THE TAX INCREASE, CONSIDER THE UNSPOKEN IMPLICATIONS
By Reed Flickinger
Monday, June 14, 2010 1:20 PM HST
Are you really surprised? Did you earnestly believe the county would find a way to trim the budget and nearly 40 proposed amendments would change its preordained fiscal course?
Of course not.
The budgetary charade was pulled off by Mayor Billy Kenoi through the complicity of Council Chairman J Yoshimoto, Hilo’s Donald Ikeda and Dennis Onishi, Ka’u Councilman Guy Enriques and Kelly “who do you really represent, anyway” Greenwell, who claims a Kona address.
They passed it. A simple action, but consider the ramifications. A key component of the budget is a tax increase to offset lower real property tax revenues. And that component is key to understanding prevailing Hawaii County political philosophy.
Greenwell may have voted against the tax increases that are integral to Kenoi’s budget, but he played ball with the old boys in the end.
Kenoi played the old political cards so familiar in Hawaii, drawing in scripted supporting testimony solicited through e-mail and packing the house with friends to drown out his foes. And they played on home court, in Hilo, where they could be certain to pack the stands by request. We knew at the outset Kenoi and the Hilo gang, aided and abetted by Greenwell, were fearful to face West Hawaii with a hearing here.
As the budgetary script played out, concerns for fiscal responsibility fell on deaf ears, drowned out by the shrill of shills.
Kona Councilwoman Brenda Ford put it succinctly Tuesday, saying, “West Hawaii is going to take it in the shorts. This unfair real property tax increase is designed to hit West Hawaii the hardest, along with farmers, owners of rental property and rentals, comprising the lower income levels.”
We saw this one coming from a long way off. In January, we said, “Hawaii County will raise taxes. Whether a sales tax imposed on everyone, or a property tax increase, we will see higher taxes. A property tax increase would likely place a greater and disproportionate burden on West Hawaii — because the county’s political mindset is that we have the revenue and can afford it.”
And so they did.
To remind you, as we reported earlier, the budget includes tax rate hikes of 28.2 percent for buildings and 12.4 percent for land in the residential class that includes most of the county’s second homes and part-time residents. That’s an additional $2 in tax per $1,000 of value for the buildings and $1 for the land.
A full 82 percent of the $5.6 billion in taxable value of that category is in the four council districts covering West Hawaii — Ka’u, South Kona, North Kona and Kohala. The four districts account for 76.2 percent of all property value in the county.
Other property categories facing tax hikes are buildings on agricultural zoned land, facing a 31.5 percent rate increase, and apartments, facing a 21.6 percent increase.
But you weren’t surprised, were you?
Let’s tread for a moment on an often voiced, but seldom written, consideration. We all know there is absolutely no racism in Hawaii, a place where race is a common epithet and is used in every day description of who somebody is. Or, in my case, the two would be combined when the East Hawaii council bloc or mayor find time to discuss the other side of the island. Consider the tax crafted and approved by these same individuals and who they are. Consider who will be taxed most, who gets hit with the bill.
Now, put those same considerations in racial context.
Not racial? Of course not.
A thorough breakdown of who is being taxed under the new rate and who will be paying, especially in light of the figures cited previously, would appear pretty clear. But is that apparent racial disparity intentional?
Of course not. There’s no racism in Hawaii.
Tuesday night, after a Kapaau public meeting, Kenoi responded to criticisms West Hawaii residents raised about bearing the brunt of property taxes in general. Kenoi said next year’s budget doesn’t increase the proportion of taxes paid by West Hawaii residents.
“We believe it’s a fair and equitable budget,” he said.
Who’s “we,” because it sure as hell isn’t us.
He also said, “All I can give you is my word. My word is good.”
For what?
rflickinger@westhawaiitoday.com
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