The Honolulu City Council voted 7-1 this morning to approve raising the residential tax rate for property taxes to $3.42 per $1,000 of valuation and no tax credit.

The amount is less than the $3.59 proposed by Mayor Mufi Hannemann and Council Budget Chairman Nestor Garcia, but does not include a tax credit that they had proposed.
The Hannemann administration and Garcia warned that the $3.42 amount, proposed by Councilman Ikaika Anderson, would help those living in higher priced homes rather than those in homes with lower values.
Anderson, in response, said there is no correlation between income and the value of one’s home, noting that there are many retirees in his district living in multi-million dollar homes.
The Council also voted 5-3 to increase the vehicle weight tax from 3 cents a pound per vehicle to 4 cents a pound, effective Jan. 1, 2010.
City Budget Director Rix Maurer III said the increase would bring an additional $11.9 million in revenues to the city in fiscal 2010, which begins July 1.
The Council also voted 5-2 to increase bus fares from $2 to $2.50. Monthly bus passes will go from $40 to $50.
All budget-related bills must still go to Mayor Mufi Hannemann for his signature.