Honolulu City Council Vice Chair Ikaika Anderson, who also chairs the Council’s Zoning and Planning Committee, together with Council Chair Ernest Martin, today introduced a resolution designed to provide some relief to homeowners caught unawares by the City’s new Residential A category real property tax classification.
“This measure, if approved, would give these homeowners until November 17 of this year to file and apply for a tax compromise that could significantly reduce their real property tax,” Anderson said.
Martin added that Resolution 14-255 is intended to help homeowners who were unaware of the difference in the new rate due to automatic payments on their mortgage. “Several homeowners eligible for the exemption only learned about the consequences of failing to file by the September deadline when they were notified of the increase by their mortgage company or their bank”, he noted.
The new Residential A class went into effect this year and taxes homeowners whose properties are assessed at $1 million or more a rate of $6.00 per $1,000 of assessed value. However, if the owner had filed for a home exemption by September 30, 2013, the rate would be the regular rate of $3.50 per $1,000 assessed value. Homes with an assessed value of less than $1 million are not affected.
“This proposal would give owner/occupants who were unable to file for the home exemption for whatever reason a chance to work with the City and save money,” Anderson added.
By law, any compromise must be approved by the City Department of Budget and Fiscal Service, but Anderson said this resolution would require the department to consider all applications on a case-by-case basis.
Link to Resolution 14-255.