The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Kauai County Council on Feb. 26, 2025.
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Feb. 26, 2025, 8:30 a.m.
Historic County Building
To: Kauai County Council
Mel Rapozo, Chair
KipuKai Kuali’i, Vice Chair
From: Grassroot Institute of Hawaii
Jonathan Helton, Policy Researcher
RE: Bill 2944 — RELATING TO REAL PROPERTY TAX
Aloha Chair Rapozo, Vice-Chair Kuali’i and other members of the Council,
The Grassroot Institute of Hawaii offers comments on Bill 2944, which would create a new property tax class for long-term affordable rentals.
Currently, long-term affordable rentals — defined as rentals that are affordable to those making no more than the mid-point of 80% to 100% of area median income — receive a 3% assessment cap and are taxed as a part of the owner-occupied class. Bill 2944 would simply create a separate class for these properties.
Grassroot believes that a new class for these rentals could help the Council make data-driven decisions about the county’s property tax incentives for affordable rentals.
However, we caution the Council against increasing the tax rate on this new class. Long-term affordable rentals now pay the lowest tax rate — $2.59 per $1,000 of assessed value.[1] Any increase in this rate would discourage landlords from enrolling in the program, and could cause some properties to be moved out of the program, which would increase rents for tenants.
Thank you again for the opportunity to testify.
Jonathan Helton
Policy Researcher
Grassroot Institute of Hawaii
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[1] “County of Kauai Real Property Tax Valuation For Fiscal Year 2024-2025,” Technical Branch, Real Property Assessment Division, Department of Budget and Fiscal Services, City and County of Honolulu, August 2024
