Tax relief must pair with spending control
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One of the painful parts of springtime in Honolulu will soon be upon us again: payment of property taxes. The prospect of fulfilling this chore grows more frightening every year, due to the upward spiral in property assessments.
The fear is a rational one: Homeowners have seen double-digit increases in assessed values for the past four years.
City Councilman Todd Apo, newly named budget chairman, said he's reviewing the varied proposals submitted to his committee but will be guided by the mantra, "helping resident homeowners, and helping those who really need the help."
That sounds reasonable enough — as long as it's also paired with responsible spending policy. The Council must do some hard thinking about the city's core responsibilities and make sure the spending plan fits within that scope. The tax rate should be set to cover a more strictly configured budget, not to cash in on a fat tax windfall.
Of course, whittling the wishlist is a job for another day. The administration has more than a month before its budget proposals will hit the Council members desks.
Elected leaders, and some vocal taxpayer advocates at the grassroots level, aren't waiting to beat the drum for some specific tax reforms. Those deserving serious consideration include proposals to:
There is also a push for a charter amendment that would cap annual increases in property assessments to 2 percent. But a charter amendment is the wrong vehicle to use. Economic conditions change, and the amendment process doesn't lend itself to easy adjustment.
Fiscal policy is complex, and it's best managed by elected representatives who should keep careful tabs on taxation and spending.
The Council passed some tax relief last year, but the voters really haven't held their feet to the fire. This year, politicians and the public need to hold up their ends of the bargain.
