COM 0118.032 2002-2004 - Laserfiche WebLink

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Pepe`ekeo Community Meeting September 16, 2004 Bill 49, llr. 3. Agricultural Land Taxation Regarding the shorter dedication period for certain circumstances, the Finance Department representatives explained that for leasehold properties where the leases are less than 10 years, or where the lease has less than 10 years left on it, there will be consideration for a shorter dedication period. In the current law. if you are dedicated for 10 or 20 years and there is a disability or disaster, the rollback would apply. "Chat provision is being changed to cancel the penalty in the case of disaster or disability of the primary farmer. It was stated that in the case of disability a document from a medical professional would be required. Currently if you breach a dedication, the rollback taxes plus a 10 percent penalty would apply. The example of Hamakua Sugar Company was used. In that case, the land was dedicated to Ag for 20 years. On the 19'x' year the company fell. The rollback taxes and penalty amounted to approximately $18 million in that case. As a result, the County acquired 4.500 acres of Hamakua land. For farmers who do not wish to dedicate or who are not in commercial activity., the land values for non-dedicated Ag use would be twice as much as the dedicated Ag values, which would still result in low taxes. Mr. Johnson asked if this would apply to someone who wanted to lease their property for five years. Mr. 'Takaba replied in the aftirmative. Mr. Johnston asked how he could set aside aone-half acre portion of his 2 'h acre property from the dedication, which would contain two acres of vegetable crops. He said that one-half acre portion had shot up to $400. Mr. Takai stated he should fill out the Ag use form. Bill 49 removes the 20-year Ag dedication from the program. The 20-year dedication program enabled the property owners to qualify for their land to be assessed at one-half the 10-year Ag use dedication value. History has found that 20 years is too long-term for most people. Mr. Johnson asked what would happen to the land owners who were currently in the middle of a 10-year dedication with the new proposal, if the dedication would start again. Mr. Takai replied that the dedication would continue. Mr. Takaba replied that rollback taxes for a breach would be less severe if changes occurred during this transition. Mr. Johnson requested a provision in the bill for this situation. that people with land already enrolled in the program should be grandfathered, and it should be stated in the bill. Mr. Takaba stated the department would look at language for that. At this time, questions ensued regarding the second page of the handout, which shows three examples of 20-acre parcels with different types of situations. Mr. "Cakaba explained that in the previous law if a person is living on Agriculturally zoned land the homesite is considered a farm dwelling and the Ag use rate applies. The second home built is still considered a farm dwelling. If homes continue to be built, restrictions may be incorporated. Ur. Itolschuh asked if there was a restriction on the number of farm dwellings, to which Mr. Takaba replied there could be any number of farm dwellings. Mr. Anderson asked how the Tax Uftice would appraise a homesite on Ag dedicated land. Mr. 'Cakai stated they would look for a comparable homesite and appraise it accordingly, the homeowners rate would apply to this portion. The remainder of the parcel would qualify for the Ag use rate. Yage 3