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Karen Gibson Headshot

Karen K.C. Gibson

De Soto 2025

DeSoto Brown

Senators

Sen. Donovan Dela Cruz, Sen. Sharon Moriwaki, and Sen. Troy Hashimoto

Jon Nouchi Director of Transit

Jon Nouchi

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Katie Chang

Christinapic2

Christina O'Connor

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Suzanne Young

Lopaka and Tanya Kapanui

Lopaka Kapanui and Tanya Kapanui

Hawai‘i History

In its original conception in the 1960s, the H3 highway was to pass through Moanalua Valley, with another tunnel to be bored through Maunakapu and the Ko‘olau Range. Plans for the six-lane highway, meant to ease traffic buildup on the Pali and Likelike Highways, became entangled in a decade-long dispute leading all the way up to the U.S. Supreme Court.

The State Department of Transportation promised a scenic highway that would open up the privately held lands and, at the same time, would coordinate with the landowners to develop a historic and botanical park in the valley. While many people who claimed to be authorities on the subject said that Moanalua Valley held little archaeological or historical importance, one woman spent her lifetime recording extensive oral histories of the valley.

As early as 1902, Gertrude MacKinnon Damon kept a diary of interviews with the people whose families had been stewards of the valley, including Nāmakahelu Makaena, a kumu hula who passed on the mo‘olelo of Moanalua. The Damon family, who have lived in the valley since 1890, created the Moanalua Gardens Foundation and, by using extensive oral histories and enlisting help from conservationists, residents, cultural practitioners, and the general public, kept the plans for H3 tied up in court for nearly a decade. Finally, in a 1976 ruling, the U.S. Supreme Court upheld an appeals court injunction. The Court effectively stopped the original H3 construction through Moanalua Valley when it ruled that the Department of Transportation had failed to adequately prove there were no feasible alternative routes to Windward O‘ahu.

Despite testimony that Moanalua was of little importance to Hawai‘i and her people, this sacred valley is rich in history and legend. The Moanalua ahupua‘a extends from the ridges of the Ko‘olau Mountain Range down to Āliamanu and Āliapa‘akai, through Māpunapuna to the Honolulu Airport and industrial center to Māmala Bay. One of the most sacred wahi pana within this area is Leilono.

Located on the northern side of the famous hill of Kapūkakī, now known as Red Hill, this entrance to the afterworld was in line with the burial hill of Āliamanu, where O‘ahu’s ali‘i were buried. There at the portal to the underworld stood he ‘ulu o Leiwalo, a breadfruit tree of Leiwalo. A soul would climb the tree and, from one of its two branches, would leap into pō pau ʻole, the everlasting night. However, these branches were deceiving. If a spirit was lacking an ‘aumakua and climbed onto a branch on the western side of the tree, the branch withered at once and broke off, and the spirit would plunge down into a pit of darkness. But if he climbed the other, it would bring help from ‘aumakua, and the soul would see his ancestors in the afterworld from time immemorial.

Moanalua was also the site of intense battles. In the 1780s, Kahekili, the ali‘i of Maui, attacked O‘ahu. Kahahana was the ali‘i of O‘ahu at the time, and after evading Kahekili’s warriors for two years, he was finally caught and killed. After his death, a plot was laid to kill all the ali‘i from Maui, but someone warned them, and the attack was unsuccessful. In retaliation, Kahekili and his warriors massacred all opposition and their families.

Kalaikoa, an ali‘i from Maui, built a long house and named it Kauwalua. He stripped the bones of his enemies, bound them together, and set them up inside and all around the outside of the house. The gruesome sight of this hale iwi, house of bones, stood at Lapakea on the slope into Moanalua and was visible from the shore. A housing development was built over this site, just below Tripler Army Hospital.

In a 1972 interview, Hawaii’s Living Treasure, Dr. Rubellite Johnson, shared a tale of night marchers who came down from the top of Moanalua.

Rudolph Tai, a patriarch of the Mormon Church in Hawai‘i, used to live in the old Damon Tract housing, which is now the airport industrial park. One night, he heard the ghost army approaching from the uppermost part of Moanalua. He could hear their chants, and as they grew closer, he could even hear the hiss of their burning torches as the night marchers made their way toward the sea. For two long hours, Rudolph Tai held his hands over his ears, trying to keep the sound of the ghostly procession out, until the chants and the marching slowly faded away.

But at the same time, Dr. Johnson said, the late watch on a small ship that was anchored in Pearl Harbor recorded in his log a curious event. From midnight until 2 a.m., the man saw a string of torches moving slowly from the top of Moanalua Valley, winding toward the sea where they disappeared.

There are dozens of haunting stories throughout Moanalua, including the high school, stores in Mapunapuna, and businesses in the airport industrial center. My own story took place at Moanalua Gardens.

As we were preparing for a hula festival, our kumu held practice at the gardens a few days before the event. On the way to practice one afternoon, I came across a Hawaiian woman in the parking lot wrapping cords of olonā on a spool. She sat on a chair propped up against the hedges while people walked past her without any acknowledgment.

As I started to pass her, we made eye contact, and she asked me, “Pahi? You get pahi?”

[{"type":"text","text":"She was asking if I had a knife."}]

[{"type":"text","text":"“ʻAe,” I replied, “Loaʻa ka pahi.” Yes, I have a knife."}]

I removed a small knife from my pocket and showed it to her. She pulled a cord taught in front of her and nodded. I opened my knife and cut the olonā cord in the place she wanted.

She seemed relieved when she thanked me and went back to wrapping the olonā on her spool.

When I met with my kumu, I explained what happened, and he immediately pulled out his own pocketknife.

“When you go back out to the parking lot after hula, she’s going to ask you to cut the olonā again. Instead of using your own knife,” my kumu instructed, “Use mine.”

He took my knife and placed his own in my hand. Nothing more was said, and we proceeded with our hula instructions for the day. After three hours, the lessons were done, and I made my way back to the parking lot. Just as my kumu said, the Hawaiian woman was still there, winding her olonā on a spool. And just as my kumu said, the woman again asked me to cut a cord of her plant fiber.

Using the knife he gave me, I cut the olonā without incident, but instead of being thankful, the woman scoffed and spat on the ground.

She gathered her olonā fibers and her spool and walked off into the park. I watched her walk right past the security guard who was telling people that the park was closed. He didn’t even glance in her direction, and I wondered if he even saw her.

As soon as I got home, my kumu called and asked about the woman. I told him exactly what happened and asked why he gave me his knife to use.

My kumu explained that the woman was a mo‘o wahine, a very kolohe one. He said that once I used my knife to cut the woman’s cord, it became dull. If I tried to use it again to cut her olonā, it would not have worked. Then, she would have asked me to do something else.

“Whatever that something else was,” he said, “It would lead to another task, then another, until finally, it would cost you your life. Especially now, since you’re under hula kapu.”

The lesson learned that day was that even while in the process of spiritual education on the middle path, there will always be someone or something that will try to lead you astray.

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Moanalua Gardens

<title>Moanalua’s Haunting History</title>

If an old Hawaiian woman asks you to cut a cord for her in Moanalua Valley, be very, very careful what you do next. That's just once of the eerie tales of this part of O‘ahu where many battles have raged, from the invasion of Kahekili from Maui to the dispute over the route of H3.

Moanalua’s Haunting History

Stephanie Salmons Headshot

Stephanie Salmons

Business & Tourism

Back-to-back Kona Low storm systems in March brought heavy rains to the Islands that triggered flooding and power outages, prompted evacuations and caused damage — and battered O‘ahu's North Shore.

To help North Shore businesses recover from the storms, Hawaiian Council, in partnership with the Hawai‘i Visitors & Convention Bureau, E Noa Tours and Hawai‘i Tourism Authority, this week launched North Shore Huaka‘i, a 90-day pilot program that began June 29 with the intent to drive economic activity for local businesses, and connect visitors and kama‘āina with culture and community.

For $5 round trip, passengers can take a shuttle from Waikīkī or Ko Olina for a full-day experience, which last about six hours. It includes a 1-hour stop in Waialua to explore the historic Waialua Sugar Mill district and about 2.5 hours to explore Hale‘iwa, a recent announcement noted.

A North Shore Passport highlights participating businesses and to board the return shuttle, riders must show proof that they supported a participating business.

