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Home My WebLink AboutCOM 0118.045 2002-2004 11/05/04 14:t FAX 0 LANIHAU L f~J001' • ° ° c~, Hawaii Cattlemen's Council, Inc. I 91-2002 Fort Weaver Road BEEF'I Ewa Beach, HI 96706 Phone & Fax (808) 672-5042 USA _ - - November 5, 2004 - lr ~ Fax: (808) 961-8912 i Jame Y. Arakald, Chairman I~aw ' County Council ' 25 A uni Street, Room 209 Hilo,i 96720 I Re: mm. 118.38, Bill 49, Draft 4 -Real Property Tax Definitions: Non-Dedicated Agri ltural U~e Assessment and Agricultural Use Dedication Pleas submit the attached letter from the Hawaii Cattlemen's Association as testimony in ref ence to the subject bill. Please have it numbered and circulated to all Council Mem ers before the November 10, 2004 Council meeting. Sincerely, i I' s S. eenwell, Chair. I ' Issu Committee I 'i JSGs wcr. a. i av. a.rt a mnmvataua UNIFIED AFFILIATE OF THE NATIONAL CATTLEMEN'S BEEF ASSOCIATION Haw ii CatUemen's Association Kauai Cattlemen's Association Maui Cattlemen's Association ~ ~ Molokai Grazier's Association • Oahu Cattlemen's Association / Y Ib , tJ S Comm. No. 1 C 7 Ref. To: er kef. iuate ~ 11/05/04 14:i FA% 0 LANIHAU L t~JJ 002 •°O Hawaii Cattlemen's Council, Inc. d 91-2002 Fort Weaver Road BEEF 11 Ewa Beach, HI 96706 ' ' LLL~~~"' Phone & Fax (808) 672-5042 usA November 5, 2004 by Fax: (808) 961-8912 Mr. J ~ es Y. Arakaki, Chairman Hawai i County Council 25 Au uni Street, Room 209 Hilo, awaii 96720 ~I Re: Comm. 11838, Bi1149, Draft 4 Relating to Real Property Tax Definitions: Non- I Dedi¢ ted Agricultural Use Assessment and Agricultural Use Dedication We are leased to write in support of Bi1149 (Draft 4) as it is consistent with man f the poky positions of the State's Hawaii Cattlemen's Council, the most fun ental o which is that real property which truly is committed to legitimate ~ agric tlural us~ should be assessed based on its agricultural productivity value under that use: I i i I~ At a tirt~e when other Counties have moved away from the use of ag productivity valuds In their assessment practices towazd using various valuation practices tied to a ~ pert ge of a property's fair mazket value as a real estate asset or investment, w feel the Bi Island would be setting a commendable example by adopting Bi1149 (Dra~i 4) as an ex ple of an equitable taxation policy which recognizes the State's Constitutional man to to support and protect our agricultural resources. Based on our review we would like to add several other comments: 19-214 )(2) - We support attributing the value of "home use" or subsistence ag as a part of sa Eying the annual gross income threshold that defines "commeroial agriculhual activ~'es". ! ~ ~~1 ~ 9-2 )(8) and 19-57(a)(3) - This definition and proposed assessment process for farm ~ dwe ~ g sites s an efficient and equitable approach to settle what has been a costly and dont tious iss~e for both taxpayers and the County. 19-5 a)(2) • IWe support the use and open/periodic review of the ag use rates by ~gti turalists' and others expert in each of the ag industry groups. ~ i I 19-6 a) - IWe support this mechanism which would allow ag lessees with sut~icient ! I rem ' ng lease terms to apply for ag use dedication and the most favorable ag use rise eat rate. UNIFIED AFFILIATE OF THE NATIONAL CATTLEMEN'S BEEF ASSOCIATION Hav.~ i Catttem4n's Association itaual Cattlemen's Association Maui Cattlemen's Association Molokai Grazier's Association • Oahu Cattlemen's Association ' I i 11/05/04 14:1 FAX D LANIHAU L f~j003i ' James Arakaki, Chairman Hawai County Council Nove ber 5, 2004 Page 2 of 2 19-60O - We support use of the listed factors to be considered in setting the approp 'ate ag use rates with the understanding that each unique crop or ag activity shall ~ have it own use rate (not just four rates, i.e. one for each of the four "general ag catego 'es" listed) and that there will be at least three rates for pasture in recognition of ~ the ve broad iange of potential gross revenues from ranching on a per-acre per-year i ~ basis.' You may recall for scow-calf operation, we have submitted data reflectingthat a ~ ~ I range. f from under $2.00 to over $225.00 per acre in gross revenue is a reasonable i ~I I Pa[una e.) 19-60O - e aze uncleaz on this provision and particulazly our reading of the II refere a to dedication constituting "a forfeiture on the part of the owner of any right to eh the use pf his or her land to a use other than commercial agriculture for a period of 10 years unless i ' We sup~rt the concept of a sliding scale rollback tax as a fair penalty for ~ breac g the t s of a dedication agreement. Farmers and ranchers, however, ae d the flexib' 'ty to be'able to freely change crop types including periodically resting pasts or laying roplands fallow consistent with goad resource management practices (see "failure to use d for 6 months" provision under 19-60(g)(2)(A). We thank the supporters of this bill for hearing our posifion in this regard and being's itive o the concerns we have raised. We remain at your disposal should we be able tQ sist er as a resource on this important matter. i Respectfully submitted, i j ~ j I es S. reenwell, Chair i ~ Iss s Committee ! JS'G•s i AV~Q ~il ?4efl Ldoo ~ i, i i i I 'i I i I i I I ~I it i I