The Honolulu City Council’s budget committee met Tuesday to discuss four bills, including one that would raise the tax exemption for older homeowners still living in their primary residence.
Bill 40 states that if the taxpayer acquired the home by a deed made on or after July 1, 1951, and that deed was documented by Sept. 30 the following year, then they may be eligible for a property tax exemption of $110,000.
The measures were introduced to provide longer-term relief for residents, who have experienced rising property tax bills due to the boom in home prices.
Councilmembers Esther Kiaʻāina and Matt Weyer proposed their own amendments to the measure, each raising credit amounts for residents 65 and older.
However, there are concerns from other department members.
"I don't see how that addresses equity, because you have, rightfully so, a lot of retirees or even still a lot of people working 65 and over that are well off. They're average to above average to wealthy," said Andy Kawano, director of the city's Department of Budget and Finance.
"To shift the relief there may not really achieve the overall goal of giving those most in need relief. So my preference would be if we do any increases, that it's across the board," Kawano said.
Another concern is the impact raising homeowner tax credits could have on city revenues. Kawano said every $10,000 exemption increase has a roughly $5 million impact on the city. Real property taxes are the primary revenue source for the city.
The committee approved establishing a permitted interaction group to further discuss yesterday’s proposals.
