HomeMy WebLinkAboutREP FC 299 08/31/2004 2002-2004REPORT OF THE
COMMITTEE ON FINANCE
DA~fI{: August 31, 2004 Re: Comm. No. 396/Bill No. 176
PLACI?: Council Chambers
T~IMk?: 10:05 a.m.
Council Chair and Members
llawai'i County Council
l lilo, I Iawai'i 96720
Your Committee on F'inancc, to which was referred Bill No. 176, reports as follows:
Bill No. 176, transmitted by Director of Finance William Takaba, via Communication No. 396, dated October 23,
2003. amends Chapter 19. Hawaii County Code 1983 (1995 Edition), Real Property Taxes, relating to non-speculative
residential use assessiroent.
hhe purpose of this measure is to reduce the current dedication period from ten years to five years and to reduce
corresponding rollback provisions by five years.
Originally heard nn November 4, 2003, this measure was deferred.
At suhsequent finance Committee workshops held on November 3 & 17, 2003, Director of Finance William Takaha
provided an overview ofehe bill, summary of concerns, summary of exemptions and major issues. These included the
tirlluwing pros and cons on non-speculative residential use dedication:
Pros: Cons:
-Reduces risk of dedication -Shortens commitment to non-speculation
-Encourages participation -Shifts tax burden to other classes
-Provides relief eo ta.xpayers in areas with rapidly rising property values
Bill No. 176. Draft 2 was referred to Your Conunittee. dated October 30, 2003, from Director of Pinauce William
fakaba, cleric) ing and correcting the original bill.
Some members of Your Committee questioned the current deadline date of September I for submitting a
nun-speculative dedication application. Is was explained that the Real Property Tax Office needed time to conduce site
inspections and building measurements of property to be dedicated. The September 1 date allows time for this work to
be done. Nevertheless, some Coimnittee Members stated that a property owner should not have to wait until the
following year to file the exemption if they purchased the residence after the September 1 deadline. Real Property was
asked to look into resolving this issue.
Fur informational purposes. Mr. "hyler voted kanalua twice.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 176, as amended to Draft 2, and
recommends it pass first reading.
smc
CHUNG X
SA FARIti )(
ARAIiAI~I }(
F.LARIONOFI'' X
HOLS('11U11 X
.IACOBSON X
REYNOLDS X
TULANG X
Tl'I,ER X
Respectfully submitted
COMMITTEE ON F'tNANCF,
~~ ~, _.
AARON S.l". C G, CI~AIR
FC REP RT NO. •• 2
ADOPTED:i ~.1