Hawaii Council Proposes Property Tax Relief for Senior Farmers

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

To be eligible, homeowners must have participated in one of the agricultural tax programs for at least 10 consecutive years between 2012 and 2027. The proposed cap would remain in effect until the property is sold, at which point it would revert to full market assessment.

“Many longtime farmers have faithfully maintained agricultural lands for decades, contributing to our island’s food security and rural landscape,” Kimball stated. “When these farmers retire, they see sudden jumps in their assessments due to increased assessments on their land. If they had been exclusively under the homeowner’s program, they would have been protected from this steep change in values. This bill offers stability and fairness to those who have been the backbone of our agricultural community.”

Hustace emphasized the need for balance between fairness and the county’s broader goals. “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. This measure provides stability for our kupuna without compromising our broader commitment to responsible growth and sustainable land management.”

Transitioning Agricultural Programs

The proposal comes as Hawaii County’s nondedicated agricultural use program is set to sunset in 2026. It will be replaced by new long- and short-term agricultural dedication programs aimed at improving compliance and ensuring that active agricultural operations receive appropriate benefits. Bill 103 seeks to create a transitional safeguard for senior farmers, particularly those on fixed incomes, by freezing the taxable value of qualifying properties to prevent steep increases.

“This is about fairness and continuity,” Kimball added. “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.”

If adopted, the ordinance would take effect immediately and would be retroactive to 2017. The current draft includes a sunset date of June 30, 2028, allowing the council to review the measure before deciding whether to make it permanent.

Bill 103 is scheduled for consideration by the council’s Finance Committee at 10 a.m. on Wednesday. As the council deliberates this important measure, it reflects a growing recognition of the challenges faced by senior farmers in maintaining their livelihoods and homes amidst changing agricultural policies.