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HomeMy WebLinkAboutCOM 0656.000 2008-2010 DOMINIC YAGONG tv OF ti Phone: (808) 961-8264 Council Member 0 . ~N•'?"''4w Fax (808) 961-8912 ~ • ; 9,, Council District I ~yld~,.• Email: dyagong@co.hawaii.hi.us Mailing Address: o Business Address: (Former County Building) ~r4rE of rra+~~~ 0 DEC 15 ~jpfT fr?l - ~~lvenue, Second Floor 25 Aupuni Street Bent°i`antdi Building Hilo, Hawaii 96720 Hilo 11,noai'i 96720 Hawai `i County Counca~-~Y a . County of Hawai `i December 15, 2009 J Yoshimoto, Council Chair Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Dear Chair Yoshimoto, The very difficult economic times facing so many of our island residents and businesses are reflected in the many calls that I have received regarding penalty and interest being levied by our Real Property Tax Department. The property owners and businesses are facing monumental financial challenges, and not meeting the deadline for real property tax payments is unfortunately an economic reality. This hardship is compounded with penalties and interest being charged by the County above and beyond the real property tax assessment. Please see the attached letter dated February 15, 1991 to then Real Property Tax Administrator Gary M. Kiyota from then'Director of Finance William Takaba. The subject matter: Guidelines for waiver of penalty and interest. I strongly believe that the guidelines must be updated to reflect the current economic challenges facing the people of our County. More specifically, section D needs to be updated as it covers situation for waiver of penalty and interest. It reads; Section D. "Delay in payment resulting from problems or situations that are unusual in nature, which in the judgment of the tax administrator warrant waiver of penalty and interest." This is much too vague and unfair for the Tax Administrator to interpret. More importantly, it is virtually impossible for our residents to see if they fall in this category because it is "open to interpretation" of one individual. We need to provide our Tax Administrator with guidelines that he can easily interpret and implement. Update of guidelines could include loss of job, decrease in personal income, increase in employment benefit cost, cut in hours, behind on mortgage payment, substantial increase in Real Property Tax assessment over the previous year, etc... Coma-n. i'lo. ~n s(00 Ref. To: F6-- Serving the Interests of the People of Our Island Ref. Date pEo 17 009 Hawaii County is an Equal Opportunity Provider and Employer Chair J Yoshimoto Councilmember December 15, 2009 Page 2 I would like you to place this letter and attached guideline as a reference for discussion in your Finance Committee meeting on January 5, 2010. Please invite Director of Finance Nancy Crawford and Real Property Administrator Stan Sitko to participate in a 30 minute discussion. I am hoping that the Council can give suggestions for updating the guidelines, or possibly suggestions for changing the Hawaii County Code to reflect specific guidelines that would assist our Tax Administrator in making fair and consistent decisions regarding waiver of penalties and interest. I started on the track of bringing forth an ordinance, however, I decided that it would be better to have an open discussion by the Council and Administration to try to work together and reach consensus on the direction that we should take in regards to this matter. The unprecedented economic times may warrant clarity in this matter, however, the sunshine law prohibits Councilmember to seek consensus or recommendation outside the purview of the public. I am hopeful that you agree that this matter should be discussed openly in a public forum. Sincerely, ~tj . Dominic Yagong Councilmember DY/bm Att. Lorraine R. Inouye William Takaba Department of Finance I 56S Mai Street • Hilo, Hawaii 96720 0 (608) 961-82 82 r ~ REAL PROPERTY TAX DIVISION 06c 1 q y U February 15, 1991 a TO GARY M. KIYOTA, REAL PROPERTY TAX ADMINIS OR FROM WILLIAM TAKASA, DIRECTOR OF FINANCE SUBJECT: CUIDELINES FOR WAIVER OF PENALTY AND INTEREST Under the authority granted to me by Section 190, Article Chapter 19 of the Hawaii County Code, as amended, the following guidelines are established for waiving penalty and/or interest on delinquent payment of real property taxes. A. Blanket waivet y thodt'zwa_saity'of fdcdtdd 'mikidtddadce Due to prohibitive processing costs, penalty and interest shall be waived for tax bills where tax. amount due. is '$50.00 or less, if payment is received within 90 days, of installment date. _ B. Allowable sitti.ations fort tedactian'of p?cmdltj vitfi•applieatiou • of ' ititetdst ' l 1. Death of property owner with estate in probate or release -of funds in'bank account pending. 2. Death in family vith family members too busy with funeral and other arrangements to be concerned with real property tax payments, etc. 3: Serious illness of taxpayer resulting in confinement in hospital or institution causing taxpayer or spouse to overlook tax payment. (Check with attending physician or hospital/institution.) 4. Taxpayer away from Hawaii for period of time extending from date of mailing tax bills past payment due date. 5. Taxpayer living in foreign country, attributing late payment to mail service (if late payment occurs within 90 days of due date). ' 6. Taxpayer purchasing real property for the first time with sale consummation date too close to tax due date and owner unaware of payment obligation. M gt1Ha Hr inv Jnv nN-,~ - .7 GARY H. KIYoTA . GUIDELINES FOR WAIVER OF PENALTY AND INTEREST FEBRUARY 15, 1991 1. , Delay in payment resulting from mortgage being paid in full but mortgagee, which withheld real property taxes, returns the unpaid portion of the amount retained for tax payment before the payment due date because the 01 mortgagee has no further responsibility for paying the tax. 8. Delay in payment resulting from financial hardship caused by (a) large medical bills for serious illness or major surgery, or (b) calamity or misfortune such as fire, burglary, vandalism, etc. 9. Delay in payment resulting from confusion and/or mixup caused by property being sold within six-month period before the payment due date with unpaid tax ratably distributed between seller and buyer, but buyer fails to pay on due date due to non-receipt of tax bill since ownership and address changes not completed in time. C. Situation for waiver of penalty 1. Delay in payment resulting -from mail being deposited with the -U.S.•.Postal Services on a timely manner but postmarked one-day late due to handling and cancellation procedures. D.. Situation for waiver of penalty and interest' t 1. Delay in payment resulting from problems or situations that are unusual in nature, which-in the judgment of the tax administrator warrant waiver of penalty and interest. E. Record to be maintained 1. Date of waiver 2. Name of taxpayer 3. Taxpayer's mailing address 4. Tax map key 5. Tax year 6. Amount of tax 1. Reason for waiver Z0 3DVJ HNfl~l '.JnN.-!