"Recovery is also about restoring the economic vitality of our communities,” 

, CEO of Hawaiian Council, said in the announcement. “The North Shore is home to dozens of small businesses that provide local jobs and serve as the backbone of the community. The North Shore Huakaʻi encourages visitors and kamaʻāina to spend time here, support local businesses, and learn about the history, culture, and people that make this place so special. Every dollar spent locally helps support families, strengthen our communities, and move recovery forward.”

Nick Carroll, chief of staff at Hawaiian Council, told Aloha State Daily in an emailed response to questions that following the Kona Low storms in March, Hawaiian Council was on the ground supporting recovery efforts and raising assistance through its Kāko‘o Mai Fund. In April, it opened the Waialua Recovery Center to help residents access recovery resources.

As we met with residents, business owners and community leaders, one message came through consistently: while cleanup was progressing, customer traffic had slowed significantly, leaving many North Shore businesses struggling to recover," Carroll says.

North Shore Huakaʻi was born directly from those conversations, he told ASD.

"This was not an idea developed in a boardroom or marketing meeting — it was a community-driven initiative shaped by the people most affected by the storms," Carroll continued. "Together, we asked a simple question: How do we bring people back in a way that benefits the community first?

"The result is more than a transportation program or marketing campaign. It is a managed visitor experience designed to strengthen the local economy while sharing the history, culture, and values that make the North Shore so special."

As it did in Lahaina following the 2023 wildfires on Maui, Carroll says Hawaiian Council "intentionally hired North Shore residents to help lead their own recovery."

"Local community members serve as cultural guides, ensuring that visitors experience these communities through the voices of the people who call them home," he continued. "The Huakaʻi is curated by respected cultural practitioners, including Kumu Mehanaokalā Hind and Kamaka Pili, who share the history, moʻolelo, traditions and cultural significance of the places along the route.

"The North Shore Huakaʻi is ultimately a model for community-led recovery — one where residents help shape the visitor experience, local businesses benefit directly from increased economic activity, and visitors leave with a deeper appreciation for the people, culture and places that make Hawaiʻi unique."

With this initiative, Carroll says Hawaiian Council hopes to see local businesses welcome more customers, and both visitors and kama‘āina leaving with a greater appreciation for the North Shore and those who call it home.

"Success isn't measured simply by how many people ride the shuttle. It's measured by whether local businesses benefit, whether visitors form meaningful connections with the community, and whether every dollar spent locally helps strengthen families and support long-term recovery," he says. "More importantly, we hope this initiative demonstrates that there is a better way to approach tourism in Hawaiʻi. By managing visitor flow, reducing traffic and parking impacts, and creating authentic, community-led experiences, we can address many of the concerns residents have expressed while still realizing the economic benefits that visitors bring. We believe the North Shore Huakaʻi can serve as a model for how tourism and community can thrive together."

Hawaiian Council, formerly known as the Council for Native Hawaiian Advancement, is a member-based nonprofit that works to advance the cultural, economic and community development of Native Hawaiians.

[{"type":"text","marks":[{"type":"bold"}],"text":"Where to go"}]

The North Shore Huaka‘i will operate daily during the 90-day pilot. Advanced reservations are recommended and can be made online at 

Pickups in Waikīkī begin at Prince Waikīkī at 8:30 a.m. and continue along Kalākaua Avenue before leaving for the North Shore at 9 a.m., the announcement notes. The Waikīkī route accommodates up to 40 passengers and also includes pickup locations at the ABC Store near the Ilikai Hotel, Hale Koa Hotel, Ka La‘i Waikīkī Beach, Waikīkī Shopping Plaza, the Duke Kahanamoku statue and Twin Fin Hotel.

Meanwhile, in Ko Olina, the first pickup is at 9 a.m. at the Four Seasons Resort O‘ahu at Ko Olina and the shuttle departs for North Shore at 9:20 a.m. The Ko Olina route accommodates up to 25 passengers and also includes pickup locations at Aulani, A Disney Resort & Spa, Beach Villas at Ko Olina and Ko Olina Beach Club.

North Shore Huakai Partnership

<title>Pilot program aims to support North Shore businesses affected by Kona Low storms</title>

Hawaiian Council, in partnership with the Hawai‘i Visitors & Convention Bureau, E Noa Tours and Hawai‘i Tourism Authority, this week launched North Shore Huaka‘i, connecting visitors and kama‘āina to businesses in Hale‘iwa and Waialua.

