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Jug-G:~-04 06:4b .+M PLI i RLL1N WINTERS' 808 885 3453 P. 01 Hawaii Cattlemen's Association P. 0. IIox 17a Naalehu, HT 96772 or~anned Duccmbar i e47 Fax: {808) 929-7623 July 25, 2004 1 C_ r Mr. William Takaba llirector' of Finance c-_ County of Hawaii - c: - 25 Aupuni Street, Room 1 128 - r` lli lo, 1 f [ 96720 Lear Mr. Takaba: Re: Assessment of Homesites on As Land - Our Land lssues Committee chair, Tim Greenwcll, reported to our HCA executive Committee al its July 9 meeting regarding the Tax Office's assessment practiccs for the tax year 2004-OS as relates to homesites on Ag land. As you know, there were steep increases in this calegvry which valued homesites cn Ag land much like subdivided residential house lots. We acknowledge that in such cases where homes exist in the Ag district but where legitimate, tote agricultural endeavors are absent, then such an assessment practice maybe appropriate. However we note with interest that State Law (¶246-10 HRS) says that land "classified and used for agriculture" is to be valued based on its value as it relates to its ag use. We Iccl this is the critical concept that needs to Ue considered and honored. Consider the typical situation on a cattle ranch where the ranch provides housing for its employees at either reduced rent or oRcn at no cost. The occupant is not only not the "homeowner" (therefore ineligible for the reliel'reccntly provided by the Counci] in the form of a reduced tax rate) but is also clearly there by virtue of his employment on the ranch. A home provided to a ranch employee is as much a factor of production to a ranch as is a barn or a shed or a water tank, and it is the position of the Hawaii Cattlemen's Association that to assess the land under such a home any differently than the land under any other As-related stntcture is not only contrary to the intent of the State law but also lacks uniformity and represents an inequitable treatment of such properly. We clearly acknuwledse that the County's current real property assessment and taxies practiccs offer "loopholes" and the potential for abuse benefiting those not legitimately committed to agriculture, and our industry looks forward to working with you as we have in the past to close those loopholes. Comm. t`{Q ' ~ ~ ~ Ref. To: FC~~ ~ Ref. Da}e^~~- 07/28/04 WED 05:53 [TX/RX NO 8949]