Budget panel OKs restoration of tax breaks for horse owners

Bills that would allow people who keep horses on agricultural lands to once again be eligible for significant tax breaks was advanced by the City Council’s Budget Committee on Wednesday.

Horse owners and stable operators testified that their livelihood and their ability to own horses are being jeopardized because of a bill approved by the Council last year designed to curb the practice of "gentlemen’s farms," properties where no actual agriculture is occurring. The bill inadvertently excluded horse boarding and stabling from the definition of "agricultural use," making such uses ineligible for agricultural dedication, which provides substantial tax breaks.

Bill 12, introduced by Windward Councilman Ikaika Anderson, would include "horse boarding and stabling" in the legal definition of "agricultural use." Bill 30, also introduced by Anderson, would repeal the current law, which severely curtailed the number of lot owners eligible for agricultural dedication breaks.

Glenn Martinez, who heads Hawaii Farmers Union United, estimated his group represents 85 horse owners on the island, where there are about 4,000 horses.

"Horses are defined as livestock in every dictionary," Martinez said. The Council last year passed "a bill of omission without ever talking about horses, or discussing the ramifications, or inviting anybody in the industry to come down."

Debra Roblin, who owns Circle C Equestrian Center in Waimanalo, said horse businesses including hers will be forced to close if the law enacted last year is allowed to take effect. "There will be no places for horses to go," she said. "If not on ag land, where then?"

Budget Director Michael Hansen said the Carlisle administration supports the intent of the bills, but wants to work with the Council to come up with a solution.