Loading...
HomeMy WebLinkAboutCOM 1015.000 2014-2016 KAREN EOFF 4Osof!^OF p,.i AARON S.Y. CHUNG Chairperson V,14, MAILE"MEDEIROS"DAVID GREGGOR ILAGAN VALERIE T. POINDEXTER '' R_ DRU MAMO KANUHA Vice Chair • 14 :r •. �: ri.`..: DENNIS"FRESH" ONISHI E OFNF' DANNY PALEKA MARGARET WILLE HAWAII COUNTY COUNCIL County of Hawai 7 Hawui'i County Building 25 Aupuni Street COUNTY,�K Hilo, Hawai`i 96720 COUNTY OF HAWAII RECEWED August 23, 2016 TfintWatti4141.By 6e— Date Dru Mamo Kanuha, Council Chair 10110 fl and Members of the Committee on Finance Hawai`i County Council 25 Aupuni Street Hilo, Hawai`i 96720 RE: Finance Committee Workshop on September 6, 2016 to discuss Dedicated and Nondedicated Agricultural Programs of the Hawaii County Real Property Tax Office. I am requesting a workshop of the Finance Committee to be held on September 6, 2016 to discuss the Dedicated and Nondedicated Agricultural Real Property Tax Programs as provided for in Chapter 19 of the Hawaii County Code. The goal of this workshop,through discussion between members of the Finance Committee, Department of Finance and stakeholders/participants, is to better understand how amendments to the Dedicated and Nondedicated Agricultural programs would impact property owners and the tax revenues of the County. Testimony from the public will be taken at the beginning of the workshop as usual; however, healthy and structured interaction between stakeholders, the Committee members, and members of the public will be encouraged. Bills 218 and 219 will not be on the agenda for this special meeting, however,the contents and any proposed amendments may be discussed to see how these bills would affect the way the programs currently function. I am estimating that 2 hours will be sufficient. This meeting should begin after regularly scheduled committee meetings have been concluded. Sincerely, It Aommi EOFF, Finance Chair KE/wb cc: Molly Stebbins, Corporation Counsel Deanna Sako, Finance Director 6 Attachments: Code Sections 19-57 & 19-60 regarding Dedicated and Nondedicated Ag Programs Agricultural Program Summary provided by the Finance Department Bill 218 introduced by Council Member Margaret Wille Bill 219 introduced by Council Member Greggor Ilagan Comm. N0. 1 D 5 Petition to Dedicate Land for Ag Use and Info Sheet Ref. To: cc- Application for Nondedicated Ag Use and Info Sheet Ref. Date AUG 1 7 7ati Hawai`i County is an Equal Opportunity Provider and Employer HAWAII COUNTY CODE SECTIONS 19-57 and 19-60 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 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; assessment effective; 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) If the application is approved, the assessment based upon the use requested in the application shall be effective as of January 1 for the following tax year. (5) 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. (2) The deferred tax shall commence from the date the conversion was made retroactive to the date the conversation was made retroactive to the date the agricultural use assessment was approved, but for not more than a period of two years plus the current year. (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. Section 19-60. Commercial agricultural use dedication. (a) A special land reserve is established to enable the owner of any parcel of land, or lessee of a recorded agricultural lease with a minimum of five years remaining on the lease at time of petition, to dedicate the land for a specific commercial agricultural use dedication, and to have the land assessed its value in such use for a period of ten years, or in the case of a recorded agricultural lease the term of the lease up to ten years, provided: (1) The land dedicated for commercial activity 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 and have a minimum lot size per farm operation for that dedicated category of commercial activity as provided for in the administrative rules and regulations of the department; and (2) The land is within the County zoned district of agricultural, residential and agricultural, family agricultural, intensive agricultural, agricultural project district, or any other County zoned district meeting with the approval of the director of planning. (b) The owner of land under the twenty-year agricultural dedication at July 1, 2003 may continue to be assessed at fifty percent of its agricultural use value and shall be subject to the conditions and provisions of the effective commercial agricultural use dedication. (c) Determining agricultural use value. (1) In determining the value of lands which are classified and used for commercial agriculture use, consideration shall be given to rent, productivity, nature of actual commercial agricultural use, the advantage or disadvantage of factors such as location, accessibility, transportation facilities, size, shape, topography, quality of soil, water privileges, availability of water and its cost, easements and appurtenances, and to the opinions of persons who may be considered to have special knowledge of land values. (2) Four general agricultural categories shall be used in determining the value of lands which are dedicated for commercial agriculture: (A) "Intensive agriculture," which includes such crops as vegetables, ginger, taro, herbs, nurseries, foliage, cut and potted flowers, piggeries, dairy, poultry, feedlots, aquaculture, honey and honeybees. (B) "Orchards," which includes such crops as macadamia nuts, guava, banana, papaya, avocado, grapes, passion fruit, coffee, citrus, cacao, pineapple and tropical specialty fruits. (C) "Feed crops and fast rotation forestry," which includes forage crops, seed crops, cane, short rotation forestry, biomass, grasses, etc. (D) "Pasture and slow rotation forestry," which includes pasture and longer rated forestry. (3) Lands classified as tree farm property pursuant to chapter 186, Hawai`i Revised Statutes, shall be considered for classification and valuation as agricultural. (4) The portion of land that is not dedicated for commercial agriculture use shall be assessed based on the proportional market value of the total property. (5) A farm dwelling site shall be assessed at the highest commercial agricultural use value, provided that the maximum farm dwelling site area to be assessed at the highest commercial agriculture use value shall not (d) Commercial agricultural use dedication petition. (1) If any owner desires to dedicate the owner's land for a commercial agricultural use and to have the