OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Kaua'i County Council Committee Meeting - April 2, 2025

County Council & Committees — Wednesday, April 2, 2025
BodyKauai County, Hawaii
SessionCounty Council & Committees
DateWednesday, April 2, 2025
StatusFILED
Video Record
Meeting Thumbnail
⇩ GET FROM SOURCE

STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE

Transcript — Verbatim
0:00

Okay.

0:03

Welcome to the committee meeting of April 2nd.

0:05

We will start off today with our Finance and Economic Development Committee.

0:08

Like to call a finance and economic development committee to order.

0:11

Let the record reflect that all members are present.

0:14

Council Vice Chair Cooley is excuse for today.

0:20

Minutes of the March 6, 2025 Finance and Economic Development Committee meeting.

0:26

Move to approve.

0:27

Second.

0:28

Any questions?

0:30

And on the minutes, anyone in the audience wishing to testify?

0:33

Any discussion from the members?

0:35

Not all those in favor, signify by saying aye.

0:38

Aye.

0:38

Those opposed, motion carried.

0:41

Next item.

0:42

Bill number 2944.

0:44

A bill for an ordinance amending chapter 5A, Ko I County Code 1987 as amended relating to the real property tax.

0:52

This is for the new tax classification, long-term affordable rental.

0:57

Second.

0:58

We have any um questions on this item?

1:01

Yes.

1:03

I have an amendment.

1:05

The six amendment first.

1:06

Yeah, the three amendment.

1:07

I move to amendment circulated.

1:09

Second.

1:12

This amendment is simply a clarification.

1:14

It doesn't change any of the substance, it just further um defines who is eligible for the uh the exemption.

1:32

Okay.

1:34

So it just clarifies that um if you're you have a second home and you're not living on that property, it'll go in the long term and you're renting it at the low rate, you'll go into long term.

1:44

If you have multiple houses on a property and you also live there and you're renting, then you'll stay in the owner-occupied class.

1:54

Any questions on this amendment?

1:59

If not, um anyone in the audience wishing to testify on the amendment?

2:04

All those in any final discussion for the amendment?

2:07

Not all those in favor signify by saying aye.

2:10

Aye.

2:10

Aye.

2:10

Those opposed, motion carried.

2:13

BAFCO main motion as amended.

2:15

Do we have any?

2:16

Oh, I'll suspend the rules.

2:17

Councilmember Calden has a question.

2:18

I just have a basic question.

2:20

Like in general, I I feel supportive of this.

2:23

Um, but council chair, because this is your bill.

2:26

You're separating out long-term affordable rental just to um reduce the confusion of when it's basically a rental house versus an owner-occupant.

2:39

Correct.

2:40

And so do you have an intention or do you think do you envision an intention for uh you know changing that tax rate?

2:50

I I don't have an intention at this time to change the tax rate.

2:53

But you envision maybe there might be a need for that at some point, depending on how the market fluctuates.

3:00

Uh if there's an uh if there's an opportunity to provide a larger benefit for owners that live in their house, and not for someone that's renting out their house, that opportunity is there.

3:13

Um so they'll be separate and apart, so you we could basically set tax rates for each individual class.

3:20

Um right now we we we can't because they're all grouped together in one tax class.

3:27

Okay, and you know, for me personally, I think the owner-occupant, if I live in the house that I own, I should have a larger benefit than one that is renting out their house uh as a second home or third home.

3:42

But as far as the intention to it you know, impact tax rates.

3:46

I don't have any any intention to change any tax rates this year.

3:52

Um and I'm just gonna throw in sometimes uh actually oftentimes when people are renting out a house at the long-term affordable rate, they're actually renting it at best zero or often a loss.

4:06

What I find a number of people who are doing that are renting to their employees or somebody, you know, so they're basically subsidizing housing on it.

4:16

So um, you know, there's value in continuing to have those long-term affordable rentals be tax low, and you know, maybe even sometimes even lower.

