Budget and finance committee discusses tax exemption extension bill, water authority

Sep 27, 2024 at 12:00 AM

Maui County Council Tackles East Maui Water Authority and Tax Exemptions for Wildfire Victims

In a recent meeting, the Maui County Council's Budget, Finance, and Economic Development Committee discussed several important bills, including one that would extend the tax exemption deadline for homeowners leasing to displaced wildfire victims, and two bills related to a feasibility study for the East Maui Water Authority.

Providing Relief for Landlords Assisting Wildfire Victims

### Extending the Tax Exemption DeadlineThe committee discussed Bill 115, proposed by West Maui council member Tamara Paltin, which would allow property owners who are leasing their property to individuals directly displaced by the August 2023 Maui wildfires to file a claim for a home exemption or long-term rental exemption, or both, for the 2025 tax year. The purpose of this ordinance is to provide relief to these property owners from the deadline for filing such claims under the county code.Gabe Johnson, the council member for Lanai, expressed his support for the bill, acknowledging the important role that landlords in the community are playing in renting to fire survivors and the financial burden they are facing. He stated, "The folks who are renting out their places long-term, they're doing something for our community and I just want to thank the landlords in our community who are renting to the fire survivors. This might be something that they can take advantage of to ease the financial burden that they have to deal with."The committee recommended that the bill be passed with an amendment to extend the deadline for filing the claims to December 31, 2025, and it was sent to the council for final approval.### Expanding the Exemption EligibilityDuring the discussion, Alice Lee, the chair of the council, raised the question of whether the exemption could be extended beyond just those leasing to wildfire victims. This suggestion indicates a potential desire to explore the possibility of providing broader tax relief to property owners who are assisting the community in times of crisis, beyond the specific context of the 2023 Maui wildfires.### Addressing the Needs of Displaced ResidentsThe council's efforts to extend the tax exemption deadline for landlords leasing to wildfire victims demonstrate a commitment to supporting both the displaced residents and the property owners who are stepping up to provide housing assistance. By easing the financial burden on these landlords, the council aims to encourage and sustain the availability of temporary housing options for those affected by the devastating wildfires.### Exploring Funding Options for the East Maui Water AuthorityIn the second part of the meeting, the council discussed two bills, Bills 122 and 134, which aimed to amend the fiscal year budget to fund a $250,000 feasibility study and management or business plan for the East Maui Water Authority.Former Maui County Water Supply Director Dave Taylor provided testimony on the legislation, suggesting that the study should not be funded by the Department of Water Supply's operating funds, but rather by the general funds. He emphasized the need for careful consideration of the funding source, stating, "I think you should really think carefully about how you want to fund this. I don't think this is supposed to be funded by Department of Water Supply operating funds."The committee recommended that Bills 122 and 134 be filed and that a new bill may be submitted in the future to address the topic of the East Maui Water Authority study.### Ongoing Efforts to Address Water Management ChallengesThe discussion surrounding the East Maui Water Authority highlights the council's recognition of the importance of addressing water management challenges in the region. The proposed feasibility study and management or business plan suggest a proactive approach to understanding the dynamics and potential solutions for the East Maui Irrigation System, which is likely a critical component of the island's water infrastructure.By carefully considering the funding sources and the scope of the study, the council demonstrates a commitment to finding sustainable and responsible solutions to the water management issues facing the community.The Maui County Council's meeting on these important matters underscores its dedication to supporting both the immediate needs of wildfire victims and the long-term water management challenges facing the region. Through these discussions and the proposed actions, the council aims to provide relief, foster community resilience, and ensure the effective management of the island's vital water resources.