Maui mayor veto property tax assessment bill
HONOLULU (KHON2) – Mayor Michael Victorino announced his disapproval of Bill 59, relating to property tax assessments, citing concerns about the potential negative consequences of proposed tax classifications and a lack of understanding on the part of taxpayers .
“With all the unknowns related to the proposed tariff structures, the new consolidation of classifications and new classifications titles, I think these changes are confusing real estate taxpayers,” said Mayor Victorino. “I don’t think enough information has been provided to Maui County taxpayers to have a full understanding of the potential impacts of this bill.”
Mayor Victorino objected to the new property tax classifications proposed by the Council of combining “properties with dwellings” in the current classifications of agriculture, conservation, apartments and residences in a new classification entitled ” not occupied by the owner â. The combination of classifications raised concerns because of the four classifications having different tax rates – and for fiscal year 2021 – there can only be one rate for the new combined classification.
âThis consolidation would have impacts depending on the property tax rate adopted,â said Mayor Victorino.
The most important group in the new ânot owner occupiedâ classification is the current residential classification. The classification contains the majority of long-term rentals and has the lowest tax rate among the four classifications combined to form âunoccupied by ownerâ.
“For the rate to be income neutral, our calculations (based on values ââand certified rates for fiscal 2020) show that we would need a rate of $ 5.92 per $ 1,000 of assessed value “, said Mayor Victorino.
The current rates for the four classifications are:
- Residential – $ 5.60
- Agricultural – $ 5.94
- Apartment – $ 6.31
- Retention $ 6.43
“While I realize that the tax burden could be shifted into the classification of non-homeowners through the implementation of the proposed tiered rate structure, I would like our taxpayers to have more time to consider how these changes. potentials will affect them, “said Mayor Victorino. .