Last blow for tax relief this year: Council kills property tax cuts
The public said they want it, the administration said the county could afford it, but there will be no property tax relief this year, after the county council was unable to agree Wednesday on neither of the two competing proposals.
Monday marking the deadline set out in the county charter to set property tax rates, the meeting was the last opportunity for council members to agree on a plan. Their failure to do so means that last year’s tax rates will hold for at least another year.
On June 2, the council adopted a budget of $785.9 million, which is $175.8 million, or 28.8%, more than the current year.
“Yeah, that covers everything, but it’s really tight,” chief financial officer Deanna Sako said of the proposed tax cuts.
The question for most council members was whether commercial and industrial property or hotels and resorts should receive tax relief.
Three council members – Hamakua Councilor Heather Kimball, Puna Councilor Ashley Kierkiewicz and Hilo Councilor Aaron Chung – voted against both options.
“Inflation affects us as well as a buyer of goods and services,” Kimball said, adding that she doesn’t expect home values to continue to climb. “If I was a bettor, it would be betting on the possibility of a collapse.”
“I want the extra cushion,” Kierkiewicz said.
Resolution 441, by North Kona Holeka City Councilman Inaba, would have reduced property tax rates for classes except Residential Level 1, Apartments, and Hotel/Resorts, and Golf Courses.
“It just takes away money that we didn’t use in the operating budget this year,” Inaba said. “This resolution is in balance with the final approved budget that we have approved as a board.”
Puna Councilman Matt Kanealii-Kleinfelder praised Inaba’s legislation.
“Knowing that we can provide this relief without negatively affecting our budget, we need to do it now for our residents. It is our responsibility,” Kanealii-Kleinfelder said.
The resolution failed on a vote of 4-5. An amendment proposed by Kohala Councilman Tim Richards would have accepted Inaba’s proposal for most classes, but would also have lowered rates for apartments, hotels and resorts, golf courses and l ‘agriculture.
Richards said his measure “gives everyone a little break.”
“It recognizes that every ratepayer in this county has been impacted over the past two years,” he said. “Not discriminating against any group but bringing relief to all.”
The amendment failed on a 2–7 vote, with only Richards and Hilo Councilwoman Sue Lee Loy voting yes.
“We live in a time of abundance and we hope that all of our services will continue,” Lee Loy said of his support. “It spreads the pain a bit. Everyone will see relief on their August 20 bill.
Email Nancy Cook Lauer at [email protected]
