Ka Wai Ola - Office of Hawaiian Affairs, Volume 9, Number 12, 1 December 1992 — Big Island homesteaders exempted from paying real property tax [ARTICLE]

Big Island homesteaders exempted from paying real property tax

by Jeff Clark Because Hawaiian homesteaders do not enjoy the benefits of land ownership, Hawai'i County has passed a law exempting them from paying real property tax. The ordinance passed unanimously in two votes, Oct. 21 and Nov. 6. The law, whieh takes effect July I, applies to homestead land used for homes, farming, and ranching but not the improvements (buildings, etc. ). Hawai'i County finance director William Takaba said tbe county will lose $400,000 in annual tax revenue because of the exemptions, but said Mayor Lonaine Inouye supported the ordinance.

In fact, Inouye eame out in favor of exempting homesteaders from paying real property tax when she submitted the 1992-93 budget last March. Maui County enacted tax relief to lessees of residential homesteads last April. Honolulu and Kaua'i have yet to provide exemptions, but OHA land officer Linda Delaney is optimistic. "We will continue working with the other two counties. I think they are understanding of the need to exerapt the iands," she said. Last spring Honolulu City Council member John DeSoto introduced a bill on whieh the Hawai'i County ordnance was

based. Bill 53 passed first reading April 15 and was referred to the Budget and Finance Committee, but has yet to be placed on that committee's agenda. The Honolulu City Council has not been able to attend to Bill 53 because of the attention required by the rapid transit issue, said Delaney, who estimated that of all the counties Honolulu stands to lose the most tax revenue by exempting homestead lots. The Honolulu City Council is "going with a little more caution, looking at what it will do to them money-wise," she said. OHA has lobbied extensively in support of these county bills.