LIHUE >> A bill providing tax relief to at least a small portion of Kauai homeowners who have seen their property taxes skyrocket over the past four years was passed unanimously last night by the Kauai County Council. Some Kauai homeowners
will get county tax relief
By Anthony Sommer
tsommer@starbulletin.comPatterned after a law in effect since 1996 on Maui, the bill, which is expected to be signed by Mayor Bryan Baptiste, is aimed at giving tax credits to homeowners with high property values but low incomes.
And it sets the stage for what is expected to be a major rewrite of Kauai County's property tax laws next year.
Tax reform proponents were critical of the bill passed last night, saying it affects too few people.
On Maui, the law affects only about 10 percent of homeowners. The number is expected to be lower, said Gary Heu, Baptiste's top aide.
The bill would give property homeowners tax credits if their tax bills are greater than 3 percent of their adjusted gross income. If, for example, a couple earned $100,000 in taxable income in 2001, 3 percent of that figure would be $3,000.
If they paid $4,000 in property taxes in 2002, they will receive a $1,000 tax credit in 2003.
To prevent any windfalls from the new credit, the bill also creates a ceiling on the amount of credit a homeowner can receive.
The stopgap measure is a reaction to huge increases in property values since Kauai's real estate boom began in 1999. Many longtime homeowners have seen their valuations triple and in some cases quadruple in recent years.
County of Kauai
