Pearl City Homeowners - Honolulu City Council Advances Property Tax Relief Measures

The Honolulu City Council is moving forward with legislative efforts to provide property tax relief to homeowners, including those in Pearl City.

 

Two key bills, Bill 49 and Bill 50, are under consideration to amend existing real property tax exemptions.

 

Bill 50 proposes increasing the base real property tax exemption for all eligible homeowners from $120,000 to $140,000.

 

This adjustment would reduce the taxable value of owner-occupied homes, thereby decreasing property taxes for qualified homeowners.

 

For instance, under this bill, a homeowner with a property assessed at $1 million would be taxed on $860,000 of the assessed value.

 

Bill 49 aims to raise the real property tax exemption for homeowners aged 65 or older from $160,000 to $180,000.

 

This change would further lower the taxable value for senior homeowners, providing additional financial relief.

 

In this scenario, a senior homeowner with a property assessed at $1 million would be taxed on $820,000 of the assessed value.

 

Both bills, if approved, are set to take effect for tax years beginning July 1, 2027, and thereafter.

 

Introduced by Council Chair Tommy Waters and Councilmember Val Okimoto, these measures have garnered support from residents, trade unions, and policy research organizations.

 

According to recent reports, the Grassroot Institute of Hawaii emphasized the importance of these adjustments to mitigate potential increases in property values over the next two years.

 

They noted that many older residents rely on fixed incomes, and increasing property tax relief can help reduce the impact of significant property value increases.

 

City Department of Budget and Fiscal Services Director Andy Kawano acknowledged the need to periodically review exemption amounts but highlighted the fiscal impact.

 

He estimated that increasing the exemption amount by $20,000 per taxpayer would reduce tax revenue by approximately $70 per parcel.

 

With nearly 80,000 parcels owned by residents aged 65 and over, the total revenue loss could amount to about $5.6 million.

 

Despite these concerns, the Council remains committed to balancing the city's financial needs with providing relief to homeowners.

 

In related efforts, the Council is also exploring tax increment financing (TIF) programs to stimulate economic development on Oahu.

 

These programs aim to use anticipated increases in real property tax revenues to fund public projects, potentially enhancing infrastructure and affordable housing.

 

As these legislative measures progress, Pearl City homeowners and other residents are encouraged to stay informed and participate in upcoming Council meetings to voice their perspectives.