HONOLULU (AP) — A key Honolulu lawmaker is proposing increasing property taxes on high-priced homes to lessen a potential hike on hotels and resorts.
The Honolulu Star-Advertiser reported Tuesday (http://bit.ly/1nKNEXG ) that Ann Kobayashi, chairwoman of the Honolulu City Council's budget committee, is proposing raising taxes on homes worth at least $1 million to $6 for every $1,000 of assessed valuation.
That would be 50 cents more per $1,000 than what Honolulu Mayor Kirk Caldwell is proposing. It is $2.50 more per $1,000 compared with what homeowners pay now.
Kobayashi said the tax increase would raise revenue about $32 million per year for the county.
Kobayashi is proposing that hotels pay $12.90 per $1,000 in valuation, 50 cents more per $1,000 than what they currently pay, but 50 cents less than what Caldwell proposes.
Some lawmakers and groups have raised concerns over the $1 million threshold for increased taxes. Councilman Joe Manahan failed last year at moving the bar to $1.5 million after saying families complained and said they would have to pass on added expenses to renters.
The Honolulu Board of Realtors wants to make the bar $2 million, the value used by the real estate industry when it considers which homes are luxury homes.
Information from: Honolulu Star-Advertiser, http://www.staradvertiser.com