Bill 59: Provide older homeowners with increased tax exemption

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Hawaii County Council on Sept. 6, 2023.

September 6, 2023
9 a.m.
Hawaii County Building

To: Hawaii County Council
      Councilmember Heather Kimball, Chair
      Councilmember Holeka Goro Inaba, Vice Chair

From: Grassroot Institute of Hawaii
           Jonathan Helton, Policy Researcher


Comments Only

Dear Councilmembers:

The Grassroot Institute of Hawaii would like to offer its comments on Bill 59, which would create a $125,000 home exemption for Hawaii Island owner-occupants 80 years old and older.

Currently, all Hawaii Island homeowners 75 or older can receive a $110,000 home exemption. Bill 59 would retain that exemption for homeowners between 75 and 79, while creating a new exemption amount for those 80 and older.

With the existing $110,000 exemption, for example, an 80-year-old homeowner with a house valued at $300,000 would pay — at the current rate of $6.15 per $1,0000 of assessed value[1] — a tax bill of $1,168.50. Under Bill 59, the same individual would pay a tax bill of $1,076.25 — a difference of $92.25.

The county’s Department of Finance estimates that 5,316 homeowners would qualify for this new exemption amount, and that each homeowner would save an average of $74. In total, the new exemption value would save older Hawaii Island homeowners almost $400,000.[2]

Retirees on fixed incomes would certainly benefit from this tax relief. Right now, any increase in their assessments could create a tax bill that would eat into their small monthly incomes.

With the cost of food, transportation and electricity as high as ever, any savings for older homeowners and retirees would be a good thing.

Thank you for the opportunity to testify.


Jonathan Helton
Policy Researcher
Grassroot Institute of Hawaii

[1]Real Property Tax Rates for Tax Year July 1, 2023 to June 30, 2024,” Real Property Assessment Division, Department of Budget and Fiscal Services, City and County of Honolulu, July 2023.
[2] Michael Brestovansky, “County council proposes larger property tax break for older kupuna,” Hawaii Tribune-Herald, Aug. 1, 2023.

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