▪ Latest News on Kauai Property Tax/Standing Appeal

• Honolulu Advertiser: High Court: Voters can't set tax rates at ballot box:

A Supreme Court majority of Justices Ronald Moon, Steven Levinson and Paula Nakayama allowed the suit. But in a minority opinion, Supreme Court Justices Simeon Acoba and James Duffy chided the majority for "manipulating the lawsuit so as to create a controversy that did not in fact exist."

Acoba and Duffy argued that the case should have been dismissed because there is no difference of opinion between the county officials who are suing and those who are being sued.

"There is no actual controversy among the parties to the amended complaint because they all agree that the subject Charter Amendment is 'invalid,' " they wrote. They argued that the appeal should have been dismissed.

"We're disappointed that the court allowed this fabricated lawsuit to go forward," said Thomas, who filed the appeal for the 'Ohana Kaua'i leadership, made up of Gordon G. Smith, Walter S. Lewis, Monroe F. Richman and Ming Fang.

Full article.

• Honolulu Star-Bulletin: State's high court strikes Kauai's tax cap:

A bid to cap property taxes through a Kauai County Charter amendment was declared unconstitutional by the state Supreme Court this week.

The court's 3-2 ruling also bars anyone but government officials from setting tax policy, eliminating the possibility of voter-initiated tax relief measures in any county, said one lawyer involved in the proceedings.

"This decision represents a real loss to the people of Kauai," said lawyer Robert Thomas, of the Pacific Legal Foundation, which lost the appeal. "It has told them that their votes don't count."

The decision stems from a Kauai County Charter amendment, dubbed the "Ohana Amendment," that would have rolled back property taxes for resident homeowners to their 1998 levels, and capped increases at 2 percent per year.

Voters responding to exponential increases in property taxes overwhelmingly supported the measure in 2004.

Full article.

• Pacific Business News: High court rules voters can't change taxes:

"Thus, because the charter amendment usurps the county government's/county council's 'functions, powers and duties relating to the taxation of real property,' we hold that the charter amendment is unconstitutional" under the Constitution, Justices Ronald Moon, Steven Levinson and Paula Nakayama wrote in the majority opinion.

Full article.

• KHNL (AP): Kauai charter amendment ruled invalid by high court:

The state Supreme Court has ruled a Kauai County charter amendment approved by voters in 2004 to roll back property taxes is invalid.

The high court held the state constitution prevents citizens from changing property tax policy through the ballot box.

The charter amendment would have rolled back property taxes to 1998 levels for those who have lived in their homes since then.

• KITV: Court Nixes Kauai Homeowner Control of Property Taxes:

The State Supreme Court killed an effort by Kauai homeowners to control property taxes.

The homeowners won an islandwide vote to limit taxes in the county charter. A lower court overturned the results.

Homeowners appealed, but on a 3-2 vote, the state's highest court ruled voters in Hawaii are not allowed to change tax laws.

Full article.