land taxed as its assessed value in this use, the owner shall so petition the director of finance and declare in the petition that the land can best be used for the purpose for which the owner requests permission and that if the petition is approved the land will be used for this purpose. The director may require evidence of commercial agricultural use in such form and at such times as provided for in the administrative rules and regulations of the department. (2) The director shall prescribe the form of the petition. (3) The petition shall be filed with the director of finance by September 1 of any calendar year and shall be approved or disapproved by December 15. If approved, dedication shall be effective on July 1 of the following tax year. (4) The petition for commercial agricultural use dedication must be signed by all owners of the land being dedicated. (5) A recorded lessee of the land with a term of five or more years remaining from the date of the petition and who is responsible for payment of the real property tax shall also be deemed an owner of the land within these provisions. (6) Action by director on petition. (A) Upon receipt of a petition as provided above, the director shall make a finding of fact as to whether the land in the petition area is reasonably well suited for the intended use. The finding shall include and be based upon the productivity ratings of the land in those uses for which it is best suited, a study of the ownership, size of operating unit, the present use of surrounding similar lands and other criteria as may be appropriate. (B) The director shall also make a finding of fact as to whether the intended use is in conflict with the overall development plan of the State and County; provided that for lands in a zoned district other than County zoned district of agricultural, residential and agricultural, family agricultural, intensive agricultural or agricultural project district, the director shall make further findings respecting the economic feasibility of the intended use of the land. (C) If all findings are favorable, the director shall approve the petition and declare the land to be dedicated. (D) In order to place prospective buyers on notice of the rollback liability, the petitioner shall record the dedication in accordance with the procedures of the bureau of conveyances within ninety days of notice of approval. (e) Approval by the director of the petition to dedicate shall constitute a forfeiture on the part of the owner of any right to change the use of the land to a use other than commercial agriculture for a minimum period of ten (1) At least one hundred eighty days prior to any cancellation or termination, the department of finance shall notify the owner by mail of such cancellation or termination. The owner shall reapply for renewal of the dedication by filing an application with the director on or before September 1 of the last year of dedication. The renewal petition shall, in all respects, be processed similarly to an original petition. Upon approval by the director of succeeding dedications, the property shall continue to be assessed in accordance with the provisions of the dedication. (2) In the case of a change in zoning not as a result of a petition by any property owner or lessee such that the owner's land is placed within any zoned district other than a County zoned district of agricultural, residential and agricultural, family agricultural, intensive agricultural, or agricultural project district, the dedication may be cancelled within sixty days of the change by the owner. (3) Upon any conveyance or any change in ownership during the period of dedication, the land shall continue to be subject to the terms and conditions of the dedication unless a release has been issued by the director. (f) Changing between commercial agricultural categories. (1) If the owner desires to change from a specific commercial agricultural category to another commercial agricultural category, the owner shall so petition the director of finance and declare in the petition that: (A) The owner's land can best be used for a commercial agricultural activity other than that for which the petition was originally approved; and (B) The owner will use the land for that new commercial agricultural activity if the petition if approved. (2) If an owner is permitted to change the use as provided in this subsection, the owner shall be allowed up to twenty-four months from the effective date of the petition to convert to the new commercial agricultural category. This conversion must be completed prior to the end of the dedication period. (3) The petitioner shall submit progress reports of the petitioner's efforts in converting from one commercial agricultural category to another commercial agricultural category to the director of finance by the anniversary date of the petition approval and yearly, thereafter, as long as such conversion period remains. (4) If the owner fails to make the conversion within the specified time limit, the owner will be subject to the taxes and penalties provided herein. (5) Any other provision to the contrary notwithstanding, an approved change in use as provided herein shall not alter the original dedication period. (g) Breach of dedication; deferred or rollback taxes; penalties and interest. (1) A deferred or rollback tax shall be imposed on the owner of commercial agricultural use dedicated lands upon any of the following: (A) Failure of the owner to observe any restriction, condition, or provision on the use of the land; or (B) If the dedicated property or any portion thereof is sold by way of a conveyance which is subject to conveyance tax under the terms of chapter 247, Hawai`i Revised Statutes, unless a notarized affidavit is signed by the owner stating that the land will continue to be subject to the full requirements of the dedication including any penalties for violation. The director shall record the notarized affidavit with the bureau of conveyances. (2) The deferred or rollback tax shall commence from the date the failure to observe the restriction, condition or provision, or the property's conveyance retroactive to the date the assessment was made pursuant to subsection (3)(F) of this section but for not more than ten years. (A) Failure to observe the restrictions on the use means failure for a period of six consecutive months to use the land in the manner requested in the petition or the overt act of changing the use for any period; provided that the petition