HomeMy WebLinkAboutREP FC 298 08/31/2004 2002-2004REPORT OF THE
COMMITTEE ON FINANCE,
UATE: August 31.2004
PLACE: Council Chambers
TIME: 10:05 a.m.
Council Chair and Members
Hawaii County Council
Hilo Hawaii 96720
Re: Comm. No. 395/Bill No. 175
Your Committee on Finance, to which was referred Bill No. 175, reports as lollows:
Bill No. 175. transmitted by Director of Finance William Takaba, via Communication No. 395,
dated October 23.2003, amends Chapter 19, Hawaii County Code 1983 (1995 Edition), Real
Property faxes, relating to valuation.
The purpose of this measure is to limit the increase in the market value of properties in the
homeowners class to not more than three percent (3%) per tax year until the property is sold or
otherwise transferred. At that time, the owner pays tax on market value.
This growth cap is proposed to provide needed relief to residents of the Big Island experiencing
rapidly increasing property values.
Originally heard on November 4.2003, this measure was deferred.
At subsequent Finance Committee workshops held on November 3 & 17, 2003, Director of
Finance William Takaba provided an overview of the bill, summary of concerns, summary of
exemptions and major issues. These issues included the following pros and cons:
Pros:
-Rewards commitment to one's home
-"I~axpayer would know growth limit
-Perceived fairness to homeowner
-Can consider eliminating dedication program
-No back-tax provision like non-spec dedication program
Cons:
-No back-tax may lead to abuse
-Seems complex
-Shifts tax burden to other classes
-May lead to budget problems
-Taxes paid may not be equitable
Bill No. 175, Draft 2 was referred to Your Committee, dated October 30, 2003, from Director of
Finance William "fakaba, clarifying and correcting the original bill.
Bill No. 175, Draft 3 was presented to Your Committee on August 26, 2004. from Director of
Finance William "Cukaba, amending the base assessment year from 2003 to 2004.
FC REPORT NO. 298
I~or informational purposes, Mr. Tyler voted kanalua twice.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 175, Draft 2, as
amended (to Draft 3), and recommends it pass first reading.
smc
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CHUNG X
SAF'ARIK X
ARA KAKI X
F.LA RIONOFF X
IIOLSCHUII X
JACOBSON X
RE1"NOI,DS X
TI~LAN(7 X
PY1, M;R X
Respectfully submitted
ON}i~TTEE ON FINANCE.
AARON S.Y. C}IA1NG, CHAJR
FC REPORT NO. ~a'8
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