HomeMy WebLinkAboutREP FC 026 01/22/2013 (2012-2014)OFFICE INFORMATION ONLY
Meeting: Council—February 6, 2013
Action: Filed on first reading due to vote count of 1 aye (Ford) and 8 noes.
Re: Bill 23; Comm. 71 ( 7-012-2014 term); FC -26 (Adopted although not
indicated on report as adopted).
REPORT OF THE
COMMITTEE ON FINANCE
DATE: January 22, 2013 Re: Comm. No. 71/Bill No. 23
PLACE: Council Chambers
Kona, Hawaii
TIME: 9:01 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 23, reports as follows:
Bill No. 23, transmitted by Council Member Brenda Ford, via Communication No. 23 dated
January 3, 2013, amends Chapter 19, Article 3, Section 19-32 of the Hawaii County Code 1983
(2005 edition, as amended), relating to reduction of the real property tax penalty and monthly interest for
delinquent taxes.
Bill No. 23 reduces the penalty for delinquent taxes from 10 to 5 percent for each year of such new
delinquent taxes, and reduces the interest on delinquent taxes and penalties from one to one-half of one
percent.
Finance Director Nancy Crawford and Real Property Tax Administrator Stan Sitko came forward to
address the members of the Committee.
Mr. Sitko explained the method of the penalty and interest process on delinquent taxes leading to
foreclosure. On the first late payment, a one-time ten percent late fee is applied; thereafter, an additional
one percent penalty is applied monthly to the bill, based on the amount of the tax due. At the third year
of delinquency, the foreclosure procedure begins. Ms. Crawford included that an interim billing
payment plan is available to help prevent foreclosure. She informed the Committee of the foreclosure
process and noted that unlike the banks, the County does not take a loss when a foreclosure is sold.
It was stated by Ms. Ford that the Finance Department was not in support of Bill 23. There was great
concern regarding the revenue that would be cut from the budget. Several Council Members expressed
their opposition to Bill 23, as well. A firm estimated amount could not be confirmed by the Finance
Department due to several variables.
However, it was recognized by the Committee that the intent of Bill 23 is to give relief to those
delinquent.
Mr. Kern provided that if Bill No. 23 pertained specifically to homeowner exemptions, he would be in
support.
FC Report No. 26
FC -26 Page 2 January 22, 2013
Mr. Kanuha felt the language in Bill No. 23, if left as is, may possibly pose some future legal issues.
Corporation Counsel Lincoln Ashida stated that Bill No. 23 could be better defined, and further stated
the language was adequate.
Ms. Eoff included that lowering the penalty from 10 to 5 percent may have the opposite effect in regard
to some of the larger absentee land owners putting off payment.
Ms. Ford proposed a three-year sunset date on the bill in order to seek results of Bill 23. She supports
the change and feels compassionate to help those struggling in financial crisis. She urged the
Committee to reconsider and support Bill 23.
Your Committee on Finance is not in accord with the purpose and intent of Bill No. 23, and forwards it
to Council with a negative recommendation.
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Respectfully submitted,
COMMITTEE ON FINANCE
VALERIE T. POINDEXTER, CHAIR
FC REPORT NO.: 26
ADOPTED:
AYES NOES A&E EX
EOFF
X
FORD
X
ILAGAN
X
KANUHA
X
KERN
X
ONISHI
X
POINDEXTER
X
WILLE
X
YOSHIMOTO
X
Respectfully submitted,
COMMITTEE ON FINANCE
VALERIE T. POINDEXTER, CHAIR
FC REPORT NO.: 26
ADOPTED: