HomeMy WebLinkAboutCOM 0371.006 2022-2024September 6, 2023
9 a.m.
Hawaii County Building
To: Hawaii County Council VI
Councilmember Heather Kimball, Chair c
Councilmember Holeka Goro Inaba, Vice Chair
. 'D
From: Grassroot Institute of Hawaii
Jonathan Helton, Policy Researcher
RE: Bill 59 — RELATING TO HOME EXEMPTIONS
Comments Only
Dear Councilmembers:
The Grassroot Institute of Hawaii would like to offer its comments on Bill 59, which would create
a $125,000 home exemption for Hawaii Island owner -occupants 80 years old and older.
Currently, all Hawaii Island homeowners 75 or older can receive a $110,000 home exemption.
Bill 59 would retain that exemption for homeowners between 75 and 79, while creating a new
exemption amount for those 80 and older.
With the existing $110,000 exemption, for example, an 80-year-old homeowner with a house
valued at $300,000 would pay — at the current rate of $6.15 per $1,0000 of assessed value' —
a tax bill of $1,168.50. Under Bill 59, the same individual would pay a tax bill of $1,076.25 — a
difference of $92.25.
The county's Department of Finance estimates that 5,316 homeowners would qualify for this
new exemption amount, and that each homeowner would save an average of $74. In total, the
new exemption value would save older Hawaii Island homeowners almost $400,000.2
"f eal_Prc� e ty la7< R°d ates for Tax ear zJ�w_ & 1 30 2023 to June 2024,,E Real Property Assessment
Division, Department of Budget and Fiscal Services, City and County of Honolulu, July 2023.
2 Michael Brestovansky, "Lgu a counciil p ro ra s iar er rya eri tax break for older kgp i a," Hawaii
Tribune -Herald, Aug. 1, 2023.
Comm. I. . �/
Ref. Tw
Ref. tote SEP - 5 2023
Retirees on fixed incomes would certainly benefit from this tax relief. Right now, any increase in
their assessments could create a tax bill that would eat into their small monthly incomes.
With the cost of food, transportation and electricity as high as ever, any savings for older
homeowners and retirees would be a good thing.
Thank you for the opportunity to testify.
Sincerely,
Jonathan Helton
Policy Researcher
Grassroot Institute of Hawaii