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Home My WebLink AboutCOM 0070.001 2012-2014 TAX BOARD OF REVIEW County of Hawai'i 101 Pauahi Street, Suite 4 Hilo,Hawaii 96720-4679 December 30, 2013 The Honorable William P. Kenoi, Mayor County of Hawaii ='g 25 Aupuni Street Hilo, Hawaii 96720 Lk./ -< The Honorable J Yoshimoto and Members of the County Council ry County of Hawaii 25 Aupuni Street 'O Hilo, HI 96720 Dear Mayor Kenoi, Chairman Yoshimoto and Members of the County Council: Pursuant to Chapter 19 of the Hawaii County Code, enclosed please find the 2013 Annual Report of the Real Property Tax Board of Review. Thank you for your time. Respectfully submitted, Scott Church Chairman /enclosure cc: Nancy Crawford, Director of Finance Comm. No. °• Ref. To: FL Ref. Date JAN 06 2014 William P. Kenoi of M' Nancy E. Crawford Mayor - °•' h Finance Director ' ■ye: r Deanna S. Sako • Deputy Director ,Tt Of Mfg County of Hawaii DEPARTMENT OF FINANCE-REAL PROPERTY TAX Aupuni Center • 101 Pauahi Street • Suite 4 • Hilo,Hawai`i 96720-4679 • Fax(808)961-8415 Appraisers(808)961-8354 • Clerical(808)961-8201 • Collections(808)961-8282 West Hawai`i Civic Center • 74-5044 Ane Keohokalole Hwy. • Bldg.D,2nd FIr. • Kailua Kona,Hawaii 96740 Fax(808)327-3538 • Appraisers(808)323-4881 • Clerical(808)323-4880 Website:www.hawaiipropertytax.com REAL PROPERTY TAX BOARD OF REVIEW 2013 ANNUAL REPORT December 30, 2013 Introduction Pursuant to the provisions of Chapter 19, Article 12, Section 19-97(e), Hawaii County Code as amended, the members of the Real Property Tax Board of Review submit the following report of activities and recommendations for the 2013-2014 tax year. The recommendations relate to both legislative and administrative matters. The following is a list of the officers and members of the Board: Scott Church, Chairman Albert Kualii, Vice-Chairman Michael D'Amico Donald David Potential appointees should be apprised of the demands of their time that service on this Board entails before their names are submitted to the County Council for confirmation hearings. All members are expected to attend all meetings. Meetings in Hilo or Kona may be a biweekly occurrence from July through November with two nights away from home or the office. Hawai`i County is an Equal Opportunity Provider and Employer 2013 Tax Board of Review Annual Report 2 Board Membership The following is a list of the Board members and when their term ends: Board Member Term Ends — December 31, Albert Kualii 2013 Scott Church 2014 Michael D'Amico 2015 (resigned 2013) (Vacant) 2016 Donald David 2017 NOTE: It will be necessary not only to fill the existing vacancy but also those of Mr. Kualii and Mr. D'Amico (per his resignation). Activities Organizational Meeting The annual organizational meeting of the Board was held on March 20, 2013, at the Real Property Tax Conference Room in Hilo for the purpose of electing officers and establishing a tentative appeal hearing schedule for hearings to be held in both Hilo and Kona. A tentative workshop date and place were also set and there was a general legal discussion of Chapter 19, as well as a discussion of any bills relating to assessments. Deputy Corporation Counsel Craig Masuda provided information on appeal hearing procedures for both the Board Members and the County Appraisers, material that will be provided and its format, as well as rules and creating motions. Real Property Tax Administrator Stanley Sitko was also in attendance and provided comments to the Board. Minutes from the November 28, 2012 meeting was approved. 2013 Board of Review Statewide Conference The 2013 Board of Review Statewide Conference was cancelled at great disappointment to the Board Members. Material and knowledge gained at prior conferences have proven to be valuable to the Members. Workshop A workshop was held on July 16, 2013, at the Hilo Hawaiian Hotel's Mala Ikena Room with Board Members, Real Property Tax Office Administration, Appraisal Supervisor, Appraiser V (Commercial Appraisers), Clerical Supervisor and support staff in attendance. Also present were Finance Director Nancy Crawford, Deputy Director Deanna Sako, and Deputy Corporation Counsel Craig Masuda. 2013 Tax Board of Review Annual Report 3 Opening remarks were provided by Mrs. Crawford and Mr. Masuda, who also did a presentation on the Powers and Duties of the Board, Parliamentary Procedure, Board Rules and other matters. Administrator Stanley Sitko presented information on the Sales Ratio Analysis. The Board was also provided time to present questions to the tax office personnel and administration which continues to be beneficial to the Board. Appeal Hearings Two hundred twenty-nine (229) appeals, which included 105 from East Hawaii and 124 from West Hawaii, plus appeals from amended assessment notices (P38s), were scheduled for hearing this tax year. This is a decrease from 556 cases in the previous tax year. There were two (2) sessions held in East Hawaii (October 22, 23) and five (5) sessions held in West Hawaii (August 27, 28; September 24, 25; November 6). Complaint Hearing As required by Chapter 19-97(e), a notice was published on September 6, 2013, specifying a period (September 9 — 20, 2013) within which complaints may be filed by a taxpayer. One complaint was filed. No information was provided as to the grounds for the complaint. The Board heard the complaint on November 6, 2013, and is attaching a copy of the complaint hereto as Exhibit A. Comments and Recommendations 1. The procedure of rendering an immediate decision in open session upon the completion of the presentation of each appeal case continues to be accepted by all parties and is still the preferred procedure and most efficient process. 