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<br /> MIC'LAEL C. TULANG Phone: (808) 961- 8261 <br /> Councilmember ~?~,°.,`.!V~y FAX: (808) 961-8912 <br /> ~:~U <br /> ~,IdTq, <br /> OF M'me' <br /> 4., <br /> County ~ f Huwui `i ~ ~ <br /> c : <br /> ffuwui'i County Building ~ <br /> 25,~upnniStreel ~ c <br /> ffiln, Huwai'i 96720 - . <br /> n~ <br /> October 26, 2004 <br /> Mr. Aazon Chung, Chairman <br /> Finance Committee <br /> Hawaii County Council <br /> Deaz Mr. Chung: <br /> Subject: Agricultural Property Tax Bill No. 49 <br /> Thanks for setting up the workshops throughout the County to allow all interested parties to take <br /> part in formulating a credible agricultural property tax program. I think they have been very <br /> productive forme and the rest of the Council. I have the following suggestions: <br /> L In general, we should try to complete our work to: (1) protect the bona fide <br /> commercial farmer or rancher, (2) provide a home exemption for the farmer or <br /> rancher, (3) provide a reasonable tax schedule on buildings used as part of the <br /> agricultural operation including employee housing, (4) provide for an annual <br /> certification of agricultural operations, and (5) provide consideration for land that is <br /> set aside, and protected for watershed purposes for public benefit. <br /> 2. Section 19-2 Definitions - "Commercial agricultural activities" The $2,000 income <br /> minimum to determine bona fine agricultural operators does not work for orchard <br /> operations such as Macadamia or fruit fauns because of the lag in production income. <br /> The first few years those farmers would be experiencing a negative cash flow, and the <br /> proposed minimum income would not work. Therefore, we should use the IRS <br /> schedule F to determine the commercial agricultural operations and at the same time <br /> simply the certification process on the annual basis to resolve the year to year leasing <br /> contract issue. <br /> 3. Section 19-60-(c) The Real Property Division needs to revisit the productivity value <br /> schedule in the future. It is too complicated to take on this year. Not withstanding, <br /> we should make every effort to pass this Bill and have the division undertake the <br /> Comm. No. •3 <br /> Ref. To: r~ <br /> Ref. Uata •~CT 2 i <br /> Hnwni'i Ca«nty~ is an l~;~iua[ Upporhinity Provider and Em/Mover <br /> <br />