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HomeMy WebLinkAboutCOM 0026.000 2024-2026REAL PROPERTY TAX BOARD OF REVIEW COUNTY OF HAWAII 101 Pauahi Street, Suite No. 4 9 Hilo, Hawaii 96720-4679 October 8, 2024 The Honorable Mitch Roth, Mayor County of Hawaii 25 Aupuni Street Hilo, Hawaii 96720 The Honorable Heather Kimball and Members of the County Council County of Hawaii 25 Aupuni Street Hilo, Hl 96720 Dear Mayor Roth, Chairwoman Kimball and Members of the County Council: Pursuant to Chapter 19 of the Hawaii County Code, enclosed please find the 2024 Annual Report of the Real Property Tax Board of Review. Thank you for your time. Respectfully submitted, Michael Okumoto Chairman /enclosure cc: Diane Nakagawa, Finance Director Lisa Miura, Real Property Tax Administrator Comm, NO. Ref. To: Ref. D,aw, _RL 4 !U4 REAL PROPERTY TAX BOARD OF REVIEW COUNTY OF HAWAII 101 Pauahi Street, Suite No. 4 * Hilo, Hawaii 96720-4679 R-E-A-L-PR-C"%-HT'i-TX;k-B-EMR-D-UF-RET.,YE 2024 ANNUAL REPORT October 8, 2024 Introduction Pursuant to the provisions of Chapter 19, Article 12, Section 19-97(e), Hawaii County Code as amended, the members of the Real Property Tax Board of Review submit the following report of activities and recommendations for the 2024-2025 tax year. The recommendations relate to both legislative and administrative matters. Board Membership The following is a list of the officers and members of the Board and when their term ends: Board Members Term Ends — December 31 Michael Okumoto, Chairperson 2024 Dale Tokuuke 2025 Mark Davis 2026 Jason Eisert, Vice Chair 2027 Activities Organizational Meeting The annual organizational meeting of the Board was held on March 13, 2024, at the Real Property Tax Conference Room in Hilo for the purpose of electing officers and establishing a tentative appeal hearing schedule for hearings to be held in both Hilo and Kona. Mr. Michael Okumoto was elected as Chairperson and Mr. Jason Eisert as Vice -Chairperson. Board member Dale Tokuuke was also present for the meeting. Real Property Tax Administrator, Lisa Miura, and Real Property Tax Assistant Administrator, Keita Jo, were both in attendance and provided comments as well as answering any questions the Board had at that time. Hawai'i County is an Equal Opporfunit), Provider and Employer 2024 Tax Board of Review Annual Report 2024 Board of Review Statewide Conference The 2024 Board of Review Statewide Conference was held on June 7, 2024 at the Airport Honolulu Hotel on Oahu. There were approximately 63 guests in attendance including Board Members, Deputies Corporation Counsel, Real Property Tax Administrators and support staff from four island counties: Honolulu, Maui, Hawaii Island and Kauai. Maui County's Corporation Counsel, Brian Bilberry, presented on Timeshare Real Property Tax Litigation (2013-2024) case. Also presented and discussed were a statewide statistical comparison to the appeal process. Attendees were then granted the opportunity of a breakout session to discuss matters within related groups — Directors/Administration, Corporation Counsel, Board Members, Board Clerks, Appraise rs/Analysts, Support Services and Treasury/Tax Relief/Collections. A question -and -answer open discussion forum was also held. The location of the conference worked well and proved to be of convenience for those traveling from outer islands. The organization from the coordinators of the event provided a great conference experience for all the attendees. X= A workshop was held on July 9, 2024 at the West Hawaii Civic Center Community Hale in Kona with Board Members, Real Property Tax Office Administration, Appraisal Supervisor, Appraiser V (Commercial Appraiser), Valuation Analysts, and support staff in attendance. Also present were Deputy Finance Director Aaron Brown, and Deputy Corporation Counsels, Sylvia Wan and Keyra Wong. Opening remarks were provided by Mr. Aaron Brown and Ms. Lisa Miura. Various Real Property Tax staff presented information on the sales ratio analysis, tax classifications, an update on budget and legislature, native forest and agricultural use, 2023 market updates, exemptions, STVR and other various programs offered by the division. Ms. Sylvia Wan provided a presentation on the Role of the Board of Review. The Board was provided with the opportunity to present questions to the tax office personnel and administration. The workshop continues