HomeMy WebLinkAboutCOM 0279.009 2012-2014 Page 1 of 2
COUNTY CLERK P/CDj t
Murashige, Laura COUNTY O HAWAII PubIc Heat
From: Martha Tumbleson [marthatumbleson @gmail.com ) MAY 1 0 PH 3 s 1 re:RP'[ Rges
Sent: Friday, May 10, 2013 2:14 PM
To: counciltestimony @co.hawaii.hi.us
Subject: Public testimony for Tues. May 14, 2013 Hawaii County Council Hearing regarding proposed property
tax rate increases
The email is being submitted as public testimony for the upcoming Public Hearing May 14, 2013
at 5pm regarding the proposed property tax rates increases for the Fiscal Year July 1, 2013 to
June 30, 2014.
As a Realtor in Hawaii County, I keep a close watch on the real estate market and the factors that
can influence buyers and sellers decisions to buy or sell property on our wonderful island
paradise. We are just starting to recover from one of the deepest and longest market down-turns
in history. But the recovery is going to take a very long time. We still have many homeowners
that are 'under water' on their mortgages and struggling to make their payments, as the county's
unemployment rate is the highest of any county in the state. Now is not the time to add
additional burdens upon homeowners who are just trying to make ends meet. Second and
vacation home owners already took a huge hit a couple years ago when the Apartment property
tax rate was increased. As a result, investor purchases have taken a hit on the island, especially
in West Hawaii were the majority of investor real estate is found. The county has lost revenue as
a result due to fewer sales - not the result we need, and not the result we need for the future,
either. Could this be one explanation as to why pockets of Kohala have actually seen a recent
further downturn in prices when other areas have seen slight increases? Seems highly plausible
to me.
I appreciate the proposed increase in spending in the proposed budget to improve our police and
fire protection as well as correct the problems from the past few years that have left agencies
short-staffed and with aging equipment. But a property tax increase is not the way to solve these
problems. Could it be that the county costs could be reduced with updated technology; the
reduction in costs could possibly pay for much of the cost of updating the technology? It's at
least worth a hard look.
As Councilwoman Brenda Ford has stated, the county needs to address the 40 recommendations
in the report by the International Association of Assessing Officers which takes Hawaii County
to task for insufficient internal controls, oversight and cross-checking of property assessments,
issues that could lead to inequities in how much taxes property owners are paying before
considering an across-the-board rate increase. The county paid for this report - it should pay
attention to the results and affect some real long-lasting changes that will create greater equalities
in property taxes on the island.
Property tax rates in Hawaii County are already the highest of any county in the state. In my
opinion, this is proof that we need to look at reforming the basic system of property tax
collection, rather than just raise the rates every time we need to balance the budget.
Some suggestions as to ways to create more revenue from property taxes without increases to the
rates include tightening up the time frame for allowing delinquencies to continue before starting
the foreclosure process, increasing the minimum property tax rate from $100 to say $500, and
enforcing the ag dedication exemptions to disallow those dedications when the homeowners are
not compliant. These suggestions would seem to be fair - everyone should pay their fair share. a 79. g
Comm. No.
Ref.To: P/CdaAof./
Ref. Date MAY 14 2013
5/10/2013
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These are just for starters. I'm sure the International Association of Assessing Officers report has many
other viable suggestions.
Historically, once rates increase they don't go back down even though revenue increases. If we do find
ourselves with no other short-term solutions to our budget shortfall, we should ensure that the increase is
only for one year with an expiration at the end of the fiscal year while we work hard to reform the tax
structure between now and then. But shame on us for not addressing the property tax structure already!
Mahalo for your consideration.
Martha Tumbleson, R(S)
Accredited Buyer Representative(ABR),
Internet Professional (e-PRO),
Seniors Real Estate Specialist (SRES),
Short Sales & Foreclosure Resource (SFR)
Island Home Realty, Inc.
75-5744 Alii Dr. #168
Kailua-Kona, HI 96740-1740
marthatumbles on ngmail.com
cell: (808) 443-7289 eFAX: (808) 443-0237
www.KonaBigIslandHomes.com
5/10/2013