I feel compelled to respond to Mr. Donovan’s recent letter to the West Hawaii Today Sept. 28. The only statement I agree with is Mr. Donovan’s opening line: “The most important issue on this year’s ballot is a proposed amendment to the state Constitution, giving the state of Hawaii rights to collect real estate taxes …” From there our opinions diverge widely.
For example, I wonder how a proposed tax on “residential investment properties, valued at more than a million dollars” be considered a “win for the union?” I presume he is referring to HSTA? If you consider that an added tax on investment property (second or third homes) could bring in $200-$400 million annually to education, then its obvious — our clear winners will be the keiki of Hawaii.
Don’t let the scare tactics sway you. Look closely at who is opposed to this proposed investment property tax — the big real estate investment interests, those who profit from absentee owners who have little vested interest in the upkeep or infrastructure of our state. HSTA is speaking out on behalf of the students and their families in the public schools in Hawaii — we are leading the way in a possible solution to our financial quagmire — a tax on investment properties valued at $1 million or more.
This could bring in an estimated $200-$400 million annually to fund public schools. For too long we have languished at or near the bottom when it comes to percentage of per-pupil funding (when cost of living is accounted for.) It’s high time we set ourselves up for success and guarantee a source of funding for our public schools. Fighting and scratching each year for an increase in education funding is not a wise way to run our education system.
Think about it. Hawaii is the only state in the nation that does not use property taxes to fund education and has the lowest property tax rate in the country. Just look at state history to see why this disparity has occurred. More than a 100 years ago, wealthy plantation owners owned most of the land in Hawaii and did not want to use their wealth to educate the children of their workers. Years of under-funding of our public schools have brought us to where we are today. We can do better.
Please support the investment property tax increase to help education. The future of public education funding is at stake.
Toni Reynolds is a teacher and resident of Kailua-Kona.