Hawaii County Finance Committee Meeting: June 16, 2026

The Committee on Finance met on June 16, 2026, at 10:31 a.m. in the Kona chambers with members also joining from the Hilo chambers. The meeting was called to order by the Chair and addressed a report of fund transfers, a resolution for Kilauea recovery grant funds, and a bill establishing a new real property tax dedication for ancestral lands. Councilmember Viegus was excused.

Consent Calendar

• Communication 23.36 – Report of funds transfers authorized April 16–30, 2026, from Controller John Arbos, dated May 14, 2026. Motion to close file by Councilmember Houstis, seconded by Councilmember Kirkowitz. Passed unanimously with 8 members in favor (Councilmember Viegus excused).

Public Comments & Testimony

• No public testimony was offered or received during the meeting.

Discussion Items

• Resolution 586-26 – Authorizes the Planning Department to award $142,000 in grant funds to Pohaku Pelemaca through the Kilauea Recovery Grant Program. The funds are for relief, recovery, mitigation, and long-term resilience for disaster damages from the 2018 Kilauea eruption. Introduced by Councilmember Kirkowitz. Councilmember Kirkowitz stated that Patty Pinzel from the recovery division was present and noted that projects requiring a fiscal sponsor (e.g., Red Road Resilience Hub, led by Kristen McCormick) were receiving support. He thanked Layla Kialoha for serving as fiscal sponsor. Motion to forward to council with a favorable recommendation by Councilmember Kirkowitz, seconded by Councilmember Houstis. Passed 8–0.
• Bill 163 – Amends Chapter 19, Article 8 of the Hawaii County Code to establish a new real property tax dedication ("Aina Kapuna") for properties owned by a descendant of a person who owned the property at least 100 years ago, subject to the minimum tax. Introduced by Councilmember Houstis. The bill had been postponed on June 2, 2026. A motion to recommend passage on first reading was already on the floor. Councilmember Houstis proposed three amendments:
  • Amendment 909.3 – Requires the Director of Finance to submit an annual report to council on the Aina Kapuna dedication program, including number of applicants, total applicants, estimated tax relief provided, and average tax relief per participant. Seconded by Councilmember Kalguada. Passed 8–0.
  • Amendment 909.4 – Clarifies how the $10,000 tax threshold applies to agricultural properties. Ensures that agricultural properties receiving an agricultural use assessment are evaluated based on the taxes that would have been assessed without that assessment, preventing their exclusion. Seconded by Councilmember Oanishi. Passed 8–0.
  • Amendment 909.2 – Establishes an application and review timeline for the first year: property owners must apply by December 31, 2026, and the Director of Finance must notify applicants of eligibility by February 15, 2027. Real Property Tax Administrator Lisa Mira (via Zoom) confirmed the timeline is doable for her team. Councilmember Kimball suggested reaching out to LRB for drafting language to repeal the section after February 2027 to avoid mucking up the code. Councilmember Houstis clarified the timeline is in the non-codified section of the bill and noted a comma may be needed for clarity. Councilmember Nova requested the comma be included in the next draft; the clerk confirmed LRB can coordinate. Passed 8–0.
• Clarifications during discussion:
  • Councilmember Kalguada asked about the eligibility requirement that total real property taxes assessed for the 10 years preceding petition must be more than $10,000. Councilmember Houstis confirmed the intent is to set that threshold. Administrator Mira clarified it means 10 years of taxes (not assessed value) must total more than $10,000.
  • Councilmember Kalguada also noted the bill is not limited to native Hawaiian residents but applies to anyone who has owned property since before 1926. Councilmember Houstis confirmed.
  • Councilmember Kalguada expressed support for the 20-acre cap, stating it prevents large landholders from having a substantial impact on the tax base.

Key Outcomes

• Bill 163, as amended by communications 909.2, 909.3, and 909.4, was forwarded to the council with a favorable recommendation on first reading. Vote: 8–0 (Councilmember Viegus excused).
• Resolution 586-26 was forwarded to the council with a favorable recommendation. Vote: 8–0.
• Communication 23.36 was closed. Vote: 8–0.
• Meeting adjourned at 10:54 a.m.