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Home My WebLink AboutCOM 0070.000 2012-2014 • __..: . �rE Le*.*:;''-' TAX BOARD OF REVIEW County of Hawai'i 101 Pauahi Street, Suite 4 Hilo,Hawaii 96720-4679 December 28, 2012 The Honorable William P. Kenoi, Mayor County of Hawaii _ 25 Aupuni Street __ Hilo, Hawaii 96720 .a v The Honorable J Yoshimoto and Members of the County Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 Dear Mayor Kenoi, Chairman Yoshimoto and Members of the County Council: Pursuant to Chapter 19 of the Hawaii County Code, enclosed please find the 2012 Annual Report of the Real Property Tax Board of Review. Thank you for your time. Respectfully submitted, Ci—c,t—...,•41) .—•2. — Albert Kualii, Chairman /enclosure cc: Nancy Crawford, Director of Finance Comm. No. 0 Ref.To: E.(--- Ref. Date JAN 0 7 2013 William P.Kenoi M<v oF;,.. Nancy E. Crawford Mayor �o Finance Director �I Jiy .! ‘‘k i*I' Deanna S. Sako • Deputy Director County of Hawaii DEPARTMENT OF FINANCE-REAL PROPERTY TAX Aupuni Center • 101 Pauahi Street • Suite 4 • Hilo,Hawai`i 96720-4679 • Fax(808)961-8415 Appraisers(808)961-8354 • Clerical(808)961-8201 • Collections(808)961-8282 West Hawai`i Civic Center • 74-5044 Ane Keohokalole Hwy. • Bldg.D,2nd FIr. • Kailua Kona,Hawaii 96740 Fax(808)327-3538 • Appraisers(808)323-4881 • Clerical(808)323-4880 Website:www.hawaiipropertytax.com REAL PROPERTY TAX BOARD OF REVIEW 2012 ANNUAL REPORT December 28, 2012 Introduction Pursuant to the provisions of Chapter 19, Article 12, Section 19-97(e), Hawaii County Code as amended, the members of the Real Property Tax Board of Review submit the following report of activities and recommendations for the 2012-2013 tax year. The recommendations relate to both legislative and administrative matters. The following is a list of the officers and members of the Board: Albert Kualii, Chairman Wesley Takai, Vice-Chairman Michael D'Amico Scott Church Potential appointees should be apprised of the demands of their time that service on this Board entails before their names are submitted to the County Council for confirmation hearings. All members are expected to attend all meetings. Meetings in Hilo or Kona may be a biweekly occurrence from July through November with two nights away from home or the office. Hawai`i County is an Equal Opportunity Provider and Employer 2012 Tax Board of Review Annual Report 2 Board Membership The following is a list of the Board members and when their term ends: Board Member Term Ends — December 31, Wesley Takai 2012 Albert Kualii 2013 Scott Church 2014 Michael D'Amico 2015 (Vacant) 2016 NOTE: It will be necessary not only to fill the existing vacancy but also that of Mr. Takai. Activities Organizational Meeting The annual organizational meeting of the Board was held on March 6, 2012, at the Real Property Tax Conference Room in Hilo for the purpose of electing officers and establishing a tentative appeal hearing schedule for hearings to be held in both Hilo and Kona. A tentative workshop date and place were also set and there was a general legal discussion of Chapter 19, as well as a discussion of any bills relating to assessments. Deputy Corporation Counsel Craig Masuda provided a training session for the Members on rules and duties of the Board. Real Property Tax Administrator Stanley Sitko was also in attendance and provided comments to the Board. Minutes from the November 15, 2012 meeting was approved. 2012 Board of Review Statewide Conference The Board of Review Statewide Conference was held on May 25, 2012, at the Harbor View Center at Nico's Pier 38 on Oahu. There were approximately 100 guests in attendance including Board Members, Deputies Corporation Counsel and Real Property Tax Office Administrators and staff from four island counties: Oahu, Maui, Big Island and Kauai. A few of the topics discussed were the purpose and duties of the Board of Review, the assessment process, understanding various appraisals, and appearance of representatives. Attendees were also afforded the opportunity to provide questions in an open discussion forum. Guest speaker Lowell Kalapa, President of the Tax Foundation of Hawaii, provided an overview of the report from the Real Property Tax Advisory Commission for the City and County of Honolulu. The coordinators did a great job in organizing the conference. Workshop A workshop was held on June 5, 2012, at the Hilo Hawaiian Hotel's Mala Ikena Room with Board Members, Real Property Tax Office administration, Appraisal Supervisor, Appraiser V 2012 Tax Board of Review Annual Report 3 (Commercial Appraisers), and support staff in attendance. Also present were Finance Director Nancy Crawford, Deputy Director Deanna Sako, and Deputy Corporation Counsel Craig Masuda. Opening remarks were provided by Mrs. Crawford and Mr. Masuda, who also did a presentation on the Sunshine Law and topics from the 2012 Board of Review Conference. Administrator Stanley Sitko presented information on the Sales Ratio Analysis. The Board was also provided with more time on the agenda to present questions to the tax office personnel and administration which the Board found to be very beneficial. Guest Speaker Lucille Meyer of the Office of Hawaiian Affairs (OHA) did a presentation on identifying and certifying Kuleana Lands which the Board and all those in attendance found to be very educational and beneficial for tax office purposes. Appeal Hearings Five hundred fifty-six (556) appeals, which included 137 from East Hawaii and 419 from West Hawaii, plus appeals from amended assessment notices (P38s), were scheduled for hearing this tax year. This is a decrease from 1,046 cases in the previous tax year. There were six (6) sessions held in East Hawaii (July 18, 19; September 25, 26; and October 16, 17) and ten (10) sessions held in West Hawaii (July 10, 11; August 7, 8; September 11, 12; October 23, 24; and November 13, 14). Complaint Hearing As required by Chapter 19-97(e), a notice was published on September 7, 2012, specifying a period (September 14 — 28, 2012) within which complaints may be filed by a taxpayer. No complaints were filed. Comments and Recommendations 1. The procedure of rendering an immediate decision in open session upon the completion of the presentation of each appeal case continues to be accepted by all parties and is still the preferred procedure and most efficient process. 2. The workshop, which included the Real Property Tax staff and Board Members held prior to the start of this year's appeal hearings, was immensely informative and productive. Future workshops are encouraged to continue with Board Members and all administrative staff. The Board recommends that the outcome of the Board's annual workshop be transmitted to the appraisal staff at a mandatory island-wide workshop for the appraisers to attend. 2012 Tax Board of Review Annual Report 4 3. The presence of Corporation Counsel at each meeting/hearing has proven itself to be essential. The Board has relied upon Corporation Counsel in many instances for clarification and interpretation of rules and/or laws. 4. The Board strongly recommends that the statewide conference be continued and that attendance by the Board and support staff be funded because of its multiple benefits. 5. Due to retirements and turnovers, the current appraisal staff is new to the job and could benefit from further training. Consequently, the Board recommends the availability of monies for additional training for the appraisers. 6. The Board appreciates the impromptu training sessions conducted by Corporation Counsel, Appraisal Supervisor, and Assistant Tax Administrator. These sessions provided the Board with information and insight on various issues, topics, programs, etc. 7. Due to the fact that the non-spec residential program does not offer renewal, the Board recommends that they be transferred to the homeowner's class without penalty. 8. Under the current code, an owner/occupied property that is partially used for a home- occupation and/or a rental qualifies to be in the homeowner's class but a property partially used as a care home does not qualify for this class, per the County's Planning Department. The Board recommends that Section 19-53(e)(2)(A) be amended to include in the homeowner's class an owner/occupied property used for care giving and/or care home. 9. The Board Members are aware that the public has a misperception of the motivations, goals and responsibilities of the Real Property Tax Division with regard to assessments and tax rates. The Board recommends that the Division should use all forms that are available to better inform the public of its roles and responsibilities. 10. The Board recommends that an Agricultural Specialist be hired to assist the County to deter potential abuse of the agricultural use program. It is possible that the position could be self-funded. 2012 Tax Board of Review Annual Report 5 Close Chairman's Comments I would like to thank Mr. Wesley Takai for his service as a member of the Tax Board of Review. This position ends after five years of voluntary service. Finding a replacement who possess vast knowledge and experience in the Real Estate field will be an enormous challenge. Mr. Takai's departure will leave a huge void within the Board. He will truly be missed by all of the Members and on behalf of the Board members, staff and counselor we would like to wish him well in his endeavors. Submitted by Members of the Tax Board of Review: Albert Kualii Wesley Takai Chairman Vice-Chairman Scott Church Michael D'Amico Member Member 2012 Tax Board of Review Annual Report 5 Close Chairman's Comments I would like to thank Mr. Wesley Takai for his service as a member of the Tax Board of Review. This position ends after five years of voluntary service. Finding a replacement who possess vast knowledge and experience in the Real Estate field will be an enormous challenge. Mr. Takai's departure will leave a huge void within the Board. He will truly be missed by all of the Members and on behalf of the Board members, staff and counselor we would like to wish him well in his endeavors. Submitted by Members of the Tax Board of Review: Albert Kualii Wesley T kai Chairman Vice-Chairman C2' ''14; Scott Church Michael D'Amico Member Member