HomeMy WebLinkAboutREP FC 028 2023/03/07 2022-2024 REPORT OFT E
COMMITTEE ON FINANCE
DATE: March 7,2023 Re: Comm.No. 1131Bill No. 28
PLACE: Council Chambers
Hilo, Hawaii
TIME: 10:31 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 28, reports as follows:
Bill No. 28,transmitted by Committee Member Holeka Goro Inaba, via Communication No. 113
dated February 14, 2023, amends Chapter 19, Article 7, Section 19-53 and Article 10, Section 19-71,
of the Hawaii County Code 1983 (2016 Edition, as amended), relating to Real Property Taxes.
This bill safeguards certain agriculturally productive properties which are also used as an owner's
primary residence or as an affordable rental from rising assessment values.
Committee Member Holeka Goro Inaba provided a brief background on this measure.
Committee Member Cindy Evans asked for further clarification on this from the department. Assistant
Real Property Tax Administrator Keita Jo provided a detailed overview of this program and its intention.
Ms. Evans expressed that she was concerned about some potentially unintended consequences that could
occur from this measure.
Committee Member Heather Kimball asked Mr. Jo if there was an estimate of the impact on revenue for
this project, to which Mr. Jo replied that they did the analysis a year ago. The cost savings for
individuals in this program equate to about$2.8 million.
Committee Member Jenn Kagiwada stated her support overall but expressed a slight concern that people
who receive these benefits are doing the work.
Committee Member Michelle Galimba also expressed some concerns but is overall supportive.
Committee Member Susan L. K Lee Loy expressed concerns about the mechanics of taxation on
permitted and unpermitted structures. She thanked Mr. Inaba for this measure and said she completely
supports this but that she and some colleagues have the same concerns. Ms. Lee Loy asked Finance
Director Deanna Sako if the $2.8 million would be in this tax cycle or the next,to which Ms. Sako stated
January 1, 2024.
FC Report No. 28
FC-28 Page 2 March 7,2023
Mr. Inaba acknowledged all his colleagues' concerns. He explained further what this measure was
proposing and addressed that this measure is intended for people whose primary residence is on
agricultural land. He also explained the Native Forest Dedication program and how that works.
Mr. Inaba moved to amend Bill 28 with the contents of Communication No. 113.1, and was seconded
by Ms. Lee Loy. All members voted unanimously in favor of passing the amendment with nine "ayes."
Mr. Inaba provided a brief overview of the amendment and asked for his colleagues' support.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 28, as amended to
Draft 2, and recommends its passage on first reading.
Ik
AYES NOES ABS EX Respectfully submitted,
EVANS X
GALIMBA x COMMITTEE ON FINANCE
INABA X
KAGIWADA X
KANEALI`I-KLEINFELDER X
KIERKIEWICz X MATT"�qEALPI-KIYIEINFELDER,
KIMBALL X CHAIR
LEE LOY X FC NO.: 28 _
VILLEGAS X ADOPTED: JUN 2 1 2023