to be a very beneficial and worthwhile session to the Board. Appeal Hearings There were 261 appeals filed, including appeals from amended assessment notices (82 from East Hawaii and 179 from West Hawaii), that were scheduled for hearings this tax year for a combined total of $188,235,775 disputed. This is a decrease from 418 cases in the previous tax year. There were two (2) sessions held in East Hawaii (August 14, October 8) and four (4) sessions held in West Hawaii (July 30, 31; September 3, 4). Hatvai'i County is apt Equal Opporlunity Provider and Employer 2024 Tax Board of Review Annual Report Complaint Hearing As required by Chapter 19-97(e), a notice was published on August 31, 2024, and September 1, 2024, specifying a period (September 31 — 16, 2024) within which complaints may be filed by a taxpayer. One complaint was filed this year. The Board held its complaint hearing on October 8, 2024 at the Aupuni Center Conference room in Hilo. The Notice of Complaint received on April 3, 2024, is attached hereto as Exhibit A. The complainant was not present for the hearing. Comments and Recommendations Administrative Matters 1 Potential appointees should be apprised of the time commitment serving on this Board demands before their names are submitted to the County Council for confirmation hearings. All members are expected to attend all meetings. Meetings in Hilo or Kona occur from July through October with two nights away from home or the office. 2. The Board recommends that additional one-on-one training continue to be provided by the Real Property Tax division and Corporation Counsel for newly appointed members. This training session should include basic information on programs, appeal procedures and the specifications of their role as a member. 3. The Board recommends continued funding to allow the Board and support staff to attend the statewide conference (when available) as it provides multiple benefits to all participants. 4. The Board recommends that the County continue to provide outreach interaction to the public to dispel the misconception that the Real Property Tax Division and the Board of Review set the tax rates. 5. The Board recommends that the public is continuously informed on the various programs and exemptions Real Property Tax has to offer, e.g., Short -Term Vacation Rental, Agricultural Use Benefit programs and the Homeowner Exemption. One suggestion is to provide more avenues where information can be obtained/provided so the taxpayers can educate themselves. The Board recommends the Real Property Tax office to reach out to the Board of Realtor organizations, Chamber of Commerce and other organizations. 6. The Board appreciates the effort by the administrative and appraisal staff in settling 63% of the appeals that were filed, which reduced the hearing time of each scheduled day. The Board appreciates the change to have all the hearings scheduled for the morning sessions and this should be continued. 7. The Board encourages the appraisers to cite the Hawaii County Code or the Finance Director Rules and include it in their board packets to support the county's decision regarding granting/disallowing programs, exemptions or the subject property values Hawaii Count), is an Equal Opportunity Provider and bnph wr 2024 Tax Board of Review Annual Report (including but not limited to short term vacation rentals, agricultural use and market value). 8. The procedure of rendering an immediate decision in open session upon the completion of the presentation of each appeal case is found to be an acceptable practice to all parties. Due to the known financial impact of the Board's decision, some cases can be very emotional for the appellant and at times contentious, however the Board understands that it is incumbent upon the appellant to provide the data in support of their claim. 9. The Board continues to be impressed with how well -prepared the appraisers and division administration are in the cases presented. The Board does recommend that the appraisers completely fill out the appeal data worksheet, especially the County's recommendation of values located at the bottom of the document. 