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HomeMy WebLinkAboutCOM 0614.002 2012-2014 ��tv,os N � Office: (808)965-2712 Greggor Ragan :�P•�� \\��,', ( ) Council Member „���'�.'• Fax: (808)965-2707 District 4—Puna Makai : ` •�� „ ..,�. Email: gilagan @hawaiicounty.gov • •lr�tf Oi•M''''''•',, HAWAII COUNTY COUNCIL 25 Aupuni Street,Hilo, Hawai`i 96720 DATE: February 4, 2014 ) TO: J Yoshimoto, Chairperson, _? and Members of the Hawai`i County Council FROM: F-Greggor Ilagan, Council Member Council District 4 ism SUBJECT: Attached Supplemental Information Relating to Bill No. 185. Attached please find supplemental information regarding Bill No. 185, relating to agricultural use assessment and commercial agricultural use dedication for organic operations. Please refer to the Finance Committee scheduled on February 4, 2014. GI/kh Att. Comm. No. (C 14, °2 Ref.To• 'C- Hawai'i County Is an Equal Opportunity Provider And Employer Ref. Date FEB 0 4 2/4/2014 County of Hawaii Real Property Tax Office w : ,razes". a #." " + r' '� ms*µ Home Hawav i County Home Search Records Foriss I Tax Sate FAQ Tax Rates 1 Tax Sales , Media Releases i Hawaii County Tax Rates Fiscal Year Beginning July 1,2013 to June 30,2014 Tax Rate Per Tax Rate Per $1,000 Net $1,000 Net Taxable Building Taxable Land PROPERTY CLASS 0 Affordable Rental Housing $6.15 $6.15 1 Residential $10.05 $10.05 2 Apartment $10.85 $10.85 3 Commercial $10.05 $10.05 4 Industrial $10.05 $10.05 5 Agricultural and Native Forest $9.25 $9.25 6 Conservation $10.85 $10.85 7 Hotel/Resort $10.85 $10.85 9 Homeowner $6.15 $6.15 Chapter 19,Article 11,Section 19-90 of the Hawaii County Code provides that the tax rates be set on or before June 20 preceding the tax year for which property tax revenues are to be raised.The FY 2013-2014 tax rates were approved on May 30,2013 byo the County of Hawaii County Council Resolution No.115-13. Hawaii County Home I Legal Disclaimer I©2011 Hawaii Real Property Tax Office&qpublic.net http://www.hawaiipronertvtaxcom/tax rates.html gLI(c' .' `+co = 3 , 364, 000 v; 3P-i x c . ,S : 31 ;30° 11200 c, 7, o = 355; 3 __K) 3s5 IS 'S = 3; .3_.(;, pro n ) i"t7 - Ill ; 6Ga 17$ x cj .2S 2-7 , 7H AGRICULTURAL USE CODES Code 5: INTENSIVE AGRICULTURE 2a, (0 53 . oon-n Truck Crops — Vegetables, ginger, taro, peanuts, g,000 potatoes, melons, sweet corn, seed crops, berries, herbs, nurseries, foliage, cut and potted flowers, apiary (beekeeping). Confined Animals — Piggery, dairy, poultry, feedlot, aquaculture. Code 6: ORCHARDS & MULTI-YEAR CROPS 8000 000-D Macadamia nut, guava, banana, papaya, avocado, I66° D coffee, citrus, cashew, grapes, passion fruit, cacao, kava, neem, coconut, date palm and tropical specialty fruits*. Code 7: BIOMASS AND AGRONOMIC CROPS 1000 001.)-,D Forage crops, feed crops, cane, biomass grasses, fast 503 D rotation forestry (7 years or less). Code 8: EXTENSIVE AGRICULTURE AND FORESTRY ii*-o NoN-D Pasture, slow rotation forestry, protection forestry and °a i o 0 dedicated native forest. *Tropical specialty fruits include: abiu, atemoya, caimito, cherimoya, durian, langsat, longan, loquat, lychee, mango, mangosteen, persimmon, rambutan, sapodilla, soursap, specialty pineapple, starfruit, sapote, jaboticaba, breadfruit, jackfruit, pomegranate, pommelo, salak, santol and tamarind, etc. Hawaii County is an Equal Opportunity Employer and Provider 100-Baseline Study for Food Self-Sufficiency in Hawaii County clean,pathogen-free food for the public marketplace. Retail- grams in multiple languages to help them apply best manage- erg,distributors and government agencies need to work with ment practices and thus grow their businesses. farmers to establish reasonable standards of cleanliness and Agriculture is a labor intensive business. Hawai'i's agriculture accountability. Consumers also need to take responsibility for needs a steady supply of both farm labor and entrepreneurial handling,washing,and preparing foods regardless of where leadership in order to thrive. Efforts to insure both are essen- they come from. tial elements needed to propel local food self-sufficiency. New food safety regulations and the need for food producers to adhere to best management practices is a fair expectation $5 Organic and Natural Farming for consumers.Since so much of Hawai`i Island's food produc- ■ tion is done by small farmers,it will be important to have their Organic farming and ranching requires a commitment to voice at the table as regulations are crafted and best manage- avoid imported chemical inputs and to harness the power of ment practices are defined. natural systems to sustain soil fertility and control insects and �g other pests. There are currently 56 certified organic farms on O. Access to Capital Hawaii Island utilizing 846 acres,plus several organic pasture operations with another 1,200 acres60.The Korean Natural Investment capital is an essential ingredient in the expansion Farming method is another non-chemical approach to har- and development of new food production initiatives. Corn- nessing the productive power of indigenous micro-organisms mercial banks and other lending institutions