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HomeMy WebLinkAboutCOM 0056.001 2014-2016 0,F,0i,* . (•/4�� ''.4�., TAX BOARD OF REVIEW County of Hawai'i 101 Pauahi Street, Suite 4 Hilo,Hawaii 96720-4679 December 31, 2015 --D ..-7---. r_ The Honorable William P. Kenoi, Mayor :1 County of Hawaii 25 Aupuni Street Hilo, Hawaii 96720 -- 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 2015 Annual Report of the Real Property Tax Board of Review. Thank you for your time. Respectfully submitted, /(.2L 4•41F ------L.-v:2 Dona d David Chairman /enclosure cc: Deanna Sako, Director of Finance Comm. No. 90' I Ref. To:,__ F C .. Ref. Date +A*► 1 2 24� William P. Kenoi 40,;.•<'.°FN, ... Deanna S. Sako Mayor , y6i , '', Finance Director ....... Lisa K. Miura • Deputy Director OF N County of Hawaii DEPARTMENT OF FINANCE-REAL PROPERTY TAX Aupuni Center • 101 Pauahi Street • Suite 4 • Hilo,Hawai`i 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)323-4880• Website:www.hawaiipropertytax.com REAL PROPERTY TAX BOARD OF REVIEW 2015 ANNUAL REPORT December 31 , 2015 Introduction 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 2015-2016 tax year. The recommendations relate to both legislative and administrative matters. The following is a list of the officers and members of the Board: Donald David, Chairman Wesley Takai, Vice-Chairman Reiko Ford Richard Dinges Melvin Ventura 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. iIuu'ai`i County is an Equal Opportunity Provider and Employer 2015 Tax Board of Review Annual Report 2 Board Membership The following is a list of the Board members and when their term ends: Board Member Term Ends — December 31, Reiko Ford 2015 Richard Dinges 2016 Donald David 2017 Melvin Ventura 2018 Wesley Takai 2019 Activities Organizational Meeting The annual organizational meeting of the Board was held on March 4, 2015, 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. 2015 Board of Review Statewide Conference The 2015 Board of Review Statewide Conference was held on May 29, 2015 at Nico's Pier 38, Harbor View Center, on Oahu. There were approximately 100 guests in attendance including Board Members, Deputies Corporation Counsel and Real Property Tax Office Administrators and support staff from four island counties: Oahu, Maui, Big Island and Kauai. A few of the topics presented and discussed were uniformity in assessing properties, Sunshine Law, standard of review for direct appeals to Tax Appeal Court, burden of proof for appeals, and evidence/witness credibility. Attendees were also afforded the opportunity of a breakout session to discuss matters within related groups — Directors/Administration, Corporation Counsel, Board Members, Appraisers and Support Services. A question and answer open discussion forum was also held. The coordinators did a great job in organizing the conference. Workshop A workshop was held on July 28 and 29, 2015, 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 Deanna Sako, Deputy Director Lisa Miura, and Deputies Corporation Counsel Renee Schoen and Belinda Hall. 2015 Tax Board of Review Annual Report 3 Opening remarks were provided by Mrs. Sako and Mr. Sitko. Ms. Schoen did a presentation on the Role of the Board of Review, Real Property Staff and Corporation Counsel. Various Real Property Tax staff presented information on Real Property 102, resort residential, condominiums, commercial properties, agricultural use, various exemptions and programs, and the sales ratio analysis. Also reviewed was the appeal procedures and process for both the division staff and Board Members. The Board was provided the opportunity to present questions to the tax office personnel and administration which continues to be very beneficial to the Board. Appeal Hearings Two hundred thirty-three (233) appeals, which included 170 from East Hawaii and 133 from West Hawaii, plus appeals from amended assessment notices, were scheduled for hearing this tax year. This is a decrease from 326 cases in the previous tax year. There were three (3) sessions held in East Hawaii (August 18, 19; and October 6) and four (4) sessions held in West Hawaii (September 15, 16; and November 17, 18). Complaint Hearing As required by Chapter 19-97(e), a notice was published on September 6, 2015, specifying a period (September 7 — 18, 2015) within which complaints may be filed by a taxpayer. No complaints were filed. The complaint hearing was held on November 18, 2015. Comments and Recommendations 1. 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 very informative and productive for the Members. An annual workshop is highly recommended and should continue to include administrative staff presenting a broad array of relevant tax matters and information for the Members. 3. The presence of Corporation Counsel at each meeting/hearing has proven itself to be essential and is recommended to continue. The Board has relied upon Corporation Counsel in many instances for clarification and interpretation of rules and/or laws. 4. The Board recommends that the statewide conference be continued and that attendance by the Board and support staff be funded because of its multiple benefits. 2015 Tax Board of Review Annual Report 4 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. The Board recommends that these training sessions continue to be offered. 6. The Board 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 whereby the frozen base value of each affected parcel for the first year be the lowest of: a. the frozen value; b. the market value; c. the 2004 market value times three percent (3%) a year until present if the property had the same owner since 2004; or d. the market value of the property at the time of purchase after 2004 times three percent (3%) per year until the present. 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 again recommends 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. 10. The Board recommends that the department improve its procedures on disallowances of exemptions previously held by taxpayers. 11. In reference to the denial of homeowner's exemptions, it is imperative to clarify the steps assessors will initiate prior to the denial of an exemption. During appeal hearings, it was not clear to a few Board Members if assessors were required to make home visits prior to the denial of a home exemption. There were questions as to what constituted adequate denial notification —whether two mailings to a homeowner without a response considered adequate notification and if a field visit was required or not. 2015 Tax Board of Review Annual Report 5 Board Members are concerned that with the Hawaii County Council's new requirement for homeowner verifications, which included an increased number of mailings to homeowners, the Board may be faced with numerous appeals next year due to the anticipated increase in homeowner's exemption denials. The Board recommends that a written department policy clarifying the issue be developed to provide Board Members with guidance and direction when rendering appeal decisions. Close Chairman's Comments I wanted to thank Reiko Ford for her service, as her term ends we will miss her professional and competent contributions. I wanted to note the competent and professional service and coordination provided to the Board by the Real Property Tax Division. Elizabeth 'Nina' Swain flawlessly coordinated our meetings, Stan Sitko and his staff provided us detailed, professional, thoroughness and consistent information which all contributed to the Board making an informed decision for each case presented. 2615 Tax Board of Review Annual Report 6 Submitted by Members of the Tax Board of Review: OF - ona d David Wesley akai Chairman Vice-Chairman Reiko Ford Richard Dinges tAi Mem b;r Member elvin Ventura