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Committee amends and forwards bill to extend agricultural-to-homeowner 3% cap, sets 12/31/2029 sunset
Summary
The committee approved an amendment to bill 103 to apply the homeowner 3% annual assessment increase cap to qualifying agricultural homesteads, change the look-back to 10 of the last 15 years, and extend the sunset to Dec. 31, 2029; committee members debated eligibility, potential unintended consequences and oversight concerns.
The Hawaii County Finance Committee voted to forward bill 103 to council with an amendment that extends the program's sunset date, clarifies the look‑back period for agricultural activity, and adds prospective language about reassessment.
Councilmember Kimball introduced an amendment substituting the contents of Communication 593.3. The amendment would extend the sunset to 12/31/2029, change the eligibility look‑back to 10 of the last 15 years (to capture farmers who had administrative breaks such as tenure changes), and add language making clear the change is prospective and does not create retroactive rebates. "We're adding just a new section that makes it clear that as far as the look back is concerned, that doesn't entitle anyone to, like, a rebate or anything from a previous tax year," Kimball said.
Members debated design choices. Councilmember Ronishi asked whether the program aims to assist longtime farmers approaching retirement; proponents said the age and tenure conditions in the draft target kupuna who wish to remain on their property. Councilmember Kaguewata and others raised competing goals: supporting aging farmers vs. discouraging land‑banking and encouraging productive agricultural use. Real Property Tax staff explained the mechanics: the change would reassign a qualifying parcel from an agricultural class to a homeowner class with a 3% annual assessment cap calculated from the last agricultural assessed value and then capped on improved value going forward.
Committee members also raised administrative and oversight concerns (double‑dipping across awards, verification of service areas, and the relatively small number of parcels likely impacted). After debate the committee approved the amendment and then voted to forward bill 103 to full council with a favorable recommendation; the clerk recorded eight votes in favor and one absence.
What happens next: the ordinance amendment and the amendment language will be scheduled on the full council docket for first‑reading consideration and further public review. The committee asked Real Property Tax staff to provide parcel counts and fiscal-impact details to inform future deliberations.