see farming, (IMO)in soil to promote plant growth and soil health. There ranching,aqua-culture and other food producing activities as may be as many as 100 practitioners of this approach on the inherently risky and seek very limited portions of their invest- Island. ment portfolio in these sectors of the economy. This leaves These farming approaches are a growing part of Hawaiian smaller commercial scale farmers with few options for new agriculture. They seek to enhance soil fertility without the capital to support business growth,address new food safety importation of expensive chemical fertilizers,and to fend off requirements or maintain existing infrastructure. Govern- plant diseases by managing a more holistic mix of factors that merit loans and other assistance programs fill part of the void promote farm health. Organic and natural farmers practice left by the absence of other commercial financing options. A a high level of land and soil stewardship that can insure long renewed commitment by local financial institutions to invest term farm productivity. The future of organic and natural in local food production and to mentor farmers as important farming initiatives on Hawaii Island will hinge,in part,on the community assets would go a long way to building the finan- support consumers provide by purchasing organic products cial support that increased local food production will require. and by the availability of informed farm extension services and supporting research to aid in organic farming successes. 8.5 Agricultural Labor The average age of farmers in Hawai'i continues to increase 83 Price of Local Foods and there are few young people entering the field. This is a Much of Hawai`i Island's agricultural production is sold as serious problem for food production in the future. Tax payers boutique products to markets that have the means to pay make significant annual investments in University agricultural premium prices. Local coffees,macadamia nuts,chocolate, programs and in farm outreach,yet farmer shortages persist. vanilla,and exotic fruits are produced for high-end or export There is a disconnect between the need for new farmers and markets. These are niche products to be sold to people who the ability,or willingness,of young farmers to enter the indus- can afford their boutique pricing. Other local products,like try. This has been an issue for many years.There are several beef and most vegetables,compete in a more competitively- innovative efforts underway to seek and retain new local farm- priced commodity market and must either absorb higher input ers. There is also a need to help grow farms into enterprises costs or charge more for their product in the local market- with improved mastery of their markets and the ability to place. produce strategically in a competitive environment. A December 2011 study of Honolulu consumers commis- From an historical perspective,virtually all of Hawaii's sioned by the Ulupono Initiative,found that"consumers agricultural success since the late 1800's has been driven by across O'ahu strongly believe local food is important,they immigrant labor. This reliance on immigrant labor is still true don't think there's enough available;and they are willing to pay today. Most of the papaya production,macadamia field work, more for local food:' They also found that"price is important coffee picking,or truck farm labor is done by first or second but not the only thing. Freshness as well as trust in local busi- generation immigrants. Hawai'i needs to keep its doors open to immigrants who want to farm and to provide outreach pro- 60 Hawai'i Organic Farmers Association(HOFA)website based on a sum- mary of listed certified organic producers HIGHLIGHTS OF PROPOSED REVISIONS • • ARTICLE 1 Definitions Add definitions that clarify terminology [Sec. 19-1(a)]. ARTICLE 7 Non-dedicated Agricultural Use Assessment 1. Zoning requirements. Require properties to be in one of the following (County) zoning districts: agricultural, residential and agricultural, family agricultural, intensive agricultural,or agricultural project [Sec. 19-57(x)(1)1. Currently, property must be in the (State land use) agricultural district. 2. Assessed values. Lands will he assessed at a percentage of the land's market value- 25% for the tax year beginning July 1, 2004; 50% beginning July 1, 2005; and 75% beginning July 1, 2006 and thereafter [Sec. 'I9-57(x)(2)]. Currently, "productivity values" are assigned, similar to the 10-year agricultural dedication program. 3. Tax rollback. When a breach occurs, the look-back period for the rollback tax will be two years plus the current year [Sec. 19-57(d)(2)]. Currently, the look-back period is up to tern years. • • ARTICLE 8 Commercial Agricultural Use Dedication 1. Use. Require that new dedications he for ten years only and the dedicated property be used for commercial purposes (gross revenues of $2,000/year) [Sec. 19- (a)]. Currently, the dedication is for ten or twenty years, and both commercial and non- commercial uses are allowed. Properties in the 20-year agricultural dedication program are subject to the same requirements as the 10-year dedication, except for the term of dedication and the tax benefit received(50%of its "productivity value"). 