.32 $6.32
Commercial $7.28 $7.28
Commercial Residential $4.56 $4.56
Conservation $6.37 $6.37
Homeowner $2.86 $2.86
Hotel/Resort $9.37 $9.37
Industrial $7.49 $7.49
Residential $5.54 $5.54
Time Share $15.43 $15.43
Homeowner exemption: $200,000. *Maui County includes the islands of Lanai, Maui and Molokai.
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COUNTY CLASS TAXABLE BLDG TAXABLE LAND
PER/$1000 PER/$1000
HONOLULU *
Agricultural $5.70 $5.70
Agricultural Vacant $8.50 $8.50
Commercial $12.40 $12.40
Hotel/Resort $12.90 $12.90
Industrial $12.40 $12.40
Preservation $5.70 $5.70
Public Service $0.00 $0.00
Residential $3.50 $3.50
Residential A (>$1M) $4.50 $4.50
Residential A ($1M<) $9.00 $9.00
Homeowner exemption: $80,000. Exemptions for homeowners 65 years and older: $120,000.
*Honolulu County applies to the island of Oahu.

3. Honolulu assesses Hotel/Resorts at $12.40 per/1000. Maui assesses Hotel/Resort at $9.37
per/1000. Mayor Arakawa's Budget Proposal does not increase rates for Hotel/Resort recognizing
RevPAR strength and contribution by Maui's hotels and resorts.
Hawaii Hotels Statewide Begin 2018 With Strong January
Hawaii Tourism Authority
http://www.hawaiitourismauthority.org/default/assets/File/research/Hotel%20stats/HTA%20January%202018%20Hawaii%20Hotels%20Performance.pdf
Maui County hotels led the island counties in both total RevPAR at $345 and the rate of
RevPAR growth (+15.3%) in January, driven by the rise in ADR to $434 (+13.5%) and a
modest increase in occupancy to 79.5 percent (+1.2 percentage points).
Oahu hotel properties reported declines in RevPAR to $199 (-2.2%) and ADR to $239 (-2.5%)
in January, while occupancy remained stable at 83.1 percent.
REVENUE PER AVAILABLE ROOM (REVPAR)
INVESTOPEDIA https://www.investopedia.com/terms/r/revpar.asp
Revenue per available room (RevPAR) is a performance metric used in the hotel industry. It is
calculated by multiplying a hotel's average daily room rate (ADR) by its occupancy rate. It may also be
calculated by dividing a hotel's total room revenue by the total number of available rooms in the period
being measured. Growth in RevPAR does not mean that a hotel's profits are increasing. This is because
RevPAR doesn't use any profitability measures or information on profits. Focusing solely on RevPAR,
therefore, can lead to declines in both revenue and profitability. Instead, many hotel managers are
turning solely to the average daily rate as a performance measure. This is because price positioning is
found to be one of the main drivers of hotel occupancy. Therefore, if a property is able to accurately
price its rooms, the occupancy rate should increase, and its RevPAR should also naturally increase.
AVERAGE DAILY RATE (ADR)
INVESTOPEDIA https://www.investopedia.com/terms/a/average-daily-rate.asp
An average daily rate (ADR) is a metric widely used in the hospitality industry to indicate the
average realized room rental per day. Average daily rate is one of the key performance indicators
(KPI). Other KPIs are metrics such as occupancy rate and combined with ADR comprise revenue
per available room (RevPAR), all of which are used to measure the operating performance of a
lodging unit such as a hotel or motel. The ADR can be measured against a hotel's historical
performance. It can also be used as a measure of relative performance, since the metric can be
compared to other hotels that have similar characteristics such as size, clientele and location. The
formula is room revenue divided by rooms sold. Hotel operators seek to increase ADR by focusing
on pricing strategies. This includes upselling, cross-sale promotions and complementary offers
such as free shuttle service to the local airport. The overall economy is a big factor in setting
prices, with hotels and motels seeking to adjust room rates to match current demand.
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PONO
RIGHTNESS AND BALANCE
THE FEELING OF CONTENTMENT WHEN ALL IS GOOD AND RIGHT
Managing With Aloha http://www.managingwithaloha.com/19-values-of-aloha/pono/