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Home My WebLink AboutCOM 0851.007 2006-2008 Page 1 of 1 PIC06NCEL Murashige, Laura From: David Rodriguez [davidr@oha.org] Sent: Monday, December 17, 2007 1:43 PM To: counciltestimony@co.hawaii.hi.us Subject: Bill 207 Kuleana Tax Exemption Attachments: OHATestimonyBi11207.doc; TrAkanaTestimonyBi11207.doc Dear Hawai'i County Clerk: Attached for submission are ( 2 ) OHA testimony's in support of Bill 207; An Ordinance Amending Chapter 19, Article 10, Hawai'i County Code (2005 Edition, As Amended), Establishing a Real Property Tax Exemption for Kuleana Land. Trustee's Robert Lindsay and Rowena Akana will be present for any questions or concern you're Council may have. Aloha, David Rodriguez Policy Coordinator Office of Hawaiian Affairs (808) 594-1756 ro v O b M x M u'1 cn Comm. N 851' d Ref. To: 7OW Ref. Dcfe JAN" 20OR 12/27/2007 oUIA OFFICE OF HAWAIIAN AFFAIRS 711 Kapiolani Boulevard, Suite 500 Honolulu, Hawaii 96813 (808) 594-1888 HAWAII COUNTY COUNCIL COMMITTEE ON FINANCE 25' SESSION Bill No. 207: AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 10, HAWAII COUNTY CODE (2005 EDITION, AS AMENDED), ESTABLISHING A REAL PROPERTY TAX EXEMPTION FOR KULEANA LAND. DATE: December 18, 2007 TIME: 1:30 p.m. PLACE: SHERATON KEAUHOU BAY RESORT AND SPA, 78-128 Ehukai Street, Kailua-Kona, Hawaii Aloha, Chair Yagong and Members. The Office of Hawaiian Affairs (OHA) supports the intent of this measure, Bill No. 207, which would establish a real property tax exemption for kuleana land. To Hawaiian families, kuleana lands represent a lasting legacy of their monarchy and their ohana. For over one hundred years, the Hawaiian people have seen the loss of their traditional family kuleana to the point that there are now very few Hawaiian families living on kuleana lands. It is essential to give those remaining families the best opportunity to retain in their ohana the lands that were granted to their ancestors by their king. Today's economic environment has resulted in increasing pressure on residents of kuleana land in the form of sharp increases in the presumptive value of their kuleana lands and consequent higher property taxes. Many Hawaiian families living on kuleana lands face the loss of the land and legacy, as well as the potential for homelessness, because they cannot afford the property tax assessments based on the supposed "fair market value" of their kuleana lands. These kuleana lands are the gift and legacy of King Kamehameha IV. Over the generations, these ohana have continued to malama `aina - care for the land - in order that their descendants will be able to continue to enjoy that legacy. The "value" of these kuleana lands, therefore, is without measure since one cannot place a price tag on the love and nurturing that generations put into their land. In short, there is no true "fair market value" for kuleana lands and it is a fallacy to tie the taxes on kuleana lands to a presumptive "fair market value." Doing so places an inequitable burden on Hawaiian families. This measure would ameliorate the effects of real property tax increases on persons living on kuleana land. Further, it will help to avoid the social, economic, and cultural disruptions likely to occur if Hawaiian families lose their kuleana lands. The language of this measure is similar, but not identical, to kuleana-land tax-exemption language recently approved by the OHA Board of Trustees (BOT). For example, unlike the measure before you, the BOT's language included a requirement that the county director of finance prescribe what shall be sufficient to show genealogy verification, and did not mention genealogy verification by OHA or by court order. Despite these and other differences in the language, OHA supports the intent of this bill and we are available to you, as needed, to assist with your consideration of the bill and appropriate revisions. Thank you for the opportunity to testify. ®1 1/~ OFFICE HAWAIIAN AFFAIRS 711 Kapiolani Boulevard, Suite 500 Honolulu, Hawaii 96813 (806) 594-1888 HAWAII COUNTY COUNCIL COMMITTEE ON FINANCE 25`x' SESSION Bill No. 207: AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 10, HAWAII COUNTY CODE (2005 EDITION, AS AMENDED), ESTABLISHING A REAL PROPERTY TAX EXEMPTION FOR KULEANA LAND. DATE: December 18, 2007 TIME: 1:30 p.m. PLACE: SHERATON KEAUHOU BAY RESORT AND SPA, 78-128 Ehukai Street, Kailua-Kona, Hawaii Aloha, Chair Yagong and Members. I am Rowena Akana, Trustee-at-Large of the Office of Hawaiian Affairs. My testimony is in support of Bill No. 207 which would establish a tax exemption for persons living on Kuleana lands who are descendants of the original owners. Many Hawaiian families, who have been caring for their Kuleana lands for generations, are now facing sky- rocketing property taxes because of luxury resorts and shopping malls being built next-door. If something isn't done soon, more Kuleana lands could fall out of Hawaiian hands. This issue first came to my attention several years ago when a family came to OHA and asked that we take custody of their Kuleana land until they were able to save up enough money to pay off their back taxes. The history of Kuleana lands is a tragic one. According to Kumu Pono Associates LLC, Kuleana lands came into existence as a result of the Mahele. In 1848, all land in the Kingdom of Hawaii was placed in one of three categories: Crown Lands (for the occupant of the throne); Government Lands; and Konohiki Lands (Kuleana Act, 1850). Ownership rights to all lands in the kingdom were "subject to the rights of the native tenants;" those individuals who lived on the land and worked it for their subsistence and the welfare of the chiefs (Kanawai Hoopai Karaima... {Penal Code} 1850:22). The 1850 resolutions in "Kanawai Hoopai Karaima no ko Hawaii Pae Aina," authorized the newly formed Land Committee on Finance Testimony for Bill 207 OHA Trustee Rowena Akana December 18, 2007 Commission to award fee-simple title to all native tenants who occupied and improved any portion of Crown, Government, or Konohiki lands. After commoners were granted the opportunity to acquire their own parcels of land through the Mahele, foreigners were also granted the right to own land in 1850, provided they had sworn an oath of loyalty to the Hawaiian 1 Monarch. In order to receive their awards from the Land Commission, the hoa`aina (native tenants) were required to prove that they cultivated the land for a living. They were not permitted to acquire "wastelands" (e.g. fishponds) or lands which they cultivated "with the seeming intention of enlarging their lots." Once a claim was confirmed, a survey was required before the Land Commission was authorized to issue any award. The lands awarded to the hoa`aina became known as "Kuleana Lands." All of the claims and awards (the Land Commission Awards or L.C.A.) were numbered, and the L.C.A. numbers remain in use today to identify the original owners of lands in Hawaii. By the time of its closure on March 31, 1855, the Land Commission issued only 8,421 kuleana claims, equaling only 28,658 acres of land to the native tenants (cf. Indices of Awards 1929). According to the Overview of Hawaiian History by Diane Lee Rhodes, many of the kuleana lands were later lost. The list of reasons include: (1) Native tenants mostly received lands that lacked firewood or were too rocky and unsuitable for farming. (2) A number of kuleana were sold by dishonest land agents before the farmers could get a survey. (3) The land commissioners delayed getting notices to landholders. (4) Prices were out of reach for commoners. (5) Finally, foreigners evicted legitimate kuleana owners without due process. Since most of the Kuleana lands were carved up and taken away or abandoned, the impact on tax revenues would be extremely minimal so there should be no reason why this legislation shouldn't pass. We must put an end to the injustices done to the caretakers of Kuleana lands for the past 150-years once and for all. If something is not done soon, the very last Kuleana lands that have survived will finally fall out of Hawaiian hands. Protecting what's left of Kuleana Lands will help preserve Hawai'i's rich history and culture. Mahalo nui loa for the opportunity to present testimony. 2