The latest tax plan offered by the Honolulu City Council Budget Committee that would cost the average home-owning family about $32 more in property taxes next year has led to the rise of commotion in the complacent city life. One of the reasons is that it is still uncertain whether the plan would get desirable endorsement of the majority of council members. Nevertheless, as per experts, this is indeed the most balanced $1.8 billion operating budget in the face of a $50 million shortfall. It should also be noted that a section of council members want to bring back $6 million to the budget to allow the final phase of island wide curbside recycling to begin in West O’ahu.
The plan offered by council Budget Chairman Nestor Garcia and approved 3-2 by his committee Monday night requires keeping Mayor Mufi Hannemann’s March proposal to enhance the residential tax rate from $3.29 per $1,000 in valuation to $3.59 per $1,000. With intention of helping offset that increase, the committee voted 3-2 to offer owner-occupants a one-time $175 tax credit. Hannemann’s proposal called for a $75 tax credit.
It should also be noted that Nestor Garcia along with others have argued that the higher tax credit will diminish the tax burden on residential homeowners under the assumption that they would least be able to afford the hit that would result from what amounts to a 9 percent increase in the rate. City Budget Director Rix Maurer III said Garcia’s proposal is something the administration can live with.
Speaking on this Council Chairman Todd Apo said, “If a landlord’s expenses go up, it’s highly likely it will be passed on to the renters.” “It’s all about balance. We definitely want to provide some kind of benefit to our local owner-occupants but it can’t be at the complete expense at the other side of the coin.”
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