Big Isle homeowners get tax hike exemption

By Hugh Clark
Advertiser Big Island Bureau

HILO, Hawai'i — The Hawai'i County Council yesterday gave final approval to a compromise measure that exempts homeowners from an increase in the minimum property tax from $25 to $100.

The increase, set to take effect July 1, will apply to 50,927 lot owners. About 10,275 others who live on their land and pay the minimum tax were excused from the increase, despite objections from Mayor Harry Kim.

The mayor, who spent months preparing his version of the tax proposal with Finance Director William Takaba, said he was disappointed by yesterday's 7-2 council vote but will not veto it. Kim has argued it was more equitable to apply the property tax increase with no exemptions.

Puna council members Julie Jacobson and Gary Safarik voted against the bill, saying it was unfair to their rural constituents who receive few county services. Many must pay for their own road maintenance.

Public testimony yesterday was divided along geographical lines. Four West Hawai'i residents — the first to use a new video conferencing system in the mayor's office in Kona — said the tax increase was overdue.

Supporters pointed out that 12,678 of the affected parcels are held by off-island owners who wouldn't be hurt by an additional $75-a-year tax payment.

A half-dozen Puna residents submitted testimony opposing the measure as a violation of the State Constitution's equal protection provision.

Councilwoman Bobby Jean Leithead-Todd, who helped fashion the final version, said she personally preferred Kim's plan but realized she could not muster the majority votes.

Leithead-Todd said she was more concerned about the loss of $800,000 in annual property tax revenue that will result from exempting property owners who live on their land.