The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Maui County Council on Oct. 10, 2025.
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Oct. 10, 2025, 9 a.m.
Kalana O Maui Building
To: Maui County Council
Alice Lee, Chair
Yuki Lei Sugimura, Vice Chair
From: Grassroot Institute of Hawaii
Jonathan Helton, Policy Analyst
Re: Bill 113 (2025) — RELATING TO THE DEADLINE FOR FILING CLAIMS FOR REAL PROPERTY TAX EXEMPTIONS AND STANDARDS FOR VALUATION
Aloha Chair Lee, Vice Chair Sugimura and other members of the Council,
The Grassroot Institute of Hawaii supports Bill 113 (2025), which would allow Maui property owners who file for the long-term rental or homeowner exemptions to obtain partial tax relief if they file after the Dec. 31 deadline and before Sept. 30 of the next year.
Grassroot supports this bill because there are many situations in which an owner might not file before the deadline.
Some Maui property owners simply do not know that the County offers these tax-relief programs. Others might purchase a home or start using a property as a long-term rental halfway through the year and would like to avoid the high taxes they could otherwise face if the property were classified as short-term rental or non-owner occupied.
These tax differences can be stunning. A short-term rental valued at $1 million faces a fiscal 2026 tax bill of $12,500 while an owner-occupied home of the same value pays just $1,155.[1] This difference could be a major deterrent to potential homebuyers wanting to purchase a short-term rental to use as their principal residence.
Thank you for the opportunity to testify.
Jonathan Helton, Policy Analyst
Grassroot Institute of Hawaii
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[1] “Real Property Tax Rates for Tax Year July 1, 2025 to June 30, 2026,” Real Property Assessment Division, Honolulu Department of Budget and Fiscal Services, July 2025.
