HomeMy WebLinkAboutCOM 0905.014 2022-2024i;hopt #.'�oe
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August 21,3OZ4,l1a.nn.
Haxvei'iCounty Building
To: Hawai1Cmumty Council
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Heather Kimball, Chair
HmUmkaGowJInaba, Vice -Chair
From: GrassrmotInstitute mf Hawaii
Jonathan Helton, Policy Researcher
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RE: BILL 174 — RELATING TO REAL PROPERTY TAXES
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Aloha Chair Kimball, Vice -Chair Inaba and other members of the Council,
The Gnassroot Institute of Hawaii supports which would modify eligibility for the oountv's
homeowner property tax exemption by allowing homeowners to rent out portions of their property without
having toenroll in the affordable rental class.
Right now, homeowners renting backyard cottages or portions of their homes are technically ineligible for the
county's homeowner exemption unless they are participating in the County's affordable rental tax class, which
entails renting otaffordable rates asdefined bythe county code.
The homeowner exemption reduces the taxable value ofowner-occupied homes bvbetween $5O,OOOand
$150\000doUars. Italso enrolls the owners ina program that prevents their assessed values from increasing by
more than 3% each year, and gives them the lowest tax rate in the county, which for fiscal 2025 is $5.95 per
$1,OOOofassessed va|ue.,
We are unaware of homeowners losing their exemptions on the grounds that they were renting a portion of
their property, but island homeowners should not have to worry that this could happen to them.
If it were to happen, the effect would be to double or triple their tax bills, amounting to thousands of dollars,
since they would lose their assessment caps and more than likely move into the county's residential tax class,
� "Grassroot Institute ofHawaii, June 3\20Z4.
znsnBishop St. #508 Honolulu, n|esuz3 808-864-1776 infb@oraomvmnstud�o,�k^, "
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which carries rates of $11.10 per $1,000 of assessed value for the first $2 million of the property's value, and a
rate of $13.60 on any portion of the property valued above $2 million.
We thank the Council for hearing this straightforward measure — which, by the way, would complement Bill
104 also being considered by the Council. That bill would establish a long-term rental property tax class that
could make it more attractive for property owners to provide long-term rentals.
Thank you for the opportunity to testify.
Jonathan Helton
Policy Researcher
Grassroot Institute of Hawaii
1050 Bishop St. #508 " Honolulu, Hl 96813 808-864-1776 info@grassrootinstitute.org