REP FC 068 05/14/2013 (2012-2014)

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REPORT OF THE COMMITTEE ON FINANCE DATE: May 14, 2013 Re: Comm. No. 267/Bill No. 75 PLACE: Council Chambers Hilo, Hawai`i TIME: 6:10 p.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Bill No. 75, reports as follows: Bill No. 75, transmitted by Finance Director Nancy Crawford, via Communication No. 267 dated April 25, 2013, amends Chapter 19, Article 10, Section 19-89.5 of the Hawai`i County Code 1983 (2005 Edition, as amended), relating to Kuleana Land Exemptions. The proposed bill eliminates residential and agricultural zoning restrictions and allows qualified parcels in residential use, agricultural use, or vacant land to be eligible for a kuleana land exemption; and clarifies that vacation rental use does not qualify as a residential use with regard to this exemption. On May 14, 2013, by unanimous vote, the Finance Committee meeting was recessed to May 29, 2013. There was no public testimony, discussion or action taken on May 14, 2013. Council Member Ford, who spoke in support of Bill No. 75, feels that conservation land should also be considered in the proposed bill. Real Property Tax Division Administrator Stan Sitko stated that vacant land would allow exemption on conservation land; however, it would not qualify if the land is in commercial use. Deputy Corporation Counsel Ryan Kanakaole appeared before Your Committee. He clarified that the Office of Hawaiian Affairs lobbied legislation for the kuleana real property land exemption at the state level, but was unsuccessful. However, legislation passed at the County level and is in current operation under the county's courts. Council Member Wille stated that this resolution should be taken up with the Real Property Tax Taskforce. Council Member Eoff reminded the Council that this issue is already law. She further stated that this resolution clarifies which parcels will qualify for the kuleana real property tax land exemption. FC Report No. 68