HomeMy WebLinkAboutCOM 0118.008 2002-2004 Councilman Aaron Chung, Chair & FiUG ~s FI(~ ~ CO
Members of the Finance Committee
Hawaii County Council i
County of Hawaii
RE: Bill No.49
I'm here this morning representing my Chapter, the Hamakua
County Farm Bureau to testify in support of Bill No. 49 relating to
real property tax on agricultural lands.
Allow me first to thank Chairman Chung and the Finance
Committee for making the time to consider the need to correct
flaws in the County's real property tax code. These flaws are
resulting in the erosion of our most productive agricultural lands
for non ag uses or questionable ag uses and allowing the very rich
to manipulate the County's current liberal ag tax laws to further
enrich themselves by not carrying their fair share of the tax burden.
All one has to do is look at what's happening to C. Brewers
land along the Hilo Coast. Look at who is buying these prime ag
lands. Farmers? Farmers couldn't afford the price Brewer is
asking for their land. Look at Waimea where the price of farm
land is so ridiculously high that farmers are selling their family
farms because buyers are tripping over themselves with lucrative
offers that a farmer can never hope to earn from farming during his
lifetime. So who are these buyers? We suspect that they include
speculators who plan to land bank their holdings with short-term
leases to the immigrant farmers who cannot afford to buy good
farmland. Then when the opportunities arise they will sell for a
nice profit or have the land rezoned to smaller parcels of three to
five acres and thereby setting the stage for the development of
gated communities of "gentlemen farmers". All under the guise of
making land more affordable for farming. q
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Bill 49, we believe, will help to better identify legitimate
farming activities on agricultural lands by: 1) strengthening the
commercial agricultural use provision to require that farms must
generate a minimum gross income of $2,000 per year to qualify for
the low agricultural tax rates; and 2) providing for commercial
agricultural use dedication of farmland by the owners and lessees
for ten years to be eligible for additional tax deductions. The bill
also provides for a graduated tax increase over three years for non-
dedicated agricultural lands. By the 3`d year lands committed in
specific non dedicated ag use would be assessed at 75% of market
value. Lands not committed or used for specific ag use would be
assessed at 100% of market value. These provisions would correct
the flaws in the current tax laws, which would encourage
landowners to dedicate their land and enjoy the low tax rates or
pay for the privilege of playing the land speculation game. This
may also help to discourage the proliferation of "gentlemen
estates" on prime ag lands.
The only concern we have with Bi1149 is language to protect
farmers from being penalized for non-compliance due to situations
beyond their control such the water situation in Hamakua.
In conclusion we believe that Bill No. 49 is a good beginning
in the Council's ongoing effort to improve the County's real
property tax code especially where it affects our best farmlands.
We respectfully ask for your favorable consideration of Bill No.
49.
Mahalo, / ' ~ '
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Bob Shioji
Hamakua County Farm Bureau