2. Effect on existing 20-year dedications. Allow properties in the 20-year agricultural dedication at July1. 2003 to continue the dedication [Sec. 19- (h)J. 3. Zoning requirements. Require that property in the 10-year agricultural dedication program he in one of the following (County) zoning districts: agricultural, residential and agricultural, family agricultural, intensive agricultural, agricultural project district, or any other district with the approval of the Planning Director [Sec. 19- __(a)(2)1. Currently, there is no zoning requirement, except pasture use is not • allowed on residential coned property. 4. Assessment of non-dedicated section(s) of land. Specify that the portion cif land that is not dedicated for commercial agriculture use shall be assessed at market value and the homesite portion shall he assessed at market value of a comparably-sized homcsite (Sec. 19- __(c)(4)[. Currently, this is specified by the Director of Finance. Highlights . Page Two January 22, 2003 5. Breach of dedication; deferred or rollback taxes. • Will occur if the property is sold, unless the buyer assumes the dedication in writing [Sec. 19- (g)(1)(B)]. Currently, the buyer automatically assumes the dedication. • Will occur if the property is not used as dedicated for 6 consecutive months, unless the non-use is part of an approved farm plan [Sec. 19- (a)(2)(A)]. Currently, breach of dedication occurs after 12 consecutive months of non-use, with no exceptions (Sec. 19- (g)(2)(A)]. 6. Breach exceptions. Allow cancellation for natural disasters, when land can no longer be used for the dedication, or the death or disability of the primary farmer [Sec. 19- (h)I. Currently, no exceptions are allowed. 7. Tax rollback. • If the property has been in its dedicated use for 5 years or less, apply rollback taxes from the beginning of the dedication; • If in use for 6 years, apply rollback from 4 years back; • If in use for 7 years, apply rollback from 3 years back; - • If in use for 8 or 9 years, apply rollback from 2 years back[Sec. 19-_(g)(3)(F)]. Currently, rollback taxes are calculated from the beginning of the dedication, regardless of how long the property was in its dedicated use. • USDA How Do I Get Certified Organic? ORGANIC To become certified,you must apply to a USDA-accredited Organic Certification Process certifying agent.They will ask you for information, including: Producer or handler adopts organic practices; - A detailed description of the operation to be certified. submits application and fees to certifying agent - A history of substances applied to land during the previous three years. - The organic products grown,raised,or processed. sty - A written Organic System Plan describing the practices Certifying agent reviews applications to verify and substances to be used. that practices comply with USDA organic regulations The certification and annual recertification processes are described to the right and below respectively. r To learn more about the becoming certified to the USDA • organic standards and to find a certifying agent,visit Inspector conducts an on-site inspection of http://1.usa.gov/organic-certification. the applicant's operation Certifying agent reviews the application and the Certifying agent reviews the application and inspector's report to the inspector's report to determine if the determine if the applicant applicant complies with the USDA organic still complies with the regulations m USDA organic regulations Inspector , conducts an on site inspection of the applicant's Annual Recertification 4 4 Certifying agent issues organic certificate Process operation Producer or handler provides annual update to certifying agent • National Organic Program I Agricultural Marketing Service U.S.Department of Agriculture June 2012 • j" What is Organic Certification? USDA ORGANIC Organic certification verifies that your farm or handling Is There a Transition Period? facility located anywhere in the world complies with the USDA organic regulations and allows you to sell, Yes.Any land used to produce raw organic label,and represent your products as organic.These commodities must not have had prohibited substances regulations describe the specific standards required for applied to it for the past three years.Until the full you to use the word"organic"or the USDA organic seal 36-month transition period is met,you may not: on food,feed,or fiber products.The USDA National Organic.Program administers these regulations,with - Sell,label,or represent the product as"organic" substantial input from its citizen advisory board and Use the USDA organic or certifying agent's seal the public. USDA provides technical and financial assistance Who Certifies Farms or Businesses? during the transition period through its Environmental Your farm or handling facility may be certified by Quality Incentives Program (EQIP).Learn more at 9 Y Y y http:/I1.usa.gov/nres-egip-apply. a private,foreign,or State entity that has been accredited