It’s the first day of Civil Beat’s spring fund drive! Kickstart our campaign today and your donation will be matched thanks to the Ninneweb Foundation.

Double my donation

Help us raise $100,000 from 250+ donors!

It’s the first day of Civil Beat’s spring fund drive! Kickstart our campaign today and your donation will be matched thanks to the Ninneweb Foundation.

Double my donation

Help us raise $100,000 from 250+ donors!

Tim Wright/Civil Beat/2021

About the Author

Jenn Kagiwada

Jenn Kagiwada is a Hawai‘i County Council Member representing District 2 (South Hilo) and an active member in the Hawai’i State Association of Counties.


These funds enable all the services counties provide for the community, including roads, parks, wastewater, police, fire and more.

As a parent of two Hawai‘i public school graduates and a product of public schools myself, I fully support the Hawai‘i Department of Education and understand the need to adequately fund public education in our state.

I applaud Representative Amy Perruso’s ongoing commitment to secure much needed resources for our schools, as mentioned in this Civil Beat article from Jan. 25.



Ideas showcases stories, opinion and analysis about Hawaiʻi, from the state’s sharpest thinkers, to stretch our collective thinking about a problem or an issue. Email news@civilbeat.org to submit an idea or an essay.

However, serving as a county council member in Hawaiʻi County, I have concerns about this bill, specifically the proposal for a constitutional amendment allowing the state to levy a property tax “surcharge” on residential properties.

Unlike the state, county governments in Hawai‘i are only entitled by the state to raise funds from a handful of revenue sources. These funds enable all the services counties provide for the community, including roads, parks, affordable housing, wastewater, police, fire and emergency services to name just a few.

If the state were to dip into the county’s ability to raise revenue from real property taxes, not only would it affect the ability of the counties to provide critical services, but it could also open the door for other state programs to look at property taxes as a funding source.

The Hawaiʻi County Council chamber is photographed Tuesday, Dec. 16, 2025, in Hilo. Today’s meeting is taking place in West Hawaiʻi. (Kevin Fujii/Civil Beat/2025)
The Hawaiʻi County Council chamber in Hilo. Property taxes are essential to funding county government operations. (Kevin Fujii/Civil Beat/2025)

Similar to the state taking back the lion’s share of the transient accommodation tax, which was originally intended as a revenue source for the counties to offset the cost burden of visitors on our island, any incursion into local real property taxation authority would be a slippery slope that could end up reducing the already limited resources within the county.

Not only is our ability to tax real property our most critical source of funds, it is also the strongest tool the counties have to encourage or disincentivize land use policies. Another area that is entirely within the purview of the counties through general plans. 

I agree with Rep. Perruso and other state legislators who have said the counties should be looking at high value second homes as a potential revenue source. However, that decision should be at the discretion of each county depending on their unique needs and go directly to their county budgets.

Our state and county governments serve the same constituencies, and we should come together to examine the overall tax burden of our community and identify revenue sources and people’s needs in a collaborative way.

Community Voices aims to encourage broad discussion on many topics of community interest. It’s kind of a cross between Letters to the Editor and op-eds. This is your space to talk about important issues or interesting people who are making a difference in our world. Column lengths should be no more than 800 words and we need a photo of the author and a bio. We welcome video commentary and other multimedia formats. Send to news@civilbeat.org. The opinions and information expressed in Community Voices are solely those of the authors and not Civil Beat.


Read this next:

A Call To Public Service: If Not You, Then Who?


Local reporting when you need it most

Support timely, accurate, independent journalism.

Honolulu Civil Beat is a nonprofit organization, and your donation helps us produce local reporting that serves all of Hawaii.

Contribute

About the Author

Jenn Kagiwada

Jenn Kagiwada is a Hawai‘i County Council Member representing District 2 (South Hilo) and an active member in the Hawai’i State Association of Counties.


Latest Comments (0)

I completely agreeing w/ Councilmember Kagiwada position stated here, but I believe harder lines on this issue have to articulated and "held" by county-supportive officials and citizens. The counties' capacities to: (a) fund their operations and (b) both induce and reduce various land use/abuse-control policies will be constrained/reduced by the State piling on top of this one revenue source; it makes property taxation "top-heavy" for each county's policy makers (elected officials). It will also be make even modest homes more expensive to own for working families and retirees; i.e., income needed to qualify for mortgage loans will have to be higher to cover the higher property tax "surcharge." It is thus an "anti-affordable housing" policy. In 2015, with access to all real property tax data on the island of Hawaii, I did a data search for residential properties with improvements-only assessed values of $1 million or more (ignoring the land value component), in order to find out how much of our county's RP tax revenue already came from "luxury homes." The stunning result: 1,179 "luxury" homes (out of 60,000+ homes) pay 20% (yes, 20%!) of the ENTIRE tax collection in this county!

Colin12345 · 3 months ago

"If the state were to dip into the county’s ability to raise revenue from real property taxes"It's perversely humorous to watch bureaucrats argue over who gets the taxes levied on the taxpayer, or their domiciled ATMs, as the bureaucrats imagine taxpayers to be.Working class people in Hawaii make mortgage payments, pay taxes, maintain their homes against the corrosive elements for many years.And after paying their last mortgage bank loan, taxpayers soon come to the sobering realization that the County/State bureaucrats actually own their house.Even if their house burns down they will still be making payments to the Bureaucracy. Now isn't that funny."affect the ability of the counties to provide critical services"Besides the critical services of Fire Dept./police/Health Dept. and roads, what other basic necessary services are our increasing taxes being used for?Water and electricity are provided by monopolies, and most of the Big Island doesn't have county sewage.I suggest there be a realistic collaboration between the taxpayer willing to pay for critical services and the Bureaucracy acknowledging that we're not inexhaustible ATMs.

Joseppi · 3 months ago

Join the conversation

About IDEAS

Ideas is the place you'll find essays, analysis and opinion on public affairs in Hawaiʻi. We want to showcase smart ideas about the future of Hawaiʻi, from the state's sharpest thinkers, to stretch our collective thinking about a problem or an issue. Email news@civilbeat.org to submit an idea.

Mahalo!

You're officially signed up for our daily newsletter, the Morning Beat. A confirmation email will arrive shortly.

In the meantime, we have other newsletters that you might enjoy. Check the boxes for emails you'd like to receive.

  • What's this? Be the first to hear about important news stories with these occasional emails.
  • What's this? You'll hear from us whenever Civil Beat publishes a major project or investigation.
  • What's this? Get our latest environmental news on a monthly basis, including updates on Nathan Eagle's 'Hawaii 2040' series.
  • What's this? Stay updated with the latest news from Maui.
  • What's this? Weekly coverage of Hawaiʻi Island news and community.

Inbox overcrowded? Don't worry, you can unsubscribe
or update your preferences at any time.