COM 0770.000 2020-2022 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2021 Cash and Investments Cash and cash equivalents include cash on hand, amounts in demand deposits and savings accounts, and short-term investments with a maturity date of three months or less from the date acquired by the County. Investments consist of certificates of deposit,repurchase agreements, and securities with original maturities exceeding three months. These include participating investment contracts (U.S. government sponsored agency issues and negotiable certificates of deposit) as well as nonparticipating investment contracts(time certificates of deposit and repurchase agreements). Both categories of investments are stated at fair value (see Note 3). Valuations of investments in government sponsored enterprises such as Federal National Mortgage Association(Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) are based on quoted market rates. Investments also consist of equity securities in the fiduciary fund financial statements. These investments are stated at fair value based on closing quoted prices. Real Property Taxes The County's real property taxes are levied on July I each year on assessed valuation as of January 1. The taxes become a lien on the property assessed as of the levy date. Taxes are due and payable in two equal annual installments on August 20 and February 20. Accordingly, real property taxes receivable as of June 30 are delinquent. Each delinquent installment bears interest at 1%per month and penalties of up to 10% of the amount due. Assessments are based on 100%of estimated fair market values prior to the application of exemptions or preferential assessments. The County provides real property tax abatement under five programs—Enterprise Zone, Historic Residential Dedication,Low and Moderate Income Housing,Agricultural Use Programs, and Solar Water Heater Credit: Enterprise Zone Exemption - Section 19-89.3 of the Hawaii County Code provides buildings or other like structures which are built as a result of new construction by a qualified business within an enterprise zone to be exempt except for the minimum tax from real property taxes for a period of three years. The purpose of this program is to stimulate business and industrial growth. A qualified business in an enterprise zone must satisfy the requirements of Chapter 31 of the Hawaii County Code and section 208E,Hawaii Revised Statutes. Historic Residential Dedication Exemption—Section 19-89.1 of the Hawaii County Code and Rule 36 of the Rules and Regulations of the Director of Finance provides an exemption to encourage the preservation of residential structures that have been placed on the Hawaii Register of Historic Places after January 1, 1977. The property owner must provide visual access on a year-round basis or open the property to the public for twelve days per year. The owner certifies the current level of taxation is a material factor which threatens the continued existence of the historic status. This dedication is for a minimum period of ten years, - 53 -