A group of property owners wants the City Council to rescind a new law that has removed horses as "livestock" qualifying for a property tax discount.
The Council in September passed a law intended to prevent "gentleman estates" from qualifying for an agricultural tax discount by putting horses on the property.
The intent of the law — recommended by a task force — was to provide the discount to legitimate livestock operators but prevent gentleman estates from using a tax loophole.
But some Oahu business owners said the City Council went too far and that the law, which takes effect next year, will adversely affect horse owners who are commercial operators, possibly increasing their taxes tenfold.
More than 70 people attended a meeting Monday at Waimanalo District Park.
Councilman Ikaika Anderson said he and Council Chairman Ernie Martin acknowledged that the law is flawed and said they’re working to correct it.
Anderson said he has introduced a bill that would allow the continued use of a tax dedication law by horse stables and commercial equestrian operators.
The change in the law would allow qualified commercial horse operators to receive a discount for a period of five or 10 years.
"We’re going to remedy the situation," Anderson said. He added that the bill to revise the law is up for its first meeting on March 31 and would be able to be passed by June.
Glenn Martinez, president of the Hawaii Farmers Union United, said keeping the law as is would devastate the commercial horse industry on Oahu, including 14 stables in Waimanalo.
Martinez, interviewed before the meeting, said families operating the stables participate in rodeos and also as riders in parades.
Residents criticized the Council for trying to enforce zoning laws through the tax code.
John DeSoto, a former Council chairman and an owner of Kawailoa Ranch in Haleiwa, said he agrees that there have been abuses of agricultural land use laws by gentleman estates.
But DeSoto said unless the law is changed, it will increase property taxes tenfold for many commercial horse operators.
Circle C owner Debi Roblin said her 25-acre ranch is in debt, and the lack of a continued property tax discount would worsen her problems. "I lose money now. Everything’s gone up."
She said closing the business would harm her three employees, in addition to trainers who teach riding and the children who learn equestrian skills.
Horse handler Kea Among said the current law would force commercial horse operators to sell their land.
"Everybody is going to start losing their land," she said.
