Mayor’s Math

March 4th, 2010
By

Mufi_KojimaPhoto by Craig Kojima

When he unveiled his budget for fiscal year 2011 this week, Mayor Mufi Hannemann proposed a property tax rate increase on property owners that do not live in their properties. The new tax class was approved by the City Council last year.

Hannemann contends that on average, those non-homeowners would face a tax increase of 25 to 49 cents a month.

Some readers have questioned how he came up with those figures.

His math goes as follows:

The current fiscal year 2010 tax rate for all residential properties is $3.42 per $1,000 of valuation. The mayor’s proposed tax for so-called non-homeowners is $3.72 per $1,000 of value. The rate for owner-occupants would remain at $3.42.

For his example, the mayor calculated the taxes on a single-family home worth $600,000.

At $3.42/$1,000, the annual real property tax on that $600,000 home for this year is $2,052 or $171.00 per month.

According to the mayor’s office, property values are down 7.8 percent, so for taxing purposes, that same $600,000 single-family home would be worth $553,200 in fiscal year 2011.

So for a non-homeowner of that $553,200 property, the FY2011 property tax at the proposed rate of $3.72/$1,000 is $2,058, or $171.49 per month, an increase of 49 cents per month over the previous year’s tax rate.

Performing the same calculations on an example condo worth $300,000: the FY2010 property tax comes out to $85.50 per month. For FY2011, that same property would be valued at 276,600, with the non-homeowner property taxes coming out to $85.75 per month; a 25-cent increase.

One Response to “Mayor’s Math”

  1. Jeff Moss:

    Fuzzy math. Bully politics. Playing the blame game about every issue to over the top, narcissistic speeches (like singing at the Fasi funeral), to forcing his way into Obama events is not showing the leadership the city and county or for that matter the State needs. Neil is looking better (and that is hard words to write) than ever!


Leave a Reply