HomeMy WebLinkAboutREP FC 238 01/01/1950 1998-2000 REPORT OF THE
COMMITTEE ON FINANCE
DATE: March 21, 2000 Re: Comm. No. 290/Bill No. 83
PLACE: Council Chambers
TIME: 11:00 A.M.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 83, reports as follows:
Bill No. 83, transmitted by Council Member Dominic Yagong, via Communication No. 290,
dated May l 1, 1999, amends Chapter 19, Article 7, Section 19-53(f)(2) of the Hawaii County
Code, relating to deferred or roll back tax on the owner of agricultural lands.
On June 7, 1999, Your Committee originally heard Bill No. 83 and Bill No. 83, Draft 2. Bill No.
83 proposes to (1) exempt deferred or rollback taxes on agricultural lands when lots of 5 acres or
less are created and when the conditions of dedication are continued, and (2) to ensure that
rollback taxes upon breach of dedication would be up to 10 years for breach of a 10-year
dedication, but that rollback taxes would be up to 20 years under a 20-year dedication.
Bill No. 83, Draft 2 includes new language proposed by Corporation Counsel, which was
inadvertently dropped in the drafring.
Your Committee deferred Bill No. 83 and Bill No. 83, Drafr 2, to allow the Real Property Tax
Division to work with staff on additional language to correct several long-standing problems
with this section of the law.
Bill No. 83, Draft 3 was referred to Your Committee via Communication No. 290.004, a memo
dated February 28, 2000 from Council Member Dominic Yagong. A detailed list of changes was
provided. Major proposed changes noted in Draft 3 are as follows:
(1) Allows a subdivision of lots less than 5 acres to be exempt from rollback taxes
rather than 5 acres or less.
(2) Eliminates the opportunity for an owner to have reclassified land assessed at an
agricultural value up to three years after the reclassification request has been
granted. The change would treat a land change to urban or rural and subdivision
less than five acres equally.
(3) Explains how the deferred or rollback taxes would be calculated. Provides a ten
percent penalty and states that lien is on the land.
(4) Specifies deferred or rollback taxes imposed after successful completion of a
dedication period would be retroactive only to the end of the completed
dedication period and would not be imposed for any time covered by a
successfully completed dedication period.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 83 Draft 3, and
recommends it pass first reading.
smc
AYES NOES A&R EX
Respectfully submitted
CHUNG X
ELARIONOFF x C MMITTEE ON FINANCE
JACOBSON X
LEITHEAD-TODD X
PISICCHIO X
SMITH X ~
rvLER x AAR01 S. UNG, CH IR
vAGOnG X FC REPORT NO. 238
ARAKAKI, E.O.M. ADOPTED: ~