REP FC 338 10/19/2004 2002-2004 - Laserfiche WebLink

Home

REPORT OF THE COMMITTEE ON FINANCE DA'I'S: October 19, ?004 Re: Comm. No. 118/Bill No. 49 PLAC-~;: Council Chambers MIME: 125 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance. to which was referred Bill No. 49, reports as follows: Bill No. 49. transmitted by Mayor Harry Kim, via Communication No. 1 18, dated January 22. ?004, amends Chapter 19, Articles 1, 7 and 8, Hawaii County Code 1983 (1995 Edition), relating to Real Property Tax Definitions; non-dedicated agricultural use assessment and agricultural use dedication. The purpose of this measure is to define commercial agricultural activities; require commercial agricultural activity to qualify for 10-year dedication benefits; maintain an agricultural use valuation method for dedicated properties; allow a shorter dedication period for leasehold properties in certain circumstances; allows cancellation of dedication without penalty in the case of certain disasters or disabilities of the primary farmer; reduce severity of rollback penalties for breach of dedication; provide benefits for Ag use, Non-dedicated properties using two times the dedicated agricultural use valuation; reduce rollback period for Ag Use, Non-dedicated program; and eliminate 20-year dedications. Originally heard on February 19, 2003, this measure was deferred. At a subsequent Finance Committee workshop held on February 18, 2003, Director of F InanCe William Takaba presented a two part presentation: one to go over proposed the real property tax agriculture program and the second part to show the comparisons between the existing ag tax program and the administration"s proposal in order to have side-by-side comparisons of the use(s) of property, zoning requirements, length of participation, minimum lots, breach (exceptions, appeal. and rollback taxes), rollback penalty, homesite value, assessed values and the desired outcomes (establish sound definition, simplify ag program and improve rules, prevent obvious abuse and simplify enforcement). Bill No. 49, Draft 2 was referred to Your Committee, dated February 18. 2003, from Director of Finance William Takaba. amended the following additional sections: Article 8, Section 19- (b). Commercial Agricultural Use Dedication: "..July t_ 2003 may continue to he [lased] assessed at fifty percent of its [°.-se.~^°-!-~!_•_~, J agricultural use ~,i^a:,.^~:,.^ w_ ai:^,. ^ ^,..:«:._._ ..:.i..~o a:_~.«,._ t~. c~...o..,~.~. i onnz~ value and Shall be suhiect to the conditions and provisions of the effective commercial agricultural use dedication." Article 8, Section 19-(c)(4). Commercial Agricultural Use Dedication °...market value of a comparably[~+nedi homesite." Heard on August 8. 2004, this measure was deferred again to allow Your Committee to provide workshops on this measure in various districts. FC REPORT NO. 338