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Bill 49, we believe, will help to better identify legitimate <br /> <br /> farming activities on agricultural lands by: 1) strengthening the <br /> <br /> commercial agricultural use provision to require that farms must <br /> <br /> generate a minimum gross income of $2,000 per year to qualify for <br /> <br /> the low agricultural tax rates; and 2) providing for commercial <br /> agricultural use dedication of farmland by the owners and lessees <br /> for ten years to be eligible for additional tax deductions. The bill <br /> also provides for a graduated tax increase over three years for non- <br /> dedicated agricultural lands. By the 3`d year lands committed in <br /> specific non dedicated ag use would be assessed at 75% of market <br /> value. Lands not committed or used for specific ag use would be <br /> assessed at 100% of market value. These provisions would correct <br /> <br /> the flaws in the current tax laws, which would encourage <br /> landowners to dedicate their land and enjoy the low tax rates or <br /> pay for the privilege of playing the land speculation game. This <br /> may also help to discourage the proliferation of "gentlemen <br /> estates" on prime ag lands. <br /> The only concern we have with Bi1149 is language to protect <br /> farmers from being penalized for non-compliance due to situations <br /> beyond their control such the water situation in Hamakua. <br /> In conclusion we believe that Bill No. 49 is a good beginning <br /> in the Council's ongoing effort to improve the County's real <br /> property tax code especially where it affects our best farmlands. <br /> We respectfully ask for your favorable consideration of Bill No. <br /> 49. <br /> Mahalo, / ' ~ ' <br /> ~ ~ ~ <br /> ~ <br /> .~.~a_6 ti <br /> Bob Shioji <br /> Hamakua County Farm Bureau <br /> <br />