November 6th, 2009
New “Homeowners” Property Tax Category Created
Watch out non-owner occupant homeowners!
Mayor Mufi Hannemann signed a bill at a ceremony at City Hall this afternoon that is expected to help homeowners who are owner-occupants….The City Council approved Bill 51 creating a new “homeowners” property tax category. Hannemann asked for the bill as a means of shielding owner-occupants from anticipated higher taxes for other property owners, including those with commercial, hotel/resort and residential rentals.
Will this help owner occupants or will it hurt non-owner occupant homeowners? I would be willing to bet the later. By making this change, especially by passing it now when Government needs money, I would be willing to bet the next tax increase will come for non-owner occupant home owners.
What do you think of this change? Are you for it or against it or don’t care?
Posted by scott on November 6th, 2009 in Economic Info | 2 Comments »
November 8th, 2009 at 10:23 am
Investors who do not reside in Hawaii are already but renting out their homes in Hawaii are making money off of residents who do not own homes and affect resident home ownership. Because the investors will drive costs higher for residents looking for homes. Nothing like kamaaina prices for residents who in affect pay every other tax investors escape.
January 12th, 2010 at 4:23 pm
Watch out is right! Under the new law it appears that long-time resident owners of Co-op apartments are also being classified as “nonowners” to obtain excess property tax revenue from this form of ownership. Unless Co-op owners can prove that every apartment in the building is occuppied by a resident/owner. Although ostensibly still retaining their resident exemptions, the new law would classify even 58 year owner residents as non-owners and therefore subject to a higher property tax. Shibai!