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

WAILUKU–Maui County Council’s Budget, Finance, and Economic Development Committee discussed bills relating to the East Maui Water Authority, and passed another bill that will extend the tax exemption deadline for homeowners leasing to displaced wildfire victims during a meeting on Tuesday.

With all council members present, the committee discussed Bill 115, West Maui county council member Tamara Paltin’s bill, that proposes property owners who are leasing their property to individuals directly displaced by August 2023 wildfires to file a claim for a home exemption or long-term rental exemption or both for the 2025 tax year.

The ordinance’s purpose is to relieve property owners who are leasing their property to individuals directly displaced by the August 2023 Maui wildfires from the deadline for filing a claim for a home exemption or long-term rental exemption under the county code.

Gabe Johnson, council member for Lanai, said he supports the bill.

“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,” Johnson said. “This might be something that they can take advantage of to ease the financial burden that they have to deal with.”

Alice Lee, chair of council, asked if the exemption can extend beyond just those leasing to wildfire victims.

The bill was recommended to be passed with an amendment to extend the deadline to file to Dec. 31, 2025, and was sent to council for final approval.

During the second part of the two-and-a-half hour long meeting, council discussed two bills relating to a proposal for a $250,000 feasibility study and management or business plan for the East Maui Water Authority.

Bills 122 and 134 aimed to amend the fiscal year budget to fund the study.

Former Maui County Water Supply Director Dave Taylor provided testimony regarding the legislation.

“I think you should really think carefully about how you want to fund this,” he said. “I don’t think this is supposed to be funded by Department of Water Supply operating funds.”

He said he believes it should be funded by the general funds.

Officials report the issue is related to the possible purchase of the East Maui Irrigation System.

The committee recommended Bill 122 and Bill 134 be filed and that a new bill may later be submitted to address the topic.

Maui County Council will meet on Friday, Sept. 27 at 9 a.m.

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