Reason Foundation

Homeowners in Kaua'i, many of whom have seen their property taxes increase by 50 percent since 1998, passed a Charter amendment to get property taxes under control. But the County claims taxes are its jurisdiction. In a brief filed with Hawaii's Supreme Court, Reason argues taxpayers must have a say in taxes and the Kaua'i can find the revenue it is looking for by: 1. Shifting to other revenue sources: Sales and income taxes are less distortionary than property taxes. User fees are superior to taxes because they charge the users of services for their usage and do not charge non-users; 2. Rethinking the scope and type of services provided and focusing on those that are critical to quality of life; and 3. Exploring alternative service delivery arrangements to control costs and maintain service levels. Reason's brief in the case of County of Kauai By Its County Attorney Lani D.H. Nakazawa v. Bryan J. Baptiste, Mayor, County of Kaua'i is available here: