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HomeMy WebLinkAboutCOM 0056.000 2004-2006 Mtr or p William Takaba Harry Kim ;%-'.••1!t~ Mayor I,r~ Finance Director Nancy E. Crawford • • : ; Deputy Director •i'• J ~•1 O, •X'it County of Hawaii DEPARTMENT OF FINANCE -REAL PROPERTY TAX 101 Pauahi S[reet Suite 4 Hilo, Hawaii 96720-4679 Cox (808) 961-8415 Appraisers (808) 961-8354 Clerical (808) 961-8201 Collections (808) 961-8282 75-5706 Kuakini Highway Sui[e 112 • Kailua-Kona, Hawaii 96740 Fax (808) 327-3538 Appraisers (808) 327-3542 • Clerical (808) 327-3540 _ December 21, 2004 The Honorable Harry Kim, Mayor The Honorable Gary Safarik, Chairman and Members of the Council J County of Hawaii ' 25 Aupuni Street Hilo, HI 96720 RE: Tax Board of Review Annual Report Enclosed are the cover letter from this year's Chairman, Gus Ogasawara, and the 2004 Annual Report of the Real Property Tax Board of Review, The date for Mr. Ogasawara's letter was pre-dated to allow time for this office to mail the letter to his Kohala address and have him sign and mail it back to us. Mr. Ogasawara's letter was mailed for his signature before the organization of the new council, thus the reason for listing the former council chairman as the addressee. Sincerely, WESLEY TAKAI Real Property Tax Administrator Enclosures xc: William Takaba, Director of Finance Comm. No._ S~O Ref. To: Hawaii County is an Equal Opportunity Provider and EmployerR~,f E,~}-' n~'~ William Takaba Ism ~ ~ti- ~ • ~?I~ Finance Drector Mayor •0 Nancy E. Crawford Deputy Director County of Hawaii DEPARTMENT OF FINANCE -REAL PROPERTY TAX 101 Pauahi Street • Suite 4 • Hilo, Hawaii 96720.4679 • Fax (808) %1-84t 3 Appraises (808)961-8334 • Clerical (808)961.8201 • Collections (808)961-8282 73-3706 Kuakini Highway • Suite 112 • Kailue•Kona, Hawaii %740 • Fax (808) 327-3338 Appraisere (808) 327.3342 • Clerical (808) 327.3340 December 20, 2004 The Honorable Harry Kim, Mayor The Honorable James Arakaki, Chairman and Members of the Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 RE: Tax Board of Review Annual Report Forwarded are the cover letter from this year's Chairman, Gus Ogasawara, and the 2004 Annual Report of the Real Property Tax Board of Review. The date for Mr. Ogasawara's letter was pre-dated to allow time for this office to mail the letter to his Kohala address and have him sign and mail it back to us. Sincerely, WESLEY TAKAI Real Property Tax Administrator Enclosures xc: William Takaba, Director of Finance Hawaii County is an Equal Opportunity Provider and Employer Harry Kim M`.~,°•.,'•'!!ytr William Takaba Mayor `'Y Finance Director Nancy E. Crawford ~ Deputy Director ~r.,. »•Oi •M~~ County o~ Hawaii DEPARTMENT OF FINANCE -REAL PROPERTY TAX Aupuni Cenler • 101 Pauahi Street • Suite No. 4 • Hilo, Hawaii 96720 • Fax (808) 961-8415 Appraisers (808) 961-8354 Clerical (808) 961-8201 • Collections (608) 961-8282 75-5706 Kuakini Highway Suite 112 Kailua-Kona, Hawaii 96740 Fax (808) 327-3538 Appraisers (808) 327-3542 Clerical (ROS) 327-3540 December 31, 2004 The Honorable Harry Kim, Mayor The Honorable James Arakaki, Chairman and Members of the Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 Enclosed is the 2004 Annual Report of the Real Property Tax Board of Review as required by Chapter 19 of the Hawaii County Code, along with a copy of the complaint received from taxpayers for 2004. In particular, we refer and request that the reader of this report give due consideration to the Comments and Recommendations sections. GS~~..- Z ~ Gus Ogasaw ra, Chairman Tax Board f Review Enclosures xc: William Takaba, Director of Finance ~vw Harry Kim William Takaba Mayur c'" Finance Director Nancy E. Crawford • Deputy Director r. ••~•NI,+ County of Hawaii DEPARTMENT OF FINANCE -REAL PROPERTY TAX Aupuni Center • 101 Pauahi Street • Suite No. 4 • Hilq Hawaii 96720 • Fax (808) 961-8415 Appraisers (808) 961-8354 Clerical (808) 961-8201 • Collections (808) 961-8282 75-5706 Kuakini Highway Suite 112 Kailua-Kona, Ilawaii 96740 • Fax (806) 327-353R Appraisers (808)327-3542 Clerical (HOR)327-3540 REAL PROPERTY TAX BOARD OF REVIEW 2004 ANNUAL REPORT @ December 31, 2004 Introduction Pursuant to the provisions of Chapter 19, Article 12, Section 19-97(e), Hawaii County