by the owner for a change in use as provided in subsection (f), and the owner's subsequent change in use of such dedicated lands, shall not be deemed to constitute a failure of the owner to observe the restrictions on the use. (B) Any other provisions to the contrary notwithstanding, when a portion of the dedicated land is subsequently applied to a use other than the use set forth in the original petition, only such portion as is withdrawn from the dedicated use and applied to a use other than the commercial agricultural category shall be taxed as provided by this subsection. (3) Calculating deferred or rollback taxes. (A) The deferred or rollback tax shall be based on the difference between the assessed market value at highest and best use and the commercial agricultural use of the land at the rate applicable for the respective years. (B) All differences in the amount of taxes that were paid and those that would have been due from assessment in the higher use shall be due and payable with a ten percent penalty. (C) If the owner of dedicated land breaches a condition of the dedication before its completion, deferred or rollback taxes shall be imposed on the subject parcel pursuant to subparagraph (F) below, retroactive from the end of the tax year in which the breach occurs. (D) In any case in which deferred or rollback taxes are imposed after successful completion of an agricultural dedication period, the deferred or rollback taxes shall be retroactive only to the end of the completed dedication period, and shall not be imposed for any time covered by a successfully completed agricultural dedication period. (E) In cases involving a breach of a ten-year dedication, or a rollback period of ten or fewer years for breach of a twenty-year dedication, the rollback taxes under this section shall be for a maximum total of ten years, including both the breached dedication rollback period and any period of nondedicated agricultural use assessment subject to rollback. Rollback taxes for any breach of dedication affecting more than ten years under a twenty-year dedication shall not exceed ten years. (F) Deferred or rollback tax schedule. (i) Breach of the restrictions on use within five years of the dedication shall result in a rollback to the date of the dedication. (ii) Breach of the restrictions on use within six years of the dedication shall result in a rollback of four years from the date of the breach. (iii) Breach of the restrictions on use within seven years of the dedication shall result in a rollback of three years from the date of the breach. (iv) Breach of the restrictions on use within eight or nine years of the dedication shall result in a rollback of two years from the date of the breach. (4) The additional taxes and penalties due and owing shall be a paramount lien upon the property as provided for by this chapter. (h) The director may cancel a dedication without rollback taxes or penalties in the event of any of the following: (1) A recognized natural disaster beyond the farmer's control; or (2) The land can no longer be used for the dedicated agricultural use; or (3) The death or severe disability of the principal farmer such that the farm operation cannot continue. Corporations and partnerships are not eligible for this death or severe disability exemption. Ct E E Cin z z7 Ct e ti , w ¢ b.1C o ` .. • sit H " � a mill H ^ 0 erc Plmia W ceQ CZ: Immmi Co) i ' p..1 bip 411 1 cu i-1 V E, CA •rl ' U E-1 -ciir"' / • 5.41 cucn E O CD - Hv, 3 E ,InE ' ' 7,0i E (i) - J ' C U ,_0 ro E Ci) ,, 0 .4 , 0 ;f?' •IY1 ;5 •p-1 ci) 0 tin ;-4 .4..J CA #4 CU 6.6.j'-1 a Cf) r-I „ci .,(2, ,-4 vv v U rd 4t raf7d go 6-21 r- , ft; r--i til Q) .,u u p �, +� •� U 15 .v O 4U b� •� \C O 1 fa Z 4t ;-I rmi (1) CU 4 N W A, A \ \ \ I 1 \\\ D c,) a) in Tul QL. •� .� 42 12 u° v tr 'b 5 b X v IINNOMI +.i rd Ci) rd ; , cn ft 0 Mi CA ,..c, >C co 7.3....4 : ,-4 CU I—, cu rd 0 ,.., >-, a) Vv � � - I v bp 4—+ cn u • rd .� 4-' a O p, cn � y w w o• �' a , 00 � rb �OOupYi.:1 v -4—hr ' ' uv _ O —0 Qab � o'� � '� a °' � v pia� L.3) fa, L. wUn , to u a. Z d , � c _., artc) V ›, ,,,7,.. ,4.. . — —C3 ., ,., clJ rn •_ uu • •~mi cu •~ ad "Zi cu -0 o?S L O v v ;" .0 ;., 4. CI cii o v cu rad a O +: I U Q1 Ei rd CJ �o- � o � � rooms 2o O QU -Fri —1 -d6., azvir ; .S . . ogoN z 4) 4., C. .cu > tu c . ti4 et "Ci i+ b 0b GJ b ,i v u rd C" d cu -0 f: 4-e ch Clo; b X CJ w •.1 b .b 0 X aJ u 04 M vl oCco ° bU .. o o b ' —, rci • b O G o . ,> 'al CI3 U <, , b u CJ O u O dei rdMint4:)CU � Cn wu w �U Cn . ' r0 . b C bA CJ O ,O aba: a, ;. •� eJ z z 0 v . o b ;.4 > V � . v CU ovars7ZS .1:1 CJ > 4, CJ u •.. O. OCA 4) O 4-i* , a.-+ v G O '...ZS bA' 0. b O � a.) u >~ a.�. a • i1I1Y5 , w e 'ti 1.10 • .• U I-4) V) > .4 rt cci 0-0 U 4 P4 Z 't ,.`41 r:4 .6-+ vi- _N)N a) a�..4I A.4-J ›. ti CO -ciry ad V b E ^oma i� • . CJ CJ a+ u G'i t-. L ma -.0 0,,? a4 v 4.J 110 n. CJ EA 2 0) rG •0 U cn A. 3v0 c„ ° Eb � •E5 ° o Q U b , 'd +J - .5 a o • .ti c) 0A7 L9 z ',• (I) W 4 ! ~ U W Y k, V c O OI N"O : Y '' .4" • Zmc vo 7, S ,; W00Qa c W dam 2 , o s m �'� -r* LLI Ca> > C LC ` C'� W U � Q ac in N N W • N c o 2 W 01 a) H N cm N "O 5 O II ��'' m C m ~ > — C N 1 � V1 J t1:1 O n r C C J ! mm N't3 •J N cop CO L o P► ococ Q d o o co W U �iproal, coCC W s M 3 E f� Q • ,,,> n al 0 W E al s4- c c o ✓ W � '`��i� 300- � U c c W O V CJ , 11��p] cu �CDOcr. 0 C� mNm 4111 a O Q Q y�'N s 3 m o N O a a0 _a. T r� O p M O 9, O O) i O O } N C O • W N V1 W 1��� • co o aoi ✓ v, _r Z U (O U = Q N Q Q C7 > .a o _ ] J ::z N m o 0 z � `".,,,� E g A - o W >,-4- k.4 z V h Q � oa) Dai c� a W m V a) C C C F.i, 0 �. d IP Cn O m 3 0 C Slissor z A z ;;a, >- aoi w m 6 E 3 W 0 t...-O A W LL �w O Nw ma) c.11 W c � � O w 0 2 m L O cu C a) Oco D omW U oOa) 06 OE Ek o WQ, • N Q U' 2 doN r a,, -o TD) IMIIIIIMIIIB ~ a L- U � c00- 0 -J o ca Ow O m 1/ O O 3 O V Cn E N C >" Q cO - C d 0— 0 a°'i > EN C O rnE m • CC o x co y w > a2i o.N 0) Si. o3omEa� r orurn Y O tli) To(D T N C m N f O w CC O p o` , ;C� W U 6- U < H -Q c0,, p C D i T k =C:0 O C Cl) T(0 C liccn T C• nO N O dN � oc C O ,Tc E a�2o co E� c aur m m 0 O nmc 3 U p Nc � aiW mca �fnW ' N E o O. V j LL `°o o IJj � i o• � n u c a' r• � RS N V U W x 2 rn.3 } W E IL -- .N114 _ co" ma) w �p Q „1 ` m�i o ~ N Q (6 �1,' °-Eo m cz LL 0 � fR � ll NCO Tr O W to W `' I mCn nE ? sar N 0 Q � O � >111 Q � � � N 7 U Z W :~ o Q W co w 3 U U E a� F V Q 0 W `m °' a ~ w O W • ' �m`o w �j W v C w d' Z O (1) math a� Z o 2 o r I— O W Non O N2 o Z <. • w. .0 Z N N N I iL O O N O) Q O :. c cp 92 • .L... n U f C C O Q C N U n C o O n N 0'- 1 .O N Lu � om2 � om O !. z cum c_ � � 00 CIO Slims c LJ1 111111 mCC 0Ncn G o� orn.o A cC C(nC O n c0 0 0` :.., n N X N O 3 o Udo E U m U ' .1• (/) ® \� LLI ! \ ) f \ w <. . \ £ f - p \ 0 . -.. e2 / \/) < © ' 7: 2 k \ f § c { . 