BIL 317 Draft 02 2012-2014 - Laserfiche WebLink

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(2) The deferred tax shall commence from the date the conversion was made retroactive to the date the agricultural use assessment was approved, but for not more than a period of two years plus the current year. (3) The amount of deferred taxes shall be based on the difference between the assessed market value at highest and best use and the assessed agricultural use value of the land at the tax rate applicable for the respective years, with a ten percent penalty. (e) This section shall be repealed in its entirety on June 30, 2019." SECTION 3. Chapter 19, article 8 of the Hawaii County Code 1983 (2005 Edition, as amended), is amended by adding a new section to be appropriately designated and to read as follows: "Section 19- . Short term commercial agricultural use dedication. (a) A special land reserve is established to enable the owner of any parcel of land, or lessee of a recorded agricultural lease with a minimum of three years remaining the lease at time of petition, to dedicate the land for a specific short term commercial agricultural use dedication, and to have the land assessed its value in such use for a period of three years, or in the case of a recorded agricultural lease the term of the lease up to three years, provided: (1) The commercial agricultural use is limited to farming operations that adhere to generally accepted standards or recognized practices within the agricultural industry that are not otherwise prohibited by law, andeng erate income, monetary gain or economic benefit in the form of money or money's worth of a minimum $2,000 annual gross income per farm operation. In the absence of generating a minimum of $2,000 annual gross income, an applicant may alternatively submit an IRS form 1040 Schedule F (Profit and Loss from Farming) that includes expenses in an amount in excess of $2,000. No more than two annual applications for the short term commercial agricultural program may be submitted without meeting the required minimum of $2,000 in annual gross income; (2) The land is designated by County zoning district classification as agricultural, residential and agricultural, family agricultural, intensive agricultural, agricultural project district, or any other Count zoning oning district classification meeting with the approval of the planning director; and (3) The land dedicated for short term commercial agricultural use must be used on a continuous and regular basis for intensive agriculture, orchards, feed crops and fast rotation forestry or pasture and slow rotation forestry and have a minimum lot size per farm operation for that dedicated category o commercial activity as provided for in the administrative rules and regulations of the department. In the absence of complying with the minimum lot size for the applicable type of commercial farm operation, the applicant may demonstrate a commercial agricultural use by submission of the applicant's IRS form 1040 Schedule F (Profit and Loss from Farming)