State Lawmaker Wrongly Claims Hundreds Of Thousands Of Dollars In Property Tax Exemptions
House Rep. Micah Aiu has owned a Kinau Street apartment near downtown since 2018 but has been living in Moanalua, which he represents, since 2021.
State Rep. Micah Aiu appears to be violating city law allowing homeowners to claim a tax exemption for their primary residence.
Aiu, an attorney in his first term in the House, has owned a Kinau Street apartment near downtown since 2018 but has been living with his mom, state Sen. Donna Kim, in Moanalua since 2021 鈥 nearly seven miles away.
But he has benefitted from a $120,000 home exemption this year for an apartment that he owns in , which represents Ala Moana, Kakaako and Downtown.
Aiu also qualified for property tax exemptions totaling $300,000 from 2020 through 2023.
That would appear to violate a City and County of Honolulu ordinance that allows homeowners based on the total assessed value of the place where they reside. On his financial disclosure with the Hawaii State Ethics Commission, Aiu makes clear that the Kinau Street apartment is not his personal residence, as claimed in city tax records.
The city law requires that an owner notify the assessor within 30 days if the property no longer qualifies for an exemption.
Violators of the ordinance could be subject to penalties of $300 per tax year as well as taxes due on the property and any additional penalties and interest. A lien could also be placed on the property.
The exemption equates to $350 each for the $100,000 exemptions and $420 for the $120,000 exemption.
In an interview Monday, Aiu called his failure to notify the city of his change of residence 鈥渁n oversight鈥 and said he had not realized the exemption was still in place until Civil Beat brought it to his attention.
He notified the city Monday of the change in status, after he spoke with a Civil Beat reporter, and sent the news organization a copy of the form seeking to remove the tax exemption. Aiu is asking that the change be retroactive to May 3, 2021.
City records show that Aiu bought the unit at 1050 Kinau St., currently valued at $367,800, in 2018.
Three years later, in 2021, Aiu said, he decided to move back home to Moanalua to run for the open seat being vacated by Rep. Aaron Johanson.
Aiu ran unopposed in the 2022 Democratic primary and defeated Republican Garner Shimizu in the general election that year by just 246 votes out of more than 7,300 cast. He’s running for reelection this year.
In addition to Moanalua, the district includes Fort Shafter, Aliamanu, Foster Village and portions of Aiea and Halawa.
Aiu uses 1745 Ala Amoamo St., his current residence address, in his state financial disclosure, campaign spending and election office filings.
The home, part of Moanalua Estates condominiums, is owned by Donna Kim, who represents (Kapalama, Alewa, Kalihi, Kalihi Valley, Ft. Shafter, Moanalua Gardens and Valley and Red Hill). The two Democrats tout their mother-son relationship.
Aiu is an attorney for Nan Inc., a large construction company that competes for state jobs and is a major contractor for the Honolulu rail project. He is also a member of the House Finance Committee, which plays a key role in developing the state budget and the list of construction projects the state will help pay for each year, including in Aiu’s own district.
鈥淚 have called Moanalua home for all my life,鈥 Aiu states on .
Scott Nago, Hawaii鈥檚 chief elections officer, said Aiu is not in violation of the state requirement regarding candidate residency, because Aiu is a registered voter in District 32.
