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Home My WebLink AboutBIL 219 Draft 01 2014-2016 FC-39 October 19,2016 Bill 219: AMENDS CHAPTER 19, ARTICLE 7, SECTION 19-57 OF THE HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO NONDEDICATED AGRICULTURAL USE ASSESSMENT Adds an inspection and decision notification process, amends provisions relating to imposition of a deferred tax, and adds agricultural waste lands to the non-dedicated agricultural use assessment program. Reference: Comm. 924 Intr. by: Mr. Ilagan Postponed: July 18, September 20, and October 4, 2016 (Note: There is a motion by Mr. Ilagan, seconded by Mr. Onishi, to recommend passage of Bill 219 on first reading.) POSTPONED TO THE CALL OF THE CHAIR: Ayes: Committee Members David, Ilagan, Kanuha, Paleka, Onishi, Wille, and Chair Eoff—7. Noes: None. Absent: Committee Members Chung and Poindexter—2. Excused: None. ADJOURNMENT—5:06 p.m. Note: B/R, when listed next to the name of an Introducer, signifies that the Council Member has agreed to introduce legislation"By Request" on behalf of the requesting party. It does not necessarily signify support of or opposition to the proposal. The meeting places are accessible for persons with disabilities. Persons who need special accommodations for this meeting should call 961-8245 by October 17, 2016. Relay users please call 711(961-8245) to contact our office. Public attendance via courtesy site is available at the following locations until 4:30 p.m. or later in the event public testimony has not been completed: • County Council Room, Hawaii County Building,25 Aupuni Street, First Floor, Room 1401; and • Waimea Council Office, Holomua Center, 64-1067 Mamalahoa Highway, Suite 5. Public attendance via courtesy site is also available at the following locations until public testimony has been completed: • Conference room adjacent to Intergenerational Building, Kamehameha Park Complex, 54-382 Kamehameha Park Road, Kapa'au; • Na`alehu State Office Building, 95-5669 Mamalahoa Highway, Na`alehu; and • Pahoa Neighborhood Facility, 15-2710 Kauhale Street. Page 4 ..„.0...c.1....... COUNTY OF HAWAII ,**AN'. .0:-: STATE OF HAWAII t�us•Nt._ BILL NO. 219 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 7, SECTION 19-57 OF THE HAWAII COUNTY CODE 1983 (2005 EDITION,AS AMENDED), RELATING TO NONDEDICATED AGRICULTURAL USE ASSESSMENT. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. The purpose of this ordinance is to encourage proper use of the nondedicated agricultural use assessment, to close loopholes, to add an inspection process, to add a decision notification process, and to prevent abuse. SECTION 2. Chapter 19, article 7, section 19-57 of the Hawai`i County Code 1983 (2005 Edition, as amended) is amended to read as follows: "Section 19-57. Nondedicated agricultural use assessment. (a) Lands classified and used for agriculture and which are not dedicated pursuant to section 19-60, may be assessed for real property tax purposes as established in subsection (a)(2) of this section and shall be subject to the following: (1) The land in nondedicated agricultural use must be used on a continuous and regular basis for intensive agriculture, orchards, feed crops and fast rotation forestry or pasture and slow rotation forestry, or be fallowed for any of the aforementioned purposes, or agricultural waste lands, on lands zoned by the County to be in the districts of agricultural, residential and agricultural, family agricultural, intensive agricultural, and agricultural project district; (2) The portion of land that is committed in specific nondedicated agricultural use shall be assessed at two times the dedicated agricultural use value as established by the director of finance under this chapter; and (3) A farm dwelling site shall be assessed at the highest commercial agriculture use value, provided that the maximum farm dwelling site area to be assessed at the highest commercial agriculture use value shall not exceed one-fourth acre. (b) All portions of land that are not committed or used for a specific agricultural use shall be assessed based on the proportional market value of the total property. (c) Application; filings; notice; assessment effective; inspection; renewal. (1) The director shall prescribe the form of the nondedicated agricultural use application. (2) The application shall be filed with the director by December 31 of any calendar year. (3) The application for a nondedicated agricultural use assessment must be signed by all owners of the land being committed. (4) The director shall send every applicant a written notice providing the director's determination that the application is approved in whole, approved in part, or denied. If the application is approved in part, the notice shall indicate the portion of the land that qualifies for the assessment. [(1)] (5) If the application is approved[,] in whole or in part, the assessment based upon the use requested in the application shall be effective as of January 1 for the following tax year. (6) The director shall cause an inspection of every property assessed for non-dedicated agricultural use no later than ten years since the last inspection. Any change in the ownership of the committed land shall cause an inspection to determine that the land use continues to meet the requirements of subsection (a)(1) of this section. An inspection may consist of a review of the parcel by the most recent available aerial or satellite imagery. If the director is unable to determine the land use by this method, the director may cause a site visit and may also require the owner to furnish additional evidence to the director's satisfaction that the land use is consistent with the requirements of subsection (a)(1) of this section. [(5)](7) Renewal of the application shall be in such form and at such time as required by the director. (d) Deferred or rollback tax. (1) A deferred or rollback tax shall be imposed on the owner of the agricultural land upon any of the following events: (A) Conversion to any County zoned district other than agricultural, residential and agricultural, family agricultural, intensive agricultural, or agricultural project district as a result of a petition by the owner or lessee; (B) The property is subdivided into parcels of less than five acres in size; [or] (C) A condominium property regime is declared for the property having condominium units with an area equivalent to less than five acres in size[.]; or (D) The land is not being used as required in subsection(a)(l) of this section. (2) The deferred tax [ ] may commence from the date the conversion was made retroactive to the date the agricultural use assessment was [approved, but for not more than a period of two y-ars plus the current year.] submitted. The deferred tax shall not be applied to those years for which the owner can provide evidence to the director's satisfaction that intensive agricultural activity was occurring. (3) The amount of deferred taxes shall be based on the difference between the assessed market value at highest and best use and the assessed agricultural use value of the land at the tax rate applicable for the respective years, with a ten percent penalty. (e) The administrative rules of the department shall include criteria to determine whether a particular land use is eligible for the nondedicated agricultural assessment under subsection (a)(1) of this section." SECTION 3. For informational purposes, any appeal of this ordinance arising from a decision of the director of finance shall be made according to the process outlined in chapter 19, article 12 of the Hawai`i County Code 1983 (2005 Edition, as amended). 2 SECTION 4. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed and stricken material and underscoring need not be included. SECTION 5. If any provision of this ordinance or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of the ordinance, which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are declared to be severable. SECTION 6. This ordinance shall take effect upon approval. INTRODUCED BY: 4 CO CIL M 4`t':ER CO i Y OF HAWAI`I , Hawai`i Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: REFERENCE Comm. 924 3