10. The Board commends the division for their effort to enforce the homeowner exemption and tax classification ensuring it is reflective of the actual use. 11. The presence of Corporation Counsel and the Appeals Board Clerk at each meeting/hearing has proven itself to be essential and is recommended to continue. The Board has relied upon Corporation Counsel in many instances for clarification and interpretation of rules and/or laws. 12. The presence of the Real Property Administrator and/or Assistant Administrator at each meeting/hearing has proven itself to be essential and is recommended to continue. The Board has relied upon the administration in many instances for information on office policies and procedures before rendering decisions. 13. The Annual Workshop, which included Real Property Tax staff and board members, held prior to the start of this year's appeal hearings, was very informative and productive for all attendees. The continuation of this workshop is highly recommended as it allows the administrative staff to present a broad array of relevant tax matters and is viewed as an important refresher course for board members and an educational benefit for newer ones. The Board recommends including in training the changes to the agricultural use programs and vacation rentals, at the upcoming annual workshop. Legislative Matters The Board continues to recognize the need for equitable enforcement of tax regulations and therefore recommends to the County Council an increase in funding dedicated to the enforcement of exemptions and compliance regulations within the Real Property Tax Office. This action will ensure a more uniform application of the law, addressing concerns of unfair treatment among appellants and the public at large. It is the Board's assessment that the expansion of this revenue -producing division will not only ensure compliance with the current code, but we believe that it will also generate sufficient, if not surplus, revenue to justify the investment in employing additional regulatory personnel or investing in technology or enhanced training programs to improve regulatory effectiveness and efficiency. Haivai'i Couqy is an Equal Opportunit), Provider food Etnplo.yrr 4 2024 Tax Board of Review Annual Report Close Chairperson's Reflections This tax appeals season can be characterized as a "down" year in terms of the number of appeals and appellant dissatisfaction. The decrease can be attributed to the mild increase in property assessment valuations and the absence of new ordinances affecting real property owners. The highlight of the year was the return of the statewide conference. Besides meeting our counterparts from other counties, we learned about operational differences but gained an appreciation of our own county procedures. Finally, as I close my term on the Board, I'd like to express my deep appreciation to all parties involved in preparing and participating in these appeal hearings. These people include the administrators, supervisors, appraisers, deputy corporation counsel, the board clerk, and my fellow Board members. Respectfully submitted, At e0nf,4- At tca Michael Okurnoto Chairperson 2024 Real Property Tax Board of Review Hawaii County is an Equal Opportunii), Provider and Employer 2024 Tax Board of Review Annual Report I - Respectfully submitted by Members of the Tax Board of Review: CV-41 Michael Okumoto Chairperson Dale Tokuuke Member A <� Eisert ice -Chairperson Mar avis Member Hawaii CounlY is an Equal Opportunity Provider and Employer 6 JEXHIBIT7A] l la t aBed V'!d 0£:E 'tgjoeI£ 04ssel3-eA Jees/sassaj 119 WILU o0- en lees 'MMMp:sdIN REAL PROPERTY TAX BOARD OF REVIEW COUNTY OF HAWAri 101 Pauahi Street, Suite 4 • Hilo, Hawai `i 96720-4679 74-5044 Ane Keohokalole Hwy, Bldg. D, 2 w Flr. • Kailua-Kona, Hawaii 96740 TAXPAYER'S NOTICE OF COMPLAINT Use of thla form w#1 not result In assessed value changes. Us► RP-Fpim 19-91 (Appeal AWcaffw) for ossessmerk appeals. NOTICE Is hereby given thatG��4j - Mf�"1�hereb files thi y s (Name of Tax !) complaint to the County of Hawaii Real Property Tax Board of Review. The real property identified as Tax Map Key No. — �/ A --0 d 34 for tax year 20 20 s' , has been improperly valued for real property tax assessment pu oses. County's Valuation: Land: N 7 P Building: i -' 1 6 n I (We) believe that the proper assessment value of the property is as follows: Taxpayer's Valuation: land: Building: q The grounds of objection to the County's valuation are: SIGN&URE PRINT NAME DATE FOR TAX OFFICE USE ONLY Receipt by: Date:+ EXHI B IT A I/awal,1 011u11rINtill hrluul (huxn,u„irr 1',.,r,.l.•, ,n,./ 1....,1".