A bill giving military service members living in homes they purchased on Oahu an additional break on property taxes was vetoed by Mayor Kirk Caldwell this week.
Bill 91 (2017), introduced by City Council Chairman Ernie Martin, would have given service members what amounts to a $140 annual cut on their property taxes. Technically, the bill would have provided a $120,000 exemption from the assessed value of the homes they occupy, or 50 percent more than the standard $80,000 owner-occupant exemption.
Caldwell, in his veto message, said he appreciated the intent of the bill. “Our community owes these service members our gratitude and respect for their sacrifices and commitment to keep our country safe,” he said.
But he cited four reasons for vetoing the measure, especially the uncertainty about the financial impact the break would have on city coffers. City Budget Director Nelson Koyanagi said in May that the impact could be as great as $1 million annually, noting that there are as many as 7,143 property owners that would be eligible. But Caldwell, in his letter, said that “we do not have information on the number of property owners who meet both the armed forces services requirements and the qualifying criteria for a home exemption.”
Caldwell also said it wouldn’t be fair to single out active military members when others in the law enforcement and first-responder communities — including police
officers, firefighters, paramedics and sheriffs — wouldn’t have the same privilege, he said.
What’s more, the mayor said, there’s lack of clarity in the bill on whether those who serve in the
National Guard and Reserve units would qualify. “It is our understanding that those who are reporting one weekend per month are not considered to be on active duty, but members are considered on active duty while fulfilling their two-week requirement,” he wrote.
Caldwell also noted that service members already get tax-free stipends of
between $2,000 and $4,000 monthly that can be used for housing and meals.
It’s unclear whether Martin will attempt to override the veto. Six of the nine Council members would need to support an override vote. The bill passed 6-2 on July 11 with members Joey Manahan and Ron Menor opposed while Ann Kobayashi was absent. But members Ikaika Anderson and Brandon Elefante voted with reservations, leaving the likelihood of a successful override vote uncertain.
Lobbying hard for the bill was the Hawaii National Guard Enlisted Association. R. Maui Quizon, the organization’s president, said in an email that it’s clear to him the break would apply to National Guard and Reserve members actively serving in
Hawaii. The association first approached Martin about the legislation on
behalf of Hawaii National Guardsmen, he said.
“At the time, as we worked together crafting the bill, we agreed to also include all branches of U.S. armed services serving in Hawaii,” he said.
Quizon also disagrees with the administration’s numbers and believes there are no more than 5,000 service members
“total from all branches” who would use the benefit, which would cost the city $715,000.
The veto was the fourth made by Caldwell since Martin became chairman in April.
