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FOUNDATION FOR REAL PROPERTY TAXES IN HAWAII COUNTY <br /> Real Property Taxes are tied to County zoning using the premise that it is fair to tax a person's <br /> use of property and associated material assets and to apply the funds to new and improved <br /> local services generated by the impact of the property's use. <br /> With the exception of Agricultural-zoned lands that may apply for the ag use productivity tax <br /> rate, assessed values are based on highest and best use. <br /> FACTS <br /> AGRICULTURAL ZONED LANDS <br /> ? Of its total 2,577,800 acres of land area, the island of Hawaii has almost 1,220,000 acres <br /> zoned Agriculture. <br /> ? Ag zoned lands may be taxed in 4 ways: <br /> 1. Highest & best use or fair market value at $9.85/$1,000 valuation <br /> 2. 10 year dedication at Ag Use Rate (see attachment A) at $9.85/$1,000 valuation <br /> 3. 20-year dedication at Ag Use Rate (see attachment A) at $9.85/$1,000 valuation <br /> 4. Ag Use Rate (see attachment A) at $9.85/$1,000 valuation <br /> Note: Ag-zoned lands may qualify for the Homeowner Class upon application by the <br /> owner ($5.55/$1,000). <br /> ? In 2002, 10,873 properties received some form of agricultural benefit: 917 properties were <br /> in Ag Dedication (#2 8e #3) and 9,956 were in the Ag Use Program (#4). <br /> ? The assessed value of these properties based on highest and best use was estimated to be <br /> $2,636,070,000; however, the productivity value was $277,822,000 when the ag use rate <br /> was applied. <br /> ? There is presently little difference in the dedication program and the ag use program in <br /> terms of the standard used to determine agriculture productivity. <br /> ? A 20-year Ag Dedication allows property to be taxed at 50% of its assessed value after 10 <br /> years. <br /> ? Dedication programs (#2 & #3) require longer commitment than year-to-year Ag Use <br /> Orogram (#4). <br /> <br /> HOMESITE VALUES ON AGRICULTURAL ZONED LANDS <br /> <br /> ? Ag zoned land under a home is now valued at a comparable residential value. Recent <br /> amendments to the Hawaii County Code allow this portion of the property to be taxed at the <br /> lower Homeowner Class rate ($5.55/$1,000 valuation). p <br /> Comm. No. I I p • Z~' <br /> Ref. 70: ~-re-sea~~-~~~C~R <br /> Ref. Cute s~~a7 LW4 <br /> 8/24/2004 <br /> <br />