Posted on: Thursday, May 29, 2003

West Hawai'i homes boost tax revenues

Associated Press

KAILUA, KONA, Hawai'i — Although they represent less than 2 percent of the 134,295 parcels on the Big Island tax rolls, expensive new West Hawai'i homes and lots generate more than 20 percent of the county's property taxes, according to a new study.

The private study prepared for the Hawaii Leeward Planning Conference shows that 2,281 homes and lots at West Hawai'i resorts pay $22.2 million a year in Hawai'i County property taxes — 21 percent of the property tax total estimated at $106 million at the end of 2002.

By 2008, taxes generated by these upscale homes and lots are expected to increase to $48.9 million, Leeward Planning president John Ray recently told the Hawai'i County Council.

The study, conducted by Decision Analysts Hawaii Inc. for the planning organization, looked at eight resort areas from Hokulia in Kona to the Mauna Kea Resort in South Kohala.

The average value of residences used as vacation or second homes, which is the major use, is $2.9 million, said Bruce Plasch of Decision Analysts. Their taxes average $27,800 per year.

Ray said his group wants the council to see how much tax money comes from West Hawai'i in the hope that more money will be spent there. An ongoing complaint from West Hawai'i residents is a lack of adequate roads. Residents also have raised concerns over police and fire services.

"We'd like people to recognize the benefits" of the resort homes, Ray said.