Committee forwards private-road tax credit to council after hours of testimony

The Hawaii County Committee on Finance voted 6-2 on Aug. 5 to forward Bill 38 — a proposal to create a tax credit tied to private-road maintenance — to the full County Council with a favorable recommendation.

Bill 38, as read into the record, would add a private-road tax credit to the county real property tax code; the clerk’s summary described a credit “of up to $500” payable to homeowners who spend at least $100 annually to maintain a private roadway that is open to the public and managed by a road maintenance organization (RMO). The bill’s author, Council member Connolly Klinefelter, said the current draft being considered on Aug. 5 sets a $75 minimum and a $250 maximum credit for a homeowner’s primary residence, and circulated a staff chart estimating the maximum fiscal exposure if every eligible lot applied.

The bill drew multiple public speakers from Puna and other districts and a lengthy committee discussion about who would qualify, how claims would be validated and the program’s likely fiscal cost. John Olsen, a resident testifying in support, said the measure is timely: “The reduction in the property tax, I think is appropriate,” he said. Eileen O’Hara, immediate past president of the Hawaiian Shores Community Association, described the credit…