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HomeMy WebLinkAboutCOM 0056.000 2014-2016TAX BOARD OF REVIEW County of Hawaii 101 Pauahi Street, Suite 4 Hilo, Hawaii 96720 -4679 December 17, 2014 The Honorable William P. Kenoi, Mayor County of Hawaii 25 Aupuni Street = :' Hilo, Hawaii 96720 r The Honorable Dru Kanuha ; ...; and Members of the County Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 Dear Mayor Kenoi, Chairman Kanuha and Members of the County Council: Pursuant to Chapter 19 of the Hawaii County Code, enclosed please find the 2014 Annual Report of the Real Property Tax Board of Review. Thank you for your time. Respectfully submitted, Scott Church Chairman /enclosure cc: Nancy Crawford, Director of Finance Comm. No. Ref. To: �- Ref. Date DEC 2 4 2014 William P. Kenoi Mayor County of Hawaii DEPARTMENT OF FINANCE - REAL PROPERTY TAX Aupuni Center • 101 Pauahi Street • Suite 4 • Hilo, Hawaii 96720 -4679 • Fax (808) 961 -8415 Appraisers (808) 961 -8354 • Clerical (808) 961 -8201 • Collections (808) 961 -8282 West Hawaii Civic Center • 74 -5044 Ane Keohokalole Hwy. • Bldg. D, 2nd Flr. • Kailua Kona, Hawaii 96740 Fax (808) 327 -3538 • Appraisers (808) 323 -4881 • Clerical (808) 323 -48800 Website: www.hawaiipropertytax.com REAL PROPERTY TAX BOARD OF REVIEW 2014 ANNUAL REPORT December 15, 2014 Introduction Nancy E. Crawford Finance Director Deanna S. Sako Deputy Director Pursuant to the provisions of Chapter 19, Article 12, Section 19- 97(e), Hawaii County Code as amended, the members of the Real Property Tax Board of Review submit the following report of activities and recommendations for the 2014 -2015 tax year. The recommendations relate to both legislative and administrative matters. The following is a list of the officers and members of the Board'. Scott Church, Chairman Donald David, Vice - Chairman Reiko Ford Richard Dinges Potential appointees should be apprised of the demands of their time that service on this Board entails before their names are submitted to the County Council for confirmation hearings. All members are expected to attend all meetings. Meetings in Hilo or Kona may be a biweekly occurrence from July through November with two nights away from home or the office. Huivai `i County is uu Epul Oppoi unity Provider card Employer- 2014 Tax Board of Review Annual Report Board Membership The following is a list of the Board members and when their term ends: Board Member Term Ends — December 31, Scott Church 2014 Reiko Ford 2015 Richard Din es 2016 Donald David 2017 (Vacant) 2018 Activities Organizational Meeting 2 The annual organizational meeting of the Board was held on March 27, 2014, at the Real Property Tax Conference Room in Hilo for the purpose of electing officers and establishing a tentative appeal hearing schedule for hearings to be held in both Hilo and Kona. A tentative workshop date and place were also set and there was a general legal discussion of Chapter 19, as well as a discussion of any bills relating to assessments. Real Property Tax Administrator Stanley Sitko was also in attendance and provided comments. 2014 Board of Review Statewide Conference The 2014 Board of Review Statewide Conference was cancelled again this year at great disappointment to the Board Members. Material and knowledge gained at prior conferences have proven to be valuable to the Members. Workshop A workshop was held on June 23 and 24, 2014, at the Aupuni Center Conference Room in Hilo with Board Members, Real Property Tax Office Administration, Appraisal Supervisor, Appraiser V (Commercial Appraisers), Clerical Supervisor and support staff in attendance. Also present were Finance Director Nancy Crawford, Deputy Director Deanna Sako, and Deputy Corporation Counsel Craig Masuda. Opening remarks were provided by Mrs. Crawford and Mr. Masuda, who also did a presentation on the Powers and Duties of the Board, Parliamentary Procedure, Board Rules and other matters. Various Real Property Tax staff presented information on the sales ratio analysis, condominium review, commercial valuations and the agricultural use program. Also reviewed was the appeal procedures and process. The Board was provided the opportunity to present questions to the tax office personnel and administration which continues to be beneficial to the Board. 2014 Tax Board of Review Annual Report Appeal Hearings Three hundred twenty -six (326) appeals, which included 85 from East Hawaii and 241 from West Hawaii, plus appeals from amended assessment notices, were scheduled for hearing this tax year. This is an increase from 229 cases in the previous tax year. There were four (4) sessions held in East Hawaii (September 9, 10; and October 7, 8) and seven (7) sessions held in West Hawaii (August 26, 27; September 23, 24; October 28, 29; and November 12). Complaint Hearing As required by Chapter 19- 97(e), a notice was published on September 7, 2014, specifying a period (September 8 - 19, 2014) within which complaints may be filed by a taxpayer. No complaints were filed. The complaint hearing was held on November 12, 2014. Comments and Recommendations 9 The procedure of rendering an immediate decision in open session upon the completion of the presentation of each appeal case continues to differentiate this board from other Counties within the State of Hawaii and is found to be an acceptable practice to all parties. 2. The workshop, which included the Real Property Tax staff and Board Members held prior to the start of this year's appeal hearings, was immensely informative and productive. An annual workshop is highly recommended which includes administrative staff with regard to a broad array of relevant tax matters. 3. The presence of Corporation Counsel at each meeting /hearing has proven itself to be essential. The Board has relied upon Corporation Counsel in many instances for clarification and interpretation of rules and /or laws. 4. The Board strongly recommends that the statewide conference be continued and that attendance by the Board and support staff be funded because of its multiple benefits. 5. The Board appreciates the impromptu training sessions conducted by Corporation Counsel, Appraisal Supervisor, and Assistant Tax Administrator. These sessions provided the Board with information and insight on various issues, topics, programs, etc. 6. The RPT BOR continues to recommend that the non - speculative residential program be terminated due to the fact that the homeowners class, exemptions and other programs have taken its place and this program is now antiquated. Any change in County Code should include a provision that allows present participants to opt out without penalty. 2014 Tax Board of Review Annual Report 7. Under the current code, an owner /occupied property that is partially used for a home - occupation and /or a rental qualifies to be in the homeowner's class but a property partially used as a care home does not qualify for this class, per the County's Planning Department. The Board continues to recommend that Section 19- 53(e)(2)(A) be amended to include in the homeowner's class an owner /occupied property used for care giving and /or care home. 8. The Board Members are aware that the public has a misperception of the motivations, goals and responsibilities of the Real Property Tax Division with regard to assessments and the County Council's setting of the tax rates. The Board continues to recommend that the Division should use all forms that are available to better inform the public of its roles and responsibilities. 9. The public has a misconception that the Real Property Tax division sets the tax rates and the board recommends that the County provides outreach interaction to dispel this. Close Chairman's Comments 21 I wanted to note the competent, professional support and flawless coordination provided to the Board by Real Property Tax Division employee Elizabeth `Nina' Swain and Deputy Corporation Counsel Craig Masuda. Finally, and worthy of note too, was the Real Property Tax Division's professional demeanor, thoroughness of preparation, and consistency of documentation for the Board. 2014 Tax Board of Review Annual Report Submitted by Members of the Tax Board of Review: Scott Churc Chairman Reiko Ford Member (vacant) Member , , " 0�1 D 6 Ka� l avid Vice - Chairman Richard Dinges Member F1