Resolution 2023-33: Adjusting property tax rates could help renters

from Grassroot Institute of Hawaii, June 6, 2023

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Honolulu City and County Council  on June 7, 2023.

June 7, 2023  9 a.m.
Honolulu City Council Chambers

To: Honolulu City and County Council
      Councilmember Tommy Waters, Chair
      Councilmember Esther Kiaʻāina, Vice Chair

From: Grassroot Institute of Hawaii
           Ted Kefalas, Director of Strategic Campaigns 

RE: Resolution 2023-33 — DETERMINING THE REAL PROPERTY TAX RATES FOR THE CITY AND COUNTY OF HONOLULU FOR THE FISCAL YEAR JULY 1, 2023 TO JUNE 30, 2024

Comments Only

Dear Chair and Committee Members:

The Grassroot Institute of Hawaii would like to offer its comments on Resolution 2023-33, which would set the property tax rates for fiscal 2024. 

As currently written, all the rates would remain the same as last year. However, Council Chair Tommy Waters has proposed an amendment intended to help renters that would decrease the rates on the first tier of Residential A homes from $4.50 to $4.00 per $1,000 and increase rates on the second tier from $10.50 to $11.40 per $1,000. 

Residential A homes are non-owner occupied properties worth at least $1 million. Many of them tend to be long-term rental properties, so this proposed rate change could have a beneficial effect for renters, although its net reduction in tax revenues would be about only $68,500. 

We look forward to discussing the Residential A issue further once the Council passes the fiscal 2024 budget.

Thank you for the opportunity to testify. 

Sincerely, 

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii

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Bill 14 (2023): Property tax credit could be higher

Grassroot Institute of Hawaii, June 6, 2023

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Honolulu City and County Council  on June 7, 2023.

June 7, 2023  9 a.m.
Honolulu City Council Chambers

To: Honolulu City and County Council
      Councilmember Tommy Waters, Chair
      Councilmember Esther Kiaʻāina, Vice Chair

From: Grassroot Institute of Hawaii
           Ted Kefalas, Director of Strategic Campaigns

RE: Bill 14 (2023) — RELATING TO REAL PROPERTY TAXATION

Comments Only

Dear Chair and Committee Members:

The Grassroot Institute of Hawaii would like to offer its comments on Bill 14 (2023), which would provide all Oahu homeowners a one-time tax credit of $300.

Because of higher property assessments, property tax collections are projected to increase by more than $212 million in fiscal year 2024. Hawaii residents already pay some of the highest taxes in the entire United States,[1] including income, excise, property and other taxes, so the Council’s efforts to provide property tax relief are greatly appreciated.

Mayor Rick Blangiardi’s proposed one-time $300 property tax credit would apply to more than 150,000 Oahu homeowners, saving them a total of about $45.5 million.[2]

Councilmember Esther Kiaʻāina’s floor draft would increase the value of the credit to $350, which would provide roughly $53.1 million in tax relief. Frankly, the Institute prefers the $350 amount, but ultimately we support either option.

Thank you for the opportunity to testify.

Sincerely,

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] Merrilee Gasser, “Hawaii taxpayers shell out more than $5,500 in state and local taxes,” The Center Square, March 29, 2023.
[2] “City unveils $3.4B budget that includes property tax relief plan,” Hawaii News Now, March 3, 2023.