Repeal well-intended but obsolete city tax rebates, permit waivers

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Honolulu City Council on March 19, 2025.
_____________

March 19, 2025, 10 a.m.
Honolulu Hale

To: Honolulu City Council
       Tommy Waters, Chair
       Matt Weyer, Vice Chair

From: Grassroot Institute of Hawaii
            Ted Kefalas, Director of Strategic Campaigns

RE: Bill 3 (2025) — RELATING TO INCENTIVES FOR BUSINESSES

Aloha Chair Waters, Vice-Chair Weyer and other members of the Council,

The Grassroot Institute of Hawaii supports Bill 3 (2025), which would repeal Chapter 35 of the Revised Ordinances of Honolulu.

This chapter describes certain property tax rebates and permit-fee waivers for businesses that were intended to create permanent jobs in Honolulu.

As well-intentioned as this chapter might have been, the Honolulu Department of Budget and Fiscal Services does not have rules to administer the program, and it is likely no one has received any tax or fee reductions from the program since it was created in 1998. 

Chapter 35 is clearly ripe for the round file, though Grassroot does support the idea behind it that we should be finding ways to lower the cost of doing business in Honolulu. Toward that end, we would welcome dialogue about how to achieve its goals in a more constructive manner.

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii

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