Council Members Ann Kobayashi and Joey Manahan introduced Bill 35, which would amend the city’s real property tax credit program. The bill changes the 4 percent titleholder’s income provision to 3 percent, resulting in a real property tax credit for each recipient in the amount that exceeds 3 percent of their income. The income threshold would remain at $60,000; however, the bill also proposes a tax credit cap of $6,000.
The bill is intended to provide tax relief to those most in need: owner-occupants of lower income levels. But, according to the administration, the cap adversely affects 18 of the 2,426 applicants who would face an average increase in real property taxes of $1,204. The additional tax credit does result in approximately $161,000 in lost revenue to the city, but the administration has recommended that the proposed cap be removed from the bill so that the low-income property owners are not burdened by the tax increase.
The bill is scheduled to be heard by the Budget Committee Chaired by Kobayashi Wed., July 15, at 9 a.m.
