The public said it wanted it, the administration said the county could afford it, but there will be no property tax relief this year, after the County Council on Wednesday couldn’t agree on either of two competing proposals.
With Monday marking the deadline outlined in the county charter to set property tax rates, the meeting was the last opportunity for council members to agree on a plan. Their inability to do so means last year’s tax rates will stand at least another year.
The council June 2 passed a $785.9 million budget, which was $175.8 million, or 28.8% , higher than the current year.
“Yes it covers it but it’s really tight,” said Finance Director Deanna Sako about the proposed tax cuts.
At issue for most council members was whether commercial and industrial property or hotels and resorts should get a tax break.
Three council members — Hamakua Councilwoman Heather Kimball, Puna Councilwoman Ashley Kierkiewicz and Hilo Councilman Aaron Chung — voted against both options.
“Inflation is affecting us as well as a purchaser of goods and services,” Kimball said, adding she doesn’t expect housing values to continue to climb. “If I were a betting person it would be betting on the possibility of a collapse.”
“I want the extra cushion,” Kierkiewicz said.
Resolution 441, by North Kona Councilman Holeka Inaba, would have lowered real property tax rates for classes except residential tier 1, apartments and hotel/resort and golf courses.
“It just takes off money we did not use in the operating budget this year,” Inaba said. “This resolution balances with the final approved budget that we approved as a council.”
Puna Councilman Matt Kanealii-Kleinfelder praised Inaba’s legislation.
“Knowing that we can provide this relief without affecting our budget negatively, we need to do this right now for our residents. This is our responsibility,” Kanealii-Kleinfelder said.
The resolution failed on a 4-5 vote.
An amendment proposed by Kohala Councilman Tim Richards would have accepted Inaba’s proposal for most classes, but also lowered rates for apartments, hotels and resorts, golf courses and agriculture.
Richards said his measure “gives everybody a little bit of a break.”
“This recognizes that every taxpayer in this county has been impacted this past couple of years,” he said. “Not discriminating against any group but making relief for all.”
The amendment failed on a 2-7 vote, with only Richards and Hilo Councilwoman Sue Lee Loy voting yes.
“We’re living in a time of abundance and we’re looking to see all our services continuing,” Lee Loy said in explaining her support. “This spreads the pain a little bit. Everyone will see relief on their Aug. 20 bill.”