There are elements of Honolulu’s recent and much-needed effort to crack down on illegal short-term vacation rentals that remain murky. That’s to be expected as the problem — obfuscated in recent years by the popularity of online home-sharing platforms, like Airbnb — has been decades in the making.

Time will tell whether new requirements and stepped-up enforcement strategies can withstand challenges, surfacing in courtrooms and elsewhere, to effectively rein in an industry that has included more than 800 legal vacation rentals and an inventory of illegals estimated at between 5,000 and 20,000 rentals.

Meanwhile, one element that’s emerging with mud-free clarity is the need to now “set the table” for fairness in property tax designation. Moving through the City Council is Bill 55, which would create a new property tax category for homeowners operating hosted bed-and-breakfast establishments.

In 1989, when residents complained that vacation rentals were becoming too intrusive in residential neighborhoods, the city stopped issuing permits. Currently, permit-holders for B&Bs and unhosted transient vacation units in residential districts are supposed to be paying the standard residential or Residential A rates — a sweet deal considering that the establishments are business operations.

The proposed “Bed and Breakfast Home” property tax category should be set about midway between the residential category (currently $3.50 for every $1,000 of assessed value) and the hotel-resort category ($13.90 per $1,000). The Council sets tax rates for the categories each June.

Residential A rates — for properties assessed at $1 million or more and are ineligible for home tax exemption granted for owner-occupied status — are $4.50 per $1,000 for the first $999,999 of value, and $10.50 for every $1,000 above $999,999.

The bill also aims to clear up fuzziness on designation of a category for some 770 unhosted transient vacation units, or whole-home vacation rentals, by placing all in the hotel-resort category. That level seems appropriate — as does closing the door on more TVUs in residential areas, a provision of Ordinance 19-018, which took effect in August.

TVUs, which are typically not owner-occupied, have long generated the most complaints to the city about matters such as noise and parking problems. In some cases, loose operations at revolving-door rentals have made a mockery of zoning rules, marring residential neighborhood character.

Another upshot to cracking down on illegal units is the possibility of switching unit use to long-term affordable rentals for residents. According to a recent University of Hawaii Economic Research Organization report, within a span of two months of the new law’s start, about 3,500 online ad listings were withdrawn.

That represents an estimated 9% drop in Oahu’s advertised visitor accommodation inventory.

The legal B&B inventory will bump up in October 2020, however, due to a provision that allows the city to issue a total of about 1,700 new permits for the hosted rentals, spread out among several regional development areas. Currently, there are 38 B&Bs operating legally through nonconforming use permits last issued three decades ago.

On the enforcement front, the city’s Department of Planning and Permitting is combing through online listings to verify the legality of short-term dwellings, those rented or leased for fewer than 30 days. Under the new law, those lacking city-issued certification can be flagged for stiff fines — and they should be — although there’s no fine for a first offense if the ad is removed in seven days. That’s a reasonable grace period.

Together, the new law and Bill 55 appear to strike a firm but fair balance in the effort to reclaim control of land use.