The Maui County Council approved a mixed bag of fiscal 2026 property tax rates on Tuesday that were supported by Grassroot only because most of the rates were slightly lower than the Council’s first proposal.
Resolution 25-88, floor draft 2 slashes rates for some owner-occupied homes and bed and breakfasts, but it also includes higher tax rates for short-term rentals, non-owner occupied residential properties, time shares and hotels.
The rate changes will save Maui taxpayers about $9.5 million. But overall, Maui taxpayers will still see their tax bills go up in 2026 because of a combination of higher tax rates and assessments.
Mayor Richard Bissen’s original budget proposal included a minor rate reduction for some homeowners and held rates steady for other classes. During budget deliberations, the Council opted to increase the rates on many classes, but walked back some of the steepest increases in the resolution that passed Tuesday.
“The proposed reduction in the Council’s initially proposed higher rates are welcome news,” Grassroot policy analyst Jonathan Helton wrote in testimony. “But the Council should reevaluate property taxes after the budget season ends to promote economic growth and affordability for all Maui residents.”
To read Helton’s full testimony, click here.
Meanwhile, at the state level:
Gov. Josh Green signed into law on May 29 the Grassroot-supported bill HB732, now Act 125 (2025), which increases the threshold for needing a Special Management Area major permit from $500,000 to $750,000, with inflation adjustments to automatically occur every five years.
Grassroot pointed out in its testimony on HB732 that the threshold had not been changed since 2011, and that an increase to keep up with inflation and higher construction costs was long overdue.
Unfortunately, the measure does not cover construction on parcels directly on shorelines, but still it’s a welcome reform.
