Property tax cap will
cover more residents

A measure that helps low-income
owners takes effect in 2007

A property tax cap that benefits lower-income homeowners will be extended to more Oahu residents in a new law signed yesterday by Mayor Mufi Hannemann.

The law will limit the residential real property tax for an owner whose income is $50,000 or less per year at 4 percent of the income. The salary ceiling applies to combined incomes if there is more than one titleholder.

The cap will go into effect on July 1, 2007, if other conditions are met:

The previous law set the cap at 5 percent for people who fit the federal classification of "very low income." This year, the definition applied to a household income ranging from $23,000 for a single person to $43,350 for an eight-person household.

"This is a good first step to spare the neediest homeowners from the effects of skyrocketing property values," said Hannemann in a news release. "We are mindful that larger numbers of homeowners want property tax relief, and we will continue to work with the City Council to identify ways to achieve that."

Information on property tax exemptions already available to homeowners is available at www.honolulupropertytax.com or by calling the Real Property Tax Division at 523-4856.