Hawaii Governor Threatens to Shut Down Vacation Rentals Amid Housing Crisis

Governor Josh Green sets March 1 deadline, proposes tax amnesty for rental owners to alleviate housing shortage for wildfire victims.

Hawaii Governor Josh Green has threatened to shut down all short-term vacation rentals in West Maui if enough property owners don’t step forward to house displaced residents from the Lahaina Wildlife by March 1st.
The State is in need of about 3,000 housing units willing to offer an 18-month long-term lease to accommodate the displaced families currently living in hotels and other short-term accommodations.
Governor Green has proposed a two-year “tax amnesty” to encourage owners of vacation rentals around the state to sell to owner-occupants or long-term rental landlords, exempting them from capital gains, conveyance and general excise taxes under this two-year program.
Some landlords on Maui are attempting to oust their current renters and replace them with fire victims, who come with a more lucrative rent subsidy from the government, creating a new problem.
Green is also asking the Legislature to put $373 million in the budget for infrastructure and housing, and has suggested charging each family visiting Hawaii a $25 “climate impact fee” when they check in to their hotel or short-term rental, which could raise $68 million a year.