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Committee weighs midyear relief for homeowners, STR conversions; asks staff for consolidated approach

October 14, 2025 | Maui County, Hawaii


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Committee weighs midyear relief for homeowners, STR conversions; asks staff for consolidated approach
The Real Property Tax Reform Special Committee took up several related proposals on Oct. 14 aimed at reducing how long new owners or residents wait to receive the principal home exemption or other midyear reclassifications.

Tom Crowley, a longtime tax‑process observer, urged broader coverage than a homeowner exemption fix: "While this bill attempts to address the biggest problem in our current tax code of tax classification being delayed by as much as 18 months, ... I would like to see it be broader than what's proposed here." Crowley suggested changes should include long‑term rentals and conversions in both directions (owner‑occupied to non‑owner‑occupied and vice versa).

Council Member Paulton and others proposed options to permit a half‑year filing window or to tie classification to recordation at the Bureau of Conveyances. Member Paulton described a draft (Bill 142) that would add a new half‑year option allowing claims by June 30 for relief to appear on the following first half payment.

Department of Finance staff cautioned that payments and the county's certified revenue require certainty; Director Marcy Martin explained that exemptions filed by Dec. 31 appear on the following July 1 bill, while a June 30 half‑year filing affects the January bill. Martin said that mechanics of splitting tax bills midyear are administrable but raise workload and potential revenue‑timing issues.

Members discussed a council‑managed fund to smooth budget impacts if many parcels switch classification midyear. Member Johnson suggested a small reserve to avoid repeated emergency budget amendments.

Committee members and staff agreed to combine proposals into a single draft for administrative review. Finance and office of council services agreed to meet with councilmembers drafting the bills and to return with an integrated proposal. No final vote was taken; the committee deferred action to allow staff to prepare a consolidated draft.

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Scribe from Workplace AI
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