WHEREAS, there has been a tremendous increase in real estate values as illustrated by the figures at the end of 2005, showing that Honolulu real property values climbed an average of 26 percent with the median sales price for a single-family home estimated at $615,000, an increase of over 35 percent since 2004; and

WHEREAS, the increase in property assessment values, coupled with the current property tax rate, have greatly impacted homeowners; and

WHEREAS, according to city officials, the increased property tax revenues will account for an estimated $125,000,000 in the next fiscal year; and

WHEREAS, the increased property tax places considerable strain on Hawaii homeowners who must also deal with many other expenses attributed to Hawaii’s high cost of living; and

WHEREAS, many homeowners on Oahu have voiced their concerns about the large and sudden increases in their real property assessments; and

WHEREAS, these sudden increases may force long-term residents and retirees to return to work or curtail their spending to pay the increases in their residential property tax; and

WHEREAS, homeowners in the City and County (C&C) of Honolulu have called for creative property tax reform and point to California’s Proposition 13, which placed a freeze on property tax rates; and

WHEREAS, the House of Representatives recognizes and respects that all functions, powers, and duties relating to the taxation of real property shall be exercised exclusively by the counties, as provided for by Section 3 of Article VIII of the Constitution of the State; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, that the C&C of Honolulu is requested to consider freezing increases in tax rates for residential properties; and

BE IT FURTHER RESOLVED that the Mayor and the City Council of the C&C of Honolulu are requested to evaluate the current real property tax assessment rates and the most effective solutions and alternatives to help homeowners of Honolulu with their heavy tax burden; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Mayor and Council Chair of the City and County of Honolulu.

Report Title:

Freeze Real Property Tax Rate