HomeMy WebLinkAboutCOM 0830.006 2020-2022 P/rc
501 992
CK .
From: inabapacific
Sent: Monday, June 13, 2022 1:50 AM
To: Council Testimony
Subject: Real Property Tax Public Comment: BILL 182 and RESOLUTION 441-22
Council Clerk, Kindly provide this written testimony and comments for BOTH the Finance Committee�.tgn 6/14/2D22
and the Council meeting on 6/15/2022.
Bill 182, Resolution 441-22 (respectively)
Aloha Hawaii County Council Members, Finance Committee, and Concerned Parties: k
We are writing to address our concern/s with prospective Real Property Tax increases on the residents of Hawaii
Island. The Finance Committee and County Council's recent discussions and proposals made and supported by some
members and advocates to alleviate upward pressure in terms of rates, exemptions, and other measures are
appreciated. These are inherently complex and sensitive issues. Real Estate markets will go up and down. Taxes once
levied rarely are withdrawn or reduced. Most local residents have only one home, here and only here, and will
perhaps never monetize any "presumed gains" from the uptick in our current real estate market. These issues are of
great concern and have much bearing on people's lives and decisions about the affordability and livability of our
island for "regular" people.
Our single home residents (one home not one of two or many homes) of Hawai'i have shown a commitment to this
community and this Island by making this our home, our only home and trying to forge a living and deal with ever
increasing costs. Increasing taxes on this particular population is akin to taxing people on unrealized capital gains and
forgetting that until those same assets are sold they can decline in value, i.e., taxing for income or prospective income
that may or may not happen. Current valuations may not linger or be sustainable. There never is a timely, efficient, or
effective mechanism to reverse those aggressively increased taxes on unrealized "gains". If there is, the process
becomes too onerous to be workable and understood by all those adversely impacted.
We urge you to weigh heavily the expense and other costs burdens including taxes already levied upon our residents
during these current economic hardship times. Let's not add one more reason to encourage our population of local
people, our workforce, or our kupuna to leave our island. Our people are already suffering shortages and increased
pricing on everything. It is not the time to increase net taxes or levies on properties.
Perhaps one recommendation, that increases lean into those presumably less impacted by our increased costs of
living, i.e., those with 2nd or 3rd homes here or perhaps some other less regressive tax that will not harm our already
struggling local population with only one home here on the Island of Hawaii and nowhere else. We need to retain
residents and our workforce here. Any net effect regressive tax, fee, or levy paired with our current increased costs
are not in service to the healthy longer and intermediate needs of the community.
Factoring all components with regard to property taxation, please take care not to let the net impact be a burdensome
regressive tax. We urge you to: 1)Not elevate valuations without further meaningful evaluation. This market may or
may not be sustainable at current levels while taxes imposed normally endure. 2) Review and reduce where possible
the taxes as assigned and calculated on Real Property categories. Economic hardships and concerns are paramount
concern for our local community, workforce, and kupuna. It sends a better message to factor that into the net
calculations on such taxes. 3)Exemption categories could be broadened or expanded both in terms of who qualifies
and the level granted for single residence home owners. 4) While there have been discussions on the Median and
Mean house price, value of homes on the Big Island, there may be a need to bisect them a bit. This might be a matter
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for a different time. The point being that cost of living and housing is already higher in West Hawai'i than then say
East Hawai'i and tax burdens can become meaningfully skewed. 5) Consideration could be given to increases, bearing
more burden, to those using Hawai'i Island as a location for their 2nd, 3rd, ...residence property owners. That would
avoid both the appearance and fact of a regressive tax that benefits the visitors and multi-house parties over the
citizens working and living in our community as well as our kupuna.
We recognize that this area of taxes, fees, levies, and exemptions becomes very complicated and that it requires a
vision to keep things both fair and appropriate given a plethora of factors, even beyond those we've highlighted. We
know and have confidence that in your roles as Council Members and community advocates you will endeavour to
mindfully review options including all the levers and their conjoined, complex impacts on the actual net, real tax rate
level imposed on the people of the Island of Hawai'i. Thank you for inviting public comment and for your stewardship
on this and other complex issues important to our communities.
Most respectfully submitted for your consideration,
Derek and Renee Inaba
Kailua Kona
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