With a Wednesday deadline looming, county councilmembers met yesterday to wrestle over details of a $103.4 million supplemental budget submitted last week by the mayor. Topping the council’s agenda was exactly how to get more real property tax relief to
With a Wednesday deadline looming, county councilmembers met yesterday to wrestle over details of a $103.4 million supplemental budget submitted last week by the mayor.
Topping the council’s agenda was exactly how to get more real property tax relief to Kaua‘i’s citizens in a fair fashion.
Specifically, the mayor’s budget asked for a 20-cent cut in property taxes across-the-board per thousand dollars of assessed value. The council wanted to go a step further by giving another 10- to 20-cent cut themselves, on top of what the mayor already requested.
“Last year we got a lot of criticism for not offering tax relief,” said Councilmember Maurice “Joe” Munechika.
This year, the county aims to avoid that criticism.
But Councilmember JoAnn Yukimura seemed unconvinced that across-the-board tax relief from the council would benefit the property owners who needed it most.
“I don’t know if a Wal-Mart or a Coconut Grove needs a tax break,” she said.
A 10-cent tax break would mean an estimated $950,000 in relief — or loss in tax revenue, depending which side one is on, Yukimura said.
That kind of tax break means giving up tax dollars for things like beach improvements and other long-term investments that could impact the quality of life for Kaua‘i’s residents and the visitor industry.
Councilman Jay Furfaro suggested that the council’s tax relief target land values, so that landowners with high-value land but modest structures would find greater relief.
“It has more impact, as the land value is higher,” he said.
One issue — considered the biggest of them all by Council Chairman Kaipo Asing — has to do with government employee collective bargaining increases, specifically, those belonging to the Hawaii Government Employee Association (HGEA) and the United Public Workers’ union (UPW). The county had previously agreed to a $1.043 million budget for the increases, but the final figure will probably jump another $461,800, according to the mayor’s supplemental budget.
The council has until Wednesday to come to an agreement on those major issues, among other things.
Business Editor Phil Hayworth can be reached at 245-3681 (ext. 251) and phayworth@pulitzer.net
