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May 14, 2024, 5-30 p.m.
Hawaii County Building
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To: Hawaii County Council
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Heather Kimball Chair
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Holeka Goro Inaba, Vice -Chair
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From: Grassroot Institute of Hawaii
Jonathan Helton, Policy Researcher
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RE. FISCAL YEAR 2024-2025 REAL PROPERTY TAX RATES
Aloha Chair Kierkiewicz, Vice -Chair Inaba and other members of the Council,
The Grassroot Institute of Hawaii would like to offer its comments in support of the proposal to lower fiscal
2025 property tax rates on the homeowner arid affordable rental hOLIsing tax classes. This is a sound and very
welcome proposal.
However, we would like to suggest that the Council expand the reductions to other tax classes as well
namely the industrial and commercial classes — since they too could benefit from property tax relief.
Under the current proposal, the rates for the homeowner and affordable rental housing classes would be
reduced from $6.15 per $1,000 of assessed value to $5. 5 per $1.,000. This would save county taxpayers about
$2,74 million in the upcoming year.
For industrial and commercial properties, both currently are taxed at the rate of $10-70 per $1,000 of assessed
value. We suggest that amount be lowered to $10. 5 per $1,000, which is what the rates were in fiscal 2017.
The Council increased the rate for those classes to $10.70 in fiscal 2018.1 Since then, the assessed values of the
properties in those classes have increased significantly.
I "COUNTY of HAWAII REAL PROPERTY TAX VALUATION for, FISCAL YEAR 2017-20 Real Property Assessment Division, City and
County of Honolulu.
1050 Bishop St. #508 ' Honolulu, HI 96813 808-864-1776 . info @grass root i nsti tuteq?d M111 1100
Ref. To.
Ref. Date N
In 2018` the assessed value of the commercial class was $1.549 billion. Today it is $2.352 billion — a 5196
increase. Likewise, the assessed value of properties in the industrial da95 increased from $1.077 billion in 2018
to$l.738 billion today -- a 6196 increase.
These higher assessments translate into higher tax bills. At the same time., Hawaii County business owners and
entrepreneurs have seen their utility, labor and goods costs have increased significantly since 2028, so it seems
anappropriate time for the county togrant them some tax relief -- one of the few costs for all Hawaii Island
residents that the county can control.
Ovena|ithisreducUonvvou|dsaYebudnessovvnersinthecornnnercia|classabout$l.520nniUionand|ndustial
|@ndovVD8[3 about $1.129 million. These figures, as 8hoVVD in Table 1 below, represent G drop in the bucket
compared to the proposed $920 million operating h- _udget now before the Council.
Table ]bProperty tax revenue with suggested adjustments
Tax class
Net taxable value
Rate
Revenue
But again, even if you dOnot see fit to expand the proposed property tax reductions toindustrial and
ozrnmnerda) properties, Grassroot supports this bill.
Thank you for the opportunity to testify.
Jonathan Helton
Policy Researcher
Grassroot Institute of Hawaii
1050 Bishop St, H508 Honolulu, m9681s808-864-1776/infoftfassrootinstitute'org
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