HomeMy WebLinkAboutREP FC 195 2014/09/30 (2012-2014) REPORT OF THE
COMMITTEE ON FINANCE
DATE: September 30, 2014 Re: Comm. No. 261/Bill No. 71
PLACE: Council Chambers
Hilo, Hawai`i
TIME: 9:08 a.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Bill No. 71, transmitted by Council Member Brenda J. Ford, via Communication No. 261 dated
April 25, 2013, amends Chapter 19, Article 5 of the Hawaii County Code 1983 (2005 Edition, as
amended), relating to real property taxes, liens, foreclosures, and notice.
The proposed bill reduces the number of years required to foreclose on a property for delinquent
real property taxes from three to two years and relocates notice requirements previously placed in
Section 19-38 into Section 19-40.
On May 14, 2013, the Finance Committee postponed the measure to the call of the Chair.
Council Member Ford expressed her support of the bill. She explained that if the foreclosure time
was shortened from three to two years, the amount of delinquent taxes would be less than
$3 million.
The bill was referred to the Real Property Tax Stakeholders Task Force on November 5, 2013.
As noted in Communication No. 261.1, the Real Property Tax Stakeholders Task Force reviewed
Bill No. 71 on July 21, 2014 and September 8, 2014. The Task Force supports Bill No. 71 with
amendments, and requests that it be placed on the September 30, 2014 Finance Committee agenda.
In the course of the Finance Committee meeting on September 30, 2014, the Council amended
Bill No. 71 with the contents of Comm. No. 261.2, proposed by Ms. Wille. These amendments
amend the bill by adding additional language to Section 1, and also amend Section 19-38(a) by
changing "shall"to "may."
Several Council Member expressed their concerns with the bill.
Both Council Members Wille and Ford, who support the bill, stated that the bill will give authority
and discretion to the Finance Department to act sooner than later on delinquent accounts.
Council Member Kern, who was in opposition of the bill, stated that the bill, as is, is not "broken."
He noted that the Finance Department already works with delinquent accounts by implementing a
payment plan and that the loss of revenue is secured by property.
FC Report No. 195
FC-195 Page 2 September 30, 2014
Finance Director Nancy Crawford appeared before the Finance Committee for questions. She
stated that if this bill were to pass, the Finance Department would not be able to immediately
implement changes without additional staff
Council Member Poindexter, who supports the bill, pointed out some negative consequences of
having a longer period of delinquency. She informed the Council that District 1 has many issues
with "squatters" and their potential damage to vacant properties.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 71, as amended to
Draft 2, and recommends passage on first reading.
sc
AYES NOES ABS EX Respectfully submitted,
EOFF X
FORD X COMMITTEE ON FINANCE
ILAGAN X
KANUHA X
KERN X � /J ,
ONISHI X a�-���'�`
POINDEXTER X VALERIE T. POINDEXTER, CHAIR
WILLE X FC REPORTAQ: 195 2
YOSHIMOTO X ADOPTED: U � 1 2014