Council committee backs county study of transient accommodation rentals before advancing TAR ordinance

The Hawaii County Council Committee on Government Operations and External Affairs voted to forward Resolution 556‑24 to the full council with a favorable recommendation, asking the Department of Research and Development to procure a third‑party study of the economic and fiscal impacts of transient accommodation rentals (TARs) on Hawaii Island.

Member Ashley Kerkowitz, who introduced the measure, said the study would provide county‑specific data to guide any legislation. "We want hard line, very specific Hawaii County data related to the impacts of transient accommodation rentals," Kerkowitz said, arguing that local conditions differ from other islands and that reliable numbers are needed before policy is fixed.

Public testifiers and business owners told the committee the study is essential. Joshua Montgomery, representing a statewide TAR coalition, said his group has assembled a data team and reported "296 midterm rentals on the Big Island of Hawaii," and urged the county to ensure due process before enforcement actions such as platform delisting. Business owner Gordon Lindquist and resident Robert Golden also testified in support of the study, asking the council to delay moving forward with Bill 121 until its results are available.

Doug Adams, director of Research and Development, said the department will work with the council to set a focused scope so costs stay reasonable and the study answers the questions tied to pending legislation. Adams cautioned that a broader scope would raise the price and that the first step is scoping vendor requirements.

Council members pressed for specific elements in the scope: the study should disaggregate owner‑hosted vs. unhosted rentals, estimate tax revenue impacts (GET, TAT and real property tax), identify how much revenue remains in the local economy, analyze effects on rental rates and home values, and evaluate the feasibility of converting TAR units to long‑term housing. Member Heather Kimball also asked the study to quantify impacts on overall rental rates.

Several members suggested cost‑sharing strategies for the work — using existing STVR fee funds, council contingency allowances or departmental discretionary funds — and asked the director to seek neutral economists or data vendors. Adams said R&D will develop a scope and identify budget needs; local economist input indicated a six‑month completion timeline could be feasible for a well‑scoped contract.

The committee recorded seven votes in favor and one opposed; one member was absent. The committee’s recommendation sends the resolution to the full council for final action. The measure does not itself change enforcement or tax policy; it requests a study and asks staff to return with results and recommendations.