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FC-28 Page 2 February 18, 2025 <br />Commitee Member Heather Kimball stated that she attended community meetings in her district and <br />the monthly East Hawaii Farmers Union meeting to discuss the proposed changes, adding there was <br />limited feedback and no preference. She explained that when this program was created, the decision to <br />give it a three-year term was based on the recommendation of the 2019 Real Property Tax Agricultural <br />Committee Advisory Report. <br />Committee Member Michelle Galimba stated that a five-year term would likely be preferable to the <br />administration since it would involve less paperwork and asked if the paperwork was a significant <br />concern. Ms. Miura replied that the Clerical Department has been overwhelmed, as they are <br />responsible for the initial intake and would probably be very interested in changing this program term <br />to five years. Mr. Jo concurred with Ms. Miura and added that one of the concerns he heard from <br />taxpayers was the timing between applying for and the renewal, mentioning that they felt this process <br />was too quick. Ms. Galimba noted that she believed there was an advantage to maintaining this <br />program for three years. <br />Committee Member Rebecca Villegas asked if there were any downsides or red flags regarding the <br />proposed change. Ms. Miura stated that she isn't aware of the unintended consequences yet as most <br />applicants have applied for the five-year term. <br />Committee Chair Matt Kdneali`i-Kleinfelder asked about the benefits of this program compared to <br />other programs. Ms. Miura replied that for this program, once you apply and are approved, your <br />assessed land value is lower, and you will be taxed less. <br />Mr. Hustace proposed an amendment to Subsection (a) by amending the agricultural lease minimum <br />from five years to three years. Ms. Miura provided background on the amendment. <br />Bill 23 was amended with the contents of Communication No. 96.1, which was introduced by <br />Mr. Hustace and approved with nine "ayes." <br />Mr. Kdneali`i-Kleinfelder reqeuested clarification on the lease terms asking if it only establishes a <br />minimum lease term and if applicants could apply for terms longer than five years. Ms. Miura <br />confirmed. <br />Ms. Galimba thanked Mr. Hustace for speaking with community members, but stated she is not in <br />support of the bill. Ms. Villegas and Mr. Kdneali`i-Kleinfelder also spoke in opposition to the bill. <br />Your Committee on Finance is not in accord with the purpose and intent of Bill No. 23, as amended to <br />Draft 2, and forwards it to Council with a negative recommendation. <br />W <br />AYES <br />NOES <br />ABS <br />EX <br />GALIMBA <br />X <br />HUSTACE <br />X <br />INABA <br />X <br />KAGIWADA <br />X <br />KANEALI`I-KLEINFELDER <br />X <br />KIERKIEWICZ <br />X <br />KIMBALL <br />X <br />ONISHI <br />X <br />VILLEGAS <br />X <br />Respectfully submitted, <br />COMMITTEE ON FINANCE <br />MATT ALI`I-KLEINFELDER, <br />CHAIR <br />ADOPTED: 1 <br />