Make the Ultra Rich Pay More for Their Luxury Vacation Homes: Double Property Tax for Luxury Homes Owned by Non-Residents Valued at $3,000,000 or More.

Attorney Forrest's Locals 1st Plan DOES NOT INCREASE PROPERTY TAXES FOR RESIDENTS. This is a proposed tax on ultra wealthy non-residents that have luxury vacation homes in Maui County.

While other Candidates talk about vague ideas with no specifics, Attorney Forrest has actual plans and has Bills ready to file. If your Councilmember won't do their job, Attorney Forrest will do it for them. Send the Bill to your Councilmember and tell them to start putting Locals 1st and FILE THE BILL!

Tax on Luxury Properties Owned by Non Residents.pdf

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Maui faces a housing crisis, not because local families demand too much, but because the island’s land and homes have become luxury investments for wealthy buyers worldwide. This trend pushes out local workers, families, teachers, nurses, firefighters, and young people who cannot afford to live here. To address this, a new tax plan proposes that luxury homes owned by non-residents pay more in property taxes, helping fund affordable housing for the community.

Why Maui’s Housing Crisis Needs a New Approach

Maui’s housing market is unique. Many properties are not primary residences or long-term rentals but serve as vacation homes or investment assets. These homes often sit empty or are rented short-term, reducing the supply of affordable housing for locals. The result is a market where local families struggle to find homes they can afford.

The proposed Luxury Non-Primary Residential Property Tax targets this issue directly. It focuses on high-value homes that do not contribute to the local housing supply. This tax would not affect owner-occupied homes or long-term rentals, ensuring that local families and workers are not penalized.

How the Luxury Non-Primary Residential Property Tax Works

The plan introduces a new tax classification for Maui County properties:

• Tier 1: Properties valued up to $3,000,000

These properties pay the standard non-owner-occupied residential tax rate.

• Tier 2: Properties valued over $3,000,000

Only the value above $3,000,000 is taxed at a higher rate of $34.00 per $1,000 of net taxable assessed value.

This tiered system means the higher tax rate applies only to the luxury portion of the property’s value, not the entire amount. For example, a $5 million home would pay the standard rate on the first $3 million and the higher rate on the remaining $2 million.

This approach recognizes that Maui’s housing market is already expensive and does not punish ordinary homeowners. Instead, it asks luxury property owners who do not live in or rent their homes long-term to contribute more toward solving the housing crisis.

Why Set the Threshold at $3,000,000?

Maui’s real estate market is among the most expensive in the country. Setting the threshold at $3 million ensures that the tax targets only the ultra-luxury segment of the market. This level reflects the reality that many local families and workers cannot afford homes anywhere near this price.

By focusing on properties above this threshold, the tax plan avoids burdening middle-class homeowners and instead asks the wealthiest investors to help fund affordable housing solutions. This targeted approach balances fairness with effectiveness.

How This Tax Helps Maui’s Housing Crisis

The revenue generated from this tax would be dedicated to affordable housing projects and programs that support local residents. This includes:

• Building new affordable homes for families and workers

• Supporting long-term rental programs to keep housing accessible

• Funding services for renters and homeowners facing housing insecurity

  
  

By increasing the cost of owning luxury vacation homes that do not serve the local community, this tax encourages owners to either rent their properties long-term or sell to buyers who will live in them. This shift can increase the housing supply available to residents.

Addressing Common Concerns

• Is this a tax on local families? No. The tax applies only to non-primary residences valued above $3 million. Owner-occupied homes and long-term rentals are exempt from the higher rate.

  
  

• Does this hurt tourism? No. The tax targets luxury homes that are investment properties, not hotels or short-term rentals that support tourism.

  
  

• Will this reduce property values? The goal is to balance the market by discouraging speculative investment that drives prices up. This can help stabilize prices and improve housing access for locals.

  
  

What This Means for Maui’s Future

Maui’s housing crisis requires bold solutions. Asking the ultra-rich to pay more for their luxury vacation homes is a practical step toward funding affordable housing and supporting the community. This tax plan recognizes the unique challenges Maui faces and offers a targeted, fair way to address them.

Local families, workers, and essential service providers deserve a chance to live in the community they serve. By making luxury property owners contribute more, Maui can build a stronger, more inclusive housing market.

The next step is for Maui County leaders and residents to consider this proposal seriously and work together to create a sustainable future where everyone can find a home.