Discussion Breakdown — Share of Meeting
Real Property Tax███████████████████████████████████████39%
Procedural██████████████████████22%
Public Safety██████████████████████22%
Affordable Housing█████████████████17%
Summary of Proceedings

Kaua'i County Council Committee Meeting - April 2, 2025

The Kaua'i County Council convened on April 2, 2025, at 8:30 AM for the Finance & Economic Development Committee and the Committee of the Whole. Council Vice Chair Cooley was excused. The meeting covered two bills: Bill 2944, which creates a new 'Long-Term Affordable Rental' property tax classification, and Bill 2943, which establishes criminal trespass penalties for county lands. Both bills passed unanimously.

Consent Calendar

  • Minutes of March 6, 2025 Finance & Economic Development Committee Meeting: Approved unanimously without discussion or testimony.

Discussion Items

  • Bill 2944 – Real Property Tax Amendment (Long-Term Affordable Rental): Councilmember (proposer) introduced an amendment to clarify eligibility, specifying that second homes rented at long-term affordable rates fall into the new class, while owner-occupied properties with multiple houses remain owner-occupied. The amendment passed unanimously. Discussion ensued regarding the intent of the classification: Council Chair explained it separates rental properties from owner-occupied to avoid confusion and allow future flexibility in setting tax rates. Councilmember Cowden expressed support but voiced concern that the new classification could lead to increased taxes on limited affordable rentals, noting that many owners already rent at a loss. The Chair emphasized no immediate tax rate change is planned, and the bill aims to clarify designations. The bill passed 6-0.

  • Bill 2943 – Criminal Trespass onto County Lands: County Managing Director Rick Matsuyama and another official (Kalani?) addressed questions. Councilmember Carvalho asked about the scope, noting that the bill covers all county lands, including unimproved areas. The officials clarified that the ordinance requires signage and that the land must be closed to the public (e.g., transfer stations, not sidewalks or roadways). Councilmember Carvalho also requested tracking of trespass notices; the officials confirmed their records management system logs such notices and can provide reports. They noted that only one trespass warning had been issued historically. The bill passed 6-0.

Key Outcomes

  • Bill 2944 (Real Property Tax – Long-Term Affordable Rental) passed as amended, 6-0.
  • Bill 2943 (Criminal Trespass onto County Lands) passed, 6-0.
  • Both bills will proceed to final reading and adoption.

Meeting Transcript

Okay. Welcome to the committee meeting of April 2nd. We will start off today with our Finance and Economic Development Committee. Like to call a finance and economic development committee to order. Let the record reflect that all members are present. Council Vice Chair Cooley is excuse for today. Minutes of the March 6, 2025 Finance and Economic Development Committee meeting. Move to approve. Second. Any questions? And on the minutes, anyone in the audience wishing to testify? Any discussion from the members? Not all those in favor, signify by saying aye. Aye. Those opposed, motion carried. Next item. Bill number 2944. A bill for an ordinance amending chapter 5A, Ko I County Code 1987 as amended relating to the real property tax. This is for the new tax classification, long-term affordable rental. Second. We have any um questions on this item? Yes. I have an amendment. The six amendment first. Yeah, the three amendment. I move to amendment circulated. Second. This amendment is simply a clarification. It doesn't change any of the substance, it just further um defines who is eligible for the uh the exemption. Okay. So it just clarifies that um if you're you have a second home and you're not living on that property, it'll go in the long term and you're renting it at the low rate, you'll go into long term. If you have multiple houses on a property and you also live there and you're renting, then you'll stay in the owner-occupied class. Any questions on this amendment? If not, um anyone in the audience wishing to testify on the amendment? All those in any final discussion for the amendment? Not all those in favor signify by saying aye. Aye. Aye. Those opposed, motion carried. BAFCO main motion as amended. Do we have any? Oh, I'll suspend the rules. Councilmember Calden has a question. I just have a basic question. Like in general, I I feel supportive of this. Um, but council chair, because this is your bill. You're separating out long-term affordable rental just to um reduce the confusion of when it's basically a rental house versus an owner-occupant. Correct. And so do you have an intention or do you think do you envision an intention for uh you know changing that tax rate? I I don't have an intention at this time to change the tax rate.

SUMMARIZED BY OPENPUBLICA AI
TRANSCRIPT VIA PUBLIC VIDEO
openpublica.com