Code as amended, the members of the Real Property Tax Board of Review submit the following report of activities and recommendations for the 2004-2005 tax year. The recommendations relate to both legislative and administrative matters. The following is a list of the officers and members of the Board: Gus Ogasawara, Chairman Linda Smith, Vice-Chairman James "Jimmy" Low Brian Nakashima Claudia Woodward-Rice Potential appointees should be apprised of the demands of their time that service on this Board entails before their names are submitted to the County Council for confirmation hearings. This is not a ceremonial commission. All members are expected to attend all meetings. Meetings in Hilo or Kona may be a weekly occurrence from July through October with two nights away from home or office. Board Membership Brian Nakashima was appointed in March 2004 to the Tax Board of Review to complete David Powell's term (who passed away in November 2003). Mr. Nakashima's term ends in 2005. 2004 Tax Board of Review Annual Report 2 Claudia Woodward-Rice was appointed in February 2004 to replace Fred Yamashiro, whose term ended at the end of 2003. Ms. Woodward-Rice's term ends in 2008. Mr. Gus Ogasawara's term ends at the end of this year. Activities Organizational Meeting The annual organizational meeting of the Board was held on March 19, 2004 at the Real Property Tax Office Conference Room in Hilo for the purpose of electing officers and establishing a tentative appeal hearing schedule for Hilo and Kona. A workshop date of June 30, 2004 was selected to discuss issues and practices of interest and concern to the Board in the upcoming year. Attended by Board members and staff of the Real Property Tax office, the workshop was held at Nihon Restaurant and proved to be an informative and instructive session. Appeal Hearings Three hundred ninety appeals were scheduled this tax year. This is an increase from 355 cases in the previous tax year. To accommodate this increase, 12 hearing dates were set (4 for East Hawaii commencing on July 13, 2004 and 8 for West Hawaii commencing on July 20, 2004). The Board's final rescheduled appeal and complaint hearing was held in Hilo on November 15, 2004, and included writing the draft of the Annual Report. Complaint Hearings As required by Chapter 19-97(e), a notice was published in September specifying a period of ten days within which complaints may be filed by a taxpayer. Two complaints were filed and one was withdrawn. The scheduled complaint involved a land assessment due to the homesite valuation. An appeal was filed in this case and heard by this Board on August 18, 2004. The Board heard the complaint on November 15, 2004 and is forwarding a copy of it together with this report. Comments and Recommendations Board's Comments 1. The procedure of making decisions in open session on each appeal immediately upon completion of testimony by the tax office appraiser and the appellant continues to be accepted by all parties and is an efficient and Hawaii County is an Equal Opportunity Provider and Employer 2004 Tax Board of Review Annual Report 3 productive use of time. 2. The presence of a recording Secretary to take and compile the Minutes of the meetings has been extremely helpful to the members of the Board and is in compliance with the law. 3. The half-day workshop among staff and Board members prior to commencement of hearings was helpful and is encouraged to continue. 4. Having Corporation Counsel at each meeting is very helpful and is encouraged to continue. 5. Time block scheduling has been implemented and found to be workable. 6. The Board appreciates the budget that was approved for their general operating expenses and considers it adequate for its purposes. 7. The Board notes that the passage of Bill 320, Draft 4 (Ordinance No. 04-123) addressed the issue of the timely filing of home exemptions. This was an issue of concern that had been raised by many appellants and this Board concurs with the intent and direction of this Bifl. 8. The Board notes that the passage of Bill 261, Draft 2 (Ordinance No. 04-67) addressed the issue of the exclusivity requirement that prevented taxpayers from receiving the favorable homeowner's classification and rate. This Board again concurs with the intent and direction of this Bill, as this was an issue that many appellants brought before this body. Board Recommendations 1. The practice of training new Board members is encouraged. 2. The vacancy to be left by Gus Ogasawara at the end of this year should be filled prior to the organizational meeting, which is currently scheduled for February 28, 2005. 3. The Board recommends that the homesite valuation issue on agriculturally zoned lands be reviewed, with the intent of insuring that the appraisal methodology which values the homesite on agricultural parcels to the market value of comparable residential properties is fair, equitable, and consistent throughout the County. This was an issue of great concern to many appellants this year. The Board notes and concurs with the current ongoing efforts to enact such County legislation. 4. The Board recommends that the County clarify the definition of Prime Agricultural Lands and coordinate land use decisions with real property issues Hawaii County is an Equal Opportunity Provider and Employer 2004 Tax Board of Review Annual Report 4 in an effort to preserve and utilize lands for the appropriate intent and purpose that they are zoned for. The Board has attached as a part of this report, input from Commissioner Woodward-Rice for consideration. 5. The Board recommends that the feasibility of a more aggressive outreach program to inform and educate citizens of this County on real property issues be considered. The Board has heard many cases where a better informed and educated citizenry could have prevented the filing of appeals. 6. The Board recommends the revival of a statewide conference of Real Property Tax Boards of Review from all counties to serve as a forum for the exchange and sharing of information and practices, at times and locations to be determined. Close Closing Comments The Board appreciated the exceptional competence and professionalism of the Secretary and Corporation Counsel. They provided the necessary continuity and structure required for this volunteer Board to operate in an efficient, productive, and consistent manner. Chairman's Comments This Board was blessed with members whose attendance and participation were excellent. Having a quorum was never an issue and all actively participated in the work of the Board fairly, efficiently, and with due consideration to both parties of the appeals. Hawaii County is an Equal Opportunity Provider and Employer 2004 Tax Board of Review Annual Report 5 Submitted by members of the Board of Review: Gus Ogasaw a, Chairman Linda Smith, Vice-Chairman i _ ~ - Jams Low, Member ~r C Brian Nakas~hima, Member ' L d~u GGcs~.~~ e-c-cEcJU-~~ - Claudia Woodwa -Rice, Member Hawaii County is an Equal Opportunity Provider and Employer CLAUDIA WOODWARD-RICE P.O. Box 186, Honomu, HI 96728 (808) 963-6123 phone/ 963-6889 fax email: ricesofhino hilobay.com November 15, 2005 TAX BOARD OF REVIEW- Year End Comments During this year's sessions the Tax Board of Review heard many complaints about the adoption of Rule 7 and the consequent increase in property taxes on Agricultural land due to the new Home Site Valuation process. The general increase of assessments due to speculation and development has also created hardships for many. Bill 49 draft 4 (now under Council consideration) will return home site value to an agricultural use value instead of a market value. Other pending Bills will limit assessment increases in the homeowner class and increase possible exemptions. This tax relief is important at a time of rampant speculation and development pressures. For the Agricultural industry however, it leaves major issues unaddressed. In 1992, the County of Hawaii published a report titled: Agricultural Development Plan. In the section titled, "Problems Hindering Agriculture', the reports states: 1. Current zoning does not protect agricultural lands from non-agricultural uses. Lands zoned agriculture are continually being rezoned to other uses. County does little to implement the General Plan and merely states the objectives without a plan of achieving those objectives. 