by the USDA.These entities are called certifying agents and are located throughout the How Much Does Organic Certification Cost? United States and around the world.Certifying agents are responsible for ensuring that USDA organic Actual certification costs or fees vary widely depending products meet all organic standards.Certification on the certifying agent and the size,type,and provides the consumer, whether end user or complexity of your operation.Certification costs may intermediate processor,assurance of the organic range from a few hundred to several thousand dollars. product's integrity. Before you apply,it is important to understand your certifier's fee structure and billing cycle.Typically,there What Can I Be Certified to Produce? is an application fee,annual renewal fee,assessment on annual production or sales,and inspection fees. The USDA organic regulations recognize four Once you are certified,the USDA Organic Certification categories of organic products: Cost-Share Programs can reimburse you up to 75 • percent of your certification costs.To learn more about - Crops:A plant that is grown to be harvested as this and other financial assistance programs,visit food,livestock feed,fiber,or used to add nutrients www.ams.usda.gov/NOPFinancialAssistance. to the field. - Livestock:Animals that can be used for food or in Can ! Use the USDA Organic Seal? the production of food,fiber,or feed. - Processed products:Items that have been handled All raw certified organic products may be labeled and packaged (i.e.chopped carrots)or combined, with the USDA organic seal.To learn more about processed,and packaged (i.e.soup). organic labeling,including which processed or multi- wild crops:Plants from a growing site that is not ingredient products may use the USDA organic seal, - cultivated. visit www.ams.usda.gov/NOPOrganicLabeling. USDA United States USDA National Organic Program(Agricultural Marketing Service June 2012 Department of ® Agriculture Ai/The Food Provider March April May 2013 Organic Certification: Getting Started Ted Radovich and Jody Smith Organic growers should be certified by an accredited third party agency. Certification is an as- surance to consumers, retailers and brokers of organic produce that the produce marketed as "certified organic" has been grown under standards set by the National Organic Program. Growers with less than $5,000 in annual organic sales are exempted from the certification requirement, but are encouraged to file an affidavit of NOP compliance with a third party certifier. Certification costs will vary, but a significant portion of the cost may be reimbursed by the Hawai'i Department of Agriculture. To begin the certification process, contact one of the certification agencies op- erating in Hawaii for an application. An important part of your application is describing your organic system plan (OSP). For technical assistance developing an OSP contact The University of Hawai'i Organic Pro- gram: http://www.ctahr.hawaii.edu/organic/. For more information of getting started with certification see: http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELDEV3004346&acct=nopgeninfo Hawaii Department of Agriculture Organic Certification Cost Share Program http://hdoa.hawaii.gov/add/md/usda-organic-certification-cost-share-programs/ USDA National Organic Program http://www.ams.usda.gov/AMSv1.0/NOP CTAHR Organic Agriculture Program: http://www.ctahr.hawaii.edu/organic/ Table 1. List of USDA accredited third party certifiers operating in Hawaii. Compiled from: USDA National Organic Program 2012 List of certified USDA organic operations (http://anps.ams.usda.gov/noo/) Certification Agency n }, ; CCOF Certification Services 5 4% International Certification Services ' 88 63% Organic Certifiers 35 25% Oregon Tilth Certified Organic 17 5% Quality Assurance International 1 1% Stellar Certification Services 3 2% TOTAL 135 100% a'Ai/The Food Provider March I April I May 2013 CCOF Certification Services, LLC (CCOF) International Certification Services, Inc(ICS) Scopes: Crop, livestock, wild crop, handling Scopes: Crop, livestock, wild crop, handling 2155 Delaware Ave, Suite 150 301 5th Ave SE Santa Cruz, CA 95060USA Medina, ND 58467 USA Contact Jake Lewin Contact Dawn Kapp Phone:831-423-2263 Phone: 701-486-3578 Email: caf ceaagrg Email:info a?ics-nt1MIT) Oregon Tilth Certified Organic (OTCO) Organic Certifiers, Inc (OC) Scopes: Crop, livestock, wild crop, handling Scopes: Crop, livestock, wild crop, handling 260 SW Madison Avenue Suite 106 6500 Casitas Pass Rd. Corvallis, OR 97333 USA Ventura, CA 93001 USA Contact Connie Kacc Contact Susan 5ipJft Phone: 503-378-0600 Phone: 805-684-6494 Email: connie @tilth.org Email: susan@organiccertifiers.com Quality Assurance International (QAI) Stellar Certification Services (STEL) Scopes: Crop, livestock, wild crop, handling Scopes: Crop, livestock, wild crop, handling 9191 Igvy,0a,Center Dr., Suite 200 P.O. Box 1390 San Diego, CA 92122 USA Philgmoth, OR 97370 USA Contact Craig S. Morr Contact Sally Lam t ra Phone: 734-769-5143 Phone: 541-929-7148 Email: CMorrtcz nsf.orq Email: Sally @Demeter 2