HomeMy WebLinkAboutREP FC 148 11/20/2001 2000-2002 REPORT OF TIIE
COMMITTEE ON FINANCE
DATE: November 20, 2001 Re: Comm. No. 416/Res. No. 146-01
PLACE: Council Chambers
TIME: 10:00 A.M.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution No. 146-01, reports as follows:
Resolution No. 146-01, transmitted by Director of Finance William Takaba, via Communication
No. 416, dated November 6, 2001, authorizes the Director of Finance to compromise the
penalties and interest portions of real property taxes assessed against Hawaiian Home Lands
Homestead Lessees in exchange for the Department of Hawaiian Home Lands (DHHL) making
payment of the real property taxes owed.
The County of Hawaii has been continuously negotiating with the DHHL to confirm the basic
responsibilities and agreements between the parties relating to county services on Hawaiian
Home Lands. The reached settlement of delinquent real property taxes owed by homestead
lessees is the following:
1) Homestead lessees on Hawaiian home lands are responsible for the payment of
real property taxes in accordance with the Hawaiian Homes Commission Act,
1920.
2) The County of Hawaii will waive penalty and interest on all delinquent real
property taxes owed by Hawaiian homestead lessees as of December 31, 2001.
Such waiver will apply to payments made by February 20, 2002, or to payments
advanced by DHHL.
3) For those homestead lessees with real property tax balances, excluding penalty
and interest, of more than $500, if payment is not made by February 20, 2001,
DHHL will advance full payment of all real property taxes.
4) It is understood that the County of Hawai`i's waiver of interest and penalty
charges on delinquent real property taxes owed by homestead lessees as of
December 31, 2001, and the DHHL's advance of full payment of real property
taxes, excluding interest and penalty, is a one-time only offer.
5) In order to alleviate or reduce further delinquencies, the County will notify DHHL
on an annual basis of any delinquent property owners.
6) The County and DHHL will continue to meet on an annual basis to evaluate the
extent of delinquencies by Hawaiian homestead lessees on the Island of Hawaii
and take action.
The Hawaii County Council has by prior action at its November 30, 1994 meeting authorized
the acceptance of a compromise offer by the DHHL to accept the payment of delinquent taxes
with the County waiving penalties and interest thereon.
FC REPORT NO. 148
_ _ .
Pursuant to Section 19-3(a)(12), Hawaii County Code, Compromises, if a claim exceeding
$500, the director shall obtain the approval of the council, the administration of which is within
the scope of his duties; and in any such case there shall be placed on file and in the Department
of Finance office a statement of (A) the amount of tax assessed, or proposed to be assessed, (B)
the amount of penalties and interest imposed, or proposed to be assessed, (C) the amount of
penalties and interest imposed or which could have been imposed by law with respect to item
(A), as computed by the director, (D) the total amount of liability as determined by the terms of
the compromise, and the actual payments thereon with the dates thereof, and (E) the reasons for
the compromise.
Your Committee, during its discussion of Resolution No. 146-01, made the following
amendments:
1) Changed the ninth Whereas clause to read "V6IHEREAS, in the Hawaii
State Supreme Court case of In re [AionaJ Ainoa..."
2) Changed the thirteenth Whereas clause to read "...DHHL [assumes]
imposes a lien on that lease..."
Some members of Your Committee questioned the county's authority to impose taxes on
homestead lands.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 146-01,
Draft 2, and recommends its adoption.
smc
AYES NOES A&E EX
Respectfully submitted
CHUNG X
PlslccHlo x COMMITTEE ON FINANCE
ARAKAKI X
ELARIONOFF X i
JACOBSON X
LEITHEAD-TODD X
SAFARIK x AARON S.Y. CHUNG, CHAIR
TYLER X FC REPORT NO. 148
YAGONG X ADOPTED: ~~C~J
Z