Maui County Council fails to adopt FY2026 real property tax rates; matter tabled after public hearing

Maui County Council on May 13, 2025 failed to adopt Resolution 25-88, the measure to fix real property tax rates for fiscal year 2026 effective July 1, 2025, after a public hearing that drew testimony from short-term rental owners, industry representatives and others. The motion to adopt the resolution, moved by Council Member Rolf Rollins Fernandez and seconded by Council Member Gabe Johnson, failed on a 3-4 roll call. Members then agreed, without recorded objection, to table the item for further action.

The vote mattered because the resolution would set tiered tax rates that affect homeowners, owner-occupied residences, short-term rentals and timeshares across Maui County and feed into the county budget process. Council members and county legal staff repeatedly flagged scheduling and legal constraints tied to Maui County Code section 3.48.0.565 and the county charter while members debated whether to approve the resolution now or send it back through additional public meetings if changes are made to the budget ordinance (Bill 41) on Friday.

Public testimony focused heavily on how the proposed rates affect short-term rental owners and timeshare properties. Faye Taylor, who identified herself as a homeowner who rents a condo part of the year, said the current and proposed rates are “fundamentally unfair,” noting that her tax bill had risen sharply in recent years and asking, “Why am I being required to pay so much more than my neighbor?” Amy Ramos, who said she operates the Kihei Oasis vacation rental, described her property taxes rising from about $16,757 in 2023 to $21,261 in 2024 and to a proposed $28,147 this year, and added, “I’m not opposed to paying tax.”

Industry representatives urged greater caution in increasing rates for visitor accommodations. John Pele, executive director of the Hawaii Hotel and Lodging Association, said the association supported the mayor’s proposed flat rates. Dave Jorgensen, representing ARDA Hawaii and identifying himself as a registered lobbyist for the timeshare industry, opposed a proposed $2-per-$1,000 increase for timeshares and told the council the industry operates 34 projects that support more than 9,500 jobs on Maui; he also noted the industry provided more than $2 million in wildfire recovery aid and supplied temporary housing after the fires.

Jonathan Helton, a registered lobbyist for the Grassroot Institute of Hawaii, said the mayor’s rates would be preferable in light of economic uncertainty and asked council members to consider later adjustments to the owner-occupied and long-term rental exemptions after the budget process. Other public speakers raised separate issues: a representative identifying as Royal House of Hawaii urged the council to seek descendants of historical land patent beneficiaries, and another speaker, Chris Benford, discussed distinguishing taxes on improvements (property) from land and raised questions about church tax exemptions.

Council legal staff, represented by Deputy Director David Rotz of the Office of Council Services and deputy corporation counsel Christina Toshikyo, explained the procedural options. Rotz said Maui County Code section 3.48.0.565 requires a two-step process: an initial subsection (a) meeting to announce rates and tiers (at least 10 days after notice) followed by a subsection (b) meeting within three weeks to act on the resolution. He warned that if the county amends rates in Appendix B of Bill 41 (the budget ordinance) on May 16, the council would need to restart that two-step sequence, potentially requiring additional notice and public meeting(s). Rotz and others noted the charter deadline for adopting the budget ordinance is June 10, and that, separately, the code allows the real property tax resolution to be adopted through June 20.

After discussion on whether to adopt now or wait for potential amendments on Friday, Rollins Fernandez moved to adopt Resolution 25-88; Gabe Johnson seconded. The council proceeded to a roll-call vote: Vice Chair Yuki Lehi Sugimura — No; Council Member Tamara Paulton — Aye; Council Member Gabe Johnson — Aye; Council Member Rolf Rollins Fernandez — Aye; Council Member Tom Cook — No; Council Member Nohelani Uhajans — No; Chair Alice Lee — No. The motion failed, 3 ayes to 4 noes with two members excused.

Following the failed motion the chair asked if there were any objections to tabling the matter; no member objected, and the council ordered the matter tabled. During deliberations members discussed possible next steps, including posting any amended rates as an amendment to Bill 41 on Friday and holding subsection (a) and (b) meetings on May 27 and June 3 if adjustments require restarting the two-step process. Council staff said those dates were a possible schedule if the body chose to amend rates following Friday’s calendar; the chair and legal staff also noted other timing permutations were possible to meet charter and code deadlines.

What happens next: the council has several paths available. If members pursue amendments to rates in Bill 41 on Friday, the council may need to republish notice and reconvene the two-step process (subsection a/b). If no changes are made in the budget ordinance, the tabling leaves the posted resolution 25-88 available to be adopted at a later public meeting in accordance with the code and charter deadlines. Any formal amendments to rates will trigger additional public meeting requirements and, potentially, another roll call vote by the council.