Pilot program aims to support North Shore businesses affected by Kona Low storms

Kam Napier Headshot

A. Kam Napier

Kama‘āina of a certain age will remember that one of the most ubiquitous signs that we were celebrating the bicentennial was the Hawai‘i licenses plate of that era. What you might not recall is that not everyone was a fan.

"Whether you like them or not, you have to admit that the new license plates for the State of Hawai‘i are peculiar," wrote Honolulu Star-Bulletin reporter Lois Taylor on 

"The question comes to mind that why did whoever designed them stop where he did? He managed to work in Diamond Head, a pair of palm trees, King Kamehameha and a hibiscus. OK, but there's all that space behind the trees. What prevented him from adding Don Ho, Sealife Park, Aloha Tower and Steve McGarrett? What is the significance of the pink and blue color scheme? Is it because we are the newest, the Baby State? A charming concept."

Taylor then goes on to describe her quest to find the person responsible for the plate.

The State Office of Information and Youth Affairs said the City probably did it. The City's Office of Information and Complaint said a committee did it. City Finance Director James S. Sakai, a committee member, referred her to Richard Goto, who explained that the previous plates — black text on a yellow background — had been issued since 1969 and the oldest were needing to be replaced, so it seemed to someone like a good time to make a change. The Lieutenant Governor's office, which had the responsibility of ordering news plates as needed, got the design from the state's Bicentennial Commission.

"Some like it, some people don't," Goto told Taylor. "Are you liked by everybody? This is life. People tend to be more critical than appreciative."

The man who ordered the plates was Jimmy Lee, who had been with the Department of Accounting and General Services. He recalled in that article:

"There were maybe 20 different designs, samples of other states' bicentennial license plates, artist's renderings, samples from the 3-M Company that makes the reflectorized material. ... I was the purchasing agent, so I had to stay out of it. It was their decision. It looks like some tourist postcard. It was a real disappointing day for me when I saw it, but we'll get used to it."

The "touristy" perception lingered and the state eventually 

 to introduce a new plate 1981, featuring a Native Hawaiian warrior bust in orange, centered on a white background with brown letters and numbers. Simpler — but still "designed" in a way not seen before the bicentennial plate.

Hawai‘i was not the only state to issue a bicentennial design. ASD reached out to Alex Di Giovanni, owner of 

"Around the country, the bicentennial plates were some of the first 'graphic' plates that states issued and they opened the door to a lot of the fun designs on plates that we see today," Di Giovanni told ASD via email. "The first state to celebrate was Pennsylvania in 1971 with their Liberty Bell base that was used through 1976."

, listing the 18 states and jurisdictions that created bicentennial plates and getting into more of the history and impact of these designs.

"After 1976, Bicentennial plates began trickling off American roads as registration cycles turned over," he writes. "Washington D.C., Georgia, Montana, and Virginia were four of the last Bicentennial plates that remained through the mid-1980s. Montana’s plate held on until 1991, a remarkable 15-year run, the longest of the standard issue plates. However, Virginia’s outlasted them all! The Virginia Bicentennial plate 

 remains available for registration renewals, and examples with stickers as recent as the mid-2010s are documented. What an extraordinary lifespan for a plate tied to a single commemorative event!"

Hawai‘i's current rainbow plate, first issued in 1991, has ruled the roads for 35 years. 

We'll have them for foreseeable future, too. After the city announced in early 2023 that the rainbow would be retired, HawaiiNewsNow 

after a public backlash, the customer services department has found a way to extend the letter-number combinations to keep the plates around for years to come."

1976 hawaii license plate auto tag 1 1 garage decor k 20023

<title>Remembering Hawai‘i's bicentennial license plates</title>

For the first time in 1976, Hawai‘i license plates transformed into something beyond just letters and numbers on a colored background. They became the state's first graphic plates, designed to be attractive and convey their times. Across the country, these bicentennial plates paved the way for license plates with artistic flair.

Remembering Hawai‘i's bicentennial license plates

Real Estate

There's often talk about the affordability and availability of housing in Hawai‘i. 

While affordability challenges are real, local real estate experts say homeownership is possible.

 and Aloha State Daily recently caught up with Aaron Tangonan, president of the Honolulu Board of Realtors, to see what prospective homebuyers should know about the process. Here's what he had to say.

