I don’t know what to make of yesterday’s front page story in the Star-Advertiser on tax breaks given to “historic” houses (“Hidden homes get big tax breaks” by Rob Perez).
It’s the only story on the front page, and continues in a double-page spread inside on page 12-13.
You have to read down to paragraph #30 (by my quick count) to learn:
Among those benefiting from the program is acting Mayor Kirk Caldwell, who saw his property tax tab drop from nearly $5,500 in 2005 to $100 in 2006, several years before he started working for the city.
That’s seriously burying the lede!
Of course, it appears Caldwell is complying with the conditions of the tax deduction, as are many others.
I came away wondering whether the story deserved so much space and such prominent placement.
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I was appalled to read of this give- away on million dollar homes.
I also wonder why there was no refer/mention to the UH-Army game on their cover. The game was over early in the day and UH Football has many followers.
One more question, who did the Star Advertiser endorse for the mayors office? I can’t remember but it might have an influence on how the story was written.
Me too. But at least I learned the reason why I have to take a loan out to pay the taxes on my 50+ year old home – so high priced lawyer Broder and her high priced professor husband Van Dyke can have frequent parties.
nothing more needs to be said. Bigges tsk tsk tsk especially on Kirk Caldwell who wants to be Mayor.
He should be asked this question at the mayoral debate tomorrow.
Do you have any conscience?
Do you feel pono paying only $100 when poor people struggling are paying full property taxes?
As a Waipahu boy who ‘loves’ all sorts of ‘local’ foods, do you meet locals who have to work 2 or 3 jobs to make ends meet?
Do you know of locals who are on fixed income?
I never go to those kinds of parties, I don’t have the clothes.
This is a great example of the wealthy having an advantage that most of us don’t.. On the outside this is a good idea and insures the preservation of the buildings, but when they take the break and then forget about fulfilling the obligation then it gets sticky. Here on Maui we have similar situations except it is McMansions built on Ag land and getting a deep discount on taxes though there is no ag business going on at all. The premise and its a good one is if the loopholes are closed and the uncollected taxes are collected there would be a significant increase in income to the counties. If they qualify fine, but $300.00 land tax for a $3 million dollar home. sounds extreme to me, there should be some sort of scale. And the story about the home with the $60,000 electrical rewiring, an accountant should be able to deduct that anyway through the years.
Jon, I hope you support Gary Hooser in the LG primary, as that ag loophole for millionaire’s homes with a couple of fruit trees is one of Gary’s longtime issues. He knows how to fix that problem and will do so.
Unlike Rep. Sagum on Kauai, who works for the ‘gentleman farmers’ whenever possible to help them get their developments ok’d. (Read it in the Garden Isle paper)
If what you infer is that the fact that KC had one of the tax break homes and that it was as Ian said “buried” in the article that was the LEAD STORY, then why run the story at all??? Why not just kill it?? Good grief, this is one of those classic damned if you do damned if you don’t deals. The poor paper just can’t do anything right. Thank god for the bloggers who always enlighten us on the pertinent issues of the day and never show bias.
I admired the placement of the Caldwell angle. To splash Caldwell in the lede, the Sunday before the primary, would have been exceedingly irresponsible.
Agreed about the placement of the story itself. And , like other posters, I seriously question whether “having parties” constitutes fidelity to the either letter or spirit of the law.
The story wasn’t about Caldwell. He was only a minor part of it so why should he have been in the lede? I don’t agree that holding parties at a historic residence qualifies as public access unless Mr. Van Dyke & Ms. Broder have invited the general public to these parties, which I doubt.
Looked to me like the main problem is a matter of enforcement. Perhaps the city should also make the standards clearer to those who wish to participate. Traditionally, enforcement is complaint-driven, not pro-active; the city would bankrupt us all if they tried to have pro-active compliance for this & all other ordinances. Since this article has shone some light on the tax break, it looks like the city will check on everyone who’s been given it.
Contrary to remarks here & in the paper, you don’t have to have a mansion or even rich to be on the register. The residence just has to be historic & have unique or worthwhile architectural features. If people truly think their houses might qualify they should speak to DLNR about it. They could also get assistance with preparing a register nomination. Finally, if you want the tax break, you should obviously be prepared to keep your commitments – unlike some of the beneficiaries in the article!
“Contrary to remarks here & in the paper, you don’t have to have a mansion or even rich to be on the register. . .They could also get assistance with preparing a register nomination.”
but the rich are far more likely to be able to afford the nomination process
So if these folks don’t pay for city services, do the Fire Department, HPD and ambulance services still respond to calls to their houses?
I think this should be needs based.
What should Caldwell do, pay more than his tax bill requires? Honestly.
As evidenced by comments here, if Caldwell had been in the lede graf, this excellent story by excellent reporter Rob Perez would have been called a “conspiracy” by some people. There would be even more political attacks and even more lack of reality.
On the other hand, some people are just thrilled that some investigative reporting still exists in Hawaii. Go Rob!
I got halfway through the article & wondered why the hell I was still reading. No laws broken, no malfeasance. The city being lax in following an obscure property tax break. Sure, the tax break benefits people who are relatively well off, but it still doesn’t seem to rise to the level of a front page story.
I would much have seen a front page feature about the new ‘Hawaii 5-0’ and hottie Grace Park. Her in a bikini, now that’s news!
Had no idea that such a tax break existed.
Gee, maybe my landlord could get it since we live in one of the first ten houses built by Joe Pao back in 1959 here in “Enchanted Lake.” We actually still have the same flooring, counters, and toilet in the half bathroom.
And, yes, every year we get a copy of the tax bill so we can see why our rent has gone up by 80% since we moved here in 1998. I guess we should be thankful since a similar house down the street was on the market a decade ago for $105,000; the current owners have it up for sale at slightly under $700,000.
I get such a kick out of listening to national discussions on Hawai’i Public Radio about how the housing market has crashed. Once again, Hawai`i is ignored.
One (the only?) factor that mitigates the tax holiday is that the property must also be on the State Register of Historic Places, placement on which limits the ability of the owner to make changes (design standards, permit review, etc.). To some extent, this may be seen as like a conservation easement by which the owner is giving up certain reights and might expect a tax break in return.
OTOH, if the reason for the break is to make it possible for the owner preserve the property for the public good by spending on the property what would otherwise be paid in taxes, then it seems to be that the tax should be reduced only to the extent of the money that is actually spent by the owner for preserving, repairing, etc. the property.
In other words, make it a property tax credit, not an outright, unmonitored, unaccountable tax amnesty.
Any of you Council people listening?
Good idea.