HomeMy WebLinkAboutREP FC 112 2025-12-02 2024-2026DATE: December 2, 2025
PLACE: Council Chambers
Hilo, Hawaii
TIME: 1:00 P.M.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
REPORT OF THE
COMMITTEE ON FINANCE
Re: Comm. No. 593Bill No. 103
Your Committee on Finance, to which was referred Bill No. 103, reports as follows:
Bill No. 103, transmitted by Committee Members Heather Kimball and James Hustace via
Communication No. 593, dated October 17, 2025, amends Chapter 19, Article 7, Section 19-53,
of the Hawaii County Code 1983 (2016 Edition, as amended) relating to Real Property Tax.
This bill applies the homeowner classification's three -percent annual assessment increase cap to a
property's agricultural assessed value under certain conditions, including if the property is no
longer assessed according to its agricultural use; expires after two tax years.
Committee on Finance Meeting of November 19, 2025
Real Property Tax Administrator Lisa Miura was present in Chambers.
Committee Member Heather Kimball provided background and the motivation for this legislation.
Ms. Miura provided additional background information and emphasized the need to notify
residents and expressed concern over the bill's repeal date in relation to the real property tax
cycle.
Committee Member Jenn Kagiwada expressed concern over the loss of productive lands and ways
to encourage continued use of the land.
Committee Members Dennis "Fresh" Onishi and Holeka Goro Inaba suggested that the makers
work with the Real Property Tax Division on the bill.
Committee Member Michelle Galimba emphasized the need for a repeal date to avoid creating an
incentive for members to not use their agricultural lands. Ms. Galimba suggested possibly
lowering the consecutive years of agricultural use requirement from ten to five years.
Committee Member James Hustace emphasized the purpose;of the bill in providing older farmers
and food producers a means of retiring without the property tax burden when no longer using
their lands for agriculture.
Bill 103 was postponed to December 2, 2025
FC Report No. 112
FC-112 Page 2 December 2, 2025
Commitee on Finance Meeting of December 2, 2025
Committee Member Heather L. Kimball shared additional informaiton via Communication 593.1,
which included graphics for the online package available for review.
Ms. Kimball introduced an amendment via Communication 593.3, which extends the sunset date
a bit further giving the department three years to analyze how this all works and also clarifies
language in paragraph two.
Committee Member Dennis "Fresh" Onishi asked why they established it for 15 years and not
longer. Ms. Kimball replied that they really couldn't figure out a good amount of years and just
landed on a number that they thought they could discuss among the committee to make a
decision.
Bill 103 was amended with the contents of Communication No. 593.3, with eight "ayes" and
Committee Member Matt Kaneali`i-Kleinfelder absent.
Committee Member Jenn Kagiwada asked if this was a short-term program intended to help
people navigate the changes in tax policies. Ms. Miura confirmed. Ms. Kagiwada shared some of
her thoughts on the program and noted that some scenarios may need to be analyzed further.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 103, as amended
to Draft 2, and recommends its passage on first reading.
uen
AYES
NOES
ABS
EX
GALIMBA
X
HUSTACE
X
INABA
X
KAGIWADA
X
KANEALI`I-KLEINFELDER
X
KIERKIEWICZ
X
KIMBALL
X
ONISHI
X
VILLEGAS
X
Respectfully submitted,
ICRE T NO.: 112
ADOPTED: DEC 1 7 2025