Property taxes increase 85% (rent, homes, location)

[OpenD]

Originally Posted by winkosmosis

Is that increase on the total cost? Or on value over $1 mil? If it's on the total value, that's a dumb way to tax... Rate almost doubles between a $999,999 house and a $1,000,001 house

BTW aren't most houses over $1 mil on Oahu?

Property tax rates and tables differ from county to county.

[whtviper1]

Originally Posted by winkosmosis

BTW aren't most houses over $1 mil on Oahu?

Not even close, the median is about $700,000 for a single family home on Oahu

[pj737]

Originally Posted by winkosmosis

Is that increase on the total cost? Or on value over $1 mil? If it's on the total value, that's a dumb way to tax... Rate almost doubles between a $999,999 house and a $1,000,001 house

BTW aren't most houses over $1 mil on Oahu?

Good news is that unlike what the OP presented, it hasn't passed yet. Just an absurd recommendation from Kobayashi, Mrs Tax and Spend.

Bad news is that it's based on any valuation of $1,000,000 or more, increased rate affects $0-$999,999. So yes, if your home is worth $1,000,000 you will pay nearly double the rate of the guy next door with a $999,999 valuation. And the craziest part is not one politician suggested that it be tiered similar to income tax as it should be. Because if they did, it would dramatically reduce the revenue increase they are targeting. The additional bad news is that it will likely pass because most voters' homes are not worth over $1M (median is in the high $600's). And it excludes owner occupants. If passed as currently written, I think this new law will lead to an explosion of CPR'd properties. Which in itself will increase property values island-wide (CPRing property creates wealth out of thin air). It will be a windfall for the city either way.

I would support the law if it took into consideration multi-SFH properties per single tax map key and they based the increase similar to income tax (tiered). AND if they then reduced the rate for owner occupants with lower priced homes. Of course that would never happen. They aren't trying to help the little guy. They are leaving the little guy alone (no benefit) and just collecting more from the wealthy to fund a government rife with inefficiency.

[whtviper1]

Originally Posted by pj737

I think this new law will lead to an explosion of CPR'd properties.

I'm seeing CPR's popping up all over Kailua - so many 60's era small houses on large lots being demolished, and many of the CPR houses individually are larger than the single home that was torn down, like this one near my home.

Twin CPR just on the market, both over 3,500 square ft.....

1381 A Akalani Loop Kailua HI 96734 - Home listed on 04-14-2014

[Mikala43]

Originally Posted by pj737

I wonder how the oh-so brilliant Kobayashi is going to handle all those multifamily properties with a single TMK where two, three, or more properties/rentals exist on a single RPT bill. It wouldn't surprise me if they don't have exceptions for multi-unit properties. This will raise the rent significantly on many moderate priced rentals.

Ironically, this tax increase was to help fund the bus... where they robbed funds from to pay for the mall train. So you can blame rail for this increase.

Well on alot of those the owner's live there too, so it's not an investment property, it's owner occupied.

[Calypso IV]

Originally Posted by pj737

Good news is that unlike what the OP presented, it hasn't passed yet. Just an absurd recommendation from Kobayashi, Mrs Tax and Spend.

Bad news is that it's based on any valuation of $1,000,000 or more, increased rate affects $0-$999,999. So yes, if your home is worth $1,000,000 you will pay nearly double the rate of the guy next door with a $999,999 valuation. And the craziest part is not one politician suggested that it be tiered similar to income tax as it should be. Because if they did, it would dramatically reduce the revenue increase they are targeting. The additional bad news is that it will likely pass because most voters' homes are not worth over $1M (median is in the high $600's). And it excludes owner occupants. If passed as currently written, I think this new law will lead to an explosion of CPR'd properties. Which in itself will increase property values island-wide (CPRing property creates wealth out of thin air). It will be a windfall for the city either way.

I would support the law if it took into consideration multi-SFH properties per single tax map key and they based the increase similar to income tax (tiered). AND if they then reduced the rate for owner occupants with lower priced homes. Of course that would never happen. They aren't trying to help the little guy. They are leaving the little guy alone (no benefit) and just collecting more from the wealthy to fund a government rife with inefficiency.

Ah yes, the old "punish the successful" mentality rears its ugly head yet again.

[Dthraco]

Originally Posted by Calypso IV

Ah yes, the old "punish the successful" mentality rears its ugly head yet again.

Haha..that's pretty funny.

[tdr22]

Originally Posted by Calypso IV

Ah yes, the old "punish the successful" mentality rears its ugly head yet again.

Originally Posted by Dthraco

Haha..that's pretty funny.

Dthraco

[IKapono]

This new tax class was created and the 2014 rate is 71% more than the resident homeowner rate. This will cause even more people to fail to report their rental acivity to an level of government! The sad part is about 8000 resident homeowners most who never engaged in rental activity and mostly elderly residents on a fixed income were estimated to be caught in this tax class. The City knew these residents were going to be put into a tax class they should not be in, yet made no effort to remedy the situation. One city councilman has introduced a resolution to fix this, he also did not vote for the scheme. Anyone on Oahu reading this should call or email the Mayor and demand to have these 8000 residents put back in the tax class, for years 2014 on, where they belong!

[ohhboy]

Originally Posted by eastside14

The increase will be passed through to the renters. Not necessarily all at once but eventually the investment property has to cash flow. Just the dirt underneath your home with be worth a million (in the not to distant future) especially in an area like Kailua.

Million dollar homes homes dont cash flow................lol. If they did rents would be $10,000 plus a month.




Dont worry about old people in $1,ooo,000 homes. They got money! Maybe not cash but they aint in dire financial starits. Remember someon has to pay for HI preference for socialism.


PS Expect more tax increase when that $5b rail turns into $7b all the while taking 1.5% of cars off the road.............