Councilmember Ruggles to Introduce Proposed Property Tax Amendment

On Monday, June 5, at a Special Council Meeting, Councilmember Jen Ruggles will discuss her amendment to Mayor Kim’s proposal to raise property taxes through proposing an entirely new tax rate structure. She says her scenario will cause almost 88% of property owners to pay less taxes in the long run through exemptions compared to the Mayor’s plan, and balances the budget while not increasing the minimum tax, agricultural, and homeowner rates. Ruggles plan would increase tax rates and provides automatic exemptions for the residential, apartment, commercial, and industrial classes.

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Ruggles’ plan would amend Mayor Kim’s Resolution 213-17 which raised taxes in every class except affordable rental. He’s also proposed to double the minimum tax from $100 to $200 which passed it’s first reading on May 18th. Ruggles was the only dissenting vote. “Doubling the minimum tax is a hundred percent increase on the poorest of poor, including disabled veterans and non-profits,” said Ruggles, “I want to ensure the county is not putting the burden on those who can least afford it.” An increase in the minimum tax would cause the tax payment for up to 50,188 properties to increase.

Ruggles said she’s introduced this amendment because she is concerned that across the board increases on all property owners are regressive, and her plan protects low to middle range homes and businesses. For example, 1,548 businesses in the commercial class with property valuations under $456,000 would pay average of $215 less, when compared to the Mayor’s plan, according to Ruggles’ calculations.

Ruggles’ plan would increase residential to $11.7 per thousand with a $30,000 exemption, commercial and industrial to 11.7 with a 40,000 exemption, apartment to 12.5 with a $20,000 exemption, and increase hotel, resort, and conservation to 12.5. The exemptions, if passed would become effective next year. “This means that for the first year every business assessed under $465,000 would pay a little more, and then see a net savings after the second year when the exemptions take place,” explained Ruggles, “for example, Suisan, a local business assessed at $239,000, would pay $239 more than the rates proposed by the mayor for the first year, then pay $229 less every year thereafter.”

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For the apartment class, an apartment valued at $119,000 rented at Waiakea Villas would pay $136 less than the Mayor’s rate under Ruggles’ plan. However, a property in a Waikoloa Resort complex, valued at $421,200 would pay $70 more per year.

“The exemption system shields low and mid-range property values while allowing those who can afford it to pay a little more,” said Ruggles.

Ruggles amendments will be heard on Monday, June 5th, and testimony will be taken at 9am.

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