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Council hears first reading on new 'tier 3' tax targeting high‑value nonowner properties
Summary
At first reading the council approved Bill 128 to add a residential 'tier 3' property‑tax class for nonowner‑occupied parcels with net taxable value above $4,000,000. A Zoom testifier cited county data showing 842 properties would fall in the proposed tier and urged passage; the bill passed first reading.
The Hawaii County Council on Feb. 18 approved first reading of Bill 128, which would add a new residential ‘tier 3’ real‑property tax classification for certain nonowner‑occupied properties with a net taxable value exceeding $4,000,000.
Tanya Yamanaka Anzazi, testifying from Zoom, urged the council to establish the tier, saying Hawaii Island fits the profile of limited land and a global luxury market that concentrates ultra‑high‑value properties. “Properly tiering these properties generates meaningful long‑term revenue while not burdening working families,” she said, and cited county figures that identify 842 nonowner‑occupied properties meeting the proposed $4,000,000 threshold.
Council member Kaguata (co‑introducer) said the tier would give the county more choices when setting tax rates and could help balance reduced revenues from other tax class changes. Council member Eustace said a three‑tier approach provides a more graduated structure than simply raising the second‑tier rate and that exact rates would be determined later in the budget cycle.
The bill’s text (as read into the record) amends county code sections relating to real property taxes and creates the new classification; it excludes homeowner, short‑term rental, and long‑term rental classes from the proposed tier, per council comments during the hearing. The measure passed on first reading by voice vote (recorded as 7 ayes; two members excused).
What happens next: Council will consider the bill in subsequent readings; the actual tax rates for the new tier would be set later in the budget process.
