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HomeMy WebLinkAboutCOM 0394.005 2002-2004 fir or Harry Kim ~'•c~ ~ ~'•.4 William Takaba Mayor Director Nancy E. Crawford Depury Director h or Mrs County of Hawaii ..1. 1 Finance Department r^ 25 Aup°oi Sheet, Room I IS • Hilo, Hawaii 96720 - r_~ {808) 961-8234 • Fax (808) 961-8248 - t-= September 9, 2004 J Honorable James Arakaki, Chairperson rV Hawaii County Council 25 Aupuni Street - Hilo, HI 96720 Dear Chairman Arakaki: Subject: Bill No. 174, Draft 2 (RPT-Exemptions) Bill No. 175, Draft 3 (RPT -Valuation) Thank you very much for your memorandum of September 2, 2004. The following are the estimated effects of the tax code amendments that you requested: Bill No. 174, Draft 2 FY 2004-OS -None FY 2005-06 -The additional exemption will reduce projected real property tax revenues by approximately $3.86 million. Our original projection is revised to account for increased values and an overestimation of the values of properties paying the minimum tax. Bill No. 175, Draft 3 FY 2004-OS -None FY 2005-06 The 3% growth cap for properties in the homeowners class will reduce projected real property tax revenues by approximately $2.5 million. The administration believes it can operate within the parameters of these amendments as we anticipate continuing growth in property valuations over the next few years. Because of this growth, overall real property tax collections will continue to increase. Thus, the adoption of the Bill 174, draft 2, and Bill 175, draft 3, should not warrant an increase in real property tax rates for FY 2006 and FY 2007. Sincerely yours, William T kaba Director Gpmm, No, ~S Re}. Toe Prtsen • C, cc: Harry Kim, Mayor Rif, Uat©^ ~ ~ A