Hawaii Council Proposes Tax Relief for Senior Farmers

Two members of the Hawaii County Council have introduced legislation aimed at providing property tax relief to senior farmers. Councilwoman Heather Kimball and Councilman James Hustace have proposed Bill 103, which seeks to cap annual property tax assessment increases at 3% for homeowners aged 65 and older. This measure targets individuals whose properties were previously assessed under agricultural use or dedication programs but are no longer eligible.

To qualify under this proposal, homeowners must have participated in one of the agricultural tax programs for a minimum of 10 consecutive years between 2012 and 2027. The tax cap would remain in place until the property is sold, at which point it would revert to full market assessment.

Kimball emphasized the importance of supporting long-serving farmers, stating, “Many longtime farmers have faithfully maintained agricultural lands for decades, contributing to our island’s food security and rural landscape.” She noted that upon retirement, these individuals often face sudden property tax increases due to rising land assessments. “If they had been exclusively under the homeowner’s program, they would have been protected from this steep change in values,” she added.

Hustace echoed these sentiments, highlighting the balance the measure aims to achieve. “Bill 103 is about fairness and foresight,” he remarked. “We want to ensure that our senior farmers are treated equitably while keeping the county’s long-term fiscal health and land-use goals in focus.” The proposal seeks to assist senior farmers, particularly those on fixed incomes, by freezing the taxable value of qualifying properties to prevent drastic increases.

As Hawaii County prepares to transition its nondedicated agricultural use program, which is set to sunset in 2026, new long- and short-term agricultural dedication programs will be introduced. These programs are designed to enhance compliance and ensure that active agricultural operations receive appropriate benefits. Bill 103 serves as a transitional safeguard for senior farmers during this shift.

“This is about fairness and continuity,” Kimball reiterated. “We want to honor the people who helped build Hawaii Island’s agricultural heritage while ensuring that they aren’t priced out of their homesteads.”

Should the ordinance pass, it would take effect immediately and have retroactive implications dating back to 2017. The current draft includes a sunset date of June 30, 2028, allowing the council the opportunity to review the measure and decide on its permanence.

Bill 103 is set to be discussed by the council’s Finance Committee at 10 a.m. on Wednesday. This legislation reflects a growing recognition of the contributions made by senior farmers to Hawaii’s agricultural landscape and aims to ensure their continued presence in the community.