2012-COH-A Technical Assistance Report Evaluating Property Tax Policies and Administrative Practices in Hawaii County

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7. examine local laws, procedures, and practices with regard to tax policy and administration with regard to their comparison to IAAO Standards (Sections 2 through 12). In terms of analyzing these components, findings are to: a. Render an opinion and offer recommendations as to the local property tax assessment processes and procedures. b. Summarize the current local situation with regard to adherence to and utilization of exemptions and compare to other jurisdictions. Make recommendations to the County as to whether the laws currently in place can reasonably be enforced and how those laws compare and contrast with similar laws elsewhere. If appropriate, suggest changes in practices, procedures, and/or legislation that might help to resolve impracticalities. c. Report on local staffing adequacy relative to jurisdiction size and valuation complexity. Using IAAO Standards as a guide, make recommendations regarding whether the staff size is adequate to maintain the property tax system currently in place. d. Offer other information and analysis of common jurisdictional ad valorem property tax law and the comparison of the norm to the rules and procedures in place in Hawai'i. 1.3 Limitations The report and its findings are limited to information learned in the course of interviews, a review of pertinent material provided by the County, and a review and comparison with pertinent IAAO literature and contextual information based on the experience of the authors. There was no attempt to audit assessment records for accuracy or to perform independent ratio studies, sales verification, or other performance evaluation procedures. In addition, the report does not attempt to critique individual staff and management performance mance. Where we feel that current practices may have lead to less than optimal assessments or assessment equity, observations and recommendations are provided. 1.4 Methodology of the Project To conduct this review, the County of Hawai'i retained the International Association of Assessing Officers (IAAO). The IAAO organized a team of experts, including Alan Dornfest, AAS and Richard Almy, both of whom have extensive experience reviewing property tax policies and assessment administration systems throughout the U.S. The report was reviewed by Jeffery Spelman, CAE. Mr. Dornfest and Mr. Almy, who are the primary authors of this report, met with the Finance Director, attorneys from the Office of the Corporation Counsel, staff of the Department of Finance Real Property Tax Division, the Managing Director, whose office oversees the Department of Finance, a Council member, an aide to another Council member, and several citizen / stakeholders. Meetings were held on site, mostly in the Hilo or Kona areas, during the week of November 14, 2011. Additional meetings were held via conference call prior to the on-site visit with the Legislative Auditor, who facilitated scheduling all the meetings. The Legislative Auditor 3