The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Honolulu County Council on July 7, 2023.
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July 7, 2023
2:30 p.m.
Honolulu City Council Chambers
To: Honolulu City and County Council
Councilmember Tommy Waters, Chair
Councilmember Esther Kiaʻāina, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: Bill 37 (2022), CD1 — RELATING TO REAL PROPERTY TAXATION
Comments Only
Dear Chair and Committee Members:
The Grassroot Institute of Hawaii would like to offer its comments on Bill 37 (2022), CD1, which would increase the income eligibility for the real property tax credit from $60,000 to $80,000.
This credit caps the tax bill at no more than 3% of the qualifying homeowner’s income. For someone making $80,000 a year, that would represent a maximum tax bill of $2,400.
The Institute supports increasing the eligibility for the tax credit to assist lower-income homeowners, and we believe that the proposed income threshold should stay at $80,000.
This “circuit breaker” for lower income households has not kept up with changes in personal income. This credit was last increased in 2014 from $50,000 to $60,000.[1]
In 2014, a two-person household income of $61,350 equaled 80% of area median income. In 2022, a two-person household making 80% of AMI would have an income of $83,600.[2]
Further, the County should make efforts to raise awareness of this tax credit, since only 3,252 homeowners received it for fiscal 2023.[3]
Thank you for the opportunity to testify.
Sincerely,
Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] Ordinance 14-33. See also Revised Ordinances of Honolulu, § 8-13.2 Real property tax credit established, accessed April 3, 2023.
[2] “Honolulu County Income Schedule by Family Size,” Hawaii Housing Finance and Development Corp., 2022, p. 16; “Honolulu County Income Schedule by Family Size,” Hawaii Housing Finance and Development Corp., 2014, p. 1.
[3] Uniform Information Practices Act request filed with the Honolulu Department of Budget and Fiscal Services, Dec. 8, 2022.
