Thank you for your support of the Honolulu Star-Advertiser. We appreciate your continued readership. Now, let’s dive into the details of the recent developments regarding real property tax relief measures in Honolulu.
The Honolulu City Council has unanimously approved two measures aimed at providing tax relief for homeowners and vulnerable residents on the island.
During a special Council meeting held on Friday, Vice Chair Esther Kia’aina introduced two bills, namely Bills 37 and 40 for consideration. These measures passed with an 8-0 vote, with Council member Andria Tupola being absent.
Both bills went into effect immediately upon approval. However, their provisions will apply to the tax year starting on July 1, 2024, and subsequent years.
Bill 37 raises the income threshold for the real property tax credit from $60,000 to $80,000. It also provides a tax credit for homeowners whose property tax exceeds 3% of their income.
To be eligible for this tax credit, the combined income of all titleholders must not exceed $80,000, and homeowners must file for the credit by September 30. More information and the application process can be found at realpropertyhonolulu.com or by contacting the Real Property Assessment Division at 808-768-3799.
Similarly, Bill 40 increases the exemption amount for homeowners from $100,000 to $120,000 and for kupuna (elderly individuals) from $140,000 to $160,000.
Residents who already hold homeowner or kupuna exemptions will have their exemption amount adjusted automatically. For those who don’t have these exemptions, they must file for the homeowners exemption by September 30.
Prior to the Council’s decision, members of the public had the opportunity to express their opinions on these measures, as well as a Council subcommittee’s final report on the issue of real property tax relief.
Ted Kefalas, representing the Grassroots Institute of Hawaii, expressed support for Bill 37, highlighting that households earning $80,000 annually with a 3% cap would receive a $2,400 tax credit. He emphasized the importance of increasing eligibility for tax credits to assist low-income households affected by inflation.
He further voiced support for Bill 40, stating that the increase in the homeowners exemption was necessary due to the exponential rise in property assessment values since the last increase in 2019. He noted that while the increase of $20,000 doesn’t fully offset the rise, it comes close to providing relief.
Kefalas pointed out that homeowners exemptions in Maui and Kauai are higher than those in Oahu, with amounts of $300,000 and $160,000, respectively.
Choon James, a resident, emphasized the need for a culture of fiscal prudence to offset rising costs, particularly considering the likelihood of property taxes continually increasing.
Another resident, B.A. Alexander, shared the opinion that while Bill 37 is a step in the right direction, the City Council and Assessor’s Office should address this issue annually due to the dynamics of the real estate market and the financial strain it places on longtime homeowners.
Chair Tommy Waters acknowledged the significance of these tax relief measures, stating that swift action was necessary before the issuance of annual real property tax assessments in July. He highlighted the Council’s commitment to providing relief and ensuring that homeowners have access to the necessary information to apply for these benefits.
In the coming months, the City Council plans to collaborate with the administration to host workshops in the community, disseminate public notices regarding the new tax relief laws, and assist residents in understanding and accessing these important benefits.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
