Posted on: Thursday, October 7, 2004

Property tax bill vetoed

Advertiser Staff

Mayor Jeremy Harris yesterday vetoed a bill that lowered property taxes for some condominium time-share units by classifying them as apartments rather than hotels and resorts.

City attorneys said the bill, which affected several Waikiki properties, served no legitimate government purpose and violated the state and U.S. constitutions by creating unequal dual tax rate classifications.

Proponents had argued that time share units on land zoned for apartments should not be classified and taxed as hotels, because they don't offer hotel amenities such as daily housekeeping service and room service.

But city attorneys said the tax classification should not be changed for such units, because time shares on land zoned for hotels don't offer such services, either.

The City Council approved the bill Sept. 22 by a 6-3 vote, with members Mike Gabbard, Barbara Marshall and Gary Okino voting in opposition. Harris' veto could be overturned within 30 days by a vote of at least six council members.