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HomeMy WebLinkAboutCOM 0373.001 2006-2008 Page 1 of 2 Murashige, Laura From: Stathie J. Prattas [stathie@coastpropertieshawaii.com] Sent: Thursday, May 17, 2007 9:52 AM (.i,~f ~i11~' 2 1 ~ l~ li To: counciltestimony@co.hawaii.hi.us Cc: Ford, Brenda ;,i , Subject: For Tax Rate Hearing 5/17/07 Importance: High Aloha Council Members, As the owner of a number of properties here in Hawaii County, my soaring tax bills have been forcing me to push up the rental rates on residential properties in order to have a survivable monthly deficit...as break even is not possible in today's real estate climate and tax rates. As a real estate property manager for the past 22 years in West Hawaii, I can confirm that rents have gone up across the boards to account for the sharp rise in property taxes over the last 4 years...driving many renters tens of miles south to lower price housing, which further compounds our impact to traffic for the longer commutes (in addition to greater consumption of fuel and the resulting air pollution). Unfortunately, the only change I have seen in County services has been the recent road work in the Honalo to Captain Cook area, which we are very grateful for. I wish I could say the same for Parks & Rec, or for increased police and fire protection. Certainly, the processing of subdivision applications and building permits has not become more streamlined either, further slowing commerce for our residents. Our next closest comparable, is Maui County, with a larger population, and spread out over 3 islands. I would ask that you review their current tax rates (along with their own homeowner exemptions) and see why we cannot provide more tax relief for Hawaii County property owners, and subsequently, to their renters: From Maui County Real Property Tax Department 5/17/07: (http://www.co.maui.hi.us/departments/F_ inancelrealPropert~htm): Every year, properties are assessed at 100 % of fee simple market value using the cost and market approaches to value. Real property taxes are calculated by multiplying assessed values less any exemptions by the appropriate lax rate. Once a year, on March 15, property owners receive an assessment notice. The notice lists the assessed value, exemptions, net taxable value and general land classification. Classification For Tax Rate Purposes That, in accordance with Sections 3.48.565 through 3.48.575 of the Maui County Code, the real property tax rates per one thousand dollars of net taxable assessed valuation for each class of real property, effective July 1, 2006, shall be set as follows: Classification Land BuilAing 3 ~ 3 Comm. No, A. Improved Residential 55.00 55.00 Ref. To•. Ref. Uate MAY 21 2007 5/21 /2007 Page 2 of 2 B. Apartment $5.00 $5.00 C. Commercial $6.00 $6.00 D. Intlusirial $6.50 $6.50 E. Agricultural $4.50 $4.50 F. Conservation $4.75 $4.75 G. Hotel 8 Resort $8.20 $6.20 H. Unimproved Residential $5.86 $5.86 I. Homeowner $2.50 $2.50 J. Time Share $14.00 $14.00 Property is classifed based upon its highest and best use. Properties receiving homeowner exemptions and condominiums are exceptions. Properties which have been granted a homeowner exemption are classifed as Homeowner. Please provide the above as testimony to the hearing today at the Sheraton Keauhou Bay Resort in support for a reduction in the tax rates. Mahalo, Stathie Stathie John Prattas (R), President Coast Properties Ltd P.O. Box 104 kailua-Kona, HI 96745-0104 Bus: 808.329.4000 Fax: 808.329.1031 www.CoastPropertiesHaw_ aii.com 5/21 /2007