HomeMy WebLinkAboutCOM 0118.024 2002-2004 9/16/04
MAJOR PROPOSALS IN BILL NO. 49
1. Defines commercial agricultural activities
2. Requires commercial agricultural activity to qualify for 10-
year dedication benefits
3. Maintains agricultural use valuation method for dedicated
properties
4. Allows a shorter dedication period for leasehold properties
in certain circumstances
5. Allows cancellation of dedication without penalty in the case
of certain disasters or disabilities of primary farmer
6. Reduces severity of rollback penalties for breach of
dedication
7. Provides benefits for Ag Use, Non-dedicated properties,
using two times the dedicated agricultural use valuation
8. Reduces rollback period for Ag Use, Non-dedicated program
9. Eliminates 20-year dedications
Note: Homesite valuation is not part of changes proposed in
Bill No. 49.
Comm. No. ~ Z
Ref. To: Ci
Rof. Gate SEP
EXAMPLE OF TAXATION UNDER AFTER PROPOSED CHANGES
Twenty acres of Hamakua land - not in agriculture
Highest & Best Use Value ($20,000/acre) $ 400,000.00
Tax Rate - $9.85 per $1000 of assessed value 0.00985
Annual Taxes $ 3,940.00
Twenty acres of Hamakua land -non-dedicated ag use
Ag use value per acre (orchard $1500/acre) x 2 x acreage $ 60,000.00
Tax Rate - $9.85 per $1000 of assessed value 0.00985
Annual Taxes $ 591.00
Twenty acres of land - 10-year ag dedication
Ag use value per acre (orchard $1500/acre) x acreage $ 30,000.00
Tax Rate - $9.85 per $1000 of assessed value 0.00985
Annual Taxes $ 295.50
9/16/04
PROPOSED CHANGES IN BILL N0.49
Properties in agricultural use that meet zoning requirements may participate in either of
the following:
1. Agricultural Use, Non-dedicated.
2. 10-Year Dedication.
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AG USE, NON-DEDICATED: PROPOSED PROGRAM
Intensive Ag Feed Crops/ Pasture/Slow
"Truck Farmin Orchards Fast Rotation Fores Rotation Forest
e~ n Q i
c~
nn.,o~o:o ~599Fe6re e i n e
$4,000/acre $3,000/acre $1,000/acre $28 - $420/acre
To participate:
Property must be County-zoned agriculture and used in agriculture.
Breach: Occurs when the property is subdivided to less than 5 acres or rezoned to non-
agricultural use.
Rollback:
County looks back to a maximum of 2 years plus current year and charges owner
back taxes lus 10% enal .
10-YEAR DEDICATION: PROPOSED PROGRAM
IntensiveAg Feed Crops/ PasturelSlow
"Truck Farmin Orchards Fast Rotation Forest Rotation Fores
$2,000/acre $1,500/acre $500/acre $14 - $210/acre
To participate: Property must be used in agriculture for 10 years.
Must be used for commercial purposes (~2, 000/yr.) and County-zoned
agriculture.
Breach: Occurs when the property is not used
for agriculture for 12 consecutive months:
Rollback:
County looks back to a maximum of 10 years and charges owner the following plus
10% penalty.
• Full rollback if used in ag for S years or less;
• 4 year rollback if used in ag
for 6 years,
• 3 year rollback if used in ag
for 7 years;
• 2-year rollback if used in agfor 8 or 9 years.
Hawaii County is an equal opportunity provider and employer.