16 }\f 3. - 1 c m 2w = & § E ( $ / �' / » § \ \ , = ;20 • '. m - _ ! \ \ § ) § 1 ' . , . , , , . 5 ± ? \ 7 \ a 5 : « N � � � 2 � � ka 0 > 1 0 f 'a- z CD E E © � co L @ ) / \ \ nt ± / 7.13 w woil �o J k k 08 < q 0- N- C / /� w > L J � \ 2 % � \ co « o # - m co § S0 \ t (f) 'D 8Ea R R o � « , < C I- > \ ( j C � j \ < < e w e / 7 q 2 LLI CI k \ \ j \ \ \ / almj ZLLI � ] § c Z \ - _ ® . ) ) \ / L <6 u.)- / / \ 2 / ® ° ° ` m 2 w ' = k = ) \7a . _ / ± • _ - @cam @ Swim ƒ \ �, : 2 al ƒ\k % c \ \ ( Ct \ 7 / = / - 8 ' � 0 0 ea/ & 3 \ ISk \ c § O -- E � 0W E2o E a ^ ° ° . . < 10 D 0 a . 2 [ 5 \ I P,N.. SII :- Ilki � zi� i� r . 1 o ' L rr �?a Iii ° a x `� ° � E D Z Y}-6 c 'Z v t. .i' • 0 ; • , &` CO 4 i4 �/ P U • ` 0 4. T 13 _ y• tt ! o • u o N ,4 >444 6 O w r" . � ro > 't u '+ O b � � � z ri- \O ro x I w CA z b CU (1) W Z Q M Ci / CA 0 17'13 0CiA) u U v cT A M C111) O N r:.:4 q ro v w° 00 v a` 11 Ci) Z cc CD cu U Uc Z kr)Ti � x A r-I a • ro O v 61 mA Nbr O N i cn u) (r O `r co °ua 4-4 '° NO E .4..., v) cu CD u oo 4J -ci v .u il 'CL) - -' ft v U - 0 m Cr o . v ucu ccnn 4 \ike !MIMI CI) v rti O • cn �^-+ p v U • U Z Z u - a Cly 4 > ° o O --i0 cu C E O N N (1) V fr1 .1_ Cld 0O u U ;,. �� V � ' _ (, 0 v 0. cu J'' cn0a Q Q O bi3; . 0 O Q /) + U 6(1) N p u Nro ai C:4 C6 v +-+ O o b 47 r0 0-i ° U0 CU i N O x ar .� � ur'^ reg 0 t •O V • A — o 17,. VD ar x ar -, x ^ q) rd bA 3 :� N Cir .54 O P '+.+ .. b li • ; rogv ii I pia° a viCDW i. 4.7 0 00.4 -a) ;., . oc rzo ..,, NINin E iit a) l CU xCD °�d b �C CV 0 4.1 CU ri 00cu toFf1 +SY or........ COUNTY OF HAWAII �'• STATE OF HAWAII BILL NO. 218 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19,ARTICLE 7, SECTION 19-57 AND ADDING A NEW SECTION TO CHAPTER 19,ARTICLE 8 OF THE HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO EXEMPTIONS FROM REAL PROPERTY TAX BY WAY OF DEDICATION OF LAND FOR AGRICULTURAL USE. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Findings and purpose. The purpose of the agricultural use assessment program is to encourage continual and committed agricultural use of lands, by affording those engaged in bona fide farming a substantial break in real property taxes. In order to better achieve this purpose, the Council finds it necessary to revise the nondedicated agricultural use assessment program and to establish a new short-term dedicated agricultural use assessment program. This ordinance provides an opportunity for those currently in the non-dedicated program seeking to participate in either the three year or ten year commercial agricultural use dedication programs to make any necessary adjustments in their farming operations prior to when the existing non- dedicated program is fully phased out on December 31, 2017. This ordinance also allows owners to remain in the revised non-dedicated program rather than participate in one of the commercial dedicated programs, but at seventy percent of the market value for the qualifying agricultural use land. 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) [ ., . - . - . . . . . . ' . . - . :1 Agricultural lands which are not dedicated pursuant to section 19-60. may be assessed for real property tax purposes as established in subsection [(a)(2)] (b) of this section, provided [and (1-) The] the land [- . . -. . : • . . • . -] 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 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)](b) Assessment. (1) The portion of land that is committed in specific nondedicated agricultural use shall be assessed at: [ •• -- - - . -: • . • • • - - . . • - - . . - ; . :] (A) Three times the dedicated agricultural use value as established by the director under this chapter for the tax year beginning 2017; and (B) Seventy percent of its market value for the tax year beginning 2018. [(3)](2) A farm dwelling site shall be assessed at [ •- • - agriculture e] seventy percent of its market value, provided that the maximum farm dwelling site area to be assessed at [the highest ^ommerci l agriculture use] seventy percent of its market value shall not exceed one- fourth acre. [(43)](3) 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; assessment effective; 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) If the application is approved, the assessment based upon the use requested in the application shall be effective as of January 1 for the following tax year. (5) Renewal of the application shall be in such form and at such time as required by the director. (d) [Deferred or mak] 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. 2 (2) The [deferred] rollback tax shall 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 years plus the current year. (3) The amount of [deferred] rollback 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." SECTION 3. Chapter 19, article 8 of the Hawai`i County Code 1983 (2005 Edition, as amended), is amended by adding a new section to be appropriately designated and to read as follows: "Section 19- . Short term commercial agricultural use dedication. (a) A special land reserve is established to enable the owner of any parcel of land. or lessee of a recorded agricultural lease with a minimum of three years remaining on the lease at time of petition, to dedicate the land to the short term commercial agricultural use program, and to have the land assessed its value in such use for a period of three years, or in the case of a recorded agricultural lease the term of the lease up to three years,provided: (1) The commercial agricultural use is limited to farming operations that adhere to generally accepted standards or recognized practices within the agricultural industry that are not otherwise prohibited by law, and generate income, monetary gain or economic benefit in the form of money or money's worth of a minimum $2,000 annual gross income per farm operation. In the absence of generating a minimum of$2,000 annual gross income, an applicant may alternatively submit an IRS form 1040 Schedule F (Profit and Loss from Farming) or such other IRS form showing profit and loss from farming that includes expenses in an amount in excess of$2,000 related to the particular type of farming operation involved. No more than one application for the short term commercial agricultural program may be submitted without meeting the required minimum of$2,000 in annual gross income; The land is designated by County zoning district classification as agricultural, residential and agricultural, family agricultural. intensive agricultural, agricultural project district; and (3) The land dedicated for short term commercial 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 and have a minimum lot size per farm operation for that dedicated category of commercial activity as provided for in the administrative rules and regulations of the department. In the absence of complying with the minimum lot size for the applicable type of commercial farm operation, the applicant may demonstrate a commercial agricultural use by submission of the applicant's IRS form 1040 Schedule F (Profit and Loss from Farming) that includes annual gross income in an amount in excess of$2,000 as well as photographs and a description of the agricultural operation. 