HomeMy WebLinkAboutREP FC 048 2023/04/18 2022-2024REPORT OF THE
COMMITTEE ON FINANCE
DATE: April 18, 2023
PLACE: Council Chambers
Kailua-Kona, Hawai `i
TIME: 10:15 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Re: Comm. No. 217/Bill No. 43
Your Committee on Finance, to which was referred Bill No. 43, reports as follows:
Bill No. 43, transmitted by Finance Director Deanna Sako, via Communication No. 217 dated
April 4, 2023, amends Chapter 19, Articles 1 and 8, of the Hawaii County Code 1983 (2016 Edition,
as amended), relating to Commercial Agricultural use dedication for Real Property Taxes.
This bill seeks to implement recommendations of the Real Property Tax Review Working Group and
Agricultural Committee's September 2019 Final Report by: amending the definitions for "commercial
agricultural activities" and "Commercial agricultural use dedication"; adding four new definitions
relating to commercial agricultural uses; amending Section 19-60 of the Hawaii County Code to create
a "Long-term commercial agricultural use dedication"; and establishing a new section titled "Short-term
commercial agricultural use dedication".
Committee Member Heather Kimball, the author of this measure, provided a detailed overview.
Committee Member Michelle Galimba, as co-author of this measure, then provided additional details.
Committee Member Jenn Kagiwada expressed appreciation for the hard work behind this bill.
Ms. Kagiwada asked who would be responsible for reviewing the farm plans. Assistant Real
Property Tax Administrator Keita Jo confirmed that the Director of Finance would assign that task.
Ms. Kagiwada then asked Ms. Sako if she felt that she had the appropriate staff to review these plans,
to which Ms. Sako confirmed.
Committee Member Cindy Evans commented on the readability of this bill, suggesting that multiple
sections of the bill be reviewed. While discussing Ms. Evans's multiple suggestions and proposed edits,
Finance Director Deanna Sako added that she would like to discuss changing some of the effective dates
in the bill as the current dates do not give the department enough time to process.
Committee Member Holeka Goro Inaba agreed with Ms. Evans that some sections of the bill needed
clarity. Mr. Inaba asked about the long-term commercial agricultural use dedication and whether the tax
benefit would be by percentage or rate, to which Ms. Kimball referred to Communication 217.2, which
reflected those details.
FC Report No. 48
FC -48 Page 2 April 18, 2023
Per Committee Chair Matt Kdneali'i-Kleinfelder's request, Mr. Jo clarified the differences between
agriculture use and agriculture dedication, minimum lot sizes for operations, and qualifications for the
agriculture use benefits. Mr. Kdneali'i-Kleinfelder then expressed concerns with the wording of multiple
sections of the bill and suggested reviewing the language to be more specific towards the measure's
intent.
Mr. Kdneali'i-Kleinfelder stated that it may be helpful to include "may include, but not limited to" in
Section 19-60(c)(2) and to review the use of "or" in Section 19-60(d)(2)(D) for clarity. Ms. Sako stated
that those sections reflect what is currently in the Code.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 43, and recommends its
passage on first reading.
Respectfully submitted,
COMMITTEE ON FINANCE
MATT KANEAL"`-KL �INFELDER,
CHAIR
FC REPORT NO.:.,-- 48
ADOPTED: JUr L2-L2m