A Kaua‘i association started by retired attorney Walter Lewis of Princeville has attained 75 percent of the signatures needed to place a county charter amendment on this fall’s election ballot to roll back and cap property taxes. Lewis began the
A Kaua‘i association started by retired attorney Walter Lewis of Princeville has attained 75 percent of the signatures needed to place a county charter amendment on this fall’s election ballot to roll back and cap property taxes.
Lewis began the effort in October of 2003 in order to “protect resident homeowners from the soaring property taxation that many of them have recently experienced; and encourage the Kaua‘i County government to limit the rapidly expanding costs of government,” he said.
“Our organization, ‘Ohana Kaua‘i, has adopted a proposed charter amendment that would restore property taxes of resident homeowners to the amount paid for 1998, and place a cap on future increases to not more than 2 percent per year,” Lewis said.
“Believing that a cap on Kaua‘i’s real property taxes is justifiable is tantamount to proposing there be no increase to the quality and availability of vital services on the island,” said James Pycha, principal broker of RE/MAX Kauai. “This is certainly not practical.
“Kaua‘i property owners make an investment in the county when they pay their real property taxes,” Pycha said.
“Every dollar is returned to the island in the form of vital services, including police and fire protection, street maintenance and recreational facilities and activities.”
The charter amendment proposal requires 5 percent of the signatures of registered Kaua‘i voters to get on the November general-election ballot, and adoption by a majority of the voters to become law.
The deadline for the required signatures is May.
“We are finding that a great majority of persons who sign the petition support what we are seeking,” said Lewis.
According to data provided by Lewis, in the years since 1998, government costs and property taxes have both climbed approximately 50 percent.
“Because of this, the average taxpayer’s taxes have increased about 50 percent, but in many cases the increase has been much greater,” he said.
“A number of taxpayers have seen their tax bills rise more than several hundred percent. It is expected that in the current year government costs will rise 21 percent, and such an increase will doubtless be passed on to taxpayers,” said Lewis.
If the ‘Ohana Kaua‘i proposal is adopted, it is estimated that it will cause a reduction of revenues from the homeowners affected by about $1 million to $2 million per year.
“This is only 1 to 2 percent of total government revenues,” said Lewis. “If necessary, the government could obtain this amount from other sources, including a modest increase in the ratio of assessment to market value of taxed properties, or putting vacation-rental properties into the commercial classification.”
According to Lewis, homes owned for the 1998-99 tax year would have “property taxes fixed at the amount for that year,” while homes purchased after the 1998-99 tax year will have their property taxes “frozen at the amount paid in the first year.”
While many people see the value in Lewis’ cause, some believe there are other alternatives.
“While it is important to generate capital to run the county and its infrastructure and facilities, it is important to keep property taxes affordable for residents,” said Carol Cummings of Kauai Realty.
“Rather than implementing an across-the-board ‘cap’ on taxes or assessments, we should explore other options,” she said.
According to Cummings, one alternative is taxing property on its actual use, rather than its zoning.
Business Editor Barry Graham may be reached at 245-3681 (ext. 251) or mailto:bgraham@pulitzer.net.
