CHC 1979-03-13 - Laserfiche WebLink

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purchased specifically for agriculture lands with the intent that 'they could beYrio't used for anything else except agriculture lands. Today, tomorrow or in the future, or whatever. Until the general plan for some reason or other would be changed. Don ' t you think this would enhance the situation a lot "better? MR. ZUZA,,K'-; No, sir, I 'm afraid that it would not. Because the value of agricultural land , by experience, has increased almost' consistently from year to year by reason of what develops around it. And that is the basis of tax. The tax is based upon an appraisal and one of the criteria of appraisal is comparison and , therefore, agriculture sales sold as agriculture, not sold as zoned property other than agri- culture would have its effect upon increasing that particular farm. MR. SCHUTTE : But you are speaking of zoned sales. Today the taxes are based on appraised value highest and best use of the market and a comparable could be taken-- it doesnot necessarily have to be taken within the immediate vicinity in order to establish a tax rate. You can take a parcel in Kona and take a similar parcel in Ka' u or a similar parcel here in Keaukaha that could be a comparable and the same situation could be taken into consideration. Also, Cif__a particular tax purchase is made in any particular area ,the tax department does not use that as a basis of establishing tax today, knowing fairly well that this may just be a spot- sale and does not necessarily reflect the general trend in tb; a . particular area. However, if the trend increases or-:continues for the next two years , then they might take a look -at--it--and say, yes, this is the general trend in thls particular area and as a result would consider adjusting the tax base at that particular time. I 'm aware that agricultural lands have increased in value, as everything else has within the past year or years. But, then again, it is on a basis of agricultural lands and I think it should be on that basis. It should not increase with that idea that it is going to be changed from agricultural lands to subdivisions , or residential , or urban lots. I think this is where some of the greater problems come in because your urban, • your residential lots _will undoubtedly bring_a better price nor a higher pricethan_ your agricultural"lot.___ __ _ _ You just mentioned you could-te aakone acre lot and divide it up into three parcels and sell it as such. So that cuts off the agricultural .portion of it and you are now to an urban situation that enhances the value. But what I 'm getting at is should not agricultural lots be. zoned as agricultural through a general plan with the intent that it could be sold for any amount of dollars but whoever buys it knows that that, land is not going to be cut up into adubdivision for residential houselots when it is perfectly good agricultural land. And this is what is happening. It has happened. The better lands have been turned into resit=; dential lots and the farmers are forced into the rocky areas . MR. ZUZAK(: The reason they have been is because the owners of the land have been to sell it. And the purchaser has decided to put it to a different, use. - 36 -