Big Island backs sliding tax scale
By Hugh Clark
Advertiser Big Island Bureau
HILO, Hawai'i Mayor Harry Kim yesterday persuaded a Hawai'i County Council committee to reverse a council decision that exempted certain homeowners from an increase in the minimum property tax.
The council in December approved an increase in the minimum tax from $25 to $100 for nearly 53,000 properties, except for about 1,888 owner-occupied lots.
Kim said a tax based on a sliding scale that applied to all property owners would be more fair. The tax would be based on the age of the homeowner and the value of the home. For example, the minimum $25 tax would still apply for homes valued at up to $25,000, but a $50 tax would be imposed on a home assessed at $50,000 and a $75 tax on a home assessed at up to $75,000.
The County Council's Finance Committee voted 6-2 yesterday to approve the mayor's proposal, which would add $213,863 to county tax revenue in the next fiscal year.
Councilmen Gary Safarik of Puna and Jimmy Arakaki of Hilo, the council chairman, voted against the measure, which goes to the full council for additional consideration. Arakaki said he opposed the request because he felt it might hurt older residents on fixed incomes.