HomeMy WebLinkAboutCOM 0394.006 2002-2004 ~r or
Harry Kim c~ ~ y William Takaba
Mayor W Direc(or
Nancy E. Crawford
Deputy DirecJOr
•~Oi Nr
County of Hawaii
Finance Department
25 Aupuni Stree[, Room I18 • Hilo, Hawaii 96720
(608) 961-8234 Paz (808) 961-8248 - a
r
~
September 10, 2004
Honorable James Y. Arakaki, Chairman
and Members of the Hawaii County Council
25 Aupuni Street ~
Hilo, Hawaii 96720
Re: Bills 174, 175, and 176
The following are responses to questions asked at the Finance Committee meeting on September 7,
2004:
Bill No. 174
1. Section 19-71(b) enables property owners to receive homeowners exemptions even if a
portion of any building or structure is used for certain commercial agricultural activities.
Should we eliminate it? This section was included in the law when the County assumed real
property tax functions from the State. It clarified what agricultural activities would not affect
the home exemption. Although we have no objections to maintaining the section, we do not
believe it should be expanded to other agricultural activities.
2. Sections 19-71(a)-(c): Why can't a homeowner claim a home exemption and receive
immediate benefits? This should be addressed in Section 19-68(a) which establishes the
deadline for claiming home exemptions. Although we still believe that filing deadlines must
be established to correspond with the Finance Director's certification of real property values
for the ensuing Fiscal Year, we will be proposing additional deadlines to reduce the time it
takes to receive home exemptions.
3. Section 19-71(f): Why limit exemptions to $80,000? In order to offer a 20% exemption, a
limit had to be established. Offering anacross-the-boazd exemption would mean that we
would have to reduce the exemption percentage to keep the exemption affordable to the
County.
Comm. Ido. 3 1T
Hawaii County is an equal opportunity provider and employer. ~ ~ ~afQ ~
James Y. Arakaki, Chairman
Page Two
September 10, 2004
Bill No. 175
1. Why are we using market value rather than replacement cost for valuing property?
Replacement cost is one method of determining market value. Another is the sales
comparison method. The Real Property Tax division is working toward instituting the sales
comparison method and expects to have it implemented within 3 years.
2. Section 19-53(h): Why was 3% selected as the growth limit rather than 6%? We believe 3%
is appropriate due to the large increases in assessed values over the past few years. For fiscal
reasons, we do not recommend lowering this amount.
Bill No. 176
Why can't the homeowners class portion of properties dedicated to agriculture be dedicated to non-
speculative residential use? Section 19-58.1(b) prohibits properties dedicated to agricultural use to be
eligible for this non-speculative residential use dedication. Of note, Bill 176 was prepared prior to
Bi11261, which allowed those with agriculture use/dedication to qualify for the homeowners class.
We nevertheless recommend maintaining this section as it presently reads.
We hope the responses above adequately address the questions of the Finance Committee. Should
you need further clarification, please contact me. Thank you.
Sincerely yours,
vft.+Gl
William Takaba
Director of Finance