Council committee hears public comments, debates range for real‑property tax rates; Tom Crowley urges parity for B&Bs

The Budget, Finance and Economic Development Committee discussed proposed ranges for real‑property tax rates and heard public testimony from homeowners and representatives who asked the council to change classification or rate treatment for short‑term rentals and bed‑and‑breakfast properties.

Tom Crowley, a Maui resident who owns a property taxed as commercialized residential (a bed‑and‑breakfast classification in county code), told the committee that many owner‑occupied homeowners who operate small home‑based businesses receive a homeowner exemption and lower tax rates while property owners with a B&B permit do not. "I'm asking council to establish fairness for these Maui residents by establishing tax rates in the commercialized residential tax classification that mirror the rates that are provided to other Maui homeowners," Crowley said. He asked the council to make the commercialized‑residential rate range at least as broad as the owner‑occupied range.

Nut graf: County staff and members noted the technical complexity of classifications and how zoning, unit counts, condominiumization and industry entitlements affect whether a parcel is taxed as a hotel, a short‑term rental or under another classification. The Finance director gave committee members a code citation and a procedural explanation while members proposed specific tier and rate adjustments for posting ahead of formal hearings.

Finance Director Marcy Martin joined committee members to clarify how hotel and resort classifications are determined. She said Maui County code (3.480.3057) classifies an operation as hotel and resort if a property has eight or more lodging units and employs more than 20 full‑time persons. Director Martin told the committee that many time‑share and hotel properties are condominiumized and are taxed by parcel rules and entitlements rather than simply by zoning.

Members discussed practical limits: ranges posted for the public hearing set the parameters council can consider at the ensuing certification and public hearing. Committee staff noted a clerical correction they would make before filing the resolution for posting and reminded members the county clerk requested the resolution by noon the following day.

Ending: Members said they would refine tier thresholds and rates and requested further data from Finance about parcel counts and the distribution of values within proposed bands. The committee directed staff to prepare a revised resolution for consideration and to post the range by the clerk’s deadline for public notice.