HomeMy WebLinkAboutREP FC 149 11/20/2001 2000-2002 12EPOI2T OF TI-IE
COMMITTEE ON FINANCE
DATE: November 20, 2001 Re: Comm. No. 387/Bill No. 121
PLACE: Council Chambers
TIME: 10:00 A.M.
Council Chair and Members
Hawai` i County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 121, reports as follows:
Bill No. 121, transmitted by Director of Finance William Takaba, via Communication No. 387, dated
October 8, 2001, amends Chapter 19, Article 11, Section 19-90, Hawaii County Code 1983 (1995
Edition), relating to the minimum tax.
The County of Hawaii is experiencing fiscal challenges due to the rising cost of government services
and the increasing demands of a growing population. The need to expand vital services to more
residents is critical, particularly to those living in isolated rural communities. At the same time, the
County must also address the problems associated with its aging infrastructure. Therefore, the Council
finds it is in the best interest of the County to increase the minimum tax of $25 to $100, and thereby
create a more equitable distribution of County revenue collections among all property owners. The
Council also recognizes that segments of the population, due to hardship, cannot afford a raise in the
minimum tax and that these fixed and lower income residents have expressed to the Council concern
over losing their primary residence, due to inability to pay the real property tax. The Council has sought
to address these concerns, via a graduated scale based on assessed improvements, once the owner-
occupied property assessed to be at the minimum tax rate. The Council finds it equitable that for these
cases, the lesser the value of the assessed improvements, the less amount of minimum tax owed.
Finally, the Council believes that the minimum tax on unimproved property with a market value of $500
or less should remain at $25.
Originally heard on November 6, 2001 along with a presentation given by Director of Finance William
Takaba, this measure was deferred pending additional research and drafting.
A second draft of Bill No. 121 was presented that proposes to establish a minimum tax of $100 except
for three categories of properties, which would have a minimum tax of $25:
1) Those in the Homeowner Class
2) When assessed market value is less than or equal to $500
3) Those receiving a Totally Disabled Veteran Exemption
Another amendment was also made that the effective date shall be upon the bill's approval.
FC REPORT NO. 149
Your Committee on Finance is in accord with the purpose and intent of Bill No. 121, as amended to
Draft 3, and recommends it pass first reading.
smc
AvES NOES n&E Ex Respectfully submitted
CHUNG X
PlslccHw x COMMITTEE ON FINANCE
ARAKAKI X
ELARIONOFF X
JACOBSON X
LEITHEAD-TODD X
SAFARIK X AARON S.Y. CHUNG, CH IR
TYLER X FC REPORT NQ 149
YAGONG X ADOPTED: DEC ,