Maui mayor proposes property tax increase

Published On: Mar 26 2014 11:48:52 AM HST
Maui Mayor Arakawa s budget proposal
WAILUKU, Hawaii -

Maui County Mayor Alan Arakawa is proposing a $622.6 million budget that calls for property tax increases.

The Maui News says Arakawa presented his administration's spending plan for the fiscal year beginning July 1 to the County Council on Tuesday.  Arakawa says proposed capital improvement projects and other factors are reasons for his proposed hikes in taxes and fees.

The proposed budget includes $116 million for capital improvement projects including upgrades in roads, water supplies, park facilities and wastewater services.

Property tax rates would increase between 6.4 percent and 6.6 percent.

Arakawa says the tax increases could be eliminated if state lawmakers agree to lift a $93 million cap for what Hawaii counties receive from the hotel room tax.  Doing that could bring Maui County $17 million in revenue.

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