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The Honolulu Advertiser
Posted on: Thursday, April 24, 2008

Property tax rates likely won't rise

By Peter Boylan
Advertiser Staff Writer

TAX RATES

Here is the tax rate per $1,000 in net taxable property for various types of property:

  • Residential: $3.29

  • Hotel and resort: $12.40

  • Commercial: $12.40

  • Industrial: $12.40

  • Agricultural: $5.70

  • Preservation: $5.70

  • Vacant agricultural: $8.50

    Source: City and County of Honolulu

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    The Honolulu City Council yesterday gave initial approval to keeping property tax rates at current levels for the coming fiscal year.

    The rates, which would be assessed from July 1 until June 30, 2009, will go back to the council's budget committee for further discussion; a public hearing will take place June 4, and the council will vote on the rates the same day.

    "I'm very comfortable (that) we're not going to raise them (the rates)," City Council member Todd K. Apo, chairman of the budget committee, said on Tuesday.

    Property taxes are determined by multiplying the assessed value of a home by the tax rate, which is set each year by the city.

    The council last year lowered tax rates for homes and apartments from $3.59 to $3.29 per $1,000 of assessed value.

    "This (the proposed rates) is not representing an increase, however, we have increased too many taxes for too long and as this process moves along I'd like to see a reduction in rates," said council member Charles K. Djou.

    The rates may mean a property tax savings for some, following a decline in assessments last year.

    Last year, the total assessed value of residential property on O'ahu decreased for the first time in six years, falling 2.7 percent.

    The total gross assessed value of all property on the island slid from $191.5 billion to $190.7 billion, or 0.4 percent. Hotel and resort property values went down by an average of 4.9 percent.

    About 7,000 owners appealed their assessments in 2006, according to the city.

    Reach Peter Boylan at pboylan@honoluluadvertiser.com.