Kauai County Finance and Economic Development Committee Meeting – May 6, 2026

The Finance and Economic Development Committee of the Kauai County Council met on May 6, 2026, at 7:30 PM (HST) with quorum present. Committee Chair Kaneshiro was absent, so Councilmember (acting chair) presided. The meeting addressed three agenda items: approval of prior meeting minutes, a budget amendment for firefighter hazard pay, and a real property tax credit bill. Four councilmembers were excused due to another commitment.

Minutes Approval

• The committee unanimously approved the minutes of the April 15, 2026, Finance and Economic Development Committee meeting. Motion carried by voice vote.

Bill 2990 – Temporary Hazard Pay for Firefighters

• Bill 2990 (a budget amendment) provided temporary hazard pay for the Hawaii Firefighters Association, IAFF Local 1463, Bargaining Unit 11, for the fiscal year ending June 30, 2026. The motion to approve was seconded. No public testimony or discussion. A roll call vote was taken: Councilmember Carvalho (excused), Councilmember Cowden – aye, Councilmember Holland – aye, Councilmember Kuoli (excused), Council Chair Raposo – aye, Councilmember Kaneshiro (absent), Councilmember Kabolasan – aye. Motion passed.

Bill 2991 – Real Property Tax Credit for Owner-Occupants

• Bill 2991 amended Chapter 5A of the Kauai County Code to create a tax credit for owner-occupants who purchase a home after the deadline to file for the owner-occupant exemption. The credit would apply in the following tax year for the difference between the non-owner-occupant rate paid and the owner-occupant rate.
• Amendment: The committee chair moved an amendment to clarify the recordation date for when the property sale must be recorded to qualify. The amendment was seconded and passed by voice vote.
• Explanation: Councilmember (introducer) explained the current rates: owner-occupant rate is $2.59 per $1,000 assessed value; non-owner-occupant rate is $5.45 per $1,000 for properties under $1.3 million, $6.05 for $1.3–$2 million, and $9.40 for over $2 million. The bill addresses the unfairness of new owner-occupants paying the higher rate for the remainder of the year. The example of a vacation rental (TVR) converting to owner-occupant was also covered, noting the TVR rate of $12.35 per $1,000.
• Public Testimony: A resident testified about a family in Veloa Homesteads who gave up their TVR license and moved into the home full-time. The witness asked whether the credit would apply retroactively. The chair clarified the credit would apply from the date of application, not retroactively, and would be a credit on the next year’s tax bill. The witness expressed strong support.
• Discussion: Councilmember Cowden questioned the frequency of such cases. Finance department representative (Scott) stated they had no estimate of the number of applicants and noted the process would be manual, potentially requiring additional staff. Councilmember Cowden expressed support for the bill and acknowledged the need for future staffing requests. Councilmember Holland asked whether the credit also covered a change from TVR to owner-occupant; the chair confirmed it did. Other councilmembers voiced support, calling the bill a fairness measure and a housekeeping fix. The chair noted the bill may require a future staff request and that he is prepared to support it.
• Roll Call Vote: Councilmember Carvalho (excused), Councilmember Cowden – aye, Councilmember Holland – aye, Councilmember Kuoli (excused), Council Chair Raposo – aye, Councilmember Kaneshiro (excused), Councilmember Kabolasan – aye. Motion passed.

Key Outcomes

• Approved minutes of April 15, 2026.
• Passed Bill 2990 (firefighter hazard pay) unanimously.
• Passed Bill 2991 as amended (real property tax credit) unanimously.
• The committee acknowledged that implementing the tax credit may require additional staff resources in the finance department.

The meeting adjourned following conclusion of the final item.