CHC 1979-03-13 - Laserfiche WebLink

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additional burden upon the treasury of the county during their occupancy.. - But ' a person who comes Tn.- after that and does rezone, then does sell it, that person pays a higher tax because the tax base is then market value. . MR. CADINHA: This proposal is not specific to any particular zoned property? All property? Is that correct? MR. ZUZA.K; '. 'It is property tax across the board. It is not directed toward agricultural lands or residents or anything of discriminatory na't'ure. Any property taxes. We feel that there should be (a start somewhere and we"should not penalize the people who have lived in a home for 30 years or longer, they are satisfied with it and because someone buys a home, or buys a site three doors from them and pays fifteen or twenty times what `their lot next door was worth, they shouldn ' t be penalized because according to the method of assessment by reason of the fact. that it is in the area, their value is higher® Their assessment goes up. Their amount of tax, therefore, d.S 6-T-go increased. We are trying to say: that should not occur. When he sells it, the person who buys it then starts at the market value at that particular time. The assessed value is based upon a ratio of percentage to market value to the new buyer not to the existing bitoer. MR. CADINHA: What would be your comment. A hypothetical situation. Current landowner, Castle & Cooke, or some major landholder puts to economic use some industrial property.. Be it geothermal or be it manganeOe production or whatever you have. And finds that there is sufficient market. A foreign corporation , Dow Chemical or somebody wants to come in next door. The highest and best use of the property next door would dictate the same sort of an application . He buys the property at a stepped up basis. The taxes of the two very similar industrial plants would pay would be very different. It could very well be the difference between a profit and a loss. Having nothing to do with management. Is that fair? MR. ZUZAK,: ) ' The person who comes in takes that factor into consideration. It is an economic factor.r and if he does come in he has to be aware of it and be mindful of that cost in consideration. Otherwise, it is not economically feasible to him. However, what happens next door does not affect his use of it. If he decides he wants to build a hotel on it or if he decides he wants to develop it into a subdivision, he has studied the economic feasibility of it, of doing just that with the property and he proceeds. The one next door to it may want to live on it as a residence or a farm or whatever. • MR. CADINHA: Then that , in effect, really could be to discourage new capital from coming into the state. MR. ZUZAK.,J. No. It ' s really not intended to, discourage new capital , at all. The objective is to protect the people who live here now. Because, you see, our economy in - 34 -