The Honolulu City Council is weighing several proposals that could decrease property taxes for seniors, landlords, and homeowners who live on their property.
Hawaii Public Radio reports the council’s Budget Committee has advanced two of the measures – one that would raise the amount of exempted assessed value on residential property owned by those over 65 years old by $20,000 and another designed to offer the same increased exemption for those who own and live in their home.
However, Budget and Fiscal Services Director Andy Kawano warned that these measures could result in lost revenue that is not easily replaced. He estimated that the increased exemption for seniors would cost the city about $5.6 million while the owner-occupant exemption would cost the city another $5.1 million.
“We have concerns that, if the exemptions grow too large, we have to address fiscal impacts,” he said, noting the city would need to “reprioritize what we have available to programs, activities, and other services that the city provides.”
The Budget Committee is also considering a measure to enable properties designated as a long-term rental for at least four years to be taxed at the lower residential rate. This bill’s supporters said it was meant to address the high costs of rental housing, although Kawano observed there was no guarantee cost savings will be passed on to renters.
“We can be flexible with some of the provisions and see if we can get that to work because at least we’ll know that the tax relief going to the landlord actually gets passed down to the renter,” he said.
Most Honolulu property is owned by wealthy non-residents – foreign and mainland. Rents are outrageous. End ownership by non-residents and prices will drop resulting in lower assessments and lower property taxes. Otherwise the only people in Hawaii will be TOURISTS.