HILO >> Big Island Mayor Harry Kim is proposing to raise homeowners' property tax rates 25 percent to help make up for an anticipated shortfall in county revenues. Big Island mayor calls
for property tax increaseThe 25 percent hike leaves rates
lower than 10 years ago, he saysBy Rod Thompson
rthompson@starbulletin.comBut even with the tax increase, Kim said, homeowners would pay less than they did a decade ago. In 1992, homeowners paid $8.50 per $1,000 value of their property. Then the County Council dropped the rate to $4.45 per $1,000. Kim now proposes a homeowner rate of $5.55 per $1,000.
The result would be a tax bill of $477 for the average owner-occupied home, he said.
Kim revealed the proposal to the County Council yesterday as part of a package of tax increases needed to balance next year's county budget. His proposal also included some decreases.
Kim now estimates the county will need $205.3 million in fiscal year 2003, $2.5 million more than he estimated two months ago.
Without a tax increase, county revenues will be $7.6 million short of the needed amount, he said.
Other than owner-occupied homes in the "homeowner" class, all property now pays $8.50 for each $1,000 of building value and $10 for each $1,000 of land value.
Kim would increase the building rate and lower the land rate so they become a uniform $9.85 per $1,000.
People owning homes but not living in them would pay $9.10 per $1,000 under Kim's proposal.
Kim repeatedly has said he prefers to raise taxes rather than lay off county workers, since the county work force already has been cut sharply through attrition during the 1990s.
County Council Chairman James Arakaki said he agrees with that assessment.
"I can't see where we can reduce services," he said. "I think the mayor's proposal is a fair one and something I can personally support."
Hawaii County
