Hawaii County panel HILO >> Big Island Mayor Harry Kim won two tax victories yesterday, obtaining a higher minimum property tax and resolving long-standing debts of Hawaiian Homes beneficiaries.
approves property
tax measures
One bill would raise the minimum
amount landowners must payBy Rod Thompson
rthompson@starbulletin.comPending final approval, the measures approved by the Finance Committee of the Hawaii County Council would bring in about $2.7 million more next fiscal year. The county already faces a shortfall this year.
Kim said earlier this month that the shortfall might force him to consider layoffs or furloughs for county workers.
Yesterday, he said he is more hopeful that employee cutbacks won't be needed.
Two weeks ago Kim asked the Council to raise minimum property tax to a range of $50, $75 and $100 per year from the present $25 depending on certain formulas.
Council members at first deferred action but accepted the proposal yesterday with changes.
They set a single minimum of $100 except for homeowners, owners of properties worth less than $500, and totally disabled veterans, all of whom may still pay a $25 minimum.
The change cut expected revenue gains to $2.1 million from $2.4 million.
Councilwoman Bobby Jean Leithead Todd criticized the new formula, saying it creates a burden on cheap properties four times heavier than on higher value properties, but joined those voting for it anyway.
Council members Gary Safarik and Julie Jacobson, both from Puna where the cheap properties are located, voted against the measure.
The Finance Committee also accepted a deal between the county and Hawaiian Homes in which 317 delinquent Hawaiian Homes lessees will get one last chance to pay delinquent taxes on their homes. They aren't taxed on their leased lands. Some tax debts go back ten years or more.
Hawaiian Homes will pay the county for those who can't pay. Lessees can then get a low interest loan to repay Hawaiian Homes or face being ordered into a higher interest loan to repay the money, said Hawaiian Homes official Ben Henderson.
The deal will provide about $612,00 in back taxes to the county, but the county had to give up $609,000 in interest and penalties to get it.
Kim said his administration's policy is not to waive interest and penalties, but he accepted the deal because Hawaiian Homes lessees are in a different legal position from most property owners.
Hawaii County
