The Maui Chamber of Commerce has asked for a broader net to cast tax relief for properties occupied by homeowners than what’s been proposed by Maui County Mayor Richard Bissen.

The Chamber is also asking for increased tax rates for housing that isn’t owner-occupied.

“Given our long-standing housing crisis exacerbated by the wildfires, we are experiencing local families leaving, worker shortages and escalating rents, creating extreme hardships for residents,” said Pamela Tumpap, president of the Chamber, during a Maui County Council hearing earlier this week. “We need more investment in housing solutions and broader participation in those solutions.”

Tumpap said the Chamber supports Bissen’s proposal to reduce tax rates for various owner-occupied categories by 10 to 15 cents per $1,000 of assessed value, and Tumpap also appreciated the mayor’s plan to expand the first tax tier to homes worth up to $1.3 million.

However, the Chamber is recommending broadening the categories further to accommodate the rise in median home prices and property values.

“We feel more wiggle room is needed,” Tumpap said.

Bissen’s proposed budget would reduce the owner-occupied rate of $1.80 to $1.70 per $1,000 of assessed value for properties assessed at up to $1.3 million.

Citing the median home price hit $1.295 million in March, the Chamber wants the first tier for owner-occupied properties to apply to homes worth up to $1.5 million.

Similarly, the Chamber has recommended expanding the second tier with a rate of $1.90 rate to include properties from $1.5 million to $5 million, and the third tier of $3.10 for properties worth more than $5 million.

“The expansion of these tiers will keep local homeowners living in their homes with lower real property tax brackets for longer periods of time,” Tumpap said.

Bissen has proposed that property tax rates for properties that are not owner-occupied remain the same, with tier 1 remaining at $5.87 per $1,000 of assessed value for homes up to $1 million; Tier 2 at $8.50 per $1,000 for homes worth from over $1 million to $3 million; and Tier 3 at $14.00 per $1,000 for homes over $3 million.

The Chamber suggested a rate increase from the level last year to $8 at Tier 1, $12 at Tier 2, and $18 at Tier 3.

Tumpap said the rate increase would help to generate additional revenue and make housing more attainable for local families.

Wailuku resident Gary Saldana, who worked as a legislative analyst for the Office of Council Services, said the County Council should look at lowering the owner-occupied tax rate or increase a homeowner’s exemptions to offset increases in assessed values.

He said the assessment for his home increased 36% from last year, and even with the reduced tax rate that’s been proposed, he would still be paying an additional $500 for a total of $1,500 in annual property taxes.

Saldana said the increase in assessed value makes no sense to him because the median price of a single-family home decreased by 0.3% in March.

“How is that fair?” he asked in his written testimony.