HomeMy WebLinkAboutREP FC 620 10/05/1992 REPORT OF THE
or
COMMITTEE ON FINANCE
Date: October 5, 1992 Re: Comm. 4170
Place: Councilroom
Time: 9 : 00 a .m.
Your Committee on Finance, to which was referred Bill No . 679 ,
reports as follows :
The purpose of Bill No . 679 is to amend Chapter 19 , Article 10,
Section 19-89 of the Hawaii County Code 1983 , relating to property
tax exemption to certain Hawaiian Home lands .
Your Committee deemed that due to specific restrictions placed on
homestead leases by the Hawaiian Homes Commission Act, it should
consider to assess and tax homestead lands differently.
Pursuant to Section 208(6) of the Hawaiian Homes Commission Act
conditions of lease, notwithstanding the provision of paragraph (5) ,
the lessee, with the consent and approval of the Commission, may
mortgage or pledge the lessee ' s interest in the tract or improvements
thereon to a recognized lending institution authorized to do business
as a lending institution in either the State or elsewhere in the
U.S. , provided the loan secured by a mortgage on the lessee ' s
leasehold interest is secured or guaranteed by the Federal Housing
Administration, Veteran Administration, or any other federal agency
and their respective successors and assigns, which are authorized to
insure or guarantee such loans .
Section 208(7) states that the lessee shall pay all taxes assessed
upon the tract and improvement thereon. The department may pay such
taxes and have a lien therefore as provided.
It is the Committee' s understanding that only real property,
exclusive of buildings, leased and used as a homestead (houselots,
farm lots, and pastoral lots) , by a qualified native Hawaiian lessee,
pursuant to Section 207 of the Hawaiian Homes Commission Act, 1920,
shall be exempt from real property taxes provided that no delinquent
taxes are owed to the County by the respective lessee as of the
effective date of the exemption granted by this section. The real
property tax exemption will take effect retroactive to January 1,
1992 .
FC REPORT No. 620
ADOPTED: OCT 2 1 1992
eM •
f '
FC- 620 Page 2 October 5, 1992
It is further understood that the respective lessee of Hawaiian
Homestead lands shall continue to qualify and receive other personal
exemptions, provided that claims for the exemptions are timely filed,
including the seven-year limitation on the exemption afforded by
Section 208 of the Hawaiian Homes Commission Act, 1920 .
The Committee on Finance has recommended that Bill 679 be amended by
deleting the section on delinquent taxes owed to the County due to
Mr . John Rowe' s (Deputy to the Chairman of the Hawaiian Homes
Commission) willingness to give to the County a written guarantee of
' back taxes owed.
The Committee also recommended that for the purpose of passing
Bill 679 from the Finance Committee, the effective date be amended to
July 1, 1993 in place of January 1, 1992 . The purpose for this
recommendation is that Section 10-5 of the County Charter states that
the estimated revenues for the ensuing year shall be at least equal
in amount to the proposed expenditures .
The Committee recommends a minimum tax as provided for by the County
Code. Section 19-90 (g) of the County Code, states that
notwithstanding any provision to the contrary, there shall be levied
upon each individual parcel of real property taxable under this
chapter a minimum real property tax of $25 per year .
The Committee on Finance concurs with the intent and purpose of
Bill No. 679 , Draft 2, and recommends that it pass first reading .
Respectfully submitted,
COMMITTEE ON FINANCE ` AYES ( NOES
AY
ALONZO X
'
�!r ,, ARAKAKI X 1
r; S Y. ARAK. , CHAIRMAN DE LIMA X
DOMINGO X
LAI X
MAKUAKANE X
LA/DI RUDDLE
X
FC REPORT NO. 620
ADOPTED: