Honolulu residents may soon get a one-time tax rebate of $350 now that the City Council has unanimously approved the city’s $3.41 billion operating budget. Specifically, this one-time tax rebate from Honolulu is for owner-occupant property owners. It is estimated that more than 150,000 homeowners could qualify for this one-time tax rebate from Honolulu.

One-Time Tax Rebate From Honolulu: Who Will Get It?

On Wednesday night, the Honolulu Council unanimously approved the $3.4 billion budget, which includes a $54 million tax break for owner-occupant property owners. The $350 one-time tax rebate from Honolulu could go to as many as 152,000 homeowners.

Initially, the plan was to send a one-time rebate of $300, but the Council unanimously approved the bill to raise the rebate by $50. The tax rebate from Honolulu is estimated to cost the city about $53.2 million. This tax rebate is actually a discount off the tax bill.

In Honolulu, the residential property tax rate is $3.50 per $1,000 of a home’s value. Thus, the one-time rebate of $350 reflects a drop in homes’ appraisal values by $100,000. If the appraisal doesn’t go up $100,000, the homeowner will owe less than last year.

Mayor Rick Blangiardi noted that the plan to offer a flat rebate, irrespective of the value of properties, will benefit owners of lower-value homes. Mayor Blangiardi believes that sending a one-time rebate is the best way to address the jump in home values and tax bills last year.

Homeowners with an owner-occupant exemption don’t need to take any action to get the one-time tax rebate from Honolulu. The rebate amount will be automatically deducted from their tax bill.

Many believe the one-time tax rebate of $350 is just a start, and the authorities are planning more relief measures. City Budget and Finance Director Andrew Kawano noted that the administration is considering many proposals, including reducing taxes on long-term rentals, reducing taxes for lower-income homeowners and more.

Other Budgets That The Council Approved

Apart from the Honolulu tax rebate, the $3.41 billion operating budget includes $43 million more toward bolstering the city’s police force, $35 million to offer services to aid the homeless (from the original $15 million proposed by the mayor) and $170 million for developing future affordable housing sites.

Along with the operating budget, the City Council also approved a $1.34 billion capital improvement plan for the 2024 fiscal year, which starts next month. The capital improvement plan covers the city’s sanitation projects, affordable-housing programs and the city’s rail system.

The Council also approved the Honolulu Authority for Rapid Transportation’s operating budget for the next fiscal year. The approved budget of $108.9 million is $14.5 million more than the current budget of $94.5 million.

The approved budget of $108.9 million includes $103.5 million for debt service, $1.5 million for other city charges and the balance for salaries and current expenses.

This article originally appeared on ValueWalk

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