Kauai county historical tax rates

With all the uproar about property tax increases I was appalled to discover that it is nigh impossible to easily learn what the tax rates are and how the system works. Here is a first attempt to provide some solid data but it is necessarily the simplest first piece of the puzzle. As I gather more data I intend to write more and in time present more opinions, always attempting to base opinion on solid information.

It's important to say up front that tax rates alone do not determine taxes. Many factors, beginning with changes in valuation, and for homeowners the various exemptions and tax relief provisions, in particular classification as Homestead, Residential, or Vacation Rental, must also be consider.

However, the tax system as a whole is far too complex to grasp without extensive analysis, and it depends on many factors not available publicly (such as tax form filings) that even the most diligent and expert citizen would be unable to determine anything in full detail. The county web site provides plenty of information but it's formidable to actually figure it all out. The applications forms page lists dozens of complicated sounding documents. To learn about exemptions you have a dozen sections to cover: it's infeasible to begin to analyze how all of this impacts each individual homeowner and their taxes. Thus, I think rates are an important first step to glimpse some solid information, interpreted with the understanding that many other considerations must be taken into account to arrive at actual taxes.

I wanted to understand the historical arc of tax rates here but that information was nowhere to be found online (I am pretty sure). In time the county clerk staff began sending me the necessary documents: ordinances, bills, and resolutions, going back to 1989 and I pieced it all together from the original legal documents produced out of the county council. Mahalo to Scott at county for excellent help above and beyond!

Caveats:

• this is hand-compiled data and there may be errors
• rates were split land/building for many years - to simplify I averaged
• classifications and rules changed often so a little comparison of apples and oranges can't be avoided
• these are just rates, and the tax cap would have limited some tax increases for some properties
• overall the details are complex and vary by property, this is only a general guide

The first chart I made when I had it all compiled was eye-opening: check out the tail on the right!
Remember, this is just tax rates: to the extent that property values went up taxes went up even more. There is nothing necessarily wrong with rate increases: however a major change should be done with due diligence and I would say that citizens deserve hearing a clear and compelling reason for such an action.

As you can see above, rates have remained fairly flat until (I have to say) the current council and mayor terms when all the rates suddenly turn up steeply. Only the Homestead (owner-occupied residences, roughly) rate goes down, as well as the owner exemption increased over $100K, and still these are the people crying out loud about tax increases!

For a simple look at tax rates consider them as knobs the council dials in each year based on finance department numbers showing the property valuation totals by classification. For example, this year on Kauai there is over $5.5B residential property; at $6.05 per thousand that gives $33.7M in tax revenue to the county. The council has to turn the dials setting rates they consider to be fair such that the total tax revenue matches the budget, or any difference would be surplus or deficit.

The next chart below shows the percentage change by year by rate. Other than a curious blip where industrial rate was cut significantly for only one year, all the big increases are these past few years.

Using the homestead (owner occupied) rate as a base (100%) look at how all the rates have jumped up relatively. You can see even more dramatically that relative to Homestead all other rates are going even higher - and the home owners are still paying too much. Clearly something these past few years that we need to understand: with the taxpayer angst we are seeing a very good explanation should be given.

And here is the data: tax rates by classification 2014-1989. Finally, once again, remember that tax rates need to be interpreted within the context of the entire tax code as one important part of the system.

Fiscal Year	Home stead	Resi-dential	Vac R/ Apt	Hotel/ Resort	Com-mercial	Indust-rial	Ag	Conser-vation
2014	$3.05	$6.05	$8.85	$10.85	$8.10	$8.10	$6.75	$6.75
2013	$3.05	$5.75	$8.00	$9.00	$8.00	$8.00	$6.75	$6.75
2012	$3.05	$4.55	$7.40	$7.67	$7.40	$7.40	$5.58	$5.58
2011	$3.72	$4.10	$7.40	$7.40	$7.40	$7.40	$5.58	$5.58
2010	$3.72	$4.10	$7.40	$7.40	$7.40	$7.40	$5.58	$5.58
2009	$3.72	$4.10	$7.40	$7.40	$7.40	$7.40	$5.58	$5.58
2008	$3.72	$4.10	$7.40	$7.40	$7.40	$7.40	$5.58	$5.58
2007	$3.72	$4.10	$7.40	$7.40	$7.40	$7.40	$5.58	$5.58
2006	$3.72	$4.15	$7.45	$7.45	$7.45	$7.45	$5.63	$5.63
2005	$3.72	$4.15	$7.45	$7.45	$7.45	$7.45	$5.63	$5.63
2004	$3.72	$4.72	$8.08	$8.08	$8.08	$8.08	$5.95	$6.20
2003	$4.00	$5.00	$8.35	$8.35	$8.35	$8.35	$6.23	$6.48
2002	$4.00	$5.00	$8.35	$8.35	$8.35	$8.35	$6.23	$6.48
2001	$4.22	$5.15	$8.50	$8.50	$8.50	$8.50	$6.38	$6.63
2000	$4.42	$5.25	$8.60	$8.60	$8.60	$8.60	$6.48	$6.73
1999	$4.42	$5.25	$8.60	$8.60	$8.60	$8.60	$6.48	$6.73
1998	$3.92	$4.75	$8.10	$8.10	$8.10	$8.10	$5.98	$6.23
1997	$3.61	$4.44	$7.79	$7.79	$7.79	$7.79	$5.67	$5.92
1996	$3.61	$4.44	$7.79	$7.79	$7.79	$7.79	$5.67	$5.92
1995	$3.61	$4.44	$7.79	$7.79	$7.79	$7.79	$5.67	$5.92
1994	$3.49	$4.44	$7.79	$7.79	$5.90	$5.90	$5.67	$5.92
1993	$3.61	$4.44	$7.79	$7.79	$7.79	$7.79	$5.67	$5.92
1992	$3.61	$4.44	$7.79	$7.79	$7.79	$7.79	$5.67	$5.92
1991	$3.61	$4.44	$7.79	$7.79	$7.79	$7.79	$7.44	$7.69
1990		$4.96	$8.48	$8.48	$8.48	$8.48	$8.48	$8.48
1989		$5.71	$8.48	$8.48	$8.48	$8.48	$8.48	$8.48

Combined rates averaged when land and building rates were separate.
Combines apartment and vacation rental classifications.
No Homestead classification before 1991.