LIHU‘E — Councilmember Billy DeCosta introduced three bills last week that would sunset certain agricultural tax-relief programs, which he claims are outdated and potentially disadvantageous to Kaua‘i food farmers.
DeCosta’s first measure, Bill No. 2845, would eliminate the county’s tree-farm tax exemption, which was created in 1996 to encourage a projected hardwood industry that never materialized.
“It was a building industry and we wanted to give them a chance to get off the ground,” DeCosta said. “Now, 25 years have gone by, and it is time to let this industry go.”
Those who qualify for the tree-farm exemption pay zero in real property taxes until a year after their first harvest, or not more than 25 years, according to the councilmember.
Sixteen tree-farm exemptions are active in the county, most of which pertain to biomass-to-energy operations.
All 16 would retain their current exemptions under the proposed measure, which DeCosta touted as a key to creating favorable conditions for agriculture on Kaua‘i.
“Removing the tree-farm exemption helps to create fairness and consistency among all other AG operations, and not grant special treatment to tree farmers,” DeCosta said, explaining tree farms qualify for the county’s standard agricultural land-dedication program.
“I believe large land owners may prefer to have tree farmers on their land, as opposed to true AG farmers, because the real property tax savings they will receive,” he argued. “That means that they’re displacing food farmers, and that is the opposite of what direction and vision I believe we want to go with.”
Bill Nos. 2846 and 2847 run in a similar vein, by ending unused wasteland and large-scale orchard tax-relief programs.
All three measures have the County Department of Finance’s support.
Councilmembers met DeCosta’s presentations with a sense of general approval.
“I’m sure we’ll get much more into it at committee. But I do feel like I agree with the general principle of reducing redundancy here,” Councilmember Luke Evslin said, appearing to sum up his colleagues’ feelings.
Public hearings on the bills, which have been referred to the Council Finance and Economic Development Committee, will be held on March 23.
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Scott Yunker, reporter, can be reached at 245-0437 or syunker@thegardenisland.com.
this sounds good….. yes Knudsen and Grove Farm and others pay such low taxes on their big land due to “Tree Farming”… Farmers need ADU on Ag Zoned land -so can have an additional home…. farmers need a place to live!!!!
Tdee bills