HomeMy WebLinkAboutCOM 1046.002 2012-2014p1pec-OkIl t-11.iC14(1-
qV so W 14
September 30, 2014
Hawaii County Council i=
t-)
25 Aupuni Street
C-)
CD
Hilo, HI 96720
RE: Testimony Against Bill 293
- r--
Dear Members of the Hawaii County Council:
o
My name is Wesley Takai and I worked for the Real Property Division for 39 years"'
_35
(1969 — 2007) as a real property appraiser, supervising appraiser, and the county real
property administrator. After retiring, I served five years as a member of the Finance
Department's Board of Review which hears assessment appeal cases. I also was a
member of two committees that reviewed the real property code, the first committee
being in the mid- 1990's during the Yamashiro's administration and the second in the
early 2000's during the Kim's administration. Each review took about two years.
My testimony on Bill 293 is to urge you not to pass this bill. Attachment #1 is the front
page copy of Ordinance No. 04 -123 introduced by Aaron Chung which established the
two deadlines for filing home exemptions. One of the purposes of this ordinance was
"to establish two windows to file a home exemption claim that would cut the potential
waiting period from a maximum of 18 months to 1 year." For decades prior to the
passage of this ordinance, there were a number of complaints from taxpayers who filed
after the December 31 deadline and had to wait up to 18 months to get the property
tax savings benefit of the home exemption. These complaints were made over the
counter, to council members, and at appeal hearings. In their annual report to the
Mayor and County Council, the members of the Board of Review recommended for
several years that the second filing deadline be established. Their recommendation was
finally accomplished in November 2004 with the passage of Ordinance 04 -123.
The purpose of Bill 293 states that it is to increase the efficiency of the real property tax
division by eliminating the one -half year application of the home exemption. I was the
real property administrator when Ordinance No. 04 -123 was enacted and wrote the
processing procedures to implement the requirements of this new bill. A few
procedural modifications were made after the first year but the additional tasking did
not have a major impact on the overage workload of the clerical section that was most
affected by this new change. The success for this smooth transition was accomplished
mainly because of the "can do" attitude and highly professionalism of all affected
employees of the division. It is interesting to note that after my retirement the number
of positions in this clerical section, both in the Hilo and Kona offices, decreased from 11
to 9, indicating that the additional tax adjustments created by the second filing deadline
continues to have no major impact on the overall workload of the division.
Comm. No._'��6• Z
Ref. To: L
Ref. Date__SEP 0 2p14r
a
What is the property tax impact on a new homeowner? Attachment #2 is an example
of the tax calculations for a property with a $200,000 assessed value. The tax rates
used on the spreadsheet are the 2014 rates for residential and homeowner
classifications. The last row of bolded numbers, $636.00 to $820.50, shows the tax
impact for the various age groups, including the amount if the $60,000 exemption is
granted as proposed in Bill 294. The range changes $892.50 to $1,077.00 if the
assessed value was $300,000.
Passage of Bill 293 will increase the county's property tax revenue a little and eliminate
the division's tax adjustment task generated by the second filing deadline but at what
and whose expense. Clearly, each affected new homeowner will financially suffer the
most should Bill 293 pass. So on behalf of homeowners signing home exemptions from
early January to June 30 of future years, I urge you to keep the present two filing
deadlines as the property tax savings is big for homeowners, especially first time
buyers, with a new mortgage and the financial hardships during their first fiscal year of
pursuing the American dream of home ownership.
If you have any questions on my testimony or if I can be of help in the future on any
real property questions, please feel free to contact me.
Thank you for your time.
Sincerely,
l
WESLEY TAKAI
1222 -E Kaumana Drive
Hilo, HI 96720
Phone: 961 -4601
2
M
COUNTY OF HAWAI11I
DEPArZ . 114T OF FINANCE
D.: \'r=
P_�-_ Htt6 C3h'�L
C: �' _........ _ ._ _..
ACMUN Cy:
F1Lrx - -
TAX
STA'T'E OF HAWAII
ORDINANCE NO.04 12a
BILL NO. 320
Draft 4
AN ORDINANCE AMENDING CHAPTER 19 OF THE HA WAI`I COUNTY CODE 1983 (1995
EDITION), AS AMENDED, REAL PROPERTY TAXES, RELATING TO HOME EXEMPTIONS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The purpose of this measure is (l) to amend section 19 -71, home exemptions, by
creating an additional exemption of 20% of the pre - exemption assessed value to a maximum of $80,000
for those eligible for homeowners exemption; (2) to clarify and improve the definition of real property
owned and occupied as a principal home; (3) to establish two windows to file a home exemption claim
that would cut the potential waiting period from a maximum of 18 months to I year, and (4) to allow a
portion of a principal home to contain a commercial agricultural use or home occupation.
