Maui County Council committee to review real property tax exemption reforms

The Maui County Council’s Special Committee on Real Property Tax Reform will meet at 9 a.m. Tuesday in the Council Chambers to consider legislation aimed at easing the tax burden for residents and streamlining exemption deadlines.

The committee is scheduled to discuss Bill 142 (2025), which proposes changes to the Maui County Code regarding home and long-term rental exemptions. Under the original version of the bill, the county would adjust filing deadlines to allow taxpayers who submit claims by Dec. 31 or June 30 to receive their exemptions on their very next tax payment.

The legislation also seeks to help long-term local residents who purchase homes that were previously used as short-term or transient vacation rentals. Signed into law Dec. 15, Bill 9 would phase out short-term rentals in apartment-zoned districts, primarily impacting communities in South and West Maui.

Proposed bill revisions

Council Member Tamara Paltin has submitted a summary form and a proposed “Committee Draft 1” of the bill, dated Jan. 12, which suggests several modifications to the original proposal.

Paltin’s revised version would delete the provision that allows long-term rental exemption claimants to receive the exemption on their next tax payment. However, it maintains and refines the adjusted filing requirements for the home exemption.

The new draft also proposes more lenient residency requirements for the home exemption. It would reduce the necessary county residency period from 10 to five years. Additionally, it would remove the requirement that the property must have been used for transient accommodations within the past five years to qualify for the expanded eligibility.

Public participation

Residents interested in the proceedings can view the agenda and related documents at the county’s legislative website at www.MauiCounty.us/RPTR. The committee meeting can be viewed live online via Teams: http://tinyurl.com/RPTR-SpecialCommittee; or on Akakū: Maui Community Media, cable Channel 53.