Wednesday, February 21, 2024
Hawai'i Free Press

Current Articles | Archives

Monday, March 6, 2023
Changing tax credit to portion of income would help Oahu homeowners
By Grassroot Institute @ 10:10 PM :: 1608 Views :: Honolulu County, Tax Credits

Changing tax credit to portion of income would help Oahu homeowners

from Grassroot Institute of Hawaii, March 1, 2023

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Honolulu City Council on Feb. 28, 2023.
___________

February 28, 2023
9 a.m.
Honolulu City Council Chambers

To: Honolulu City and County Council Committee on Budget
      Councilmember Radiant Cordero, Chair
      Councilmember Matt Weyer, Vice Chair

From: Grassroot Institute of Hawaii
           Ted Kefalas, Director of Strategic Campaigns

RE: Bill 38 (2022) — RELATING TO REAL PROPERTY TAXATION

Comments Only

Dear Chair and Committee Members:

The Grassroot Institute of Hawaii would like to offer its comments on Bill 38 (2022), which would change the formula for calculating the eligibility for the real property tax credit.

This bill would change the eligibility from its current limit of $60,000 in total household income to “80 percent of the area median income established for a two person household,” as estimated by the U.S. Department of Housing and Urban Development for the Honolulu area.

For 2022, a two-person household making 80% of the Honolulu area median income would be earning $83,600 a year.[1]

This is a good bill, because in addition to providing relief, it would shift the qualifying figure from a set dollar figure to a percentage of area median income, in effect indexing the amount to ensure that such relief would adjust over time to reflect changes in Honolulu’s cost of living.

Property tax credits, also known as “circuit breakers,” are used nationwide to ensure that lower income property owners who are “land rich, cash poor” receive property tax relief. Every county in the state, except for Hawaii island, employs some form of circuit breaker.

Between fiscal years 2012 and 2022, this program reduced Honolulu residents’ tax burdens by almost $40 million.[2]

According to a report from the Lincoln Institute of Land Policy, a policy research group based in Cambridge, Massachusett, “Property tax circuit breakers are meant to prevent homeowners from being overburdened by property taxes, just as an electrical circuit breaker prevents electric current overloads.”[3]

The Lincoln Institute report suggested that circuit breakers are useful as a targeted way to provide relief to households who might be most burdened by rising property taxes.

The Grassroot Institute discusses circuit breakers and other property tax relief mechanisms in a forthcoming policy brief that we hope to share with you soon.

If enacted, this bill would not lower taxes across the board, but it would be a good first step in helping homeowners cope with the tax consequences of continually increasing property valuations.

We look forward to future discussion on this matter.

Thank you for the opportunity to testify.

Sincerely,

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii

RELATED: Bill 37 fails to index tax credit to inflation; Bill 38 is better
_____________

[1]2022 Income Limits,” Honolulu Department of Planning and Permitting, July 11, 2022, p. 1.

[2] UIPA request filed with the Honolulu Department of Budget and Fiscal Services, Dec. 8, 2022.

[3]   Adam Langley and Joan Youngman, “Property Tax Relief for Homeowners,” Lincoln Institute of Land Policy, Nov. 2021, p. 38.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

Aloha Pregnancy Care Center

AntiPlanner

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

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

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 Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

MentalIllnessPolicy.org

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT