Bill No. 4 TVUProperty Classification

 Up for final Hearing by City Council on 3/15/23

The property tax component of Bill 41 was stripped away and became Bill 4.   This Bill (Bill 4 CD2) has been approved by the Budget Committee and now will be heard by the full Council for a final vote on 3/15/23.

As originally written, the associated property tax rates (PRT) for TVUs would increase from 3.5 (residential rate) to 13.9 (hotel rate) per $1,000 value (for those currently classified as Residential).  Coupled with the recent increase in values, this change would increase the average annual property taxes on a one-bedroom Kuilima condo from $2,000 to $12,500.

Through member testimony and meetings with the Council Members, FOK was successful at having the Bill amended to include a separate TVU category with two tiers.  The two tiers were recommended as a way to keep more affordable non-vacationer housing options for lower priced units.   The threshold between tiers was proposed at $600k, however, FOK has presented data and successfully had the threshold raised to $800k.  We are in support of Bill 4 CD2.   If passed, the changes will not be effective until 7/1/2024.  Tax rates are not included in the Bill and will not be discussed until next year, before the Bill becomes effective.  

Click or copy the following link to submit testimony in Support of Bill 4 CD2 at the 3/15/23 City Council Meeting:

https://hnldoc.ehawaii.gov/hnldoc/testimony

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