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The Honolulu Advertiser
Posted on: Sunday, July 31, 2005

O'ahu needs more property tax relief


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Property-tax payers on O'ahu are shouldering a heavy burden that, for many, is now twice as heavy as it was a year ago.

It would be easier to bear if it was clear that there was some relief in sight. Yes, the City Council is trying to add a pressure valve to ease the strain on homeowners in modest income brackets. But for the bulk of residents, tax bills are headed straight up — way up.

The tax-relief measure gaining support in the council does represent at least recognition that rising property valuations without any cut in the tax rate has stung many households around the island.

Councilwoman Ann Kobayashi is right: Capping the tax for families taking in $50,000 or less each year would tend to help those who bought their homes years ago at a price they could afford and have no intent to sell. They're unlikely to receive any windfall from the soaring property values of recent years, and they can't afford a fat tax bill.

But the rest of the island's taxpayers are owed something, too.

At a minimum, they are owed a comprehensive accounting of how the windfall tax revenues are being spent. Most people recognize that the city has deferred expenses to pay, including the overhaul of O'ahu's sewage system and pothole-ridden roads. The responsible attitude at this point is for us all to tighten our belts and pay the bills. And property taxes — which fund 41 percent of the city's operating budget — will provide more dollars for this purpose.

But there also are special taxes for these purposes — which also are going up — including sewer fees and motor vehicle weight taxes. Property taxes also are tapped for other expenditures, sometimes unforeseen, so close tabs must be kept on where the money is spent. That means spending must be done efficiently to head off any budgetary crises. While basic city services must come first, city officials cannot ignore unfunded obligations, such as the escalating pension fund liabilities. The city pays into the state-run fund.

Voters have the right to expect leaders to make this spending transparent, as well as to come up with an honest "exit strategy" defining when the public might expect at last to see a decrease in the overall tax rate.

Taxpayers have good reason to recoil at the sight of government's eternally outstretched hand. If there's going to be more comprehensive relief down the road, they deserve to know when it's coming. And in the interim, they deserve to know precisely where their hard-earned dollars are going.