Sunday, May 26, 2024
Hawai'i Free Press

Current Articles | Archives

Monday, September 24, 2018
No way new tax won’t cost us
By Keli'i Akina PhD @ 12:57 PM :: 4616 Views :: Education K-12, Taxes

No way new tax won’t cost us

From Grassroot Institute, September 24, 2018

Of all the questions that surround the Nov. 6  “education tax” ballot measure, the most important may be the one that has been asked the least: How much?

How much is this going to cost me personally? How much will it cost our economy? How much is the tax going to be?

And yet, advocates of the so-called education tax have been strangely quiet about how much it will be.

We know it is supposed to target “investment real property,” but that term remains undefined. It could, as some supporters of the tax say, only refer to non-resident properties valued at a $1 million or more. On the other hand, even a modest family home could be considered an investment property.  Without an actual tax proposal in front of us, it’s impossible to know who will be paying this tax and by how much.

We can, however, make an educated guess based on current property tax revenues and the fact that the Hawaii School Teachers Association, through its Schools Our Keiki Deserve PAC, says it hopes to raise $400 million annually from the new property tax “surcharge,” if it is approved by the voters.

In fiscal 2018, all county property taxes statewide totaled $2.02 billion. So if the tax was levied on every category of property, it would require a 20 percent increase in property taxes across the board.

But we’re told the new tax will be applied to only homes or condominiums valued at $1 million or more that are lacking owner-occupied exemptions. In that case, the state will need to levy an average tax increase of $21,005 for those homes and condos in order to reach the $400 million goal.

HSTA claims it would require a property tax of $13 per $1000 of valuation for $1 million homes lacking owner-occupied exemptions to reach the $400 million goal. However, analysis of property statewide puts the real number closer to $16 per $1000 of valuation.

In Honolulu County, this would equal a tax increase of 256 percent for Residential A Tier I properties, and an increase of 78 percent for homes in Honolulu Residential A Tier II.

On Maui, it would require a tax hike of 190 percent; on Kauai, an increase of 164 percent; and on Hawaii Island, 44 percent.

And right there, you understand why no one is talking about numbers. More than doubling the taxes on some properties, a tax hike of 256 percent … these are the kinds of figures that should make voters pause.

Moreover, the argument that the tax should only affect high-value investment properties ignores a simple economic reality: When property taxes go up, so do rents. The owners of these investment properties will pass the higher cost on to their renters, further raising the cost of living in Hawaii.

Those trying to sell the public on this tax are trying to convince us that most voters won’t have to foot the bill. But one way or another, when taxes go up, we all pay for them.

E hana kākou! (Let’s work together!)

Keli'i Akina, Ph.D.

President/CEO Grassroot Institute


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii