How much you pay in property tax and who decides could be at stake in a Kauai case that has gone all the way to the Hawaii Supreme Court.

Whether a voter initiated property tax cap already approved at the ballot box is valid, asking who has the power to set tax policy is at stake.

“Is it exclusively elected officials, or do they share that power with the people," said Robert Thomas, an attorney representing several homeowners who launched the successful ballot measure.

The county contends only elected officials should set taxes. And so to stop itself from enforcing the tax-cap amendment, the county sued itself.

"It's a sham lawsuit,” said Poipu resident Monroe Richman. “The government derives its power from the governed. My consent lets them tax me."

This matters statewide because other counties also face soaring property taxes and valuations. And on Oahu, a petition drive is aiming to allow public votes on tax policy.

“If what we did applies to their county, I encourage them to invite me,” Richman said. “I’ll tell you what we did."

The county says it's dangerous to concede taxation to the public.

"It's actually going to restrain the county's ability to respond to the needs of the community,” said Kauai Council Councilmember JoAnn Yukimura. “That's where the voters stand to be really hurt."

“If this system goes forward, the counties are going to be in serious financial trouble,” said Gary Slovin, an attorney representing Kauai County. “That isn't to the benefit of the taxpayers in the long run."

They say tax relief can come other ways.

"There are a lot of people affected, and the better system is to do it through talking to councilmembers, petitioning them, testifying, presenting proposals," Slovin said.

Eighty-two percent of county revenue comes from property tax, but the homeowners who started the amendment drive say they're not crippling the budget.

"Our measure only affects 15 percent of the property tax,” Richman said. “We affect resident homeowners. The whole issue was the protection of the resident homeowners."

Residents say it’s a statewide crisis finally getting the attention it deserves.

"They deserve it,” Richman said. “They deserve tax relief."

Click href="www.lethonoluluvote.org"> here for more information about an Oahu voter petition for tax relief.