COM 0027.003 2020-2022 - Laserfiche WebLink

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DocuSign Envelope ID:B2DOC3EF-E687-.4AA6-93CF-D16200518BC6 ............... ............ Program and provide guidance to the Division, The Review Group farther recommends the meetings to be held on a quarterly basis or as needed to ensure continuity and momentum. In regard to the prior recommendations provided previously in reports to County Council, the Review Group is aware Corporation Counsel has provided ordinance changes to the Department of Finance Administration. With the busy fiscal year end and budget complete for 2019-2020,we are hopeful Administration will submit the recommended changes to the County Council or County Council will introduce legislation in time to be effective within the next tax year 2020-202 1. The prior recommendations provided previously by the Review Group include the following: I. The Veterans Disability Exemption annual real property tax to be $0. This would require a change to the Hawaii County Code. Recommendation is to change for tax year 2018, however, it may be more realistic to have this done for tax year 2019 due to budget deadlines. To receive this benefit,the current program requires the Veteran be 100%disabled due to a service related injury and the property needs to be the Veteran's primary residence. This program currently has 609 parcels and ,at- the current $200 minimum tax, the County receives $121,800 in revenue annually. There was much discussion regarding the value of the properties in this category, the potential increase in properties that could end up qualifying for this substantial discount and the concern with the loss of revenue during a time when the County is having difficulty balancing the budget. The consensus is these are 100% disabled Veterans due to a service related injury and they have already paid the ultimate price. Update: Bill No. 165 introduced by CM Dru Kanuha was passed, Ordinance 18- 88 became effective July 1, 2019 resulting in the reduction of the minimum tax to fifty percent for the Veteran's Disability Exemption. 2. Repeal the Non Speculative Residential Use program. Recommendation for Administration or County Council to look into an ordinance to change the Hawaii County Code. Recommended steps include informing all owners currently with parcels in this program of the repeal for tax year 2019, allow all parcels currently in this program to automatically convert these parcels to the Homeowner Exemption program (by virtue of the program they already technically are part of the Homeowner class) at the 2019 frozen value and explain the 3% CAP would then be applied to the tax year 2020 (first year they would see the increase). This has been a recommendation the Real Property Tax Board of Review has reported for several years as this program does not allow new applicants into this program therefore it is not considered to be fair-and equitable. It is our understanding when the County Council approved the 3% CAP and the additional 20% homeowner exemption (up to $80,900) there was discussion to have this program completely repealed however it ended up being an "optional out" for those in the program. There are currently 483 parcels in this program. The impact to the real property tax revenue in tax year 2020 based on the current frozen non spec values would be 2