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Mondav, Mav 12.1997 11:08:38 AM (8081 967-8295 Repeal the Homeowners Tax Class Bonnie Goodell, 967-7775 5/10/97 p.2 placed on ~`"est Hawaii is magnified et en more. It is almost as if someone sat down and said, "~~"ell, tee make ~Cest Hatcaii residents pa}' more than their their share, because their land values are higher. C"an wP srrPtt them PcPn mrnv? Hrnt ahnut a HOTTIP(IICOPI'S' Rxemption that gill rPmncP ahnut .i~C. of East Hawaii home value but only 2>~c of ~["est Hawaii home value? I'eah, and after that tt~e can make a special Homeowner rate to sere[+~ renters: homes are so expensive oaer there, most people cati t afford them. Great: The home owners tvori t complain because of the lots rate and the can realh make the }'oung families and retired renters subsidize us all." People tvho operate home businesses see their property taxes double or more, et en if the}' onl} sell back}'ard bonsai or bab}•sit. ~~"e do not have pearl} enough jobs or places for businesses to employ a of us. ~~"e have changed the zoning code make it easier to do home businesses. The economics of home business runs something like this. "I have kids, or a 5~ail parent who cannot be left alone. It costs me S5,000 to go out to [work. B} [working out of m}' home, I am there form}' kids or m} parent. Even if I make S>,000 less. «'e are better off and I can be there form}' family. But my proper[} taxes increase 51.000 per }'ear.° There are more and more businesses that can be done from home with virtual!}' no impact on nPl gll hC)rllnnd fhal'aftP P!i ('Pp1111at rhPi'P ai'P nl(1rP pPCIpIP at lltln'1P ill Ill(lk aftP l' kldc and the PldPrl}', better neighborhood security, and less rush hour traffic. ~~'e need them. Most people tr•ho operate from their homes lie about it to the tax assessor to avoid that unfair tax bill. The tax assesoos haae testified repeatedly to impossibilit} of fair interpretation or enforcement. ~~'hat is the messate here? acant lots are not only subsidizing homeowners, but the more people move in and otvn their otvn homes the less we collect. If s as if someone sat down and said. "Oka}', we've got these scant lots. Taxation of people tvho have no vote and get no services is bad government. but it s good politics. Can tee rig the tax codes so that the vacant lots actual!} pa}' more than the people living Wert door?" Perhaps the [worst Feature of the Homeowners Class is shakles it places on substandard areas, [which make up nvo thirds of the Big Island homesites. In other places, Tax Increment Financing has tt°orked ver}' well for these kinds of communities to "bootstrap'' themselves, because improvements that help economic det elopment can be paid for b}' the increased tares that twill be generated when tl place is economical!} health}'. But, the Homeowners Class tax tale eliminates the tax increment..~s soon as people mote in and build homes. tax revenues go down, not up. It s as if someone set out to make sme that these substandard areas [were denied the opportunity to bootstrap themselves. Like the said. "Oka}•. tre't e got these communities with no services and lots of vacant lots. subsidizing us likf slates tt•orking for no pa}'. How can we keep them from getting toting rights and equal opportunity?•~