The Honolulu City Council will consider real property tax measures to provide relief for long-term residents at a meeting in the near future, per the recommendations of a special group.
Since 2021, more than 30 bills relating to real property tax have been introduced, Councilmember Radiant Cordero said.
"Our communities have also seen across the island a 14.1% increase in overall real property assessed valuations," Cordero said.
With those two facts in mind, over the course of a month, the permitted interaction group recommended convened to assess what measures could actually make a difference in residents' lives.
The group recommended action on two bills. One, Bill 40, would increase the homeowner exemption from $100,000 to $120,000 for kupuna owners who qualify as low-income. Another bill would increase those eligible for the low-income tax credit.
The group also suggested revising residential property tax classifications. One idea would be to remove long-term rentals from the existing Residential A-tier, and create a vacancy tax.
"All of these conversations when we're looking at what role does an increased homeowner exemption play, what role does a reclassification play... I think the ultimate outcome is going to dictate what particular process applies," Councilmember Matt Weyer said.
"If we changed the classification structure, the exemption wouldn't be applicable. Of course, if we maintain what we have been we'd be working within the context of the exemption and other frameworks," Weyer said.
The full council will deliberate in a future meeting, per council rules.
Chair Tommy Waters said the council will likely make decisions at that meeting.
"We looked at numerous bills in order to try to figure out how we can help local people get a tax break, how we can keep local people in Hawaiʻi in their homes," Waters said.
