On August 20th the Hawaii County Council Finance Committee will hear Bill 188, to extend the sunset date of the nondedicated agriculture tax program and the time for property owners currently in the program to apply for an alternative program, such as the short- or long-term agricultural dedication or the community food sustainability programs.
The proposed bill, introduced by Council Chair Kimball and Council Finance Chair Matt Kanealii-Kleinfelder, is in response to the concerns voiced by the public during the hearing on July 18, 2024, which covered the Finance Director’s draft rules for the new programs.
Chair Kimball said, “The changes in the agricultural tax programs were developed to help farmers and the community by reducing speculation on agricultural land, keeping agricultural land in agricultural use, incentivizing leases to young farmers, and encouraging more local food production. Acknowledging that additional educational outreach needs to be done by the county before these changes take effect, and based on the testimony it was very clear that the community needs more time to understand the new programs and figure out how they will be able to participate.”
The main change to the agricultural programs is the requirement for documentation to be provided at the time of application to demonstrate the intended agricultural use. This documentation can come in the form of verification from other governmental agencies, receipts, or a farm plan. The proposed Bill 188 would extend the time to select a program and apply from September 2025 to September 2026.
In addition to the changes in the tax programs, farmers who live on their properties as their primary residence will also see the effect of Bill 28-23, Draft 2, which became Ordinance 23-54 on July 24, 2023, in this year’s property tax bill. Ordinance 23-54 (Bill 28-23) allowed these farmers to participate in the homeowner’s tax class, reducing their tax rate from 9.35/$1000 to 5.95/$1000, while still getting the agricultural use benefits.