County planning new property tax reductions

The Hawaii County Council has approved a bill to amend the county's real property tax credit system, a move aimed at easing financial burdens on residents of rural areas. The ordinance, introduced by Councilman Matt Kaneali'i-Kleinfelder and seconded by Councilman Dennis Onishi, will take effect on January 1, 2026, if fully adopted.

The bill passed on first reading, with some council members expressing both support and reservations. Councilwoman Ashley Kierkiewicz voiced her gratitude for the measure's intent to help those living in rural areas, especially in communities where deteriorating roads hinder emergency access. She noted that the bill is a much-needed relief in these communities.

However, Councilman James Hustace was the sole "no" vote. He questioned whether the bill would significantly increase homeowners' commitments, particularly the $250 requirement for the private road credit. Hustace acknowledged the need for relief but expressed concerns about the potential for overburdening homeowners.

Councilwoman Michelle Galimba called the bill a "good pilot project" but raised potential concerns about rewarding those who do not take responsibility for their own roads. She described the bill as a creative step forward, but emphasized the importance of addressing these concerns moving forward.

The bill introduces a new credit of up to $250 for residents who contribute to private roadway maintenance. To qualify for this credit, property owners must receive a home exemption, rely on ungated private road access, and pay at least $75 annually to a road maintenance organization.

In addition to the private road credit, the bill proposes a one-time tax credit of up to $1,000 for property owners who install solar water heaters on qualifying dwellings. The organization responsible for the maintenance of the private roads must report qualifying payments to the county by September 30 each year.

The ordinance updates Chapter 19, Article 13, of the Hawaii County Code and includes a severability clause to preserve the rest of the law if any section is invalidated.

Geoffrey Kern, a Puna resident, praised the bill, stating that it is a powerful anti-poverty measure that will support low-income people in substandard subdivisions of Puna. Councilwoman Jennifer Kagiwada expressed reluctant support for the bill during Wednesday's meeting, stating concern over the $250 requirement for the private road credit.

The bill's author, Governor Newsom of California, is associated with the bill SB 243. However, the Hawaii Tribune-Herald data about the authorship itself is not provided in the search results. The legislation involves transparency reporting and safety protocols starting on January 1, 2026.

As the bill moves forward, it will be important to address the concerns raised by Councilman Hustace and Councilwoman Kagiwada to ensure a fair and effective implementation of the new tax credit system.