COM 0090.000 2018-2020 - Laserfiche WebLink

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possibility of creating a photo/voltaiccredit. As the Real Property Tax office does not assess for solar and photo voltaic for residential use, there is no recommendation to create another program in theplace of endingthe solar water P g heater tax credit. 2. Repeal the Non Speculative Residential program. We are again recommending Administration or County Council look into an ordinance to change the Hawai`i County Code. Recommended steps include informing all owners currently with parcels in this program of the repeal for tax year 2019, allow all parcels currently in this program to automatically convert these parcels to the Homeowner Exemption program (by virtue of the program they already technically are part of the Homeowner class) at the 2019 frozen value and explain the 3% CAP would then be applied to the tax year 2020 (first year they would see the increase). This has been a recommendation the Real Property Tax Board of Review has reported for several years as this program does not allow new applicants into this program therefore it is not considered to be fair and equitable. It is our understanding when the County Council approved the 3% CAP and the additional 20% homeowner exemption (up to $80,000) there was discussion to have this program completely repealed however it ended up being an "optional out" for those in the program. There are currently 483 parcels in this program. The impact to the real property tax revenue in tax year 2020 based on the current frozen non spec values would be $23,000 total. In addition, the County will save approximately $4,400 per year in staff time which was allocated to the administering of this program. 3. Procedural change to Real.Property.Tax classification. This would not require a change to the Hawai`i County code,however,the group was approached by Real Property Tax for guidance regarding a portion of the county code that was not consistently applied on the island. There are properties under one acre of land that have been receiving the agricultural class tax rate when the highest and best use is residential. Three meetings were held regarding discussion of what would be the most fair and equitable way to tax these parcels as the underlying zoning is agricultural which included reviewing properties up to five acres in size. The recommendation to Real Property Tax Division is all properties less than one acre in size which are not part of an agricultural use or dedicated agricultural programs should.be taxed at the residential class tax rate to be consistent with the county code island wide. This is consistent with State Land Use Commission statutes which provide for the construction of single-family dwellings on lots existing before June 4, 1976. There are currently 19,604 parcels which will experience a tax class rate change. 6,665 will experience an increase in taxes with the remaining parcels not anticipated to be impacted by the recommendation. The impact to the real property tax revenue in tax year 2019 based on the current assessed values and tax rates would be an estimated $1.3 million increase. In addition to the above recommendations,the Review Group would like to thank the Hawai`i County Council for reviewing and amending the Veterans Disability exemption. We