HomeMy WebLinkAboutREP FC 335 09/23/2008 2006-2008REPORT OF THE
COMMITTEE ON FINANCE
DATE: September 23, 2008
PLACE: Council Chambers
TIME: 9:00 a.m.
Re: Comm. No. 1453Bi11 No. 366
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 366, reports as follows:
Bill No. 366, transmitted by Director of Finance William Takaba, via Communication No. 1453, dated
September 9, 2008, amends Chapter 2, Article 4, Department of Finance, of the Hawaii County Code
1983 (2005 Edition, amended), by adding in a new section relating to Lien Parity. The purpose of this
measure is to clarify treatment of parity liens as it relates to payments, when such parity is required by
law. The immediate application will apply to payments received on real property taxes and special taxes
for Business Improvement Districts and Community Facilities Districts.
Hawaii County Code Chapter 32 (Community Facilities Districts) and Chapter 35 (Business
Improvement Districts) both require that their respective liens for outstanding special taxes be on a parity
with the lien of real property tax assessments. As such districts are formed and taxation begins, the issue
of applying partial payments correctly must be addressed.
At this time, the Kailua Village Business Improvement District is the only district with special taxes, but
it is anticipated that the County will have additional districts of both types in the future.
In cases where the payment received for outstanding taxes, interest and penalty is less than the full
amount due, the Real Property Tax Division must fulfill the parity lien requirements by allocating the
partial payment on a pro rata basis for the various outstanding tax types.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 366, and recommends it
pass first reading.
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AYES NOES A&E EX
FORD X
RIGA X
HOFFMANN X
IKEDA X
JACOBSON X
NAEOLE X
PILAGO X
YAGONG X
YOSHIMOTO X
Respectfully submitted,
COMMITTEE ON FINANCE
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DOMINIC Y
FC REPO$~' NO." - 335
ADOPTF,D: OCT ~ 8 208