Council to vote on tax bills Wednesday

LIHUE — Taxes and establishing bus stops will be discussed at the Kauai County Council meeting Wednesday.

Councilmembers are expected to approve two bills relating to taxes.

One, Bill No. 2658, seeks to amend the legislation that lays out the rules for real property tax.

The second piece of legislation, Bill No. 2659, relates to offering tax benefits for people who rent their property for long-term affordable housing.

The bill defines long-term affordable housing as a “dwelling subject to a written lease agreement with a term of one year or more and at a monthly rent not to exceed the maximum housing cost based on 80 percent of the Kauai median household income.”

The measure also sets a long-term affordable rental limit between 80 percent and 100 percent of Kauai’s median household income.

Under the bill, if landlords decide to rent their properties for long-term affordable housing, they will be privy to paying the homestead rate, which is at $3.05 per $1,000 of assessed value.

Property owners can apply for the beneficial tax rate on a single year and multi-year basis.

An owner with a multi-year written lease can apply for the tax rate for each year that the lease is in effect, for a maximum of three years. After three years, the landlord can file an affidavit to confirm the units are still being rented as long-term affordable housing, according to the bill.

Bill No. 2659 was recommend for approval by the Budget and Finance Committee on Aug. 2.

Councilmembers are also expected to discuss a resolution and its accompanying bill that would take away the county’s authority to establish school bus stops. That comes at the request of Mel Rapozo, council chair.

The meeting starts at 8:30 a.m. at the Historic County Building.

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