Maui Council advances tax relief extension for Lahaina wildfire survivors

The Maui County Council unanimously passed a bill on first reading Friday that would extend real property tax relief for Lahaina wildfire survivors through June 2028.

Bill 171 seeks to assist property owners whose lands remain unoccupiable. It also helps those who are undergoing active rebuilding following the August 2023 wildfires.

The measure targets properties located in historic districts and the special management area. It also applies to properties abutting the shoreline.

Department of Finance Director Marcy Martin testified in favor of the bill.

The administration of Mayor Richard Bissen supports the measure as is with no further amendments, she said.

Martin noted that the department would provide public outreach if the bill becomes law. Public information would support the community that has been negatively impacted by the wildfires.

While supporting the residential relief, testifier McKinley Eads urged the Council not to forget Lahaina commercial property owners who face unique and persistent challenges.

“Not a single commercial property has been rebuilt and occupied since the fire,” Eads said. “The path forward is blocked by regulatory delays and uncertainty . . . Unless something changes, commercial property owners will likely not have a certificate of occupancy by 2028.”

Eads added that without approved design guidelines, commercial owners cannot move forward with rebuilding. She noted they are ineligible for grants or recovery programs available to residential owners.

Council Vice Chair Yuki Lei Sugimura told Eads that the bill was developed specifically because she was hearing such frustration from Lahaina commercial property owners. She said they felt forgotten and were facing a huge liability.

Jonathan Helton of the Grassroot Institute of Hawaii testified in support of Bill 171.

Helton noted the bill would help people get back on their feet. He said it assists those who are trying to figure out permits or insurance and just haven’t been able to rebuild yet.

Testifier Tom Croly said he appreciated that the committee expanded the bill to include everyone affected by the fire. He noted this was better than limiting it just to those in the special management area.

During the meeting, Council Member Tamara Paltin discussed a potential amendment to address a concern about property sales and title transfers.

Paltin said outside investors purchasing properties due to hardships. However, she acknowledged that many title transfers are currently for title cleanup within families.

Martin suggested leaving the bill as is for this year. She said this would avoid administrative complications. It would also allow the County to monitor the situation as areas open up and permitting proceeds.

Martin said that the current draft is likely the easiest to administer and for the public to understand.

Paltin agreed not to make the motion. She requested quarterly updates on the issue instead.

The bill now moves to a second and final reading before the full council.

Also on first reading, council members passed:

Bill 170, which would establish an income-based real property tax credit of up to $10,000 for homeowners whose prior year’s real property taxes exceed: 2% of household income; or the minimum tax in the annual budget ordinance, subject to eligibility conditions.

Bill 169, which would preserve attainable housing by: allowing the director of the Department of Finance to consider shared-equity deed restrictions when assessing real property; and setting clear standards to ensure similar properties receive fair treatment.

Bill 160, which would authorize the mayor to enter into an intergovernmental agreement with various governmental entities on O‘ahu, Kaua‘i, and Hawai‘i Islands for the Wai Maoli: Fresh Water Initiative.

On second and final reading, council members passed:

Bills 136 and 137, appropriating $1.1 million for renovations at the 60 South Church Street building in Wailuku. Work includes waterproofing and electrical upgrades to allow the Maui Emergency Management Agency to move into the facility by February.

 Bills 150 and 151, authorizing the Bissen administration to enter into an agreement with the State of Hawaiʻi Drinking Water State Revolving Fund, not to exceed $64.47 million, for countywide wildfire disaster relief projects.

Bill 173, updating the name of a grant recipient event from the Makawao Halloween event to the Makawao Holiday 2025 Light the Town event.

Bill 174, updating a fiscal sponsor for a film grant from Rising From the Ashes LLC to Mana Maoli. Paltin said the film “Lahaina Rising” recently won an award at the Hawaiʻi International Film Festival.