HomeMy WebLinkAboutCOM 0257.003 2000-2002 ~gv~os M,~4
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Harry Kim :4 Dixie Kaetsu
Mayor Managing Director
"'`a+j9'~ Peter T. Young
Deputy Managing Director
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25 Aupuni Street, Room 215 • Hilo, Hawaii 96720-4252 • (808) 961-8211 • Fax (808) 961-6553
KONA: 75-5706 Kuakini Highway, Suite 103 • Kailua-Kona, Hawaii 96740
(808)329-5226 • Fax(808)326-5663
June 28, 2001
The Honorable Aaron Chung, Chairman,
and Members of the Committee on Finance -
Hawai'i County Council
County of Hawaii
Hilo, Hawaii 9b720 -
Subject: Bill 93, Relating to the Minimum Tax
Dear Chairman Chung and Committee Members: '
On the agenda for the July 5, 2001 Finance Committee meeting is a bill proposing to amend
the Hawaii County Code to raise the minimum tax on real property. I am glad to see the
Council is tackling this very difficult issue, and I thank you for doing this.
I would like to request that you consider deferring action on Bill 93 at the July 5 meeting. I
have been meeting with my finance staff, and we are working to gather data and develop a
proposal relating to the minimum tax that we can present to you by the end of August. There
are numerous issues relating to the minimum tax that need to be addressed. These include:
• What is an appropriate, fair, and equitable minimum tax amount
• How to structure any increase to mitigate the impact on senior citizens on fixed income,
the disabled, and low-income residents
• Minimum tax for useless land inundated by lava
• Minimum tax on the land assessment of Hawaiian Home Lands residential leases
Due to the importance of this topic and the many issues involved, I ask for your consideration
in deferring Bill 93. I apologize for the lateness of this request, but we need additional time to
explore this issue fully and understand its implications on the people who will be most
affected. By the end of summer, we will submit a proposal to you and work with you to
develop a minimum tax bill that will be fair and equitable to all Hawaii County taxpayers.
Comm. No. ~ ~
Pile No. ~ '
Ref. To:
mot. Date SUN 8 2
The Honorable Aaron Chung
June 28, 2001
Page 2
For your information, we are starting a complete evaluation of our tax rates and related laws.
This review will include evaluating the taxation of different classes of property, particularly
agricultural lands and the homeowners' class. Upon completion, we will present our
recommendations to the Council.
Thank you for your consideration of this request.
Al ha,
G~.~tM~
Harry Kim
MAYOR