Posted on: Sunday, February 20, 2005

EDITORIAL
Kaua'i also faces taxation challenge

In contrast to O'ahu, the property tax limitation movement on Kaua'i is beginning with a community group.

An organization called 'Ohana Kaua'i pushed a charter amendment through the initiative process. They want taxes rolled back to 1998-99 levels and then cap their increase to a formula based on the rate of inflation.

That effort, approved by voters in November, has been at least temporarily stymied by the Circuit Court, which ruled the plan violates the state Constitution, which says "all functions powers and duties relating to the taxation of real property shall be exercised exclusively by the counties."

Supporters of the plan say the ruling misreads the Constitution and so they will likely appeal.

They may have a case. The Constitution appears to be arguing that property taxation is strictly a county matter, not one the state should get involved in.

In any event, the Kaua'i County Council appears ready to take up the cause and will soon launch its own "reform" effort in the arena of property taxes.

It makes sense to take a hard look at the entire property tax system to determine if it is fair and adequately productive.

But Kaua'i also should be wary of arbitrary formulas. The role of any legislative body is to make sound policy decisions after considering all the facts.

In the case of taxation, that means listening to the public, deciding what is needed, then raising the money needed to meet those obligations.

Setting income levels first and then fitting public needs into a predetermined budget is not sensible policy.