HomeMy WebLinkAboutREP FC 241 06/18/2002 2000-2002 REPORT OF THE
COMM[TTEE ON F[NANCE
DATE: June 18, 2002 Re: Comm. No. 653/Bill No. 228
PLACE: Council Chambers
TIME: 10:30 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance. to which was referred Bill No. 228. reports as follows:
Bill No. 228, transmitted by Director of Finance William Takaba, via Communication No. 653,
dated May 15, 2002, amends Chapter 19, Article 11, Section 19-90(g), Hawaii County Code
l 983 (1995 Edition), relating to the minimum tax.
On December 19. 2001, Bill No. 121. Draft 3, passed the County Council and became effective
without Mayor Kim"s signature in .Ianuary. Mayor Kim did not sign the bill because he felt that
the final draft was not a fair one. It retained the $25 minimum tax for persons in the
Homeowners Class and totally disabled veterans.
The bill seeks to create a more equitable distribution of County revenue collections amongst all
property owners by raising the minimum tax of the Homeowners Class from $25 to $100. The
County also recognized that segments of the population, due to hardship, cannot afford a raise in
the minimum tax. 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. This
bill seeks to address these concerns through a graduated scale based on assessed improvements,
once the owner-occupied property is assessed to be at the minimum tax rate. The County finds it
equitable that for these cases, the lesser the value of the assessed improvements, the less amount
of minimum tax owed.
During its discussion, Your Committee learned that this proposal will not take effect until tiscal
year 2003-2004, which will add about $2l 3,000 to the budget affected.
Some Members of Your Committee expressed concern over placing the emphasis of real
property taxation on the homeowner"s ability to pay, rather than on the value of the property.
Nevertheless, members of Your Committee felt the proposal is a good beginning step towards
real property tax reform.
Council Member Safarik stated that this proposal would create undue hardship for many of his
constituents, who have very poor infrastructure.
FC REPORT NO. 241
Another concern came from Council Chair Arakaki who expressed concerns on the affect of this
proposal on senior citizens, who might have to pay more taxes.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 228 and
recommends it pass first reading.
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~~i~FS Noes ,~~e ex Respectfully submitted
CHUNC X
Pis~ccHio x COMMITTEE ON FINANCE
ARAKAKI X
ELARIONOFF X ~
JACOBSON a( ~ ~ r~~~ r~'~
V
LEITHEAD-TODD X ~
SAFARIK X AARON S.Y. CH ,CHAIR
TvLER X FC REPORT NO. 241
V AGONG X ADOPTED: J~~ 1 ~~1Q2
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