HomeMy WebLinkAboutCOM 0600.005 2022-2024 15i1 i_ 104
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S,1 , li = c - 77r . n/7f ,!- Removing barriers to Hawaii's prosperity
Dec. 5, 9:30 a.m.
To: Matt Kaneali'i-Kleinfelder, Chair
Cindy Evans, Vice-Chair
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Hawaii County Council, Committee on Finance Cc-,
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From:Jonathan Helton ,.
Policy Researcher, Grassroot Institute of Hawaii .--
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Comments on Bill 104 '_"
Aloha Chair Kaneali'i-Kleinfelder,Vice-Chair Evans and Committee members,
Thank you for considering Bill 104, which would create a new real property tax classification specifically for
long-term rental properties that do not currently fall into the "Affordable rental housing" classification.These
properties would presumably move out of the existing residential class into this new class.
As the Grassroot Institute of Hawaii pointed out in its April 2023 policy brief"How Hawaii's county lawmakers can
provide tax relief to offset higher property assessments," renters and landlords also should receive property tax
relief.'
The report stated: "Many lower-and middle-income individuals and families are not directly responsible for
paying property taxes because they do not own homes. However, they often foot the bill for property tax
increases in the form of higher rent."2
As is the practice of Maui County, this proposed new tax class would provide long-term rentals their own
classification, tax rates and a $200,000 exemption that operates similar to a homeowner's exemption.
Creating a new tax class with the goal of incentivizing long-term rentals is a good strategy to address rental
affordability — presuming, of course,that the tax rates set for this class are kept at a low level. However, any
positive results from this change would be undermined if it were accompanied by tax hikes for other groups.
'Jonathan Helton,"How Hawaii's county lawmakers can provide tax relief to offset higher property assessments,"Grassroot Institute of
Hawaii,April 2023,p.12.
z Ibid,p.12.
Comm. No. • S
Ref.Tot
1050 Bishop St.#508 { Honolulu,HI 96813 ; 808-864-1776 I info@grassrootinstitute.org
Ref. Date. DEC 5 2023
Therefore, we would encourage the Council to not increase tax rates on other property classes to pay for the tax
break afforded by this new class.
Thank you for the opportunity to testify.
Jonathan Helton
Policy researcher
Grassroot Institute of Hawaii
1050 Bishop St.#508 I Honolulu,HI 96813 1808-864-1776 I info@grassrootinstitute.org