HomeMy WebLinkAboutREP FC 341 10/07/2008 2006-2008
REPORT OF THE
COMMITTEE ON FINANCE
DATE: October 7, 2008 RE: Comm. No. 1326/Bill No. 323
PLACE: Council Chamber
Hilo, Hawaii
TIME: 1:00 P.M.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 323, reports as follows:
Bill No. 323, transmitted by Council Member J Yoshimoto, via Communication No. 1326, dated
July 3, 2008, amends Chapter 19, Hawaii County Code 1983 (2005 Edition), Real Property Taxes,
relating to Real Property Taxes (Nonspeculative Residential Use).
The purpose of this measure will not allow applications for the Nonspeculative Residential Use
program and will eventually repeal the Nonspeculative Residential Use program, Sections 19-58.1 and
19.58.2. There will only be one valuation process in the homeowner class. The homeowner's class,
having a three percent assessed value increased cap along with the low $5.55 real property tax rate,
will be sufficient protection against excessive appreciation of the real estate market.
At the July 22, 2008 Committee on Finance meeting, a motion to postpone the measure was made by
Council Member J Yoshimoto and seconded by Council Member K. Angel Pilago, followed by a vote
by the seven Members in attendance, to hear this measure in the Committee on Finance meeting that is
scheduled for August 26, 2008.
Communication No. 1326. 1, transmitted by Council Member J Yoshimoto, dated August 13, 2008,
with proposed amendments, which amends Chapter 19, Article 7, Sections 19-53, 19-58.1 and 19-58.2
of the Hawaii County Code 1983 (2005 Edition, as amended), relating to Real Property Taxes
(Nonspeculative Residential Use), will clarify and replace "Applications" with "Petitions."
Communication No. 1326.3 was submitted by William Takaba, Director of Finance, dated
August 25, 2008, in opposition to Bill No. 323 in its present form. Discussion to this communication
concluded in a motion for postponement to the Committee on Finance meeting scheduled for
September 23, 2008.
At the August 26, 2008 Committee on Finance meeting a motion to postpone the measure was made by
Council Member J Yoshimoto and seconded by Council Member Pete Hoffmann, followed by a vote
by the nine Members in attendance, to hear this measure in the Committee on Finance meeting
scheduled for September 23, 2008, to address the concerns expressed by Finance Director William
Takaba.
FC REPORT NO. 341
Comm. 1326
Bill 323
Page -2-
At the September 23, 2008 Committee on Finance meeting, Council Member J Yoshimoto made a
motion to postpone the measure and seconded by Council Member Bob Jacobson, followed by a vote
by the nine Members in attendance, to hear this measure at the October 7, 2008 Committee on Finance
meeting, to incorporate suggested amendments made by the Director of Finance William Takaba, as
stated in Communication No. 1326.3, with possible community workshops as suggested by Council
Member Donald Ikeda.
Communication No. 1326.4 from Council Member J. Yoshimoto, dated September 25, 2008,
transmitting proposed amendments to Bill 323, Draft 2. Discussion on the proposed Draft 2 addresses
the approximate 1,600 participants in the Nonspeculative Residential Use program, with the option of
being grandfathered into the program or choosing to be released from the program. Mr. Takaba stated
that the Finance Department will send a notice via certified mail, return receipt requested, to all 1,600
participants, informing them of the new ordinance, requesting participant's clarification on whether or
not they want to stay in the program.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 323 as amended to
Draft 2, and recommends it pass first reading.
la
AYES NOES A&E Ex Respectfully submitted,
FORD X
HIGA X CO ITTEE ON FINANCE
HOFFMANN X
IKEDA X
JACOBSON X _
NAEOLE X
PILAGO x DOMINIC YAGON , H
YAGONG X FC REPO O 341
YOSHIMOTO X ADOPTED: