Mayor Rick Blangiardi is considering tax credits or tax exemptions for Oahu homeowners shocked by increases in their real property tax assessments, which Blangiardi called “an aberration.”
“This is a very serious situation that caught us completely by surprise,” Blangiardi told the Honolulu Star-Advertiser’s “Spotlight Hawaii” livestream program Wednesday. “This became more than cumbersome, especially for those people on fixed incomes.”
It’s “not realistic” to lower the tax rate, which is among the lowest in the country, Blangiardi said.
Instead, he said, “I have given direction that we must do something that’s material, that’s significant. … I think we can get there with either tax credits or tax exemptions in this situation.”
He emphasized that the assessments are not tax bills, and repeated that the size of the increases caught his administration “by surprise.” He urged homeowners to not “freak out over these assessments.”
‘We’re looking at this as somewhat of an aberration this past year,” Blangiardi said. “It is very serious and we’re just asking for a little bit of patience here from everybody again. These are not tax bills and we’re going to see what we can get done.”
In December the city announced that the total value of all real property increased to $343.07 billion from $305.27 billion, for an increase of 12.4%.
Residential properties increased in value to $230.15 billion from $211.05 billion, or a 9.1% rise.
The biggest increases were seen on the North Shore (20.4%), followed by the region from Kaaawa to Kahuku (18.4%); Windward Oahu south of Kaaawa (12.5%); and east Honolulu (10.1%).
The City Council is expected set tax rates in June, followed by tax bills in July.
Waimanalo Gulch
Blangiardi also plans to talk to state, military and federal officials about finding a 500-acre site on state or military land to replace the current Waimanalo Gulch Sanitary Landfill in Kapolei.
Just before a 2022 deadline to find an alternate location, Blangiardi asked the Honolulu Planning Commission for a two-year extension to conduct “an exhaustive study” to find a new location. Waimanalo Gulch is scheduled to shut down in 2028.
Six potential replacement sites — proposed for Central Oahu and the North Shore — were all rejected in October by the city’s Landfill Advisory Committee after Board of Water Supply leaders urged no landfill be located over Oahu’s underground aquifer system.
“We’re 0 for 6,” Blangiardi told “Spotlight.”
He said he understands the position of Board of Water Supply Manager Ernie Lau and Deputy Manager Erwin Kawata, especially with ongoing community concerns over the Navy’s fuel leaks at Red Hill and contamination of drinking water.
Only 90 acres of land would be needed for the actual landfill, but Blangiardi said the total property would have to accommodate 500 acres to include so-called buffer zones.
“That’s not easy (to) come by,” Blangiardi said.
That’s why he wants to look at state-owned agricultural land or federal military land.
“Maybe we can do this where it’s not in anyone’s backyard,” Blangiardi said.
As the search moves forward, Blangiardi pledged, “We’re going to be really open with the community. … I don’t think we can over-communicate.”
Chinatown
He also hinted at unspecified improvements in Chinatown, Honolulu’s oldest community, which saw businesses go under during the COVID-19 pandemic while complaints about homelessness and crime continue.
Only 1 of 26 city security cameras “works right now,” Blangiardi said.
Blangiardi referred to $150 million in private activity bonds “for a major project in Chinatown that will be getting announced pretty soon.”
He also mentioned unspecified capital improvement projects at Kekaulike Mall and River Walk and negotiations with the Taiwan government to get involved with refurbishing the Chinatown Cultural Plaza.
Blangiardi pledged “to do everything and anything we can” for Chinatown.
