Special Committee on Real Property Tax Reform Meeting - March 6, 2026
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Special Committee on Real Property Tax Reform Meeting - March 6, 2026
The Special Committee on Real Property Tax Reform (RPTR) met on March 6, 2026, at 1:38 PM chaired by Alice Lee. Voting members included Vice Chair Kani Rollins Fernandez, Councilmembers Kownoi Batangan, Gabe Johnson, and Yukile Sugimura. Resource persons included Director of Finance Marcy Martin, Real Property Tax Administrator Carrie Stockwell, and Deputy Corporation Counsel Wigglesworth. Michael Williams (Maui Tomorrow) and Tom Crowley were designated as additional resource persons. The committee addressed four agenda items: a software tool for tax rate calculations, Bill 142 on homeowner and long-term rental exemptions, Bill 37 on workforce housing exemptions, and the disposition of pending bills.
Public Comments & Testimony
- Luna Hoomoluli testified at the start of the meeting, raising concerns about nonprofit religious organizations using property without maximum community benefit and requested the committee investigate.
- Tom Crowley testified multiple times: complimenting the software tool, supporting Bill 142 but raising questions about mid-year filing for exemptions, and expressing caution about Bill 37 (incentivizing development before construction). He also urged the committee to continue its work.
- Royal House of Hawaii testified on Bill 142, Bill 37, and the remaining bills, arguing that all real property is royal patent land requiring consent from descendants and that exemptions and decisions are illegal without notification of heirs.
Discussion Items
RPT-12: Real Property Tax Proposal Calculation Software
- Presentation: Michael Williams demonstrated a new online tool allowing real-time adjustment of tier thresholds and tax rates across all 12 property classes to project revenue changes. The tool is free and will be updated with certified assessed values in April.
- Discussion: Director Martin and Ms. Stockwell confirmed the tool is 98-99% accurate (appeals cause slight variance) and recommended its use as a starting point during budget deliberations, with final numbers run by the tax department. Members asked about creating new tiers or classes; the tool can accommodate them if legislated. The item was informational and no action was taken; it may be taken up by the Budget Committee.
RPTR-7: Bill 142 (Home Exemption and Long-Term Rental Exemption)
- Testimony: Tom Crowley supported the intent but asked about mid-year exemption eligibility. The Royal House of Hawaii objected on land rights grounds.
- Administration Feedback: Director Martin and Ms. Stockwell reviewed the bill and its amended version (CD1, posted as an ASF by Member Paulton) and expressed satisfaction.
- Committee Action: A motion to recommend passage of Bill 142 as amended (CD1) passed unanimously (5-0) after an amendment to adopt the ASF was approved 5-0.
RPTR-18: Bill 37 (Workforce Housing Exemption)
- Discussion: Chair Lee explained the bill originated to assist first-time buyers of affordable units who face high non-owner occupied taxes due to timing of purchase. Because the bill is still evolving and has not yet satisfied administration concerns, she recommended referral to the Housing, Land, and Urban Development (HLU) Committee for further work on affordable housing aspects.
- Action: No objections; the bill was referred to HLU.
Remaining Pending Bills
- The committee considered eight bills: 110 (ʻĀina Kupuna), 112 (golf courses), 114 (non-taxable property), 143 (vacant residential), 144 (wildfire relief extension), 145 (upcountry water priority list), 146 (home exemption deadlines), and 181 (increasing exemption amounts).
- Testimony: Tom Crowley urged the committee to continue its work and noted a state bill addressing similar issues. The Royal House of Hawaii again objected.
- Action: The item was deferred to the next RPTR meeting for a decision on whether to file or refer each bill.
Key Outcomes
- Bill 142 (Home and Long-Term Rental Exemption): Recommended for passage at first reading as amended (5-0).
- Bill 37 (Workforce Housing Exemption): Referred to the HLU Committee.
- Software Tool: No formal action; may be used by the Budget Committee during budget session.
- Remaining Bills: Deferred to the next RPTR meeting (likely March 20 or 27) for disposition.
- Next Meeting: Chair Lee indicated a possible additional meeting before the committee's last day (March 27).
Meeting Transcript
Well, the special committee on real property tax reform of uh meeting of March 3rd, 2026, please come to order. It is 138 p.m. Aloha, everyone. I'm your chair of this committee, Alice Lee. This online meeting is being conducted in accordance with the Sunshine Law as a reminder. When your name is called, if you are not in the council chamber, please state your location and identify by name who, if anyone is in your room, vehicle or workspace with you today. Minors do not need to be identified. Committee voting members include committee vice chair Kani Rollins Fernandez, Councilmember Kownoi Batangan, Councilmember Gabe Johnson, and Councilmember Yukile Sugimura. Assisting with today's meeting are the RPTR committee staff, our resource persons from the administration, who are director of finance, Marcy Martin, County Real Property Tax Administrator, Carrie Stockwell, Deputy Corporation Council Wigglesworth. To assist today, I've also invited Michael Williams, President of Maui tomorrow, and Chair of the Real Property Tax Review Board. Tom Crowley, former chair of the Real Property Tax Review Board, and members, if there are no objections, the chair designates Mr. Williams and Mr. Crowley as resource persons under Rule 18A of the rules of the council based on their role and experience. Are there any objections? No objections. Thank you. Chair. Yes, member Rollins Fernandez. Aloha, Owen Allah. I am at home at my private residence. Alone. There may be a couple minors running around at around 2 30. Uh if you see me speaking with anyone. Thank you. Sadie Green. Okay. And then we have Member Johnson. Aloha Chair, Council members, uh, community members, and guest speakers today. I'm alone in my office uh on my side of the office. No testifiers here at the Letnight E District Office. I do have a doggy in the background, so beg your pardon, and I'm here and ready to work. Thank you. Thank you. And we have one more resource person. Any objections to designating Miss Sadie Green? Is that correct? No objection. Sadie Green. Sadie Green is with uh Mr. Williams. No objections. Thank you. And you uh will be uh speaking on his behalf today. Speak into the mic, please. Thank you, Chair. Uh he's going to be presenting orally, and I'm I'm helping to facilitate the PowerPoint presentation. Okay. And for the record, what is your expertise in this area? I'm an environmental planner. Okay.
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