Waikiki Commercial Properties May Pay Special Tax to Maintain Waikiki Beach

The Honolulu City Council is being presented with bills that would allow the Waikiki district to tax the owners of all commercial properties in Waikiki an additional 7.63 cents per $1,000 of assessed value.  By levying this tax, the Waikiki district hopes to collect approximately $600,000 a year from these commercial properties to help maintain the sand on Waikiki Beach.  The balance of the $1.3 million that it costs to retain sand on Waikiki Beach will be paid for by the state Department of Land and Natural Resources.  According to the DLNR, the beach is eroding at a rate of about one foot per year.  The beach will be need to be replenished every five to ten years to keep up with this loss.

Commercial property owners in Waikiki already pay between 12.5 cents to 50 cents per $1,000 of assessed value into the Waikiki Business Improvement Fund.  This is in addition to their regular property tax bill.  The Waikiki Business Improvement Fund pays for the streetscape maintenance, the "aloha ambassadors" in Waikiki, and overtime hours for the Honolulu Police Department officers.

Source: Honolulu Star Advertiser, 1-18-2015, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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