The Honolulu City Council approved Wednesday a bill that could leave vacation rental owners on the hook for thousands of dollars in registration fees.
The progress of Bill 62 through the council has been unpopular among owners of vacation rental properties. While the bill’s primary purpose has been to reinstate a few requirements that were inadvertently cut by a 2024 measure, it includes two clauses that would increase registration fees many times over.
One clause would double the initial registration fee for vacation rental properties from $500 to $1,000. But more significantly, the other would require a new initial registration upon any change in ownership or operator; rental owners have said this would require $1,000 payments any time they wanted to change contact information with the county.
Despite previous negative testimony on the matter, the council’s passage of the bill on Wednesday did not draw much comment. In fact, the O‘ahu Short-Term Rental Alliance submitted testimony in favor of the measure, conceding the $1,000 re-registration fee as a necessary evil.
“We were initially disappointed that the need for this $1,000 re-registration fee for a simple change in operator was necessary,” read a letter by OSTRA President Kelly Lee. “However, we also understand that there is significant work involved by the Department in maintaining the integrity of the registration system, and we respect the need to cover administrative costs.”
‘Ewa Beach Councilwoman Andria Tupola emphasized the need to restore the cut language as soon as possible before a Nov. 20 deadline.
In fact, because the bill’s purpose is to restore the omitted standards and requirements, the council cannot make substantial amendments to the language. Tupola said any further improvements to vacation rental ordinances can be pursued in a future bill.
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