Three New Bills Take Aim at Historic Homes Property Tax Exemption

As I reported back in November, the Honolulu City Council has been considering several proposed amendments to the tax incentives for historic residential properties. Today, the council has scheduled the first reading for three new bills related to the property tax exemption. The first reading is simply to introduce the bills and assign them to committee, and not for public comment or testimony. Here’s an overview:

1. CB2 (2011) This bill puts forth four options for amending the tax incentive. The goal is for the council to select either one or a combination of these options. They include repealing the existing tax exemption; repealing the exemption for a certain period of time; repealing the current exemption and creating a new one; repealing the existing exemption and enacting a new historic structures tax credit.

2. CB3 (2011) CB3 doesn’t change the current system so much as improve upon it by including new definitions and enforcement guidelines to ensure greater accountability.

3. CB4 (2011) would repeal the property tax exemption and replace it with a tax credit for the rehabilitation of historic homes.

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