Kaua'i council weighs changes to property tax breaks

By Jan TenBruggencate
Advertiser KauaÎi Bureau

LIHU'E, Kaua'i — The Kaua'i County Council is considering a series of measures that would expand property tax breaks for specific families, but eliminate them for others.

The class of low-income homeowners who get a property-tax break would be expanded from those who make $30,000 and less to those who make $40,000 and less under one bill. County administration officials said the $30,000 figure was set more than 10 years ago and needed to be increased to keep up with inflation.

Homeowners who qualify under the exemption can have their property value reduced by $40,000 for calculation of property tax.

At the same time, the administration has proposed doing away with a tax break that does not appear to be helping many families. It is the permanent home use exemption, under which owners can promise not to sell their homes or convert them to other uses for a 10-year period, and gain a limit on the amount the property value can rise for tax calculation purposes each year.

While 1,224 Kaua'i homeowners have signed up for the program, only 144 of them get more than a $20 tax break from it, the administration said. The tax break has not been effective in providing residents with relief, and should be repealed, said Wallace Rezentes Sr., mayoral administrative assistant.

The council is also considering amendments intended to clarify the language of ordinances allowing tax breaks for tree farms and other agricultural uses. Properties with qualified agricultural or forest crops receive substantial reductions in their taxes.

The council has scheduled public hearings to be held on the bills at its Thursday meeting.