County Council gives final approval to larger farm dwellings, expanded circuit breaker program

Maui County Council members approved on second-and-final reading Friday a bill to permit a 500-square-foot increase in the size of secondary farm dwellings in agricultural districts on Maui and Lānaʻi.

Bill 71 had already been extensively discussed May 15 during a meeting of the Council’s Housing and Land Use Committee. The measure will not change the allowable size of a secondary farm dwelling on Molokaʻi.

Currently, on 2-acre agricultural lots, the Maui County Code allows a 7,712-square-foot main farm dwelling and a 1,000-square-foot second dwelling, according to the Department of Planning. The proposed amendment would permit a 7,212-square-foot main house and a 1,500-square-foot secondary dwelling.

In other action, council members gave final approval to Bill 85, which provides for an extension of property tax relief under Maui County’s circuit breaker tax relief program. The measure is aimed at helping shield longtime residents from sharp increases in property tax bills caused by rapidly rising property values in their neighborhoods.

An amendment of the bill, approved earlier on first reading, extended relief to owners of buildings with gross assessed values beyond $1 million, although with a sliding scale with benefits of less than 100%.

If signed into law by Mayor Richard Bissen, the circuit breaker amendment to the Maui County Code would be effective Aug. 1. It would not affect the upcoming fiscal year beginning July 1. The impact of the measure is expected to be felt in fiscal year 2026, with an estimated tax credit of $475,000 to residents.

Bill 85 also increases the maximum amount of the circuit breaker tax credit from $6,500 to $8,200 and raises the maximum household income to qualify for the credit from $100,000 to $126,000.

To qualify for the circuit breaker program, property owners need to have a homeowner’s exemption and show that their real property taxes exceed 2% of their gross income. Taxpayers are required to submit signed copies of their IRS tax account and return transcripts. Applications are available and accepted Aug. 1 through Dec. 31.

Also Friday, council members approved on second-and-final reading Bill 57. The measure adds $16.42 million to the Homeowner Assistance Fund to the fiscal 2024 budget of the Department of Housing and Human Concerns. The money comes from the American Rescue Plan Act of 2021.

The Homeowner Assistance Fund eases financial hardships of homeowners impacted by the coronavirus pandemic. The fund assists eligible recipients to prevent homeowner mortgage delinquencies, defaults, foreclosures, loss of utilities or home energy services.

The Council also adopted a resolution to allow the transfer of $50,000 within the budget of the Department of Housing and Human Concerns for a grant to Aha Kukui O Moloka’i to purchase new canoes and paddles and for travel to attend races and activities. Participants range in age from 12 to 21 years old.

Proposed Bill 99, which would repeal a portion of the Maui County Code relating to pesticide and fertilizer use on county property, was referred to committee for review. There was some public testimony opposed to the bill.