Hawaiʻi County Council Passes Ordinances Addressing Housing, Taxes, and Local Programs

Hilo, Hawaiʻi – The Hawaiʻi County Council on June 4, 2025, passed eight ordinances that amend various sections of the Hawaiʻi County Code, impacting areas from affordable housing and property taxation to environmental designations and budget appropriations. All measures successfully completed their second and final reading.

Here is a summary of the ordinances enacted, including their respective vote counts:

• Ordinance 25-47 (Bill 39 Draft 2): Affordable Rental Housing Real Property Tax Classification. This ordinance amends definitions related to affordable rental housing. It updates the “affordable rental rate” to align with the most recent affordable rental guidelines for 80 percent of the area median income (AMI), as established by the Hawaiʻi Housing Finance and Development Corporation. It also clarifies eligibility, stating that all rental units must meet these new rates or be certified as Section 8 rental units with a one-year initial lease to qualify for the classification.
  • VOTE: AYES: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kierkiewicz, Onishi, Villegas and Chair Inaba – 8. NOES: Council Member Kimball – 1. ABSENT: None. EXCUSED: None.
• Ordinance 25-48 (Bill 44): Exemptions for Certain Hawaiian Homes Property and Other Agencies. This measure amends Chapter 19 of the Hawaiʻi County Code concerning property tax exemptions for certain Hawaiian Homes properties and other agencies. It clarifies that Hawaiian Home Lands real property, inclusive of buildings, leased and used as a homestead, is exempt from real property taxes, with the exception of a minimum tax. It also updates statutory references and clarifies the administration of exemptions, and may allow reinstatement of a public utility tax exemption under certain conditions based on gross income.
  • VOTE: AYES: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kimball, Onishi, Villegas and Chair Inaba – 8. NOES: None. ABSENT: Council Member Kierkiewicz – 1. EXCUSED: None.
• Ordinance 25-49 (Bill 45): Designated Exceptional Trees. This measure amends the listing of “Exceptional Trees of the County of Hawaii” by correcting the Tax Map Key (TMK) number for a specific Chinese Weeping Banyan located on Kilauea Avenue. This is the same large banyan tree on Kilauea Avenue that recently collapsed. The ordinance became effective on June 23, 2025.
  • VOTE: AYES: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kimball, Onishi, Villegas and Chair Inaba – 8. NOES: None. ABSENT: Council Member Kierkiewicz – 1. EXCUSED: None.
• Ordinance 25-50 (Bill 47 Draft 3): Transient Accommodations. This ordinance establishes a new article in Chapter 6 of the County Code, creating specific regulations for “Transient Vacation Rentals” (TVRs). It defines key terms such as “Booking services,” “Host,” “Hosted,” “Hosting platform,” and “Reachable.” It also defines a TVR as a furnished dwelling rented to a transient for less than 180 consecutive days, explicitly excluding hotels, motels, and timeshares. The measure passed 8-1.
  • VOTE: AYES: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kierkiewicz, Kimball, Onishi and Villegas – 8. NOES: Council Chair Inaba – 1. ABSENT: None. EXCUSED: None.
• Ordinance 25-51 (Bill 48): Amending the Operating Budget for FY 2025. This ordinance appropriates an additional $270,000 in federal grant revenues from the Federal Transit Administration (FTA) Section 5304 Formula to the County’s General Fund, designated for transit planning programs. The ordinance became effective on June 23, 2025.
  • VOTE: AYES: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kimball, Onishi, Villegas and Chair Inaba – 8. NOES: None. ABSENT: Council Member Kierkiewicz – 1. EXCUSED: None.
• Ordinance 25-52 (Bill 50 Draft 2): Real Property Taxes. This ordinance establishes a two-tier residential property tax rate system. It mandates separate tax rates for properties with a net taxable real property value under $2,000,000 (Tier One) and those with a value of $2,000,000 or more (Tier Two). Tier Two specifically applies to properties without a home exemption and classified as residential based on their highest and best use. The ordinance also stipulates that no less than $9,000,000 annually of the revenue collected from this tiered system will be allocated based on the difference in revenue from Tier One. It passed 7-0.
  • VOTE: AYES: Council Members Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kimball, Onishi, Villegas and Chair Inaba – 7. NOES: None. ABSENT: Council Members Galimba and Kierkiewicz – 2. EXCUSED: None.
• Ordinance 25-53 (Bill 56): Amending the Operating Budget for FY 2025. This ordinance appropriates an additional $78,671 in federal grant funds from the JAG-SRT Capability Enhancement Grant to the County’s General Fund, intended to support law enforcement special response capabilities. The ordinance became effective on June 23, 2025.
  • VOTE: AYES: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kimball, Onishi, Villegas and Chair Inaba – 8. NOES: None. ABSENT: Council Member Kierkiewicz – 1. EXCUSED: None.
• Ordinance 25-54 (Bill 57): Amending the Operating Budget for FY 2025. This ordinance appropriates an additional $22,600 in federal grant funds from the “HI Impact Grant” to the County’s General Fund. Federal impact grants typically assist local governments affected by federal activities. The ordinance became effective on June 23, 2025.
  • VOTE: AYES: Council Members Galimba, Hustace, Kagiwada, Kaneali’i-Kleinfelder, Kimball, Onishi, Villegas and Chair Inaba – 8. NOES: None. ABSENT: Council Member Kierkiewicz – 1. EXCUSED: None.

These ordinances collectively modify key aspects of Hawaiʻi County’s real property tax code, budget, and regulatory framework, reflecting various local priorities and federal partnerships.