BIL 218 Draft 01 2014-2016 - Laserfiche WebLink

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(2) The [deferred] rollback 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] rollback 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." SECTION 3. Chapter 19, article 8 of the Hawai`i 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 on the lease at time of petition, to dedicate the land to the short term commercial agricultural use program, 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, and generate 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) or such other IRS form showing profit and loss from farming that includes expenses in an amount in excess of$2,000 related to the particular type of farming operation involved. No more than one application 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; 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 of 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) that includes annual gross income in an amount in excess of$2,000 as well as photographs and a description of the agricultural operation. 3