Honolulu city council to vote on new $1M tax class
HONOLULU (AP) — The Honolulu City Council is planning to vote on whether to establish a new tax class for homeowners with properties worth $1 million or more.
The Honolulu Star-Advertiser reported Wednesday (http://bit.ly/1aCQVVU ) that the new class would allow the city to tax the parcels at higher rates.
Council Budget Chairwoman Ann Kobayashi says the $1 million threshold likely removes concerns about landlords passing on higher taxes to tenants because the tenants more likely live in cheaper properties.
Mayor Kirk Caldwell has said he supports the bill.
The president of the Tax Foundation of Hawaii gave written testimony questioning whether it’s fair to tax more expensive properties at higher rates when demand for city services will be the same.
Lowell Kalapa says the bill could discourage developers from building homes that expensive.