COM 0118.032 2002-2004 - Laserfiche WebLink

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Pepe'ekeo Community Meeting September 16, 2004 Bill 49, Dr. 3, Agricultural Land Taxation Mr. Smith suggested that the language should state that only if the change in use affects the value of the dedication should the farmer have to notify the Tax Office. Mr. Takai stated they have not been too technical in the past in reviewing changes in the use of the land. Mr. Smith asked if there were inspections to ensure proper use on dedicated lands. Mc Takai expressed concern with the amount of lots to be inspected and appraised on the island. Mr. Burton stated that there could be people building homes without a permit to escape the homeowners late. He stated the County needs to be careful in how the laws are written pertaining to what is allowable on Ag land, as they may be encouraging dishonesty. Mr. Takai stated that when the annual appraisals are done, if there is a house placed on a property, they will note that down and check if it is allowable. At this time, Mr. Takaba announced a shift in the discussion to the new assessments which resulted in many increases in the citizen's tax bills. He stated the property values went up because of the new rule to set aside the portion of the property with the homesite on it and place that portion in the homeowners class. He said those most adversely affected by this would be persons who own a home on Agriculturally zoned land but do not live on it, and are renting the home. 'T'hey would not qualify for the homeowners class or the exemption as the home is not their primary residence. He stated that many people on the island thought Bill 49 was the reason for this change in their assessments. when actually, the assessment change is a separate issue unrelated to these proposed revisions. Questions ensued regarding using a room or a portion of a primary residence for a business, how it would effect the rate class and the homeowners exemption. Dr. Holschuh expressed concern about a constituent who found and extreme increase in her tax bill because it was discovered by the Tax Office that there was a computer in one of her rooms that was being used to perform minor business functions. Mr. Takaba stated that as long as the home is the primary residence, you would qualify for the exemption: however, the use of a portion of the home for business is an issue that is currently outstanding. Mr. Takaba stated there are several bills pending at the County Council regarding the homeowners exemptions, and more will he ibrthcoming. Mr. White expressed concern that the bill does not seem to protect the Ag land. He stated the bill is only addressing the issue of how Ag land is governed and taxed. He expressed that private developments should be focused on and taxed higher. He feels that tax revenues are not being used to protect farmers and keep the Ag land in Ag. Mr. Takaba expressed that the current proposal reflects many hours of discussion and many revisions to protect Ag. He listed the benefits added to provide for farmers and land owners who dedicate to Ag. He stated the gated communities were looked at as well as the "gentlemen farmers," and it was found that you cannot discriminate against properties with higher market value. One person asked why there are so many subdivisions being allowed. Mr. Burton expressed that the farmers have to do their share in helping themselves by committing to work with the "fax Ofice, they should do the paperwork. He felt that those people who were dedicating their property to Ag should be recorded with the Tax Office. As it is now, the feeling is that most people arc honest, and the use is not being checked because it's too much trouble. Mr. White stated there should be more evaluations to ensure proper use of the dedicated land. Page 6