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HomeMy WebLinkAboutCOM 0395.002 2002-2004 ?r or~ Harry Kim ~,c~ •w ~ William Takaba Mayor Direclor • Nancy E. Crawford • Depury Direclor • •R•oi •Mi'~ County of Hawaii ~ ' Finance Department ~ 25 Aupuni Street, Room 118 • Hilo, Hawaii 96720 ! - (806) 961-8234 Pax (808) 961-8248 I--• =r September 10, 2004 Honorable James Arakaki, Chairperson and Members of the County Council Hawaii County Council 25 Aupuni Street Hilo, HI 96720 Dear Chairman Arakaki: Enclosed is Drafr 4 of Bill No. 175. Draft 4 proposes the following changes to Bill No. 175, Drafr 3: Section 19-53(h) is separated into three sub-sections to clarify how the proposed changes apply to properties in the nonspeculative residential use dedication program. Asub-heading has been added to the section - "Limitation on homeowner assessment." 1. 19-53(h)(1) refers to properties in the homeowner class as of January 1, 2004 and not dedicated to non-speculative residential use. 2. 19-53(h)(2) refers to properties dedicated to non-speculative residential use as of January 1, 2004. It allows cancellations of dedications without retroactive taxes and it spells out the basis on which the property will be assessed upon said cancellation. 3. 19-53(h)(3) refers to properties dedicated to non-speculative residential use as of January 1, 2004. It allows the continuation of the dedication and spells out the basis on which the property will be assessed upon termination. Please note that the "ramseyer type" format provided here notes the changes from draft 3 to draft 4and is provided for your convenience only. Due to rule of ?egislative drafting this format will not appear on Bill 175 drafr 4. 1(~i Limitation on homeowner assessment. For properties in the homeowner class as of January 1, 2004 and not dedicated to non-speculative residential use, the assessed value of the property shall not increase more than three percent (3%) per Q Comm. No. t~' Ref. To; PresseNeb iyef, fore CFP 1 ~ 2D04 Honorable James Arakaki, Chairperson Page Two September 10, 2004 tax yeaz tax until the parcel is sold or any portion thereof sold by way of conveyance which is subject to conveyance tax under terms of chapter 247, Hawaii Revised Statutes, at which time the property will be assessed at mazket value. In addition to the 3% limit of this subsection any improvements undertaken on the property within the tax year shall be assessed at market value. All parcels entering this class after January 1, 2004 shall have the assessed value as of January 1 of the following year and be subject to the above provisions. Those properties dedicated to non-speculative residential use as of January 1 2004 may terminate the dedication without imposition of retroactive taxes upon filing and approval of petition for such termination with the director of finance by September 1 of the following enactment of this section. Upon termination of the dedication these properties shall be assessed at the market value and subject to section 19-53(h)(1). (3) Those properties dedicated to non-speculative residential use as of January 1 2004 may continue the dedication and upon termination of the dedication period the pazcel shall be assessed at the market value and the yeaz following the termination be subject to section 19-53(h)(1) unless the dedication is renewed as provided in section 19-58.1 Should you have any questions, please contact me. Thank you very much. Sincerely yours, K/~Z~~~~ William Takaba Director APPROVED: Harry Kim ~ Mayor Enclosure ~ d; l l t15, >D~• y ~