Property tax break deadline nearing
By Robbie Dingeman
Advertiser Staff Writer
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Only about 500 people have applied for a new property tax credit designed to give a big break to Honolulu property owners with a household income of $50,000 or less, and that deadline is just days away — Oct. 2.
Years of double-digit increases in tax assessments left homeowners reeling and hundreds complaining that the soaring taxes bit too hard into their budgets. The City Council responded with this credit as a way to help.
Gary Kurokawa, the city administrator of the Real Property Assessment Division, said it has been impossible to predict how many people might qualify for the credit. But he hopes that anyone who is eligible will learn about the credit and apply, because those who qualify can get a substantial break.
"We need to remind people," Kurokawa said, rather than wait until year's end when the assessments go out. "So many people call and say they missed out."
City Council Budget Chairwoman Ann Kobayashi pushed for the proposal that created this county tax credit which caps the tax bill at up to 4 percent of the income of the owners listed on the property title as long as total income does not exceed $50,000.
That means that a Palolo woman whose house is worth $500,000 — who is earning $50,000 a year or less — would end up with her property tax bill frozen at $2,000. That's because the credit would cap her tax at 4 percent of her income. Kobayashi favored that approach because it would help more than just the senior citizens who now benefit from tax relief based on age.
City Councilwoman Barbara Marshall said her Windward O'ahu district was stung by the soaring assessments as the region's sale prices skyrocketed. She sent out 200 letters this month trying to get out the word on the tax credit application deadline.
She and the city are reminding property owners that Oct. 2 also is the deadline for making sure your home exemption information — for owner-occupants — is correct.
"It's entirely possible people are unaware of both the credit and the deadline," Marshall said.
Marshall said she targeted senior citizen groups, community groups and individuals who have expressed interest in this topic. She believes the public outcry led to this credit being available.
But she also expects that the next round of assessment notices — which go out Dec. 15 — will raise alarms again for residents.
"When the assessments come out, I'm sure we'll have another frenzy of people calling," she said.
Kurokawa said the four conditions for the credit are:
Kurokawa said last week that 137,842 people had filed homeowners' exemptions of 247,377 residential and apartment properties listed in the city data base as of February. He urged people to check their records to make sure they have the exemptions for which they are qualified.
"It's important if you own and occupy a home that you file for the home exemption," Kurokawa said, because the credit and the reduced rates all tie to the exemption.
And he said people should check to apply for all the breaks they can. For example, a 76-year-old Kane'ohe man could qualify for the credit based on a household income of $50,000 or less but could already have qualified for a larger exemption based on the age guidelines. "Applying for one doesn't mean you don't qualify for the tax credit," he said.
Earlier, city budget and fiscal services director Mary Pat Waterhouse estimated the credit will cost the city some revenue from the tax break, but she gave a broad range of $3 million to $40 million.
Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.
