Tax Credit Halts Curbside Recycling Expansion
Tax Credit For Owner/Occupants Could More Than Double
POSTED: 4:54 pm HST May 18, 2009
UPDATED: 9:46 am HST May 19, 2009
HONOLULU -- The Honolulu City Council money committee on Monday stripped $6 million in curbside recycling money from the budget in an attempt to boost property tax relief for Oahu homeowners. The budget cut postpones expansion of curbside recycling that was supposed to begin next May from Waipahu through the Leeward Coast. Instead, that expansion would be delayed until May 2011 if the funds can be found.Council Budget Committee Chairman Nestor Garcia proposed the cuts to free up money to increase the homeowners' property tax credit on Oahu and ease the burden of a proposed tax hike. Garcia wants to raise the tax credit from $75 to as high as $175.The council is looking at a 9 percent increase to property taxes.Council members are looking to give owner/occupants tax relief. If they pass the $175 credit, that would eliminate a large chunk of the tax increase for many owner/occupants. That could cost as much as $23 million.The median price for a single-family home on Oahu was $555,000. If the full council approves the rate increase, it would come out to an extra $166 in taxes a year.Council members are looking to shift the burden of the increase to people who own more than one home, own a home but live out of state and rent to others.
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