By Jerry Burris
Advertiser Editorial Editor

The debate now under way between Mayor Jeremy Harris and the Honolulu City Council over property taxes has a tinge of unreality to it.

A casual follower of the news might conclude:

• The mayor, after years of holding the line on property taxes, has this year reluctantly concluded that some taxes may have to go up, particularly for commercial properties. Even residential property tax hikes cannot be absolutely ruled out, the mayor says, until the budget is in final shape.

• The council, with a majority facing election this year, has stated in no uncertain terms that it will not approve any increase in residential taxes. And it is unlikely to accept any property tax hike.

The plain fact is that a decision has already been made at City Hall to collect more in property taxes this year than last. Substantially more.

That's because the real-estate boom has fueled a dramatic surge in property values. Without lifting a finger on rates, the city can plan on collecting something like 16 percent more taxes next year.

The public perception problem is caused by never-ending confusion over the difference between property taxes and property-tax rates. Both the mayor and the council have been relatively careful to make that distinction, using the language of "rates" when they discuss all this.

But the lingering confusion has its political value. When someone trumpets that he or she gallantly will stand firm against any increase in property taxes, the word "rates" usually follows in the form of a whispered afterthought.

If the city truly wanted to keep "property taxes" at the same level, it would have to make a substantial reduction in rates.

That isn't going to happen this year. There are too many bills coming due, and far too many obligations already accepted, to allow property taxes to remain where they were last year.

Harris often points out that the city is operating on no more property-tax income than it had a decade ago, when he first became mayor. That's an impressive record of holding the line, but eventually the bills come due. With no election immediately in front of him, Harris has the luxury of now acknowledging the reality that the city has to take more out of the wallets of Honolulu property owners.

The council's no-tax-increase policy is politically driven, of course, since five of the nine members will have to face the voters this year. But it can also be seen as a strategy to "starve the beast" if you will, to deny Harris the money he needs and wants to continue a variety of glamour recreation and beautification projects.

The council has been openly critical of Harris for his heavy spending on landscaping, parks and other popular attractions. Less glamorous — but badly needed — work on roads, sewers and other infrastructure has suffered in comparison, the council says.

But don't be fooled. No one has any intention of holding down property taxes. They may hold the line on tax rates, but they will be more than willing to take the valuation windfall.

Jerry Burris is editor of the editorial pages of The Advertiser. You can reach him at letters@HonoluluAdvertiser.com.