3 (b) The portion of land that is committed in short term commercial agricultural use shall be assessed at two times the dedicated agricultural use value as established by the director under this chapter. (c) Determining short term agricultural use value. (1) In determining the value of lands classified and used for short term commercial agriculture use, consideration shall be given to rent, productivity, nature of actual short term commercial agricultural use, the advantage or disadvantage of factors such as location, accessibility, transportation facilities, size, shape, topography, quality of soil. water privileges, availability of water and its cost, easements and appurtenances, and to the opinions of persons who may be considered to have special knowledge of land values. (2) Four general short term agricultural categories shall be used in determining the value of lands dedicated for short term commercial agriculture: (A) "Intensive agriculture," which includes such crops as vegetables, ginger, taro, herbs, nurseries, foliage, cut and potted flowers, piggeries, dairy,poultry, feedlots, aquaculture, honey and honeybees; (B) "Orchards," which includes such crops as macadamia nuts, guava, banana, papaya, avocado, grapes, passion fruit, coffee, citrus, cacao, pineapple and tropical specialty fruits; (C) "Feed crops and fast rotation forestry," which includes forage crops, seed crops, cane, short rotation forestry, biomass, grasses, and other similar types of crops and grasses; and (D) "Pasture and slow rotation forestry," which includes pasture and longer rated forestry. (3) Lands classified as tree farm property pursuant to chapter 186, Hawai`i Revised Statutes, shall be considered for classification and valuation as agricultural. (4) The portion of land that is not dedicated for short term commercial agriculture use shall be assessed based on the proportional market value of the total property. (5) A farm dwelling site shall be assessed at the highest short term commercial agricultural use value,provided that the maximum farm dwelling site area to be assessed at the highest short term commercial agriculture use value shall not exceed one-fourth acre. (d) Short term commercial agricultural use dedication petition. (1) If any owner desires to dedicate the owner's land for a short term commercial agricultural use and to have the land taxed as its assessed value in this use, the owner shall so petition the director and declare in the petition that the land can best be used for the purpose for which the owner requests permission and that if the petition is approved the land will be used for this purpose. The director may require evidence of short term commercial agricultural use in such form and at such times as provided for in the administrative rules and regulations of the department. (2) The director shall prescribe the form of thepetition. 4 (3) The petition shall be filed with the director by September 1 of any calendar year and shall be either approved or denied by December 15 of that same year. If approved, dedication shall be effective on July 1 of the following tax year. (4) The petition for short term commercial agricultural use dedication must be signed by all owners of the land for which the dedication is sought. (5) For the purposes of this section, a recorded lessee of the land with a term of three or more years remaining from the date of the petition and who is responsible for payment of the real property tax shall also be deemed an owner of the land. (6) Action by director on petition. (A) Upon receipt of a petition, the director shall make a finding of fact as to whether the land in the petition area is reasonably well suited for the intended use. The finding shall include and be based upon the productivity ratings of the land in those uses for which it is best suited, a study of the ownership, size of operating unit, the present use of surrounding similar lands, and other criteria as may be appropriate. fB) The director shall also make a finding of fact as to whether the intended use is in conflict with the overall development plan of the State and County; provided that for lands that are not classified by County zoning district regulations as agricultural, residential and agricultural, family agricultural, intensive agricultural, or agricultural project district, the director shall make further findings respecting the economic feasibility of the intended use of the land. (C) If all findings are favorable, the director shall approve the petition and declare the land to be dedicated as described within the petition. (D) In order to place prospective buyers on notice of the rollback liability, the petitioner shall record the dedication in accordance with the procedures of the bureau of conveyances within ninety days of notice of approval. (e) Approval by the director of the petition to dedicate shall constitute a forfeiture on the part of the owner of any right to change the use of the land to a use other than short term commercial agriculture for at least three years, unless otherwise provided by this chapter, subject to cancellation or renewal as follows: (1) At least one hundred eighty days prior to any cancellation or termination, the department shall notify the owner by mail of such cancellation or termination. The owner may apply for renewal of the dedication by filing an application with the director on or before September 1 of the last year of dedication. The renewal petition shall, in all respects, be processed similarly to an original petition. Upon approval by the director of succeeding dedications, the property shall continue to be assessed in accordance with the provisions of the dedication. 