May 15, 2026, 10 a.m.
Kalana O Maui Building
To: Maui County Council
Alice Lee, Chair
Yuki Lei Sugimura, Vice Chair
From: Jonathan Helton, Policy Analyst
Grassroot Institute of Hawaii
RE: Resolution 26-69, FD1 — ADOPTING THE REAL PROPERTY TAX RATES FOR FISCAL YEAR 2026-2027
Aloha Chair Lee, Vice Chair Sugimura and other members of the Council,
The Grassroot Institute of Hawaii offers comments on Resolution 26-69, FD1, which would set Maui County’s property tax rates for the 2026-2027 fiscal year.
Overall, the tax rates proposed in Mayor Richard Bissen’s budget are estimated to raise about $660 million in fiscal 2026-2027, which would be slightly more than the $659 million being raised in the current fiscal year.[1]
But because assessed values declined by $550 million,[2] the mayor’s proposed budget contains adjustments for certain property tax classes and tiers to help make up for that lost revenue.
In particular, non-owner-occupied homes, time shares, short-term rental homes and high-value bed-and-breakfasts would see higher tax rates and likely higher tax bills. If these rate increases were to be enacted, county taxpayers would pay approximately $30 million more in the upcoming fiscal year compared to the current rates. These higher costs could also discourage tourism if passed on to visitors, as they often are.[3]
Meanwhile, long-term rentals, owner-occupied homes and some bed and breakfasts would see lower tax rates and likely lower tax bills.
Grassroot encourages the Council to instead retain the current tax rates but modify them to reflect the tier adjustments and lower rates proposed in the mayor’s budget.
This approach would leave the county with almost $630 million in property tax revenue. For context, the county collected $585 million in real property taxes in fiscal 2024-2025,[4] which means a one-time cut would still amount to a large tax increase compared to just two years ago.
Table 1 compares the current tax rates to the proposed rates for the 2026-2027 fiscal year.
Table 1. Current and proposed property tax rates per $1,000 in assessed value
| Classification | Current tax rate | Proposed tax rate |
| Owner-occupied, Tier 1 | 1.65 | 1.65 |
| Owner-occupied, Tier 2 | 1.8 | 1.8 |
| Owner-occupied, Tier 3 | 5.75 | 5 |
| Non-owner-occupied, Tier 1 | 5.87 | 6.25 |
| Non-owner-occupied, Tier 2 | 8.6 | 9 |
| Non-owner-occupied, Tier 3 | 17 | 17 |
| Apartment | 3.5 | 3.5 |
| Hotel and resort | 11.8 | 11.8 |
| Time share | 14.7 | 14.9 |
| TVR-STRH, Tier 1 | 12.5 | 13 |
| TVR-STRH, Tier 2 | 14 | 15 |
| TVR-STRH, Tier 3 | 15.55 | 17 |
| Long-term rental, Tier 1 | 2.95 | 2.9 |
| Long-term rental, Tier 2 | 5 | 5 |
| Long-term rental, Tier 3 | 8.5 | 8.5 |
| Agricultural | 5.74 | 5.74 |
| Conservation | 6.43 | 6.43 |
| Commercial | 6.05 | 6.05 |
| Industrial | 7.05 | 7.05 |
| Commercialized residential, Tier 1 | 2 | 2.9 |
| Commercialized residential, Tier 2 | 3 | 5 |
| Commercialized residential, Tier 3 | 10 | 10 |
Additionally, Councilmember Kauanoe Batangan’s proposed amendment to reduce the tier one and tier two tax rates on commercialized residential properties would be a step in the right direction.
Grassroot appreciates the opportunity to comment and would welcome dialogue regarding how the county could lower the tax burden for all taxpayers.
Thank you for the opportunity to testify.
Jonathan Helton
Policy Analyst
Grassroot Institute of Hawaii
1050 Bishop St. #508 | Honolulu, HI 96813 | 808-864-1776 | info@grassrootinstitute.org
[1] “County of Maui Real Property Tax Valuation for Fiscal Year 2025-2026,” Honolulu Real Property Assessment Division, July 2025.
[2] “Selected Real Property Statistics For Budget Consideration Fiscal Year 2026-2027,” Maui County Department of Finance, p. 5.
[3] PricewaterhouseCoopers LLP, “The Impact of Taxes on the Competitiveness of European Tourism,” European Commission, Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, October 2017.
[4] “County of Maui Real Property Tax Valuation for Fiscal Year 2024-2025,” Honolulu Real Property Assessment Division, August 2024.
