A new agricultural tax program is being rolled out on Hawaiʻi Island, but some officials are trying to delay it to appease the worries of local producers.
Last year, the Hawaiʻi County Council reformed the tax structure for local agriculture to encourage farming. However, this has caused concerns that small-scale producers will end up with higher taxes and more obstacles.
One way the council is trying to address those concerns is through two measures it heard this week. Bill 188 would delay the sunset date for one of the existing agriculture programs by a year to give producers more time to understand the new programs.
Council Chair Heather Kimball said some of the concerns result from confusion about the new structure, and more time will help farmers become better informed.
“ I have found 100% of the time that once I kind of talk folks through what the changes are, people feel a lot more comfortable. But for right now, (the County of Hawaiʻi’s Real Property Tax Division) is supportive of this change to just extend everything out a year, and give people a little more time to figure out their paperwork and figure out which program they're going to be part of,” Kimball said during a council committee hearing.
The county’s Non-Dedicated Agricultural Use Assessment program has been used by both backyard farmers and those who do more intensive agriculture but don’t want to commit to farming for a long time, Kimball said.
That program will dissolve, and the two groups will have individual programs under the new tax structure.
Bill 189 would include “pasture for food production” as part of the backyard farming program.
At the same time, the County of Hawaiʻi is delaying the rollout of the new tax structure.
After an influx of concern at a public hearing in July on the new tax programs, Mayor Mitch Roth said a decision on what the final program will look like will be delayed until Oct. 15.
"Our administration is committed to creating a sustainable island where our keiki can thrive for generations to come. A key part of that vision is supporting and encouraging agriculture to reduce our reliance on imported foods and the associated costs,” Roth said in a statement.
“These rules aim to provide the necessary tools and resources for farming and land cultivation while also ensuring accountability. We want to make sure that those who commit to these efforts are contributing to the betterment of our island home," he added.
