HomeMy WebLinkAboutCOM 0387.023 2000-2002 ~®n Jac®bs
1 5-2?22 Popaa Street 808/965-0361
Pahoa, ~°III 96?78 email: donjC~aloha.net
®ecember 5, 2001
To: Chairman ,baron Chung and members of the ~Jawaii County Council
Finance Committee. ~ ~rr~
Testimony on Bill 121, Draft 3 n~~.~____________.,~81,•,-,---...---~--~
I oppose Bull 121, Oraft 3, for several reasons. My testimony is in 3 parts
and I will ask for questions from the committee after each part.
PART 1
In a way, the Big Island is unique.
Mack in the 50's and early 60's there was a land boom on the Big Island. Land
was cheap There were little or no planning ordinances in effect at that
time And the land sharks were out to make a fast buck. Many of them
were kama'ainas from Oahu and the Big Island. Most of the "so called"
developers just laid out paper subdivisions The extent of the
infrastructure was in the form of a rough survey and poorly scratched out
cinder roads Just enough to get the buyers out to see their future
homesites. liens of thousands of lots were sold with low down payments and
easy terms. No disclosures were required in Hawaii in those days.
It didn't take long for many of these cinder roads to become overgrown and
impassable. Lot owners began building homes and then these folks formed
community associations to share the costs of improving and maintaining
their private roads. The county did not and does not provide these services.
Somewhere way back in time ~s I understand it ~ minimum tax was
established to cover the cost of sending out the tax statements. Later the
minimum tax was raised to $25 Presumably for the same reason Though
1 seriously doubt that it actually costs that much to send a statement.
Please correct me if I am wrong.
The proposed boost in the minimum tax to $100 is now being pushed as a
means of making up for a real property tax revenue shortfall. That is wrong.
$100 for vacant land is too much It's unfair It's discriminatory. It
No,
F`idc No. - -
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means that a $2,500 lot would be taxed at the rate of X40 par $1000 of
assessed value ~ 400% increase in taxes. While lots $10,000 and over
would still only be taxed at ~ 10 per S 1000.
There are almost 10,000 low valued lots in Hawaiian Ocean View estates
alone and another 4,000 plus low valued lots in Nanawale estates. ~e~.1,~3..
Make an honest assessment of the average cost of county services
consumed by each vacant lot in these subdivisions. You will find it is closer
to zero thin it is to S 100. Vacant land should be excluded.
PART 2
Yesterday, today and tomorrow there is an ongoing auction of properties
with delinquent taxes. It's no surprise that over 90°d° of the properties listed
are from two low valued subdivisions Hawaiian Ocean View estates and
Nanawale estates.
Many of these lots have less than $200 in taxes owing but owners are willing
to let them go because there just isn't a market for these substandard lots.
I've talked to a number of people who say that if their tax is raised to ~ 100
they will let their lot go too.
If dill 121, Graft 3, is passed there will be a great increase in the number of
these substandard lots in the county's inventory. It costs money to
foreclose and the foreclosed lots bring in no tax revenue.
Add interest and ~ 1,294.00 in costs and the upset price is more than most
of these lots are worth.
As a point of interest Are bidders on these properties being informed that
the taxes may be raised to ~ 100?
dill 121, ®raft 3, is unfair and will do more harm than good in the long run.