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Council approves private-road tax credit after amendments and reporting requirements
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Summary
The council approved a tax-credit program to reimburse homeowners who spend on private-road maintenance, adding annual reporting and a 10-year sunset to monitor effectiveness.
The Hawaii County Council approved Bill 38 on second and final reading, creating a private-road real property tax credit intended to encourage maintenance of private roads that are open to the public.
Bill 38 (draft 3 as amended) establishes a tax credit of up to $250 applied against a homeowner’s real property tax bill when the homeowner spends at least $75 annually to maintain, repair or improve a private roadway that is not gated and is managed by a road maintenance organization. The credit applies to homeowners qualifying for the homeowners’ exemption. The council adopted amendments requiring annual reports from the Real Property Tax Division and removed an initial three-year sunset; a later amendment set a 10‑year sunset with annual reporting and a five‑year formal review to give communities time to show results.
Councilmembers pushed for reporting tied to the measure’s goals: increasing the number of homeowners who contribute dues and increasing total dues collected by road associations. Real Property Tax Division staff agreed to provide annual statistics on the number of credits claimed and the total credit amount, and councilmembers asked that associations report the on-the-ground results (miles repaired or projects completed) so the county can evaluate return on investment.
Local residents and subdivision leaders testified in support. Tim Rowan, president of the Black Sands Property Owners Association, said the funds would support community programs including keiki gardens and hygiene initiatives and would “give us another 18 months of community fire ant control.” Residents of Hawaiian Acres described losing school-bus service on certain roads and urged passage so that voluntary contributions could be incentivized via the tax credit.
After debate and two rounds of amendments, the council passed the bill on second and final reading by roll call. The vote tally recorded nine ayes; the bill will be implemented under the county’s real-property tax procedures and requires homeowners and road maintenance organizations to document eligibility to claim the credit.
