Ka Wai Ola - Office of Hawaiian Affairs, Volume 24, Number 11, 1 November 2007 — Kuleana land tax exemption for Hawaiʻi, Maui and Kauaʻi [ARTICLE+ILLUSTRATION]

Kuleana land tax exemption for Hawaiʻi, Maui and Kauaʻi

In the 2004 legislative session, the Office of Hawaiian Affairs introduced legislation in the state House and Senate to require eaeh county to exempt kuleana lands from real property taxes. Simply defined, kuleana lands are those parcels that were awarded to individuals during the 1850s by the Kingdom of Hawai'i, during the Mahele. The land division resulted in 8,400 awards, in all more than 28,000 acres of land. In its first year at the Legislature, the bill didn't garner enough support to get a single

hearing. Still, OHA's Government Relations staff continued with the effort through the 2005, 2006 and 2007 sessions, with hmited success. Legislators felt that real property taxes were a county, not a state, issue and should be dealt with in the city councils. Accordingly in 2006, trustees voted to support Bill 25, a proposal introduced in the Honolulu City Council. Bill 25 established a real property tax exemption for kuleana land in the City and County of Honolulu. The measure, whieh allows owners of kuleana lands on O'ahu to pay the minimum county property tax of $100, was signed into law on Apiil 11. As of Sept. 30, a modest number of exemption claims have been filed with the city, and only eight exemptions are pending. While land owners must prove that they are the lineal descendants of the original awardee, "the low

numbers are likely attributed to the fact that many of the parcels were sold over the years," said OHA Deputy Administrator, Ron Mun. Wliile O'ahu exemption claims were miniscule in this first year, Mun thinks that public awareness will improve claims over the next few years. "Some claimants need more time to research their family histoiies and find the proper documentation," he added. Duiing the same time period, OHA staff noted an increasing number of Neighbor Island beneficiaries inquiring as to the possibility of introducing and enacting similar measures in their juiisdiction. "Most kuleana land awards were agricultural and in rural areas," said Mun. "We're not sure how many parcels are left on the Neighbor Islands, but the impact to county coffers should be minimal as well."

In light of the growing interest in the Neighbor Island counties, staff has taken the liberty of formatting three similar proposals for Hawai'i, Maui and Kaua'i. Mun is hopeful that the bills will have an easier time getting through the Neighbor Island county councils, since many concerns have already been addressed. The avenues used to introduce these bills to the county councils may vary from county to county, depending on the options available. The OHA Board will likely approve the proposals in early November, and move toward the county councils by early 2008. Neighbor Island benefrciaries should watch your loeal county eouneil agendas for the kuleana land bill and offer support. For more information on how you ean help, please eall 594-1888. E1

LEO 'ELELE ■ TRUSTEE M ESSAG ES

Cūlette Y. Machadū TrustEE, Mūlūka'i and Lāna'i