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REPORT OF THE <br />COMMITTEE ON FINANCE <br />DATE: September 23, 2008 <br />PLACE: Council Chambers <br />TIME: 9:00 a.m. <br />Re: Comm. No. 1453Bi11 No. 366 <br />Council Chair and Members <br />Hawaii County Council <br />Hilo, Hawaii 96720 <br />Your Committee on Finance, to which was referred Bill No. 366, reports as follows: <br />Bill No. 366, transmitted by Director of Finance William Takaba, via Communication No. 1453, dated <br />September 9, 2008, amends Chapter 2, Article 4, Department of Finance, of the Hawaii County Code <br />1983 (2005 Edition, amended), by adding in a new section relating to Lien Parity. The purpose of this <br />measure is to clarify treatment of parity liens as it relates to payments, when such parity is required by <br />law. The immediate application will apply to payments received on real property taxes and special taxes <br />for Business Improvement Districts and Community Facilities Districts. <br />Hawaii County Code Chapter 32 (Community Facilities Districts) and Chapter 35 (Business <br />Improvement Districts) both require that their respective liens for outstanding special taxes be on a parity <br />with the lien of real property tax assessments. As such districts are formed and taxation begins, the issue <br />of applying partial payments correctly must be addressed. <br />At this time, the Kailua Village Business Improvement District is the only district with special taxes, but <br />it is anticipated that the County will have additional districts of both types in the future. <br />In cases where the payment received for outstanding taxes, interest and penalty is less than the full <br />amount due, the Real Property Tax Division must fulfill the parity lien requirements by allocating the <br />partial payment on a pro rata basis for the various outstanding tax types. <br />Your Committee on Finance is in accord with the purpose and intent of Bill No. 366, and recommends it <br />pass first reading. <br />la <br /> AYES NOES A&E EX <br />FORD X <br />RIGA X <br />HOFFMANN X <br />IKEDA X <br />JACOBSON X <br />NAEOLE X <br />PILAGO X <br />YAGONG X <br />YOSHIMOTO X <br />Respectfully submitted, <br />COMMITTEE ON FINANCE <br />~/~M~~ <br />DOMINIC Y <br />FC REPO$~' NO." - 335 <br />ADOPTF,D: OCT ~ 8 208 <br />