More Kauaʻi ranchers and farmers potentially will qualify for the county’s agricultural dedication for the upcoming tax year due to the passage of a new county ordinance.
Mayor Derek Kawakami recently signed Bill 2987, which amends portions of the Kaua‘i County Code relating to agricultural land dedication and property tax classifications.
The ordinance is intended to support the long-term sustainability of agriculture on Kaua‘i by addressing challenges faced by agricultural property owners and operators when multiple uses occur on dedicated agricultural parcels, according to a county news release.
“Agriculture is part of Kaua‘i’s identity and continues to play an important role in our island’s culture, history and local economy,” Kawakami said. “This measure recognizes the realities that today’s farmers and ranchers face and helps create a more practical framework that supports local agriculture while continuing to preserve the purpose and integrity of our agricultural lands.”
The bill broadens the definition of “agricultural use” to include certain agricultural processing, refining, selling and distributing activities tied to farming operations.
The ordinance also clarifies how mixed-use agricultural properties are classified for tax purposes and establishes that commercial structures on dedicated agricultural land will be separately assessed and taxed based on their actual use.
In addition, the ordinance allows meat packing and processing operations connected to agricultural activities to qualify under the agricultural use definition even if the processing occurs on a separate parcel from where the animals were raised.
Councilmember Arryl Kaneshiro, who introduced the bill, said the measure responds to the evolving needs of local agriculture and agricultural businesses.
“I am grateful to see these changes take effect and hopeful that active farmers and ranchers will take advantage of them,” Kaneshiro said in the news release. “As farming and ranching become increasingly challenging, these updates help ensure agricultural operations are taxed fairly based on their actual use and provide the flexibility needed to remain economically viable.”
The ordinance maintains the existing five-year agricultural dedication period and continues the assessment of dedicated agricultural land at five percent of its fair market value.
The filing deadline for the upcoming tax year is July 1.
Information about agricultural dedication requirements and applications is available through the county’s Real Property Division, email rpassessment@kauai.gov or call 808-241-4224.