5 (2) In the case of a change in zoning district classification not as a result of a petition by any property owner or lessee such that the owner's land is placed within any zoned district other than a County zoned district of agricultural, residential and agricultural, family agricultural, intensive agricultural, or agricultural project district, the dedication may be cancelled by the owner within sixty days of the change in zoning district classification. (3) Upon any conveyance or any change in ownership during the period of dedication, the land shall continue to be subject to the terms and conditions of the dedication unless a release has been issued by the director. (D Reclassifying a designated short term commercial agricultural use. (1) If the owner desires to change from a specific short term commercial agricultural category to a different short term commercial agricultural category, the owner shall so petition the director and declare in the petition that: (A) The owner's land can best be used for a short term commercial agricultural activity other than that for which the petition was originally approved; and (B) The owner will use the land for that new short term commercial agricultural activity if the petition is approved. (2) If an owner is permitted to change the use as provided in this subsection, the owner shall be allowed up to twenty-four months from the effective date of the petition to convert to the new short term commercial agricultural category. This conversion must be completed prior to the end of the dedication period. (3) The petitioner shall submit a progress report of the petitioner's efforts to convert from one short term commercial agricultural category to a different short term commercial agricultural category to the director one year from the date that the petition to convert to a new short term commercial agricultural category was approved, and yearly, thereafter, as long as such conversion period remains. (4) If the owner fails to convert the property to its newly designated short term commercial agricultural category within the specified time limit, the owner shall be subject to the taxes and penalties provided in subsection(g). (5) Any other provision to the contrary notwithstanding, an approved change in use as provided in this subsection shall not alter the original dedication period. (g) Breach of dedication; rollback taxes; penalties and interest. (1) A rollback tax shall be imposed on the owner of short term commercial agricultural use dedicated lands upon any of the following: (A) Failure of the owner to observe any restriction, condition, or provision on the use of the land; or 6 (B) If the dedicated property or any portion thereof is sold by way of a conveyance which is subject to conveyance tax under the terms of chapter 247, Hawaii Revised Statutes, unless a notarized affidavit is signed by the owner stating that the land will continue to be subject to the full requirements of the dedication including any penalties for violation. The director shall record the notarized affidavit with the bureau of conveyances. (2) The rollback tax shall commence from the date of the failure to observe the restriction, condition or provision, or the property's conveyance retroactive to the date the assessment was made pursuant to paragraph (3)(C) of this subsection,but for not more than three years. (A) Failure to observe the restrictions on the use means failure for a period of six consecutive months to use the land in the manner requested in the petition or the overt act of changing the use for any period; provided that the petition by the owner for a change in use as provided in subsection (f), and the owner's subsequent change in use of such dedicated lands, shall not be deemed to constitute a failure of the owner to observe the restrictions on the use. (B) Any other provisions to the contrary notwithstanding, when a portion of the dedicated land is subsequently applied to a use other than the use set forth in the original petition,only such portion as is withdrawn from the dedicated use and applied to a use other than the short term commercial agricultural category shall be taxed as provided by this subsection. (3) Calculating rollback taxes. (A) The tax during the first three year dedicated agricultural use period shall commence from the date the conversion was made retroactive to the date the agricultural use period began. (B) Following the first three year dedicated agricultural use period, the rollback tax shall commence from the date the conversion was made retroactive to the date the current agricultural use period began. (C) The rollback tax shall be based on the difference between the assessed market value at highest and best use and the short term commercial agricultural use of the land at the rate applicable for the respective years. (D) All differences in the amount of taxes that were paid and those that would have been due from assessment in the higher use shall be due and payable with a ten percent penalty. (E) If the owner of dedicated land breaches a condition of the dedication before its completion, rollback taxes shall be imposed on the subject parcel from the end of the tax year in which the breach occurs retroactive to the date of dedication. 7 (F) In any case in which rollback taxes are imposed after successful completion of an agricultural dedication period, the rollback taxes shall be retroactive only to the end of the completed dedication period, and shall not be imposed for any time covered by a successfully completed agricultural dedication period. (4) The additional taxes and penalties due and owing shall be a paramount lien upon the property as provided for by this chapter. (h) The director may cancel a dedication without rollback taxes or penalties in the event of any of the following: (1) A recognized natural disaster; (2) The land can no longer be used for the dedicated agricultural use; or (3) The death or severe disability of the principal farmer such that the farm operation cannot continue: provided, however. that a corporation or a partnership shall not qualify as a principal farmer and shall not be exempt from rollback taxes or penalties under this subsection." 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. Severability. 