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12EPOI2T OF TI-IE <br /> COMMITTEE ON FINANCE <br /> <br /> DATE: November 20, 2001 Re: Comm. No. 387/Bill No. 121 <br /> PLACE: Council Chambers <br /> <br /> TIME: 10:00 A.M. <br /> <br /> Council Chair and Members <br /> Hawai` i County Council <br /> Hilo, Hawaii 96720 <br /> Your Committee on Finance, to which was referred Bill No. 121, reports as follows: <br /> <br /> Bill No. 121, transmitted by Director of Finance William Takaba, via Communication No. 387, dated <br /> October 8, 2001, amends Chapter 19, Article 11, Section 19-90, Hawaii County Code 1983 (1995 <br /> <br /> Edition), relating to the minimum tax. <br /> The County of Hawaii is experiencing fiscal challenges due to the rising cost of government services <br /> and the increasing demands of a growing population. The need to expand vital services to more <br /> residents is critical, particularly to those living in isolated rural communities. At the same time, the <br /> County must also address the problems associated with its aging infrastructure. Therefore, the Council <br /> finds it is in the best interest of the County to increase the minimum tax of $25 to $100, and thereby <br /> create a more equitable distribution of County revenue collections among all property owners. The <br /> Council also recognizes that segments of the population, due to hardship, cannot afford a raise in the <br /> minimum tax and that these fixed and lower income residents have expressed to the Council concern <br /> over losing their primary residence, due to inability to pay the real property tax. The Council has sought <br /> to address these concerns, via a graduated scale based on assessed improvements, once the owner- <br /> occupied property assessed to be at the minimum tax rate. The Council finds it equitable that for these <br /> cases, the lesser the value of the assessed improvements, the less amount of minimum tax owed. <br /> Finally, the Council believes that the minimum tax on unimproved property with a market value of $500 <br /> or less should remain at $25. <br /> Originally heard on November 6, 2001 along with a presentation given by Director of Finance William <br /> Takaba, this measure was deferred pending additional research and drafting. <br /> A second draft of Bill No. 121 was presented that proposes to establish a minimum tax of $100 except <br /> for three categories of properties, which would have a minimum tax of $25: <br /> 1) Those in the Homeowner Class <br /> 2) When assessed market value is less than or equal to $500 <br /> 3) Those receiving a Totally Disabled Veteran Exemption <br /> Another amendment was also made that the effective date shall be upon the bill's approval. <br /> FC REPORT NO. 149 <br /> <br />