2. The cost of agricultural land has no relationship to the potential agricultural productivity of the land. Land prices are based on residential use given the apparent ease of changing Ag lands into residential uses, either through re-zonings or building homes on lands with AG-1 or AG-3 designations. Thus farmers have to compete with people who are buying land and selling it at exorbitant prices. 3. The State and County permitted uses of agricultural lands are very broad. 4. The rezoning of agricultural lands into residential uses without buffers creates conflicts between farmers and residential uses. 5. The current tax system is perceived to be unfair with Gentlemen farmers using agricultural dedication to minimize property taxes on their estates. 6. There is insufficient water for agricultural use in much of the county. 7. There is a shortage of housing for agricultural workers. Housing is expensive. All of these problems still exist and are growing more acute. A comprehensive effort must be made to address them or we may lose meaningful agriculture in Hawaii County. Hawaii County has no defined policy to identify Prime Agricultural Lands. The total land zoned Ag in Hawaii County is 1,213,873 acres. The Ag category has been acatch-all and includes much unproductive acreage. Over the years many areas that are designated for Agricultural use have become developed primarily as residential properties and are not being used for any real agriculture activity. They also provide a tax loophole for upscale residents to avoid paying residential rates. Because we have allowed non-agricultural based residential use on our ag-zoned lands for so long, there is increased risk that Prime Agricultural Land will be lost to residential use. Prime Ag Lands should be inventoried. Once Prime Ag Lands have been identified, the remaining land could be re-zoned Rural to provide buffers between Ag and residential areas and uses allowed that will take development pressures off of Ag land. There is little oversight and enforcement of permitted use of Ag Land. Currently, violations of permitted uses are only investigated when a complaint is made. There is only one person assigned by the County to investigate complaints. Special Use permits are one of the main mechanisms used to allow non-agriculture uses on lands zoned for Ag use. The County does not have a mechanism to insure that property is in compliance with what the County has granted. The current draft of the General Plan has removed all references to the County's obligations to identify and protect Important Ag Land. These obligations were spec~cally noted in the 1989 General Plan. The plan should continue to acknowledge them and implement a process to inventory Prime Ag Land. The County of Hawaii should also consider not granting special use permits unfit the enforcement concern is resolved. 2 RP Form 19-97(e) (4/03) Department of Finance COUNTY OF HAWAII REAL PROPERTY TAX BOARD OF REVIEW 101 Pauahi St., Ste. 4, Hilo, ffi 96720 75-5706 Kuakini Hwy., Ste. 112, Kailas-Kona, HI 96740 TAXPAYER'S NOTICE OF COMPLAINT' NOTICE is hereby given that ~ ~ ~ y ~ C D ( C !(Name of Taxpayer) hereby files this complaint to the County of Hawaii R~e+al Property Tax Board of Review. T'he real property identified as Tax Map Key No. 7" l ~ ~ l ~D 3 d ,for tax year 20Q~ - 200~r- ,has been improperly valued for real prope[ty tax assessment purposes. County's Valuation: Land: 7} ~ ~ D Building: I Q, g 0 0 I (We) believe that the proper assessment value of the property is//a~~s follows: Taxpayer's Valuation: Land: o~ 1 ~ aO D Building: ~ ~i g© C) The grounds of objection to the County's valuation are: SEE ~}Tr~~h~E~ Dated: ~/,//~//s % aJl20Q_~ Signed: Ta ayer) Business Phone: ,~'~-7-3~~Q Mailing Address: ~D /Q?OX ~3~Z Residence Phone: 3a'a' [~El~~ 71075 Receipt Acknowledged: '~~,~~'~~T Dated:~20 1. At the start of my appeal hearing at 9:30a on 8/18/04, County of Hawaii appraiser, Mark Cutler, announced to the appeal board that I was the "chief clerk" in the Kona Real Property Tax office. 