Laserfiche WebLink
Kea'au Community Meeting October 19, 2004 <br /> Bill 49. Draft 3, Agricultural band Taxation <br /> Mr. "Cakaba stated that a Draft 4 of the bill will come forward. The new draft tends even more towards <br /> helping the farmer. <br /> Ms. O'Neill asked if senior citizens have shown interest in dedicating their property to Ag, as they may <br /> not want to commit for that length of time. Mr. Takaba stated it is a concern for seniors, but there is an <br /> escape clause in the proposal, which provides for cancellation in the case of disability or disaster. <br /> Mr.Takai reiterated this statement. <br /> Mr. "Cyler asked what if the land owner transfers the title of the property to a new party and the use is <br /> continued. Mr. Takaba stated if the property owner sells or transfers the property and the Ag use carries <br /> on, the dedication would also carry on. <br /> Mr. Tyler asked how the land owner would know about this provision. Mr. "Cakaba replied that when a <br /> landowner applies for a dedication, the information would be provided to them. All rules regarding the <br /> Ag program would he included. <br /> Mr. Tyler asked if there was an automatic rollback provision when the property is transferred. <br /> Mr. "Cakai stated that when the property is dedicated, it is recorded with the Bureau of Conveyances. <br /> When the property is sold, the real estate representative would see that in the property title. It is the <br /> responsibility of the real estate agent to disclose information regarding the title. They would inform the <br /> buyer that the dedication runs with the land and in order to receive the benefit, the Ag use would have to <br /> he sustained. Mr. Tyler stated there should be a notice upon recordation, so that the dedication would <br /> show up the reservations contained in the deed to the property. Mr. Takaba stated that once Bill 49 is <br /> <br /> adopted and becomes law, the Real Property Tax Office would need to have informational booklets <br /> made to provide to applicants, realtors and escrow companies. <br /> Mc Tyler mentioned that the new provisions in the upcoming Draft 4 will enable the property under the <br /> house site on agricultural lands to be valued at the highest agricultural rate, rather than at the market <br /> <br /> value. He asked Ms. O'Neill her opinion. Ms. O'Neill stated she could see no detriment other than <br /> revenues lost to the County. <br /> Mr. Bethea asked if there has been an estimate of the revenue impact to the County. Mr. Takaba stated <br /> <br /> that the revenues would have gone up $2.5 million with the enactment of Rule 7. Mr. Bethea asked if <br /> <br /> the proposal was meant to he revenue neutral. Mr. Takaba stated revenues to the County weren't <br /> considered, but the changes in the upcoming Draft 4 will result in less revenues to the County. <br /> Mr. l~akai stated the revenues as it currently stands with the enactment of Rule 7 would actually he <br /> nearer to $I.5 million. <br /> Mr. ~Cyler asked how those folks on Agricultural land but not in Ag use will be taxed. Mr. Takai stated <br /> that currently, landowners who have their home on Agriculturally zoned land but have not claimed Ag <br /> use, either dedicated or non dedicated, are taxed at market value. Mr. Takaba stated that if they are in <br /> <br /> the homeowner's class for their home, they can get the homeowners' exemption. <br /> Page 2 <br /> <br />