- Associated Press - Tuesday, May 13, 2014

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 (https://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, https://www.staradvertiser.com

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