2. I presented my list of comparable properties to the board and contended that the appraisers for these two areas kept the home site values on these properties at a lower value based on the class of the house. The zone appraisers for these areas, in fact, conveyed this information to me. Their supervisor at the time of the "home site project", Stan Sitko, gave them this option. Mike McCall, the current appraisal supervisor, was also at the hearing and stated that this directive was not given to any of the appraisers and no home site values were adjusted to reflect the class of the house sitting on the property. He was not the supervisor over the appraisal staff at the time that the home site project was implemented. He also stated the list of properties that I had presented were "missed" by the zone appraiser and were not intentionally discounted. 3. It is my opinion that the Board of Review was swayed by the comments made by Mark Cutler at the beginning of the hearing making them leery of finding judgement in my favor fearing a favoritism issue. In addition, the appraisal supervisor made erroneous statements, which affected the Board's decision causing them to sustain the County's land value. +~v w Harry Kim ~''y~ William Takaba Mayor Finance Director r~ Nancy E. Crawford Deputy Director ~~Of Na' County of Hawaii DEPARTMENT OF FINANCE -REAL PROPERTY TAX Aupuni Cen[er • IOI Pauahi Street • Suite No. 4 • Hilo, Hawaii 96720 Fax (808)961-8415 Appraisers (808) 961-8354 Clerical (808) 961-8201 • Collections (608) 961-8282 75-5706 Kuakini Highway Sui[e 112. Kailas-Kona, Hawaii 96740 Fax (808) 327-3538 Appraisers (BOS) 327-3542 Clerical (808) 327-3540 October 22, 2004 COTE,GREGORY A P.O. BOX 1312 KEALAKEKUA HI 96750 1312 SUBJECT: Complaint Hearing Date - TMK: 7-9-011-030-0000 Case Number. 3154 Dear Appellant: The Tax Board of Review has scheduled your Complaint Hearing for the subject property on November 15, 2004 in the Aupuni Conference Room at 101 Pauahi St., adjacent to the Civil Service office (on the Hamakua end of the building), Hilo, Hawaii. Your hearing is scheduled at 11:00 a. m. The hearing place is accessible for persons with physical disabilities. Persons who need special accommodations to attend this hearing should call 961-8764 by November 1, 2004. If you cannot attend the hearing: 1. Please call our Hilo office at 961-8764 with your tax map key number(s). We will inform the Tax Board that you will not attend. 2 You may submit supporting documents to the Tax Board of Review at the following address: Real Property Tax Attention: Tax Board of Review 101 Pauahi St., Suite 4 Hilo, Hawaii 96720 Please reference your tax map key number(s). Informational handouts entitled REAL PROPERTY ASSESSMENT APPEALS INFORMATION and REAL PROPERTY ASSESSMENTS are enclosed. Please be advised that the Tax Board of Review will consider all communications previously submitted. OCT 2 li ~ Sin~ely,~~~ u. ~.~~n Michael McCall _ . -f- „(,tom. Appraiser Supervisor ~,Ql~ VId"' Enclosures Hawaii County is an Equal Opportunity Provider and Employer RP Form 19-97(e) (Rev 05/2004) Dept. of Finance COUNTY OF HAWAII REAL PROPERTY TAX BOARD OF REVIEW 101 Pauahi St., Ste. 4, Hilo, Hl 96720 75-5706 Kuakini Hwy., Ste. 112, Kailua-Kona, HI 96740 TAXPAYER'S NOTICE OF COMPLAINT NOTICE is hereby given that (Name of Taxpayer) hereby files this complaint to the County of Hawaii Real Property Tax Board of Review. The real property identified as Tax Map Key No. ,for tax year 20 - 20 ,has been improperly valued for real property tax assessment purposes. County's Valuation: Land: Building: I (We) believe that the proper assessment value of the property is as follows: Taxpayer's Valuation: Land: Building: The grounds of objection to the County's valuation are: SUPPLEMENTAL TESTIMONY-7-9-011-030/GREGORY A. COTE AS TO HIS PARA.#2. OF THE COMPLAINT I. Mike McCall was not appraisal supervisor at the time of the Homesite project. 2. Stan Sitko(appraisal supervisor during the project)gave approval to value homesites according to Chap. l9, which allows for consideration of "all" factors(dwellings) that may influence value. Hence, structures were taken into consideration. 3. The list of comparable properties supplied by Mr. Cote for Zone 7-1 through 7-4 were not "missed" by the zone appraiscr(me), but an intentional effort to value those properties according to what ma//y or may not influence the homesite value at "full market". v~~~~~J' ~ MAHLO, ichacl D'Amico Real Property Appraiser IV County of Hawaii, Kona Staff Ha~rai'i County is an Egaul Oppornmiry Provider and En~player