Let’s start by saying we support the county when it says it wants to have a public workshop to address the issue of skyrocketing property taxes for many people on Kauai. Whether owner-occupied, a second home, an affordable rental or a vacation unit, the rise in the latest property tax bill took folks by surprise.
Some opened up their bill and found it to be thousands more than expected. And for some, it’s not a big deal. They can pay that tab owed to the county. But for others, including longtime residents, it could mean the different between staying on Kauai or having to sell and move. That’s why we’re hoping to hear the date, place and time of that workshop, where residents can share how these taxes are affecting them.
Now, we understand there are times when property taxes have to be increased to cover costs. This appears to be one of those times. However, the amount of that increase was more than many expected. There was definitely some shock and anguish after opening this latest tax bill.
We believe there needs to be action beyond a workshop and letting people vent. The council, if it can, should take action and provide relief for residents — even if it means reduced spending and services.
Several councilmembers, when they adopted its $180 million budget, said they did not consider cutting services or spending, one saying that was a slippery slope. Now, it’s time to make those reductions. No one begrudges the county’s desire to provide the best services possible for residents.
But when those services come at the cost of much higher property taxes for many residents who say they can’t afford them, it’s time to reconsider. In this latest budget, the county projects it will collect $107 million in property taxes. That’s up $16 million from last year, and nearly $30 million from two years ago. Such increases take a toll on folks.
Which is why we like some of the proposals tossed out by councilmen Gary Hooser, Mel Rapozo and Ross Kagawa. Their suggestions include rolling back real property taxes to last year’s amount and re-instituting the permanent home use tax credit, which capped future real property tax increases on owner-occupied homes at 2 percent beginning in 2006. These councilmen said they are searching for solutions that would make the entire real property tax system more equitable for island residents. They seem to agree that something must be done to provide immediate tax relief. We support that effort. This is not something that should just be talked about and pushed aside until the next budget.
The county can’t hold the line on spending and services when property taxes are rising so dramatically. Will county cutbacks be difficult? Yes. Rolling back taxes, re-instituting the home use tax credit, will mean the county will have to tighten its budget more than it expected.
But certainly, in a $180 million budget, there is room to reduce spending, to find areas that aren’t absolutely essential. Consider the budget for Parks and Recreation.
Since parks and rec was created by voter initiative six years ago, the county has spent $56 million in that area. Seems like a lot of money for parks, and perhaps, considering this latest property tax increase, something that should be reviewed as whether it’s sustainable.
Councilman Rapozo put it best: “I know if we rollback this year’s tax bill to last year’s bill, it’s going to cause a problem with the budget, but that’s just something that we’re going to have to address and deal with. I couldn’t tell you what the fix is right now, but it’s going to be a combination of some creative revenue enhancements but also some cuts in our spending.”
When this workshop is held, we encourage the county to be prepared with possible solutions to this current taxing situation. Spell it out for residents what it will mean, what services would have to be cut, if these property tax bills are reduced.
And residents should come ready to point out the effect of their rising property taxes. They should also have some suggestions on where and why the county could reduce spending with the least impact.
If there is a solution to this property tax dilemma, the best route to find it will involve the mayor, his administration, the County Council and the people they represent.
