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Posted at 12:45 p.m., Friday, April 27, 2007

Maui property owners call for equitable taxes

By MELISSA TANJI
The Maui News

WAILUKU — Maui residents asked the Maui County Council for more equitable taxation, a cap for property assessments and more help for renters during a public hearing on real property taxes Thursday night, The Maui News reported.

Richard Ellis, who owns a time share, called for "equal treatment for all."

"Tax is on the property" and not the people, he added.

Currently time shares are taxed the highest rates of $14 per $1,000 of valuation.

William Tavares of Kuau called for a 4 percent cap in property assessments each year, saying county assessments are rising too much.

He said in 1987, a square foot of his family's property was valued at $3.70, but now it's worth $144.37.

"This is one square inch," he added.

Tavares, a longtime advocate of equitable taxation, is the co-founder and chairman of the Committee For More Equitable Taxation, or COMET.

As part of its review of the annual county budget, the council Budget and Finance Committee will need to set tax rates for the 2007-08 fiscal year. The committee is scheduled to discuss and set real property tax rates today.

In her budget proposal, Mayor Charmaine Tavares proposed cutting property tax rates in every category.

But a counterproposal by Budget Chairman Joe Pontanilla provides no tax cuts for hotels and time-share units, with smaller rate cuts for homeowners, agricultural and industrial properties than had been proposed by the mayor.

Rates in other categories will be kept at levels proposed by the mayor.

Pontanilla said before the hearing Thursday night that unless council members have different thoughts on the issue, he will stick with the rates he proposed, saying they are "pretty fair."

With the tax rate hearing Thursday night, the budget committee will be better prepared to act on the rate proposals.

"At least we know what they people are saying in regards to the property tax," Pontanilla said.

While William Tavares appealed for lower taxes for homeowners, COMET member Tony Fisher of Kihei asked for reduced taxes for renters.

Unlike homeowners who qualify for an exemption and a lower rate, houses provided to renters pay a higher tax rate on the full value of the house, he said. Rented properties also do not qualify for the county's circuit breaker, which caps the tax bill for a homeowner at 3 percent of gross annual income.

While the county is providing some affordable rental units, Fisher said it is not supporting private rental housing. In the private housing market, people are being priced out by higher taxes, he said.

Council Chairman Riki Hokama said he believed there was consideration for landlords who provide housing for long-term renters to pay a lower tax rate, but he would need to check on it.

Another resident who previously has appealed for tax relief for home renters, Bruce Erfer, said the county's tax breaks benefit only owner-occupied residences.

He expressed frustration to the council, saying it has not listened to the analysis and testimony on tax rates he has submitted to the council repeatedly for five years.

Pontanilla said it may be difficult to make major changes to tax rates during budget sessions, but he said he will review Erfer's work and bring the information up for discussion by the council before the next budget review.

Other council members said they would do the same.

For more Maui news, visit The Maui News.