WAILUKU >> A showdown is brewing between Maui County Mayor James "Kimo" Apana and some members of the County Council over how best to use a property tax "windfall." Revenue ‘windfall’
on Maui sparks debate
over property taxMayor Apana agrees the rate should
be cut, but he also wants to boost
county spendingBy Gary T. Kubota
Star-BulletinApana has suggested increasing his proposed budget by $3.1 million and said residents have told him they want to spend the money on projects to improve roads and county facilities.
But some Council members are considering reducing his spending proposal and rolling back the property tax rate by 6 percent to 1999 levels.
Apana has proposed a property tax rate reduction of 2 percent in his budget.
A public hearing on proposed tax rate decreases is scheduled for 6:30 p.m. Monday at the Council Chambers in Wailuku.
Apana said with the 2 percent rate reduction, the property tax rate for homeowners would be the lowest in the state. He said 2 percent was enough of a decrease and that the savings to taxpayers from the Council proposal would amount to only $30 for each homeowner.
In a letter to the Council yesterday, Apana said the $3.1 million windfall occurred as a result of the county receiving fewer appeals against property tax assessments.
He said the $3.1 million could be spent on reducing traffic problems, hiring more water safety officers and allocating design money for a regional park for Kihei.
Apana also wants the money to be spent on improving the system of county planning, reducing the invasive miconia plant and supporting small-business start-ups through Maui Economic Opportunity.
Councilwoman Charmaine Tavares said she wants to take a look at reducing the property tax rate by 6 percent because she believes taxpayers should share in the rewards of a good economy, especially when they have paid more taxes during bad financial times.
Tavares said she agrees with Apana that this is a good time to spend on capital improvements, but she has a problem with the extent of the spending increases.
Apana has proposed raising the operating budget by 13 percent to $213.7 million and capital improvements spending by nearly 68 percent to $60.4 million.
Tavares said she wants to make sure the money is spent effectively.
"It's not a question of throwing money at a problem," she said. "Let's put in what we can reasonably ... accomplish in Maui County."
Council Chairman Patrick Kawano said he believes the Council should leave the property tax rate alone because the savings from a reduction would be too small. He said the county needs to use the money to maintain and develop more facilities.
He said he believes the nine-member Council was split on whether to support the proposal of a 6 percent reduction in tax rates.
Maui County
