Hawaii lawmakers wrap up session featuring tax cuts, zoning reform and help for fire-stricken Maui

Airport Lawmakers ended a legislative session Friday that focused on addressing Maui’s needs after last year’s deadly incident lahaina Forest fire. He also took measures to address the housing shortage in Hawaii, cut taxes, and support specific Hawaiian agricultural products such as coffee and macadamia nuts. In a more light-hearted move, he adopted “Shaka” as the official state symbol.

Here’s a look at some of the key laws passed during the 60-day session that began on January 17:

Money for Maui and wildfire prevention

Lawmakers appropriated $1 billion to cover various costs arising from the Lahaina disaster, including $500 million for emergency housing for displaced residents and $124 million in rental assistance for those ineligible for assistance. Federal Emergency Management Agency,

Recognition of how global warming has increased wildfire threats across the state prompted legislators to allocate funding for more firefighting equipment, a state fire marshal, and forest restoration.

Accommodation and Vacation Rentals

Lawmakers tackled Hawaii’s acute housing shortage with bills to reform zoning and boost vacation rental regulations.

The zoning measure requires counties to allow up to two additional dwellings on each residentially zoned lot, with the aim of promoting higher density development.

House Speaker Scott Saiki, a Democrat, told reporters Wednesday that it differs from recent efforts to address the state’s housing shortage. These mainly included subsidies for affordable housing construction.

“We’re seeing in other states and even other countries that governments are looking at zoning as one of the barriers to housing development,” Saiki said. “And it’s time for Hawaii to take a look at that, too.”

The August 8 wildfire highlighted vacation rentals by exposing large portions of Maui residences that were rented to tourists on a short-term basis. This prompted lawmakers to pass a bill giving counties the authority to phase out vacation rentals and make them available to residents. Gov. Josh Green signed the measure into law on Friday.

The Mayor of Maui acted immediately on this bill by announcing county legislation that would phase out ongoing vacation rentals in areas zoned for apartments. The bill would affect 2,200 West Maui units in and around Lahaina and about 5,000 units elsewhere in the county.

boost for farmers

Lawmakers passed measures creating standards for Hawaii’s two highest-value crops, coffee and macadamia nuts.

The coffee bill requires Hawaii-grown and processed coffee to contain less than 51% Hawaii-origin coffee starting in July 2027. The legislation states that existing law allows for the identification of coffee blends beginning in July 2027. KonaOnly a small amount of beans come from these locations in the , Kauai and Kauai coffee growing regions. It says this deceives consumers and harms coffee producers.

On macadamia nuts, lawmakers passed legislation that would force macadamia-nut processors of reputable brands like Mauna Loa to disclose whether their products contain kernels grown outside Hawaii. Currently, some well-known Hawaiian macadamia nut processors sell imported nuts in island-themed packaging without disclosing where the nuts are from.

tax cut

Lawmakers have approved $5 billion in tax cuts over the next six years, said Representative Kyle Yamashita, a Democrat and chairman of the House Finance Committee. The cut is in the form of the Higher Earned Income Tax Credit, an increase to the standard tax deduction, and adjustments to income tax brackets.

Lawmakers also removed the general excise tax on medical bills for patients with Medicaid, Medicare and TRICARE health insurance.

Yamashita said the change is a first step toward needed tax reform and he aims to work further on the issue.

“Because at the end of the day, our biggest problem in our state is the high cost of living. Our tax structure is at the core of this,” he told reporters.

Representative Lauren Matsumoto, the House minority leader, said her Republican caucus has long pushed for the tax measure.

“The best bills we passed this year were when we passed them bipartisanly, when we worked collaboratively and got input from everyone,” he said.

political gesture

Lawmakers took the step of making “shaka” a state symbol and recognizing Hawaii as its birthplace. The hand symbol is sometimes referred to as the “hanging loose” sign associated with surf culture outside the islands. People in Hawaii display shaka to say hello and goodbye as well as thank you and aloha.