Council members have said they want to offset property valuation increases for homeowners and landlords by reducing rates. While rates for commercial properties will largely stay the same, higher assessments are expected to bring increased revenues from those categories. The council has said the county needs the money to cover higher-than-expected retiree benefit liabilities.

Also Monday, the council set fuel tax rates at 16 cents per gallon for gasoline and diesel fuels, no change from the current year's rates. Other fuel taxes included 3.8 cents per gallon for ethanol, 2.9 cents per gallon for methanol, 4.3 cents per gallon for liquefied petroleum gas and no tax on biodiesel – all the same as current rates.

The council also set the motor vehicle weight tax at 1.25 cents per pound for passenger and noncommercial vehicles under 6,500 pounds; and at 2 cents per pound for other vehicles. The minimum vehicle tax was set at $6. All rates are unchanged from the current year.

Monday's action was to comply with a requirement that the council set property, fuel and vehicle taxes by mid-May. The council has until the end of the month to make a final vote on the annual county budget.

On Monday, the council heard from one testifier who was upset about the rates. Kihei apartment owner David Claus said it wasn't fair to honest landlords like himself that the county's tax rate for homeowners who live in their own homes was so much lower than those who rent their properties out.

High assessments and high tax rates have added to the burden on his tenant, Claus said.

"I would like to know how I'm supposed to keep rents reasonable," he said.

2007-08 PROPERTY TAX RATES AT A GLANCE

The property tax rates set by the council for 2007-08 are: