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Committee offsets property tax rate increase with tax credit
Proposed fuel tax increase is shelved
By B.J. Reyes
POSTED: 11:36 p.m. HST, May 18, 2009
An increase in the real property tax rate on Oahu would be offset by a one-time tax credit of $175 for those who live in their homes, under proposals advanced by the City Council budget committee last night.
Both measures came at the end of a marathon 12-hour budget hearing that also saw the demise of a proposed 3-cent increase in the county fuel tax.
The committee passed a 30-cent increase in the real property tax rate, setting it at $3.59 cents per $1,000 of a property’s value.
When taken together, the increase and the tax credit would bring the median home owner’s net tax rate to $3.275 per $1,000 of valuation – slightly below the current rate of $3.29, according to research from Budget Chairman Nestor Garcia.
The measures face a final vote before the full council, which is scheduled to close its budget for the 2010 fiscal year on June 10. The fiscal year begins July 1.
A real property tax hike -- combined with increases in some bus fares, zoo fees, parking meter rates at some parks, golf course fees and other charges -- were proposed by Mayor Mufi Hannemann as he and the city try to close a budget gap of about $50 million.
“The administration can live with that,” Budget Director Rix Mauer III said of the property tax measures.
He noted that those close to the median home price would see an increase of around $16-$22 in their property taxes.
“For someone who owns a lower-assessed house it’s probably going to work to their advantage,” Mauer said.
The fuel tax increase was proposed by Garcia as a new revenue source. The propose increase of 3-cents per gallon would have generated about $7.5 million.
Garcia deleted that amount from the mayor’s executive operating budget and noted that the tax proposal, which is scheduled to be heard next week, “is dead on arrival.”
An increase in the real property tax rate on Oahu would be offset by a one-time tax credit of $175 for those who live in their homes, under proposals advanced by the City Council budget committee last night.
Both measures came at the end of a marathon 12-hour budget hearing that also saw the demise of a proposed 3-cent increase in the county fuel tax.
The committee passed a 30-cent increase in the real property tax rate, setting it at $3.59 cents per $1,000 of a property’s value.
When taken together, the increase and the tax credit would bring the median home owner’s net tax rate to $3.275 per $1,000 of valuation – slightly below the current rate of $3.29, according to research from Budget Chairman Nestor Garcia.
The measures face a final vote before the full council, which is scheduled to close its budget for the 2010 fiscal year on June 10. The fiscal year begins July 1.
A real property tax hike -- combined with increases in some bus fares, zoo fees, parking meter rates at some parks, golf course fees and other charges -- were proposed by Mayor Mufi Hannemann as he and the city try to close a budget gap of about $50 million.
“The administration can live with that,” Budget Director Rix Mauer III said of the property tax measures.
He noted that those close to the median home price would see an increase of around $16-$22 in their property taxes.
“For someone who owns a lower-assessed house it’s probably going to work to their advantage,” Mauer said.
The fuel tax increase was proposed by Garcia as a new revenue source. The propose increase of 3-cents per gallon would have generated about $7.5 million.
Garcia deleted that amount from the mayor’s executive operating budget and noted that the tax proposal, which is scheduled to be heard next week, “is dead on arrival.”
Today’s Edition
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- Legislators cancel party plans
- Teachers willing to return for restored furlough days
- Harbor officials eye fee increase
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- Newswatch
- Police and Fire
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- Prep briefs
- Say and Look have Aiea and 'Iolani talking, watching wins
- Cincinnati rolls through Maryland at Maui Invitational
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