Hawaii To Quadruple Vacant Property Taxes

by Leroy Baker, Tax-News.com, New York

23 November 2001

According to reports, the local authorities in Hawaii are set to quadruple property taxes on the state's 45,000 vacant properties under a revised bill approved Tuesday.

The council's Finance Committee voted 7-2 early this week in favour of imposing a minimum $100 yearly tax on absentee landlords in the region. However, the full council must vote twice to approve the measures before the $25 tax which is currently levied can be replaced with the higher rate.

The bill, originally proposed by Hawaii's Mayor, Harry Kim, was toned down before it was approved, and it was decided that the current rate would continue to apply to owner-occupied properties, land with a market value below $500, and property owned by disabled war veterans.

This has caused some controversy among the council members, with some including Councilwoman Julie Jacobs feeling that it is discriminatory to increases the taxes of just one class of landowner. However, the objections raised by Ms Jacobs fell on deaf ears, with other Councillors arguing that although absentee landowners receive few county services, the proposed $100 tax should be seen as the 'price of protecting your investment'.

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