Maui residents voice concerns over rising property taxes and assessment methods

The Maui County Council convened on June 3, 2025, to address pressing concerns regarding property taxes and assessments affecting local residents, particularly seniors and owners of short-term rental (STR) properties. The meeting featured testimonies from community members highlighting the financial burdens imposed by rising property taxes and the impact of recent market fluctuations.

One poignant testimony came from a senior resident who expressed distress over the increasing land tax burden she faces after living in Maui for over 50 years. She described how the rapid appreciation of neighboring properties, which have seen values soar from $2 million to over $12 million, has left her feeling vulnerable and anxious about her financial future. The resident shared her frustration with the local tax office, which suggested she consider moving out of her home, a recommendation she found unacceptable. She emphasized the need for support and expressed her intent to gather similar stories from other seniors facing comparable challenges.

The council members engaged with her concerns, discussing the eligibility criteria for the circuit breaker tax relief program, which aims to assist homeowners whose property taxes exceed a certain percentage of their income. However, the resident reported difficulties in qualifying for this relief due to discrepancies in property valuation assessments.

Another speaker, Arch Schneider, raised alarms about the significant increases in property assessments for his condo complex, which he argued were disconnected from current market realities. He noted that property taxes for his one-bedroom condo had surged from approximately $10,000 in 2023 to an estimated $23,000 in 2025, a staggering 130% increase. Schneider criticized the assessment model used by the county, claiming it relied on outdated sales data and failed to account for the negative impacts of recent events, including the Lahaina fire and changes in STR regulations.

Schneider also questioned the fairness of taxing STRs at a higher rate than hotels and resorts, arguing that both provide similar services to visitors. He called for a reevaluation of the assessment practices to better reflect the current economic climate and the realities faced by property owners.

The meeting concluded with council members acknowledging the concerns raised and encouraging residents to reach out to the real property tax assessment office for further assistance. The discussions underscored the urgent need for a comprehensive review of property tax policies and assessment methodologies to alleviate the financial strain on Maui's residents, particularly vulnerable populations like seniors and those affected by recent market downturns.