2. The workshop, which included the Real Property Tax staff and Board Members held prior to the start of this year's appeal hearings, was immensely informative and productive. Future workshops are encouraged to continue with Board Members, new incoming Board Members and all administrative staff particularly with regard to substantive tax areas. 3. The presence of Corporation Counsel at each meeting/hearing has proven itself to be essential. The Board has relied upon Corporation Counsel in many instances for clarification and interpretation of rules and/or laws. 4. The Board strongly recommends that the statewide conference be continued and that attendance by the Board and support staff be funded because of its multiple benefits. 2013 Tax Board of Review Annual Report 4 5. Due to retirements and turnovers, the current appraisal staff is new to the job and could benefit from further training. Consequently, the Board recommends the availability of monies for additional training for the appraisers. 6. The Board appreciates the impromptu training sessions conducted by Corporation Counsel, Appraisal Supervisor, and Assistant Tax Administrator. These sessions provided the Board with information and insight on various issues, topics, programs, etc. 7. Due to the fact that the non-spec residential program does not offer renewal, the Board continues to recommend that they be transferred to the homeowner's class without penalty. The Board further recommends that the Real Property Tax Stakeholders Task Force take-up this matter during their sessions. 8. Under the current code, an owner/occupied property that is partially used for a home- occupation and/or a rental qualifies to be in the homeowner's class but a property partially used as a care home does not qualify for this class, per the County's Planning Department. The Board recommends that Section 19-53(e)(2)(A) be amended to include in the homeowner's class an owner/occupied property used for care giving and/or care home. The Board further recommends that the Real Property Tax Stakeholders Task Force take-up this matter during their sessions. 9. The Board Members are aware that the public has a misperception of the motivations, goals and responsibilities of the Real Property Tax Division with regard to assessments and tax rates. The Board continues to recommend that the Division should use all forms that are available to better inform the public of its roles and responsibilities. 10. The Board continues to recommend that an Agricultural Specialist be hired to assist the County to deter potential abuse of the agricultural use program. It is possible that the position could be self-funded. 2013 Tax Board of Review Annual Report 5 Close Chairman's Comments In reflecting back over this year's sessions, I wanted to first thank Board Members Albert Kualii, whose term expired, and Michael D'Amico, who resigned to enable relocating to the mainland, for their outstanding service again this year. Unfortunately, this also leaves the five- member Board with the challenge of filling three vacancies for 2014. Ideally candidates should be selected from Puna, Hilo, and Waimea. Secondly, I wanted to note the competent, professional support and flawless coordination provided to the Board by Real Property Tax Division employee Elizabeth 'Nina' Swain. Finally, and worthy of note too, was the Real Property Tax Division's professional demeanor, thoroughness of preparation, and consistency of documentation for the Board. Submitted by Members of the Tax Board of Review: 41111kla (.....,A(A.z4.4A4Qt.dat.„; S Albert Kualii Chairman Vice-Chairman OA, — Ionald David Michael D'Amico Member Member (vacant) Member EXHIBIT A RP Form 19-97(e)(Rev 02/2011) Dept.of Finance COUNTY OF HAWAII REAL PROPERTY TAX BOARD OF REVIEW 101 Pauahi St., Ste. 4, Hilo, HI 96720 74-5044 Ane Keohokalole Hwy., Bldg. D, 2nd Flr. Kailua Kona, HI 96740 TAXPAYER'S NOTICE OF COMPLAINT USE OF THIS FORaI WILL NOT RESULT IN ASSESSED 6'14L UE C K-1:VGES USE RP FORA!19-91 L-4PPF_,'I L APPLICATION FOR ASSESS1JEV'T.APPEALS NOTICE is hereby given that c".._1.4 Ali:- 3 2 . / 7q7 (Name of Taxpayer) hereby files this complaint to the County of Hawai`i Real Property Tax Board of Review. The e7,5 >iJ'—dc'c2 real property identified as Tax Map Key No,,/73- /- / , , for tax year 20 /3 -20 /V , has been improperly valued for real property tax assessment purposes. County's Valuation: Land: y' /7, 6-60 Building: I (We) believe that the proper assessment value of the property is as follows: Taxpayer's Valuation: Land: '/ 2 Building: The grounds of objection to the County's valuation are: f ' 4/7- Signed: Dated: �- —%.) (�axpayer) Day Phone: 2 "yz- 71/-L 5/Mailing Address: 2, FOR TAX OFFICE USE ONLY Receipt Acknowledged: Dated: 20 Hawai'i County is an Equal Opportunity Provider and Employer