Agricultural dedication filing deadline is July 1; Mayor Kawakami signs bill supporting agricultural land use flexibility
LĪHU‘E – Property owners seeking agricultural dedication for the upcoming tax year are reminded that the filing deadline is July 1. Additional information on agricultural dedication requirements and applications is available through the County of Kaua‘i Real Property Division.
Mayor Derek S.K. Kawakami recently signed Bill 2987, amending 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.
“Agriculture is part of Kaua‘i’s identity and continues to play an important role in our island’s culture, history, and local economy,” said Mayor Kawakami. “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,” said Councilmember Kaneshiro. “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.
For more information, visit https://www.kauai.gov/Government/Departments-Agencies/Finance/Real-Property-Tax, email rpassessment@kauai.gov, or call 808-241-4224.
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