Property tax rates in Maui County will be going up for short-term rentals and non-owner occupied dwellings and down for owner-occupied homes as part of the county’s $1.55 billion budget.

On Tuesday, the Maui County Council passed the budget for fiscal year 2025-26 with the adjusted tax rates that will take effect July 1. Some council members said the thrust of the adjustments was to encourage the long-term occupation of houses by homeowners and residents.

“We need housing for residents,” council member Keani Rawlins-Fernandez said. “We don’t have enough housing resources and land for this purpose.”

Council chair Alice Lee said she would have preferred not to raise any taxes in light of increased assessments, but during budget hearings, a number of groups requested various projects.

Owner-occupied homes are receiving some tax rate relief. The tax rates for owner-occupied homes valued up to $1.3 million will drop from $1.80 to $1.65 per $1,000 of assessed valuation.

The proposed rate will be $1.80 for properties assessed from more than $1.3 million to $4.5 million, and $5.75 for properties valued at more than $4.5 million.

Non-owner occupied houses valued at up to $1 million would be taxed at $5.87 per $1,000 of assessed valuation, $8.60 for properties over $1 million to $3 million, and $17 for properties above $3 million.

The rate for apartments will be $3.50 per $1,000 of assessed valuation, $12 for hotels and resorts, and $16.60 for timeshares.

For travel vacation rentals, the rate will be $12.50 per $1,000 of assessed valuation up to $1 million in value, $13.50 for properties valued from more than $1 million to $3 million, and $16.50 for properties over $3 million in assessed valuation.

The adjusted tax rates come as property values have been increasing over the past five years with assessments up by about 12% in 2024, 4.2% in 2023 and 19.8% in 2022, according to the county. Several homeowners who testified before the County Council this year said their assessments have increased by 30% to 40%.

Other property tax rates including agricultural, conservation, commercial, industrial and commercialized residential are available at www.mauicounty.gov/ArchiveCenter/ViewFile/Item/32762.

Overall, the county’s budget is up from $1.26 billion in 2024-25.

Maui County Mayor Richard Bissen had proposed a $1.51 billion budget that funded a wildfire recovery plan for Lahaina and the expansion for affordable housing including 12 housing projects with 843 units.

The Maui County Council adjusted the mayor’s proposal to add $12 million for Maui United Way, $14 million toward affordable housing at Lipoa Apartments, $10 million for county employee health care benefits and $7.4 million for temporary hazard pay for firefighters.