Kaʻū landowners delinquent $149,395 in property taxes
By Kaʻū News Staff
As previously reported, the future of Punaluʻu Black Sand Beach remains uncertain until a fair market appraisal and negotiations between Black Sand Beach LLC and the County of Hawaiʻi are completed. As residents await updates on the process, a Kaʻū News investigation into Black Sand Beach LLC has uncovered significant property tax delinquencies across its land holdings.
The investigation revealed that Black Sand Beach LLC owns nine properties in the vicinity of Punaluʻu, in addition to three parcels containing Punaluʻu Black Sand Beach Park. According to county records, those three beach park parcels are currently tax-exempt, presumably in connection with the county's $1-per-year lease for public park use.
However, according to the Hawaiʻi County Real Property Tax Division, eight of the nine non-park properties owned by Black Sand Beach LLC are delinquent in real property taxes as of July 23, putting them at risk of tax sale proceedings by the county.
The single exception is TMK 9-6-002-038 — a 44.557-acre parcel located on the mauka side of Nīnole Loop Road that includes a house. That parcel is current on its property taxes. The property was previously the subject of a mortgage default dispute with creditor S M Investment Partners, which was resolved in mid-2025 after Black Sand Beach LLC secured new financing to pay off a $3.4 million debt.
The investigation also uncovered that Kaʻū Royal Hawaiian Coffee & Tea LP, which owns properties in Nāʻālehu, shares the same mailing address as Black Sand Beach LLC. Three parcels owned by Kaʻū Royal Hawaiian Coffee & Tea LP are likewise delinquent in property taxes.
Black Sand Beach LLC Delinquent Properties
TMK 9-5-190-015 (99.024 acres): $85,344.89 past due | Delinquent since 2023-2
TMK 9-5-190-026 (2.734 acres): $16,847.89 past due | Delinquent since 2023-2
TMK 9-5-190-030 (1.13 acres): $843.50 past due | Delinquent since 2023-2
TMK 9-5-190-031 (4.877 acres): $9,079.59 past due | Delinquent since 2023-2
TMK 9-6-001-001 (1.25 acres): $3,735.69 past due | Delinquent since 2024-1
TMK 9-6-002-002 (1.953 acres): $5,301.02 past due | Delinquent since 2023-1
TMK 9-6-001-003 (3.573 acres): $16,548.76 past due | Delinquent since 2023-2
TMK 9-6-002-037 (3.714 acres): $3,646.14 past due | Delinquent since 2023-2
Total Delinquent: $141,347.48*
Kaʻū Royal Hawaiian Coffee & Tea LP Delinquent Properties
TMK 9-5-008-001 (1,610.496 acres): $3,205.35 past due | Delinquent since 2025-2
TMK 9-5-008-008 (4.7 acres): $1,012.11 past due | Delinquent since 2025-2
TMK 9-5-025-040 (1.295 acres): $3,830.52 past due | Delinquent since 2025-2
Total Delinquent: $8,047.98*
*Amounts include penalties and interest.
Records from the State of Hawaiʻi Department of Commerce and Consumer Affairs (DCCA) Hawaiʻi Business Express website reflect that Black Sand Beach LLC is currently listed as "not in good standing" due to an unfiled 2026 annual report. Kaʻū Royal Hawaiian Coffee & Tea LP remains listed in good standing.
When asked whether Hawaiʻi County has initiated collection or foreclosure proceedings, the Real Property Tax Division stated:
"Parcels need to be delinquent for two years or more for us to start the process of being sold at the tax sale. For a majority of the properties owned by Black Sand Beach LLC, while the process can be started, we do not have a definitive date when they will be sold at the tax sale. We let owners know six months prior to it being sold at the tax sale to give them an opportunity to pay off the delinquent taxes."
Kaʻū News sent written requests for comment to both companies at their registered DCCA addresses. Neither Black Sand Beach LLC nor Kaʻū Royal Hawaiian Coffee & Tea LP responded prior to publication.
