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HomeMy WebLinkAboutCOM 0118.041 2002-2004 _ Big Island Farm Bureau mailing address: P.O. Box 2341 •Kealakekua, Hawaii 96750 79.1016 East Honalo Road Kealakekua, Hawaii 96750 Phone (808) 324-6011 • Fax (808) 322-9633 • E-Mail: bifb@verizon.net November 22, 2004 ~ ` G~ Council Member Aazon S.Y. Chung Council Member J. Curtis Tyler, III - The Hawaii County Council 25 Aupuni Street, Ste 209 ~ ~ Hilo, HI 96720 RE: Bi1149, Draft 4 Dear Council Members: The Big Island Farm Bureau is pleased to have this opportunity to provide supportive comments regazding action taken on Bi1149 Draft 4, relating to real property tax assessment of agricultural lands. The valuation method using agricultural values provides a more equitable process to assess home sites on agriculture lands. Concerns have been raised regazding the ability of home sites on agriculture lands to qualify for Homeowner Class and a $40,000 exemption. Bi1149 Draft 4 results in an immediate tax base increase of $40,000 for agricultural producers who dedicated their home site to agriculture, and at a substantially higher rate than the Home Owner class. We are certain that producers will take the option of paying fewer taxes, thereby removing more land from agricultural dedication. The Big Island Farm Bureau questions why the Homeowner Exemption is being disallowed for agricultural producers residing on their farms or ranches who dedicate their property to agriculture. There aze legitimate reasons to provide a discount for the lands in agriculture: agricultural production is a land based business, it is an important part of the economy, and land volumes aze high because of the nature of the business. Comm. No. I_~ ~L Ref. To: Ref. Uate Q~~ 1 ~Qa Hilo • Hamakua • Kohala • Kona Page Two Big Island Farm Bureau November 22, 2004 Bill 49 Draft 4 Such discounts have long had a place in public policy because they implement Hawaii Constitution's requirement. We do not believe agricultural producers are seeking special consideration outside of the State Constitution. Article XI, Section 3: AGRICULTURAL. LANDS state, "The State shall conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency and assure the availability of agriculturally suitable lands. The legislature shall provide standards and criteria to accomplish the foregoing". Thank you for this opportunity to provide comment on Bi1149 Draft 4. Sincerely, Delan Perry President cc: All Council Members