Honolulu City Council boosts minimum nonprofit property tax

Honolulu City Council on April 21 passed an increase in the minimum real property tax for nonprofits, tripling it to a flat rate of $300. The increase would raise about $2.4 million. Nestor Garcia, budget committee chair, proposed to put half into the general fund and the other half into a new grant-in-aid program for social service providers.

Also, a 3-cent increase in the tax on gasoline and a 30-cent hike in the real property tax rate for non-occupant homeowners advanced. The new non-homeowner property tax rate was proposed by Mayor Mufi Hannemann, who lobbied and won approval for the separate tax rate classifications last year.

Aside from taxes, the session was devoted to hearing from 101 witnesses asking the Council to save various programs from being cut. On the chopping block for possible elimination are these funds and programs, among others: $1,908,402 for the Royal Hawaiian Band; $21,123,379 for parks programs, including Summer Fun; $525,230 for the Mayor's Office of Economic Development (except the Film Commission); $718,131 for the Mayor's Office of Culture and Arts; and $909,814 for the Neighborhood Commission (except the executive secretary position). The programs have so far been spared, but could be trimmed if Council members decide to make steeper cuts in the budget.

Meanwhile, the Council failed to pass the draft $1.83 billion operating budget, which will await passage at a future meeting. Garcia said the measure was "stuck on the Council floor."All of the budget measures go back to committee for further vetting before coming back to the full Council for a final vote. The Council has until June to pass its final version of the budget.