MAUI COUNTY

Maui mayor proposes
38.6% boost in property
tax, hikes in other areas

By Gary Kubota
Star-Bulletin

WAILUKU -- An average homeowner would face an increase of $230 in real property taxes under a proposal by Maui County Mayor James "Kimo" Apana.

The homeowner of a property valued at $220,000, who now pays $595 in property taxes a year, would see the tax rate go up from $3.50 per $1,000 assessed valuation to $4.85, a 38.6 percent increase.

Also, homeowners would see the maximum charge for sewage fees increase from $22.23 to $28.69 a month. According to the Apana administration, 80 percent of residential users pay the maximum.

Visitor industry officials and a major taxpayers group aren't happy with some tax increases included in Apana's first proposed budget as mayor.

Apana wants higher fees for sewage, refuse, and zoning permits and property tax rates.

He has asked for an across-the-board increase of $1.35 on all property rates.

"It's going to increase our cost of doing business," said Terryl Vencl, executive director of the Maui Hotel Association. "How much can we stand ... We will eventually drive people away."

West Maui Taxpayers Association President Joseph Pluta said he fears the tax increase will further the unequal tax burden on west Maui residents who pay more than they receive in benefits. "We're already getting an unfair share," Pluta said.

Maui Visitors Association Executive Director Marsha Wienert said she's against a budget proposal to decrease her organization's annual budget by $300,000 to $3 million for fiscal 1999-2000.

Wienert said the visitor industry on Maui is in better financial shape than other islands because of promoting the Valley Isle.

The Council has until May 31 to pass a budget.

Apana's proposed operating budget is $199.2 million, compared to $190.6 million for the previous fiscal year.

Apana said that in 1998, the budget projections were "overly optimistic" and the county needed to raise $24 million to meet revenue decreases and additional expenses.

Major additional expenses include $3 million for salaries, $3 million for debt services, $1 million for pension expenses and $800,000 for self-insurance.

Apana officials noted the state Legislature reduced Maui's share of the tourist accommodation tax revenues by $4.4 million annually and the county is expected to receive $1.3 million less in revenues from certain fees, including licenses and permits.

The mayor plans to continue a county hiring freeze on vacant positions but has asked to add seven positions, mainly in public safety and law enforcement.

The budget proposal would raise the hotel's rates from $8 to $9.35 per $1,000 of assessed valuation.

Apana also proposes increasing the monthly residential refuse fee from $5 to $8 and commercial tipping fees from $35 to $45.

Residents also would pay $5 each time they emptied rubbish in the county landfill.

The Apana administration noted that homeowners living on a limited income could qualify for an exemption. Under a circuit breaker formula, homeowners pay no more than 3 percent of their adjusted gross income.