By Kamaile Puluole-Mitchell, OHA Public Policy Advocate
For many families across Hawaiʻi Island, ʻāina is more than property. It is where kūpuna lived, farmed, raised keiki, cared for ʻohana, and carried forward kuleana across generations. These lands hold moʻolelo, and deep connections to place.
But as land values increase, some ʻohana are facing a painful reality: the lands their families have cared for over generations are becoming increasingly difficult to keep. Rising costs of living and insurance rates place pressure on families. For some, property taxes that increase as neighboring land values rise can push lands out of ʻohana hands.
In response to these pressures, many counties are looking at ways to change property tax assessments to protect owner-occupied generational use.
Hawaiʻi County Bill 163 addressed these concerns by creating a new ʻĀina Kūpuna Dedication to lower property taxes on ancestral lands. The measure recently passed its final reading before the Hawaiʻi County Council and has since been enacted as Ordinance 26-58.
The new law allows qualifying ʻohana to pay minimum property tax on generational family lands during a 10-year dedication period. In Hawaiʻi County, the minimum tax is currently $200 per year.
To keep the program targeted, it limits eligibility to properties of 20 acres or less that have remained in the family since or before Jan. 1, 1926, with at least one qualifying owner residing in Hawaiʻi County. The property must also meet a specific tax-burden threshold based on the amount of property tax assessed over the prior 10 years.
One important feature of the program is that it accounts for agricultural lands. Some ancestral lands are already assessed under agricultural use, which can lower property tax bills.
Ordinance 26-58 allows the county to consider what the ʻohana’s tax burden would have been without the agricultural use assessment when determining whether a property meets the required tax-burden threshold. This ensures that families are not penalized for keeping land in agricultural use.
The ordinance also recognizes that agriculture can be part of how families maintain ancestral lands. Agricultural activities are not treated as prohibited commercial use under the new program. At the same time, the program includes safeguards to keep the benefit focused on land retention rather than speculation.
Dedicated lands cannot be transferred to someone outside the descendant line during the dedication period. It also limits commercial use and residential rentals for terms shorter than six months.
The Office of Hawaiian Affairs submitted testimony in support of Bill 163 because ancestral land retention is deeply connected to the wellbeing of Native Hawaiian ʻohana. The loss of ʻāina is not only an economic loss, but a loss of relationship between people and place.
Families seeking dedication status for the tax year beginning July 1, 2027, must apply by Dec. 31, 2026. After the first year, applications will be due by September 1 of the year prior to the tax year in which the dedication would apply.
The ʻĀina Kūpuna Dedication program is part of a broader movement across the pae ʻāina to protect ʻohana ancestral lands.
Hawaiʻi County’s approach follows a path already taken by Maui County, which created its own ʻĀina Kūpuna program in 2021 to help families retain ancestral lands through minimum-tax treatment during a 10-year dedication period. Maui’s program generally requires a family connection to the land for at least 80 years before application.
Hawaiʻi County has built on that approach while tailoring the program to Hawaiʻi Island through requirements such as a 20-acre limit, a local residency requirement, and a tax-burden threshold.
Together, these county efforts show how local governments can help ʻohana remain rooted in the places that carry their genealogy.