We hear a lot about housing affordability and availability. Realistically, how feasible is it to become a homeowner in Hawai‘i in 2026?

Affordability challenges are real, and we never want to minimize them. At the same time, one of the biggest challenges we see is that many local residents no longer believe homeownership is possible. Our concern is that many people become discouraged before they even begin exploring their options.

The reality is that local residents continue to buy homes every day. Nationally, first-time buyers made up 32% of all home buyers last year, up from 26% the year before, according to the National Association of Realtors.

While Hawaiʻi faces unique affordability challenges, we continue to see local residents finding pathways to homeownership.

For most, that journey begins with getting on the housing ladder by purchasing a starter home and building equity. Over time, the equity gained from that home can be used to help purchase your dream or forever home.

The keys to homeownership are education, financial preparedness, patience and working with professionals. For buyers today, affordability is about more than just the purchase price. Interest rates play an important role in determining monthly payments and purchasing power, which is why it's important to focus on personal needs, budget and long-term goals rather than any single market factor.

We’ve seen this firsthand through local families who recently became homeowners through [Hawai‘i Housing Finance and Development Corp.]’s Hale Kamaʻāina Mortgage Program. One buyer, a teacher, purchased a one-bedroom condominium in Makiki and shared that access to a lower interest rate helped make her monthly payment more manageable. Another local family purchased a three-bedroom townhome in Mililani Mauka and said the program helped make homeownership feel attainable. Their stories are reminders that while the path may look different for everyone, opportunities still exist for those who take the time to prepare and explore their options.

What are the benefits and drawbacks of working with a real estate agent and trying to go through the process without one?

As trusted advisers, Realtors leverage their industry knowledge and stay current on market conditions to help guide buyers through what is often one of the largest financial decisions of their lives. They can help buyers better understand the market, identify opportunities, connect with resources, navigate contracts and develop a strategy that aligns with their goals. 

 are also held to a strict Code of Ethics and have a duty to protect and promote their clients’ interests. 

According to the National Association of Realtors

, 88% of buyers purchased their homes through an agent, and 91% said they would use their agent again or recommend them to others.

While it is possible to purchase a home without representation, buyers who choose to do so may be responsible for navigating contracts, negotiations, deadlines and other aspects of the transaction on their own, including roadblocks along the way which are inevitable. Every buyer’s situation is different, but many first-time homebuyers find value in having an experienced professional by their side. We have also seen 

 go above and beyond to help clients achieve homeownership, whether that’s helping them navigate challenges, connecting them with resources or finding creative solutions to help them reach the finish line.

What are three things first-time homebuyers should know about the home-buying process?

What resources are available for first-time homebuyers, specifically? Are there programs that make the process easier or the goal more attainable?

There are a variety of resources available to help first-time homebuyers better understand the process and prepare for homeownership. Through the Honolulu Board of Realtors’ partnership with the Hawaiʻi HomeOwnership Center, the HOPE (Housing Opportunities are Possible for Everyone) 

 helps prospective buyers better understand budgeting, financing, mortgage terms and what it takes to prepare for homeownership. Since 2021, more than 850 individuals have participated in the program, and 70% have gone on to purchase a home or enter escrow within 6 to 18 months.

In terms of the current housing market, what kind of opportunities are available for first-time homebuyers in Hawai’i today?

Over the past year, nearly 2,200 properties sold for $500,000 or less, showing that buyers are still finding opportunities at more attainable price points. There are also nearly 1,200 active listings in this price range, particularly in the Metro region, Pearl City, and Central and Leeward O‘ahu.

The condominium market continues to serve as an important entry point into homeownership for many local buyers. According to our Local Market Update for May, year-to-date median sales prices remained below $500,000 in Downtown-Nuʻuanu, Kalihi-Palama, Makaha-Nānākuli, Makiki-Mōʻiliʻili, Moanalua-Salt Lake, Pearl City-ʻAiea, Wahiawā, Waikīkī, Waipahu and the Windward Coast.

Ultimately, the opportunities available will depend on a buyer’s goals, budget and flexibility. The important thing for buyers to know is that opportunities do exist, and taking the time to understand their options, explore different neighborhoods and work with trusted professionals can help them identify a path that aligns with their needs and financial circumstances. The key is getting on the housing ladder and building equity in that first home.

[{"type":"text","marks":[{"type":"bold"}],"text":"Is there anything else readers should know?"}]

I’d encourage anyone interested in homeownership to start the conversation now, even if they aren’t ready to buy tomorrow. The earlier you begin learning about the process, understanding your options and preparing financially, the more opportunities you’ll be able to pursue when the time is right.

Too often, people assume homeownership is out of reach without fully exploring what’s available to them. Every situation is different, but with the right preparation, guidance and patience, homeownership remains an achievable goal for many local residents.

For those who are working toward homeownership, it is important to understand the long-term value it can provide. Renting may make sense depending on a person’s goals and circumstances, whether that means living closer to work, remaining in a desired school district or renting a larger home than they may be able to purchase right away. However, paying rent is paying someone else’s mortgage, and building wealth for someone else. 

Historically, real estate has experienced stable long-term growth in value and served as a hedge against inflation. Homeownership can also help owners build savings and equity, creating value that may be realized later if the home is sold. It can also provide more predictability in monthly housing costs through a fixed-rate mortgage, give owners more freedom to make decisions about their living space and, depending on a household’s circumstances, may also come with certain tax advantages. For many local families, it can also create greater stability by allowing them to remain in one neighborhood over time, build lasting relationships within their community and create greater continuity for their children.

Oahu neighborhoods homes i Stock

<title>Looking to buy a home in Hawai‘i? Here's what you should know.</title>

Aloha State Daily talks with Aaron Tangonan, president of the Honolulu Board of Realtors, to learn more about the home-buying process, how feasible it is to become a homeowner, what opportunities are available and more.

Looking to buy a home in Hawai‘i? Here's what you should know.

Kelli Shiroma Braiotta Headshot

Kelli Shiroma Braiotta

Food & Dining

Kam Bowl Restaurant just announced that it will be permanently closing on Sunday, June 28, at 3 p.m. The restaurant posted its closure notice over the weekend; the notice states that it is the end of the eatery’s lease term.

The Kalihi-based restaurant will be reopening on July 1 at 10:30 a.m. under new management and name — Ali

The notice also states that Kam Bowl Pearl City will be opening in mid-July at Times Square Shopping Center.

The restaurant in Kamehameha Shopping Center has been a local favorite. It opened in its current location in 2016 — in the former Kenny’s Restaurant spot — but the original Kam Bowl opened in the 1950s. The original location included a coffee shop and bowling alley, and it closed in 2007.

Kam Bowl restaurant is famous for dishes like the hamburger steak with brown gravy ($12.50 small, $15.95 regular) — made with a homemade hamburger patty and grilled onions — and its oxtail soup.

The oxtail soup is available in small ($21.95), regular ($24.95) or extra-large ($33.95) sizes. It’s served with white rice, fresh Chinese parsley, green onions and ginger.

The menu also features favorites like adobo fried rice, loco moco with brown gravy, chop steak and more.

Breakfast is served all day and features options like a Japanese breakfast, Kam breakfast with two eggs, steak and eggs and the mini Kam breakfast (served from 7:30 to 11 a.m.)

During our visit Monday, the restaurant was facing technical difficulties, so only cash was accepted. The restaurant’s owner was not available for comment.

The restaurant is currently open from 7 a.m. to 9 p.m. (last seating is at 8:30 p.m.)

Open from 7 a.m. to 9 p.m. (last seating at 8:30 p.m.)

Closing at 3 p.m. on Sunday, June 28, at 3 p.m.

Kam Bowl Restaurant sign 062226

<title>A hui hou, Kalihi's Kam Bowl Restaurant</title>

The Kalihi-based restaurant is closing this Sunday, June 28, at 3 p.m. It’s reopening on July 1 at 10:30 a.m. under new management and a new name — Aliʻi Diner. Kam Bowl Pearl City is set to open in mid-July at Times Square Shopping Center.

A hui hou, Kalihi's Kam Bowl Restaurant

Yamachika Tom IMG 1913 Large

Tom Yamachika

Government & Politics

Hawai‘i conveyance tax is imposed any time real estate in Hawai‘i is bought, sold, or leased for a term of five years or more. Goings-on at our legislature give us some conveyance tax fright.

The tax dates back to 1967, in the first decade after statehood. (Act 10, Hawai‘i Session Laws 1966.) At the time the State, not the counties, was administering the real property tax. Because property deeds tended not to disclose the actual sales prices (they said things like “For $1 and other good and valuable consideration” when they mentioned what the real property was being sold for), real property assessors needed data on which to make market value assessments. So, it was decided to impose a rather small tax — it was half a mill, or 0.05 cents, per dollar of consideration. If the property was sold for $1 million, for example, the tax would have been $500.

Over time, the conveyance tax was hiked several times, leading to the structure we have today. Today we have tax brackets, but not with marginal tax rates like we have in income tax. For example, a property sold for less than $1 million is taxed at 20 cents per $100 and a property sold for $1 to $2 million is taxed at 30 cents per $100.  When the sales price is $1 million, the tax is $3,000; if it’s a shade less, then the tax is a little less than $2,000.  The jumps in tax due get larger and larger with the higher tax brackets.

In this legislative session, there are two bills moving that would change the conveyance tax structure to a marginal rate, where hitting a new tax bracket would only expose the price in excess of the bracket amount to the higher tax rate.  These bills are 

.  The description of both bills contains similar language: “Restructures the conveyance tax to a marginal rate system for the sale of properties with residential use, adjusts the tax for multifamily properties to reflect value on a per-unit basis, and applies a cost-of-living adjustment to conveyance tax rates.”

The last part of the description is already scary:  “Applies a cost-of-living adjustment to conveyance tax rates.” Yes, we have inflation going on, and yes, that means a dollar we have today isn’t worth as much as a dollar we had last year. I can understand increasing 

, like fee amounts or bracket amounts, for inflation. But 

? There is no similar reason why rates need to be increased with inflation.  Taxing an amount higher because of inflation yields a higher tax even if the rate is the same.  So, what they are saying is that there will be tax rate hikes. Yikes!

A second reason for dread is that both bills don’t tell us what the politicos have in mind. The rates and the brackets in both bills are blank. Yes, these are “Blankety Blank” bills that we have often mentioned and just as often reviled. With the bills in their current state, it’s impossible to tell if they want to raise rates 10%, 100%, or even 1000%. 

Previous versions of the bills that did have numbers in them, however, called for substantial tax hikes. The House bill as originally introduced contains a maximum tax rate of 6%, more than four times the current maximum tax rate of 1.25%. The Senate bill as originally introduced contains a maximum tax rate of 4.1%.  The only other version of the bill that contains numbers is House Draft 3 of the House bill, which contains a maximum tax rate of 9.5%. Even more scary!

If either of these bills are to pass, it doesn’t seem like numbers are going to be put in them until Conference Committee, which as we know neither requires nor accepts public input. So, we wait nervously for the door of the crypt to open and then we can finally see the monster that comes out.

Hawaii housing general pic unsplash

<title>Community Voices: Conveyance Tax Fright</title>

The Legislature is advancing bills to increase the conveyance tax on properties sold in Hawai‘i, without revealing by how much. The are "Blankety Blank" bills, with the most important numbers left out. Early drafts, however, did propose rate increases as much as four times higher than current rates.

Community Voices: Conveyance Tax Fright

KWO authors

J. Hauʻoli Lorenzo-Elarco is from Waimea, Hawaiʻi. He sits on the leadership board as the coordinator of the Papahānaumokuākea Native Hawaiian Cultural Working Group and chair of the Nomenclature Subcommittee. He is also an assistant professor of Hawaiian language at Honolulu Community College.

Kenika Lorenzo-Elarco is a Kanaka ʻŌiwi educator and scholar from Waialua, Oʻahu. He is a member of the Papahānaumokuākea Native Hawaiian CWG and serves as the co-chair of the communications subcommittee. Kenika also serves as the community engagement manager at the W. M. Keck Observatory and a junior specialist faculty at UH Mānoa.

<title>Hau‘oli Lorenzo-Elarco and Kenika Lorenzo-Elarco</title>

Hau‘oli Lorenzo-Elarco and Kenika Lorenzo-Elarco

Rather than framing ocean protection as a burden, we should instead ask why Pacific Island peoples, and our protected and sacred oceans, are forced to bear the unfair burden of industrial fishing, write two members of the Papahānaumokuākea Native Hawaiian Cultural Working Group.

Hau‘oli Lorenzo-Elarco and Kenika Lorenzo-Elarco

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