Updated at 3:22 p.m., Thursday, February 8, 2007
Mayor proposes $150 tax credit for low-income renters
Advertiser StaffThe mayor wants to give low-income renters a one-time, $150 tax credit in 2008.
About 70,000 taxpayers are believed eligible for the credit, which would be limited to renters who earn less than $30,000 a year and pay less than $1,000 in rent per month.
The proposal will be part of the mayor's budget package for the next fiscal year, which will submitted to the City Council on March 2.
Mayor Mufi Hannemann announced the credit in a news conference this afternoon at Honolulu Hale.
"We realize the run-up in property values in recent years has raised property taxes for many residential properties," Hannemann said. "Landlords often pass those increases on to their tenants. This credit would help fill that gap."
The mayor also renewed his call for the creation of a homeowner classification for real property, which would give homeowner-occupants special tax exemptions.
Hannemann said the credit would allay some fears City Council members had about the creation of the classification, which could lead to higher taxes for landlords.
There were some concerns the higher taxes would be passed on to renters.