Earlier this month, the Maui County Council’s budget committee ironed out property taxes rates for the upcoming 2019-2020 fiscal year and there will be an increase just about across the board (Agricultural, Apartment, and Timeshare being the exception) generating a revenue increase of approximately $17.7 million compared to the budget proposed by Mayor Michael Victorino.
In my opinion, this is a 1-2 combo punch from the budget committee because the assessed value of properties is going to go up approximately 5%, according to a Maui News article, and then the increase on rates. If the property values were decreasing, I could understand the need to increase the rates, but not when values are continuing to rise…
All rates are based on $1,000 of the net taxable assessed value. The highest rate hikes are for hotel and resorts and short-term rentals with a 17% & 16% increase respectively. Full-time residents under the homeowner bracket will also see a slight increase from $2.85 to $2.90.
Property Tax Increases
I understand that property taxes are the largest source of revenue for Maui County and that hotel/resort, short term rentals, and timeshares account for the biggest chunk of that revenue, but to approve such a jump in rates is kind of “nuts” to me. I hope they put the 5% increase in revenue, compared to the Mayor’s budget, to good use.
Here is what the current rates, Mayor’s proposed rates, and the Council’s approved rates look like:
- Homeowner: $2.85, $2.85, $2.90.
- Commercial residential: $4.55, $4.55, $4.60.
- Residential: $5.52, $5.52, $5.60.
- Agricultural: $6, $6, $5.94.
- Apartment: $6.31, $6.31, $6.31.
- Conservation: $6.35, $6.35, $6.43.
- Commercial: $7.25, $7.39, $7.39.
- Industrial: $7.45, $7.48, $7.48.
- Short-term rental: $9.28, $9.55, $10.75.
- Hotel/resort: $9.37, $9.60, $11.
- Timeshare: $15.41, $13.93, $14.40.