As the Honolulu City Council prepares for budget hearings for the 2018/2019 fiscal year, the Budget Committee will meet on Wednesday, February 14, to hear two of many expected property tax bills.
Bill 1 introduced by Council Member Trevor Ozawa would provide tax relief to owners of low income rental properties. Currently, the tax relief applies to rental units for households earning 50% of the median income for the applicable household size. Bill 1 would increase the threshold from 50% to 80% which would be a greater incentive for property owners to offer reduced rental rates to low income families.
Bill 3 introduced by Council Member Ernie Martin would provide a periodic adjustment of the assessed value threshold that determines the "Residential A" real property classification. Currently, that threshold is $1 million. The Honolulu Board of REALTORS® has long opposed the Residential A classification and recommended a multi-tiered approach that would offer a tax break for local, working families – both landlords and renters. Bill 3 offers a tiered option that begins July 1,2019. The threshold would be determined by applying a factor to the threshold of the preceding tax year. This factor would be the ratio of the median assessed value of all properties classified Residential or Residential A, as of October 1st of the preceding tax year, to the median assessed value of all properties classified Residential or Residential A, as of October 1st of two tax years prior.
View the Budget Committee agenda here.