Ka Wai Ola - Office of Hawaiian Affairs, Volume 10, Number 10, 1 October 1993 — Oʻahu homesteaders may get real property tax exemptions [ARTICLE+ILLUSTRATION]

Oʻahu homesteaders may get real property tax exemptions

by Jeff CIark A bill that may exempt Hawaiian homesteaders from paying real property tax is making its way through the Honolulu City Council. Bill number 53, introduced last year by Council member John DeSoto, extends the tax relief beyond the seven-year grace period provided by the Hawaiian Homes Commission Act of 1920.

Hawaiian homesteaders do not enjoy many of the benefits that customarily go with land ownership. They do not own their land, and are unable to sell or transfer their property, use it as collateral in seeking loans, or benefit from any increase in property values. "The Council finds that it is inequitable to the homestead lessees to assess and tax homestead land in the same manner as other leasehold property because

of the specific limitation placed upon such lands by the Act," the bill reads in part. The bill would exempt residential, pastoral, and farm lots. Buildings and other improvements to the land would also be exempt. "I went for the gusto," said DeSoto. "Knowing that as legislators we always have to compromise, I went for it all; if we get half of that, 1*11 be happy; if we get it all, great."

DeSoto and Councilmember Leigh-Wai Doo, budget and finance chair, recently held an

informational eommunity meeting at N ā n ā k u 1 i Elementary School, and subsequent meetings were planned for late September at Roosevelt High and W a i m ā n a 1 o Elementary and Intermediate. The bill is then expected to undergo a final

reading/public input meeting by the budget and finance committee, and then go before the full Council for a final vote. DeSoto said the reaction at the Nānākuli meeting was "fantastic," adding that about 1 ,000 people attended. Some had concerns about whether they would continue to receive county services, but

the councilmembers assured them that they would still enjoy trash piekup and poliee and fire protec-

tion. If passed, the bill will take effect Jan 1, 1994. The financial impact on the city and county would be $1.1 - 1.5 million per year, according to DeSoto. OHA trustee A. Frenchy DeSoto testified in support of the bill on Aug. 10, saying OHA "fully

supports this effort to resolve the inequities whieh exist in current law and strongly encourages passage of Bill 53." The counties of Maui and Hawai'i both passed similar homesteader property tax exemption legislation in 1992. The Kaua'i eouneil has yet to introduce such a bill.

I John DeSoto