COMMENTARY
City Council will take up property tax relief
By Donovan dela Cruz
Low-interest rates over the last few years have been the primary fuel for the real estate boom that has sent property values skyrocketing not only in Hawai'i but across the United States.
While investors and businesses associated with the real estate industry have enjoyed substantial gains, others not involved in the frenzy of buying and selling real estate have been nonetheless pulled into the fray.
As part of our efforts to lessen what we consider to be an unfair financial burden on an alarming number of residents affected by escalating property taxes, City Council Vice Chairwoman Ann Kobayashi and I have introduced three bills that, if passed, would alleviate some of the tax burden caused by soaring real property assessments.
Bill 80 proposes to amend the county tax credit ordinance by increasing the maximum qualifying income from $50,000 to $75,000. The bill provides for a tax credit equal to the amount by which the taxes calculated for the property exceeds 4 percent of the title holder's income.
Bill 81 would allow a homeowner to dedicate real property as the owner's home for a period of 10 years, provided that:
Bill 82 would provide an immediate, one-time real property tax credit against the taxes owed for the owner's home for the 2007 tax year, provided that during the 2005 calendar year:
We fully expect that these proposals will be scrutinized for the fiscal impact on city revenue collections and we are confident that all of these measures can provide relief to those who most deserve relief. Any across-the-board remedy, such as a rollback of tax rates, will give the same measure of relief to the buyers of high-end properties as those long-term residents on fixed incomes.
We believe these homeowners, along with many middle-class families who are already having a hard time making ends meet, are those who need the most help.
If you believe you are entitled to appeal your assessment, contact www.honolulupropertytax.com or call the Real Property Assessment Division at 527-5510, 527-5539 or 692-5541.
Again, I assure you that members of the City Council are deeply concerned about the strain that rising property taxes has had on working families and those on fixed incomes. I encourage you to follow the progress of the real property tax relief bills and testify during committee meetings and public hearings to voice your opinion to members of the City Council.
Donavan dela Cruz is City Council chairman.