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 its approval. INTRODUCED BY: COUNCIL ME ER, COUNTY OF HAWAII , Hawai`i Date of Introduction: Date of Pt Reading: Date of 2nd Reading: Effective Date: 8 REFERENCE ome. 923 C tT•'<v�M�i COUNTY OF HAWAII ,•W- !: STATE OF HAWAII 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)(l) 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)(1) of this section. (2) The deferred tax [shall] may commence from the date the conversion was made retroactive to the date the agricultural use assessment was [. :: : -:, :. . . . . . •- . - • .. .] 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: dOr ;"1.-.e171"--41- ti.(474.°14- COUNCIL MEMBER, COUNTY OF HAWAI`I , Hawai`i Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: REFERENCE Comm. 924 3 RP Form 19.60(Rev 0612014) '" TAX MAP KEY/PARCEL ID Dept of Finance ` ' ISLE Z S PLAT PARCEL CPR t1`�jc• 3 COUNTY OF HAWAII DEPARTMENT OF FINANCE REAL PROPERTY TAX DIVISION 101 Pauahi St., Ste. No.4, Hilo HI 96720 74-5044 Ane Keohokalole Hwy.,Bldg. D,2"d Flr., Kailua-Kona, HI 96740 Phone: (808)961-8354 Phone: (808)323-4881 PETITION TO DEDICATE LAND FOR AGRICULTURAL USE DEADLINE TO FILE IS SEPTEMBER 1ST (If approved,this will be effective the following July 1st) 1 OWNER'S NAME(S): 4. STATE OF HAWAII GENERAL EXCISE TAX LICENSE NO. 2. MAILING ADDRESS: Attach a copy of General Excise Tax License(Required) 5. Check County Zoning District 3. DAYTIME PHONE NUMBER: Agricultural Non-Agricultural 6. USE DEDICATED AREA UNUSED AREA WASTE AREA TOTALS PLOT PLAN: Please submit a sketch of your lot showing the locations and areas of each specific agricultural use type. Be sure to include the location of any homesite, unused and/or waste area. 7. COMPLETE THIS ITEM ONLY IF PETITIONER'S LAND IS LEASED. a. Lessor's name and mailing address: b. Term of lease(years): c. Expiration of lease: c. Is lease recorded at the Bureau of Conveyances? Yes No If no,please submit a copy of lease 8. COMPLETE THIS ITEM ONLY IF YOU ARE CHANGING USE. With this section completed you are hereby petitioning to change use pursuant to Section 19-60(1). Petition No. Year of Original Dedication _ Existing Use Dedicated Area New Use New Area To facilitate investigation of this petition, I hereby grant right of entry to land described above and will provide any documents as required by the Hawaii County Code. I hereby declare that my land can be best used for the foregoing purposed or changes and if this petition is approved, I will use my land for such purposes, and in accordance with Section 19-60, Hawaii County Code. I understand that failure to observe the restrictions of the use of this land shall cancel the dedication and special tax assessment privilege pursuant to Section 19-60(g)(3), and additional taxes and penalties, due and owing as a result of a breach of the dedication shall be a paramount lien upon the property pursuant to Section 19-37, Hawaii County Code. Signature of Owner/Lessee/Agent Date FOR TAX OFFICE USE ONLY Date Received: Signature of Owner/Lessee/Agent Date By: Petition No. Effec.Date Signature of Lessor(if leasehold) Date Hawai'I Couniv is an Equal Opportunity Provider and Employer Ag Dedication Handout Revised 11-2011 AGRICULTURAL USE DEDICATION HANDOUT County of Hawaii, Finance Department, Real Property Tax Division 101 Pauahi St., Suite 4, Hilo Hawaii 96720 74-5044 Ane Keohokalole Hwy., Bldg D, 2nd Flr., Kailua-Kona, HI 96740 (808) 961-8354(Hilo) (808) 323-4881 (Kona) This handout is designed to assist property owners in the County of Hawaii by providing an explanation of the agricultural use dedication program. This was designed to encourage the commercial agricultural use of land on a long term basis by offering lower assessments which in turn will reduce the real property tax burden on the farmer or rancher. The information contained in this handout is just general information and any prospective property owner should contact the Real Property Tax Division for additional information. The information is also subject to change based on ordinances adopted by the County Council, policies adopted by the Finance Department, and legal opinions from the Office of the Corporation Counsel. THE LAW Dedications are provided by Section 19-60, Article 8, Chapter 19, of the Hawaii County Code, as amended. The term of the dedication is 10 years, with special provisions for leases with less than 10 years remaining, but a minimum of 5 years remaining. The dedicated land will be assessed based on its actual commercial agricultural use, versus its market value. COMMERCIAL AGRICULTURAL USE The term "commercial agricultural use" means that the land is being used on a continuous and regular basis for agricultural activities with the purpose of generating income, monetary gain, or economic benefit in the form of money. The minimum annual gross income per farm operation shall be$2,000. The operation may include multiple parcels that need not be contiguous. The use of the property must adhere to generally acceptable standards or recognized practices within the agricultural industry in Hawaii. The pasturing and grazing of animals is not an allowable agricultural use on a parcel not County-zoned for agricultural use. FILING REQUIREMENTS An owner who desires to dedicate a parcel to an agricultural use must submit a petition to dedicate by September 1 of any calendar year. The dedication petitions are available at the Real Property Tax offices in Hilo and Kona, and on our website: www.hawaiipropertvtax.com. The petition must be complete and have the signatures of all owners, and the lessor if required. OWNERS DEFINED Owners of property include the fee simple owners or lessees of property, provided that the unexpired term of the lease as of the effective date is a minimum of 5 years. In the case of a lease with less than 10 years, but at least 5 years, remaining, the term of the dedication will be the remaining term of the lease. Ag Dedication Handout Revised 11-2011 NOTICE OF APPROVAL OR DISAPPROVAL Notice of the approval or disapproval of each petition will be made on, or before, December 15`h. With the notice of approval will be a request for the submittal of the recording fee(the amount is set by State law). Failure to pay the recording fee will result in the disapproval of the petition to dedicate. If approved, the dedication shall be effective on July I"of the next calendar year, which is the start of the next assessment year. RECORDATION OF THE DEDICATION As stated above, the Notice of Dedication is required to be recorded at the Bureau of Conveyances or the Land Court. The County