Ka Wai Ola - Office of Hawaiian Affairs, Volume 29, Number 1, 1 January 2012 — Property tax exemptions at risk [ARTICLE]

Property tax exemptions at risk

Department of Hawaiian Home Fands beneficiaries and Kuleana property owners, along with almost 150,000 other O'ahu homeowners, could lose their property tax exemptions if the Honolulu City Council adopts a controversial proposal raised by a special advisory commission. The commission claims that it seeks to bring more equity and simplicity to the property tax system by eliminating all tax exemptions and allowing tax credit only for owner-occupants whose ineome is less than $50,000 and who are unahle to pay their property taxes. The proposal noted that the city loses about $100 million in tax revenue eaeh year as a result of the breaks it affords to homeowners in roughly 40 exemption categories, including disabled veterans and senior citizens. Eliminating all property tax exemptions could affect the more than 3,300 homeowners in Honolulu who are currently exempt as Hawaiian Home Fands beneficiaries and the owners of 37 parcels that currently benefit from Kuleana property tax exemptions, whieh OHA helped secure in 2007. The commission's report was released Dec. 9, 2011, opening the 30-day period for puhlie comment. The Real Property Tax Advisory Report is available for review on the Honolulu City Council's web site at www. honolulu.gov/council, and puhlie comments on the proposal should be submitted in writing to the Honolulu City Council at 530 S. King St., Room 202, Honolulu, HI 96813 byJan. 9, 2012. The Office of Hawaiian Affairs highly recommends that Hawaiian Home Fands beneficiaries and kuleana property owners review the proposal and submit comments on this important issue before the deadline.

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