Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Location: not sure, but there's a hell of a lot of water around here!
2,682 posts, read 7,571,651 times
Reputation: 3882
Advertisements
Quote:
Originally Posted by whtviper1
Wouldn't be the first time
I'm kidding.
My point is with rising population which the islands can't sustain, prices and taxes still have a lot of room to go up. We need the population growth to slow dramatically.
And I was under the impression that you maintained population growth in Hawaii was at about zero. One thing I have noticed after living here for almost 40 years, folks who have recently moved to Hawaii, will take the stance that they should be the 'last ones in', because they're as good as it's going to get.
Furthermore, the fastest growing segment of the population appears to be senior citizens. Perhaps, the county governments should consider reducing or eliminating "age-related" tax property tax exemptions.
Furthermore, the fastest growing segment of the population appears to be senior citizens. Perhaps, the county governments should consider reducing or eliminating "age-related" tax property tax exemptions.
I personally don't care if the old timers keep the exemptions but I think the tax rate on property is woefully low overall
Of course, considering that it's projected that nearly a quarter of the population of Hawaiʻi will be 65+ by 2030, reducing or eliminating the "senior exemption" can generate a significant amount of revenue.
Of course, considering that it's projected that nearly a quarter of the population of Hawaiʻi will be 65+ by 2030, reducing or eliminating the "senior exemption" can generate a significant amount of revenue.
Significant amount? I doubt eliminating the old timers exemption would generate that much revenue. I could be wrong. I guess if we eliminate that exemption we might as well eliminate all the exemptions which I could live with actually.
Significant amount? I doubt eliminating the old timers exemption would generate that much revenue. I could be wrong. I guess if we eliminate that exemption we might as well eliminate all the exemptions which I could live with actually.
Let's do a few rough calculations...
Let's assume the following:
1. The resident population of Hawaiʻi is 1,602,300 in 2030 and 23.0% of the population is over the age of 65.
2. The homeownership rate for Hawaiʻi continues to be around 58.2%.
3. The "senior exemption" knocks $1,000 off of the average tax bill.
1,602,300 x 23% = 368,529 Hawaiʻi residents are over the age of 65
58.2% x 368,529 = 214,484 Hawaiʻi residents over the age of 65 are homeowners subject to property taxes
$1,000 x 214,484 = $214,484,000
While $214,484,000 might not be a "significant amount" to you, that amount is fairly significant to any of the county governments in Hawaiʻi.
Let's assume the following:
1. The resident population of Hawaiʻi is 1,602,300 in 2030 and 23.0% of the population is over the age of 65.
2. The homeownership rate for Hawaiʻi continues to be around 58.2%.
3. The "senior exemption" knocks $1,000 off of the average tax bill.
1,602,300 x 23% = 368,529 Hawaiʻi residents are over the age of 65
58.2% x 368,529 = 214,484 Hawaiʻi residents over the age of 65 are homeowners subject to property taxes
$1,000 x 214,484 = $214,484,000
While $214,484,000 might not be a "significant amount" to you, that amount is fairly significant to any of the county governments in Hawaiʻi.
How many of these seniors are double counted? If Grandpa and Grandma are in the same home, do they both answer "Homeowner" therefore skewing the numbers?
Let's assume the following:
1. The resident population of Hawaiʻi is 1,602,300 in 2030 and 23.0% of the population is over the age of 65.
2. The homeownership rate for Hawaiʻi continues to be around 58.2%.
3. The "senior exemption" knocks $1,000 off of the average tax bill.
1,602,300 x 23% = 368,529 Hawaiʻi residents are over the age of 65
58.2% x 368,529 = 214,484 Hawaiʻi residents over the age of 65 are homeowners subject to property taxes
$1,000 x 214,484 = $214,484,000
While $214,484,000 might not be a "significant amount" to you, that amount is fairly significant to any of the county governments in Hawaiʻi.
The total population of Hawaii is currently 1.4M and is slated to increase to 1.6M by 2030 as you have stated (source-DBEDT). However, RPT is not based on population but number of physical households which currently stands at 447,000. A safe assumption would be households grow at the same percentage rate as population (15%)... therefore in 2030 the total number of households would be 514,000. Currently, 15% of all households are 65 or older and is expected to increase to 23% of population in 2030. Therefore 118,000 households would be taking advantage of the exemption in 2030. That comes to $118M in lost revenue, not $214M. $118M in 2030 will also be worth only $71M in today's dollars assuming the (projected) 3.2% inflation rate comes to fruition over the next 16 years.
The total population of Hawaii is currently 1.4M and is slated to increase to 1.6M by 2030 as you have stated (source-DBEDT). However, RPT is not based on population but number of physical households which currently stands at 447,000. A safe assumption would be households grow at the same percentage rate as population (15%)... therefore in 2030 the total number of households would be 514,000.
I agree.
Quote:
Originally Posted by pj737
Currently, 15% of all households are 65 or older and is expected to increase to 23% of population in 2030. Therefore 118,000 households would be taking advantage of the exemption in 2030. That comes to $118M in lost revenue, not $214M. $118M in 2030 will also be worth only $71M in today's dollars assuming the (projected) 3.2% inflation rate comes to fruition over the next 16 years.
Taking into account "multi-generational" households headed by senior citizens, that "118,000 household" figure might be a little low. Moreover, a "projected inflation rate" of 3.2% seems a little high based on historical data. So let's say that the amount of lost revenue can range between $71M and $214M, which is still a significant amount for the county governments in Hawaiʻi to divvy up.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