will prepare and record the dedication upon receipt of the required recording fee. A copy of the recorded dedication will be mailed to the petitioner upon its return from the Bureau. RENEWAL OF DEDICATION At the end of the dedication the owner must submit a new petition to re-dedicate. The Real Property Tax Division will attempt to notify each owner approximately 180 days prior to the expiration date of the dedication. The renewal petition has the same September 1st deadline and will be handled in the same manner as a new petition. CONTINUATION OF DEDICATIONS In the event that a dedicated parcel is sold prior to its expiration date, the new owner can submit an affidavit to continue the dedication for its remaining term. A recording fee along with this notarized affidavit is required, as this continuation also must be recorded in the Bureau or Land Court. Failure to submit a continuation of the dedication is a breach and rollback taxes could be assessed. ROLLBACK TAXES Any violation in the terms and conditions of the dedication will be considered a breach and could result in the imposition of rollback taxes and a penalty. The rollback taxes will be based on the difference in taxes that were assessed and which would have been calculated based on the market value. Any rollback tax and penalty assessed becomes a paramount lien on the parcel. CHANGE OF AGRICULTURAL USE If the owner of a dedicated parcel wishes to change the agricultural use, they will need to submit a new petition to dedicate. If the new use is approved, the new petition will be handled in the same manner as an original or a renewal petition. The change will be for the balance of the existing dedication. Forms are available at either of the Real Property Tax Offices in Hilo and Kona, or can be downloaded from our website: www.hawaiiiropertytax.com. TAX MAP KEY/PARCEL ID RP Form 19-57(Rev 02/2011) ISLE Z S PLAT PARCEL CPR Dept.of Finance 3 COUNTY OF HAWAII DEPARTMENT OF FINANCE REAL PROPERTY TAX DIVISION East Hawaii(Hilo)Office West Hawaii (Kona)Office 101 Pauahi St., Suite 4, Hilo, HI 96720 74-5044 Ane Keohokalole Hwy, Kailua-Kona, HI 96740 Phone No. (808)961-8354 Phone No. (808)323-4881 NON-DEDICATED AGRICULTURAL USE APPLICATION DEADLINE TO FILE IS DECEMBER 31st (If approved this will be effective the fctow;ng July listl ONLY FOR PARCELS WITH COUNTY AGRICULTURAL USE ZONING Owner's Names Signatures Mailing Address (All Owners must be listed and must sign this application) Daytime Application Telephone Number: Date: USE TYPE AREA (in acres), Homesite(if any) Specify Ag Use Specify Ag Use — Specify Ag Use Specify Ag Use Unused Area (if any) Waste(if any) Total Area (should equal parcel size) Pursuant to Chapter 19-57(d)a deferred or roll back tax shall be imposed on the owner of the agricultural land upon any of the following events: A) Conversion by the owner/lessee to any County zoned district other than agriculture, residential agriculture, intensive agriculture, or agricultural project district. B)The property is subdivided into parcels of less than five acres. C)A condominium property regime is declared having units with an area equivalent to less than five acres. The deferred tax shall commence from the date of conversion to the start of the agricultural use assessment, but for not more than a period of two years plus the current year. The amount of deferred taxes shall be based on the difference between the assessed market value and the assessed agricultural use value at the applicable annual tax rates, along with a ten percent penalty. PLOT PLAN: Please use the back of this form to sketch your lot showing the locations and areas of each specific use type. Be sure to include the location of any homesite and/or waste areas. For Tax Office Use Only: Date Received: Received By: Hcnrci`i County is an Equal Oppartuniti Provider and Employer RP 19-57 Information, Revised 02 2011 Non-Dedicated Agricultural Use This program is designed to encourage owners of parcels, situated within County zoned agricultural districts and suitable for agriculture, to use the land for agricultural uses on a continuous and regular basis, and to discourage the conversion of such parcels to other uses, such as the subdivision to parcels of less than a reasonable economic size. Parcels, or portions thereof, in this program shall be assessed based on their agricultural use without regard to its market value or neighboring land values. To qualify for this program the owner(s) must submit an application (RP Form 19-57) on, or before December 315t for the subsequent tax year beginning July 1st (all owners must sign the application). The land must be in agricultural use as defined below. This is a year-to-year program, but annual applications are not required. You are required to notify the Real Property Tax Office in writing of any changes in your original application. This can be accomplished by filing a new application. Definitions: Agricultural Use: Continuous and regular use of land for intensive agriculture, aquaculture, orchards, feed crops, forestry or pasture on parcels zoned by the County to be in the districts of agriculture, residential & agriculture, family agriculture, intensive agriculture, or agricultural project district. The term `agricultural use' does not include nor apply to areas used primarily as farm dwelling sites, such as, but not limited to, yard space, setbacks, or open landscape associated with residential use planted with fruit and ornamental tress, flowers, and vegetables primarily for home use or recreation. Pasture: The area must be enclosed with perimeter fencing, or another barricade, sufficient to restrain freely grazing animals. Agricultural Use Assessment: All portions of the parcel classified and used for non- dedicated agricultural use as of the January 15t assessment date shall be assessed at two times the commercial dedicated agricultural use value. Other Information: 1. The agricultural use can be terminated at any time by written notice to the Real Property Tax Office. If an inspection by the County shows that the use has been terminated, a written notice of termination will be sent to the address of record. 2. Rollback taxes will be assessed if the parcel is subdivided, or put into a condominium regime, where the lot or unit size is less than 5 acres. Rollback taxes will also be assessed if the parcel is re-zoned to something other than the allowable agricultural use classifications. Hawaii County is an Equal Opporunity Provider and Employer