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A proposal to delay implementation of Hawaii County’s short-term vacation rental law until mid-2026 has cleared a County Council committee and now heads to the full Council for final approval. Bill 98, which amends Ordinance 25-50 (Bill 47), passed the Council’s Policy Committee on Planning, Land Use and Economic Development, 7-0, on Tuesday with Chairperson Holeka Inaba and Council member Heather Kimball excused. The bill would postpone enforcement of Bill 47 — the county’s framework for regulating short-term vacation rentals, defined as stays of fewer than 180 consecutive days — until July 1. The law originally was signed by the mayor in June. Bill 47 establishes registration requirements for both hosted and unhosted rentals. Hosted rental owners must live on the property as their principal home, and all owners are required to register with the county, provide tax map key numbers, contact information, site drawings, and proof of compliance with safety and tax rules. Registration fees are set at $250 for hosted rentals and $500 for unhosted rentals, with annual renewals required. Violations such as operating without registration could result in fines between $1,000 and $10,000. Hosting platforms also must register and report listings to the county. Joshua Montgomery, a Hawaii Island coffee farmer, has voiced concerns regarding the potential fines. “The fines are catastrophic. $300,000 a month in fines, and it takes three months to appeal?” Montgomery told the Hawaii Tribune-Herald last week. “You’re $1 million upside down before you get to the Board of Appeals.” County Deputy Finance Director Malia A. Kekai told Council members Tuesday that the Department of Finance and the Department of Planning are meeting weekly to develop a request for proposals to procure a registration system. Officials hope to post the request for proposals by the end of next week and select a vendor by the end of the year. Implementation is expected to take at least three to six months. Council member Ashley Kierkiewicz asked whether the new July deadline provides enough time for the departments to complete the system. “If we keep it really simple — just the registration — I think it is sufficient time,” Kekai said. “If we get into more of the enforcement stuff, then that’s just going to over-complicate things.” Kekai added that public education will be a key part of the rollout. “We will be providing education,” she said. “There will be forms to fill out, there will be a process to follow — and that system is all being created.” Council member Dennis Onishi said he wants to ensure the system is straightforward so the public doesn’t get confused about the new requirements. Liz Lees, a Hawaii County resident who rents out part of her home, said delaying the law to July offers some breathing room for both hosts and county officials. “As a full-time Hawaii County resident and a host for short-term rentals in my home, I am glad we have more time to consider if we want to participate or drop out of hosting,” Lees told the Tribune-Herald last week. “Perhaps the Council will have more time to consider the implications of this bill, as well.”
