According to Mayor Kirk Caldwell’s “Our Ala Moana Park” web page, the public participation phase of a redesign of Ala Moana Park is underway. Already a $1.2 million contract has been let to a New York firm for initial planning.
Those first plans did not produce anything astounding, which is probably good. Ala Moana Park still looks like the park where everyone has taken their kids swimming, shared a hibachi picnic with friends and surfed and paddled.
Of course, when the final plans come, they will be accompanied by the bill and Caldwell and company will be trying to pay for it, so let’s talk about that.
If just the first round of planning goes for $1.2 million, the whole bill will have many more zeros tacked on the end.
Here’s a plan to pay for part of it. The plan is as obvious a solution as it would be unpopular.
Look across the street at those gorgeous new condos going up. Those new buildings lining the prime real estate in Kakaako have a unique value: an unobstructed, guaranteed forever, front-row seat to view the park, the beach, the Pacific Ocean and the daily sunset.
If the city copied the tax plan used in New Hampshire, the Ala Moana condo occupants with the guaranteed view could help pay for the park they will surely enjoy.
Since 2003, towns in the New England state have been allowed to include in the property tax assessment the view. A great view is considered a bonus feature, just like a third bedroom or a backyard pool.
“It is called maintaining equitable values — stated another way: treating everyone in the same way,” said Gary Roberge, CEO of Avitar Associates of New England, the firm handling many of the property assessments for municipalities in the Granite State.
Taxes are never popular and taxing a view does present new problems.
“In New Hampshire, where it is common to pay a property tax bill of $7,000 per year on a modest home, doubling that baby because the location has a view gets you to $14,000, which ain’t chump change.” said Arnie Arnesen in the New Hampshire Business Review.
There are lots of ways for the city to start taxing that forever view. For instance, to prevent the view tax from spreading a tax on any property with any ocean vista there could be a special Ala Moana Park Tax District created. Waikiki’s commercial properties agreed to a special increased tax because of the area’s unique needs.
Taxing those with a specially protected, lifetime ocean view probably won’t make it either in or out of committee any time soon.
Hawaii real estate expert Stephany Sofos, when asked about the idea, said, “The government is already taxing for excellent locations and view planes are already factored into the tax. Examples are, the higher the floor, the higher the taxes, newer age for the buildings, if the buildings have amenities, etc., are all factored into the real property tax. To extract additional fees/taxes for one area or situation opens up a whole can of worms for the whole state regarding ‘fairness’ for taxation.”
Still, while Hawaii taxes may not be a bargain, local property tax rates are the lowest in the nation.
The economic analysis website, Wallethub, points out that Hawaii’s effective property tax rate is
0.28 percent. The next lowest is Alabama with a rate of 0.43 percent. The highest is New Jersey with a rate of 2.29 percent.
With many of the Ala Moana condos priced in the seven figures, having Honolulu’s tax burden eased by those who get a forever benefit could make economic sense.
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Richard Borreca writes on politics on Sundays, Tuesdays and Fridays. Reach him at rborreca@staradvertiser.com.
Richard Borreca writes on politics on Sundays, Tuesdays and Fridays. Reach him at rborreca@staradvertiser.com.
