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HomeMy WebLinkAboutCOM 0293.010 2016-2018 P/6 Prcmt GoUkicrt Q $. 2i3-17 Murashige, Laura 13wAM- 209 From: Blake McNaughton <blakemcnaughton@hotmail.com> Sent: Thursday, June 01, 2017 9:06 AM To: Council Testimony Subject: Testimony for Resolution 213-17 Attachments: counciltestimony on property taxes.docx Aloha, n Please see attached for testimony regarding resolution 213-17, c �© Mahalo N.00 CD 1 Blake McNaughton *x Kia'i Loko, Kamehameha Schools PO Box 132 Pepe'ekeo,Hi 96783 — !� 808-756-1054 E ho'ohuli ka lima i lalo. Turn the hands down comm. No. `�' Iv Ref. '1 C.( Ref. toteTo: JU Q 5 2017 1 Hawaii County Council May 30th, 2017 Testimony Regarding Resolution 213-17: Aloha mai kakou, This letter is written to urge the Hawaii County Council to consider drastically raising non-resident property tax rates in order to: • Make up the the difference in Mayor Kim's proposed FY2017-18 budget. • Lighten the financial burden on local people • Even the market for residents to buy and keep property • Discourage non-residents property investment development and tax shelters in the county In the State of Hawaii, we already have some of the most expensive groceries, most expensive gasoline (which may go up again with another tax), the most expensive real estate, and the most expensive electricity. We do have relatively inexpensive property tax rates compared to the rest of the country although Hawaii county has the highest rates in the state. This relatively low rate encourages non-resident's to buy property as low taxed investments and second homes. These non-preferential rates create an environment where local people now have to compete with buyer's from across the US and the world and may to explain why 67 percent of Americans own the homes they live in but only 57 percent of Hawaii residents do. We might as well put up a sign that invites investors to come and buy up our island and price out local families. After all Hawaii property is a safe and worthwhile investment. Furthermore, these non- resident investors are not contributing to the County's coffers through any other means. Housing is the largest payment for most people. The County council needs to consider resetting the property tax equation, particularly for non-resident homeowners. In 2013, Honolulu City Council set a tax rate that started at $6,000 for"Residential A" category homes valued at $1 million that didn't have an exemption. This rate increase was welcomed but not even high enough to make non-resident Oahu tax rates comparable to the mainland. In Hawaii County there are high priced coastal developments such as Kukio, where on average, owner's have seven other properties around the world. Residents of Hawaii who live in their homes and homeowner's of long-term rentals should continue to pay the same property taxes they do now. This would be a win for the Hawaii County Council representatives by limited tax increases on local people and creating a fairer equitable market for them. If rates are raised high enough on non-residents then they may choose to live in Hawaii and thus become more part of the community and contribute to the County in more meaningful ways than using our low tax rates to take land. Please consider this option as you debate resolution 213-17. Mahalo Blake McNaughton 28-3194 Beach Rd. Pepeekeo Hi 96783