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Residents get a tax break on their primary property
...which they can even claim if they don't actually live here.
residents will pay full price on any additional properties they own.
...minus any "ag exemption", whether or not any "ag activity" is actually taking place.
I find irony here: County "doesn't have the funding/staff" to audit the residency/ag exemptions, yet these very exemptions are costing plenty. Seems like "fixing" the problem would be self-funding, at least...
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As to the question asked: yes taxes are fair --- I pay very little tax (600 compared to a similar cali property - 6000) and I get very few services (25 minute response time compared to a 4 minute for the cali property) its what I opted for .... Hawaii real estate taxes great value imho - free trash too boot!
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Property taxes are pretty reasonable IMHO compared to most places in the US. It is other taxes that are fairly pricey (income, business, etc). Have to keep the large land owners happy.
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quote:
Originally posted by kalakoa
I find irony here: County "doesn't have the funding/staff" to audit the residency/ag exemptions, yet these very exemptions are costing plenty. Seems like "fixing" the problem would be self-funding, at least...
Irony? Maybe, but I suspect there are powerful political elements who like it this way, despite the Mayor's propensity to spend every dollar in sight and ask for more.
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It's funny how people like to blame Billy for everything. ("Spend every dollar", indeed)
Remember how he inherited an unhealthy economic climate? No surplus anymore? How he had to maintain County services while limiting growth? How he's dealt with costly natural disasters and still maintained order?
Then the same people who criticize are the people who demand "Where's mine"! There's not enough police! Waaaaaaaaa!
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"What services is the off-island owner using that costs them more than the full-time resident? It actually should be reversed!"
Only a small part of the government services are paid for by property taxes, but it is the only tax off island owners pay.
It is perfectly fair to give a discount for primary residences, and then tax all other properties at the full rate. Off island owners don't pay extra, other people just get a discount for their primary residence, that isn't available for other types of properties. Some people may say this is a distinction without a difference, but everyone can take that discount on the home they live in. Many places offer that discount for primary residences. If you choose to live in Lincoln, Nebraska instead of in your Hawaiian home, that is the choice you made, no discount for second homes or investment properties here.
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If you choose to live in Lincoln, Nebraska instead of in your Hawaiian home, that is the choice you made
If you choose to fill out the exemption paperwork on your Hawaii real estate, you can choose the lower taxation, even if you do not choose to spend more than 180 days/year in Hawaii. (This figure is too low, 270 days/year would be more appropriate.)
There is supposedly some legislation that attempts to fix this by cross-checking real estate exemptions with resident income tax filing status which would be a step in the right direction.
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It is perfectly fair to give a discount for primary residences, and then tax all other properties at the full rate. Off island owners don't pay extra, other people just get a discount for their primary residence, that isn't available for other types of properties. Some people may say this is a distinction without a difference, but everyone can take that discount on the home they live in. Many places offer that discount for primary residences. If you choose to live in Lincoln, Nebraska instead of in your Hawaiian home, that is the choice you made, no discount for second homes or investment properties here.
By charging more in property taxes for investment property, you are actually hurting the poorest people the most. Poor people tend to be renters and by raising property taxes on rental property, you increase their rents. So let's continue to raise property taxes on those rich landlords, right? Cause they can afford it. You see the problem with the "fairness" now?
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quote:
Originally posted by leilanidude
It is perfectly fair to give a discount for primary residences, and then tax all other properties at the full rate. Off island owners don't pay extra, other people just get a discount for their primary residence, that isn't available for other types of properties. Some people may say this is a distinction without a difference, but everyone can take that discount on the home they live in. Many places offer that discount for primary residences. If you choose to live in Lincoln, Nebraska instead of in your Hawaiian home, that is the choice you made, no discount for second homes or investment properties here.
By charging more in property taxes for investment property, you are actually hurting the poorest people the most. Poor people tend to be renters and by raising property taxes on rental property, you increase their rents. So let's continue to raise property taxes on those rich landlords, right? Cause they can afford it. You see the problem with the "fairness" now?
Again, this is a discount given for primary residences, not an increase in the taxes charged to landlords or investors. There are also good property tax discounts available for renting to low income tenants, which are rarely taken because many landlords don't want to rent to poor people, just look at how hard it is for people with section 8 vouchers to find a rental, so your argument doesn't fly. The vast majority of the off Island owned properties are blank land, not rentals, anyway.
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What about all the properties that the county thinks are bare land but actually have nice homes? Are their property taxes fair?
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