HomeMy WebLinkAboutREP FC 063 05/16/2011 2010-2012 REPORT OF THE
COMMITTEE ON FINANCE
DATE: May 16, 2011 Re: Comm. No. 205/Res. 76 -11
PLACE: Council Chambers
Hilo, Hawai`i
TIME: 9:00 a.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution No. 76 -11, reports as follows:
Resolution No. 76 -11, transmitted by Councilmember Pete Hoffmann, dated May 4, 2011,
requesting a review and potential reform of the County of Hawai`i Real Property Tax structure.
Real Property Taxes are the primary revenue source for the County of Hawai`i and should be
based on fairness and equity. Real Property Tax structure review should be addressed and done
regularly as in other counties and states throughout the United States. This review could include
suggested changes, alternatives and possible reform to the Real Property Tax structure for not
only residential properties, but also agricultural or native forest, conservation, commercial, hotel
and resort, industrial, and all other properties.
Council Vice Chair Pete Hoffmann seeks the support of the Council for this Resolution.
During discussion Your Committee was informed by Mr. Hoffmann that this proposed resolution
strongly urges the Mayor to allocate funds from the Operating Budget to contract with an outside
consultant to conduct comprehensive review of the Real Property Tax structure. This is a
collaborative effort requesting the Mayor to look in to this matter.
Director of Finance Nancy Crawford and Real Property Tax Division Assistant Administrator
Mike McCall appeared before Your Committee. Ms. Crawford and Mr. McCall agreed to an
external review, but would prefer utilizing in -house resources before hiring a third party. It was
also brought to Your Committee that the Legislative Auditor's investigation using limited funds
focused on two components in the review; 1) Real Property Tax structure, and 2) Department's
implementation of the Real Property Taxes.
Some members of Your Committee commented on not appropriating funds for an external
review at this time due to the continuing economic crisis; concerns as to public's perception of
fair representation of Real Property Taxes; the Real Property Tax structure's existing
inconsistencies in assessments and values is cause for concern to order an audit instead of an
external review.
For informational purposes, Mr. Fred Blas and Ms. Smart voted "kanalua" twice. Mr. Yagong
voted "kanalua," then "yes." Mr. Ikeda voted "kanalua," then "no."
FC Report No. 63
FC -63 Page 2 May 16, 2011
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 76 -11,
and recommends its adoption.
dkr
AYES NOES A &E EX Respectfully submitted,
BLAS X
FORD x COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
ONISHI X
PILAGO X
SMART x BRENDA FO , CHAIR
YAGONG X FC REPORT NO. 63
YOSHIMOTO X ADOPTED: MAY 1 7'. 2011