Posted on: Friday, February 18, 2005

Kaua'i officials plan property tax relief

By Jan TenBruggencate
Advertiser Kaua'i Bureau

LIHU'E, Kaua'i — Mayor Bryan Baptiste and members of the County Council said they will push forward with their own property-tax relief provisions now that 5th Circuit Judge George Masuoka has invalidated the charter amendment proposed by the group 'Ohana Kaua'i.

Masuoka ruled that the 'Ohana amendment violates the state Constitution's provision that mandates that "all functions, powers and duties relating to the taxation of real property shall be exercised exclusively by the counties." The Kaua'i County Charter places the county taxation power in the hands of the County Council.

Walter Lewis, a member of 'Ohana Kaua'i, said the group disagrees with the judge's position and is raising money to prepare an appeal.

The group's amendment, which was approved by voters in the November 2004 election, rolled back resident homeowners' real property taxes to the 1998-99 level, and permitted annual increases based on the rate of inflation — rather than on values based on how neighboring properties are selling.

In a joint statement, the mayor and council said the decision removes uncertainty from the county's taxation process, and allows the county to go forward with an overhaul of the real property tax system recommended last year by a county task force.

"Together with the administration, the council is committed to continue working on the county's Real Property Tax Task Force proposal for comprehensive reform of the property tax system," said Kaipo Asing, council chairman.

Reach Jan TenBruggencate at jant@honoluluadvertiser.com or (808) 245-3074.