SECTION 2. Chapter 19, Article 10, Section 19- 68(a), Hawaii County Code 1983 (1995
Edition), as amended, is amended to read as follows:
"Section 19 -68. Claims for certain ezemptionL
(a) LD None of the exemptions from taxation granted in sections (44 -74-j 19 -76 to 19 -78 and 19 -89.2
shall be allowed in any case, unless the claimant shall have filed with the department of finance,
on or before December 31 preceding the tax year for which such exemption is claimed, a claim
for exemption in such form as shall be prescribed by the department.
(2) The exemption from taxation granted for disabilities in sections 19 -73 to 19 -75 shall be allowed
from the next tax payment date, provided that the claimant shall have filed a claim for the
disability exemption along with a copy of the physicians certificate of disability with the
department on or before June 30 for the first half payment or December 31 for the second half
payment on such form as shall be prescribed by the department.
(3) The exemt)tion from taxation granted for principal home in section 19-71 shall be allowed from
the next tax payment date, provided that the claimant shall have filed a claim for the home
exemption on or before December 31 for the first half payment or June 30 for the second half
payment on such form as shall be prescribed by the department."
SECTION 3. Chapter 19, article 10, section 19 -71, Hawaii County Code 1983 (1995 Edition), as
amended, is amended to read as follows:
"Section 19 -71. Homes.
(a) Real property owned and occupied as a principal home [ ) shall be
exempt to the following extent from property taxes:
A tch #/
a
0
N
O
M
N
CL
N
v
CL
x
W
M
G1
N
m
A7U # z
3
a,
o_
-
N
vi
E
CL
x
a
O
to
v
C
O
N
O
L
.
++
C
'=
O
E
Q
O
m
M
0
3
w
i
C
0)
V
tD
W
o
o
o
x
w
c
3
vi
3
44
a
E
c
x
aWi
E
,,
E-
x
a
o
C
3
m
3
�'
to
>
L
d
L
r
c
c
v
--
w
O
W
x
m
f-
x
f-
C
N'
p
f0
£
tin
Tv
E
c
m
a
cc
>
x
~
Cr-
m
c
c
s
+�=
x
a
C
ui
vii
C1
X
_
W
+-'
tx0
x
IC
t
w
Z
n,
lx0
~.
x
L
L
tD
C
K
42
t
+�+
m
c
N
E
a
4a
w
Fes-
W
c
C
O
GJ
N
io
o
a,
a,
F
O
c
C
O
C
O
�1
E
x
4°
L
4,
o
x
<Ui
a
�
z
z
=a
u
w
O
v
i
I
O
O
O
O
o0o
N
O
O
O
O
o
O
88
M
O
O
�►,
O
O
O
O
O
O
$X$
X;
goo
O
ro
u,
o
tr
0
0
it
0
00
0
0o°
�
OOoo
oSM
LO
o
M
N
N
N
p
O
a-I
N
00
C4
r4
O
h
v-4
to
N
3
0
a,
m
v}
v }
in
�*
in
v}
v}
in
v!
v}
v}
�n
o
O
^
a)
o
N
o
pp
O
O
O
Ln
g
p
t
�
O
O
O
§
V
Ln
p
N
X tD
Ln
O
O
N
O
O
O '
O
O
V
to
O
lD
c
lilt
O
o
1
T-4
M
Q
N
N
N
N
e-1
N
S
�
0
tD
1-4
p
i
O
I
t
Gt
m
�
N
I
v>
.Vf
v>
v1•
t4
v►
vl�
v}
v!
v*
44
4^
$
o
oo
$
°
o$
$
'D
$
°g
X8
g
4
N
O
0 0
D
O
O
O
O
O
at
�
LM
N
N
N
N
V-4
N
00
sh
a-i
h.
aN-i
00
v
OJ
I
i
ipp/1
'�
i/*
'tpp/�
v1
'(/�
t/1•
N
vt
Vpo1
G
O
O OO C
O
tOA
O
O
1�
1�
X
tf1
O
O
O
t
O
O
O
O O
O
O
O O
t^D
0
O
O
O
ttoo
M
M
N
N
N
N N o
O
e-i
N
t0
to
M
e-1
to
pN
Q
N
i
v} v1•
of
v1
vy v!
v}
t/1•
v!
t/f•
to
t/>
tl'1
v}
v}
tI►
A7U # z