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HomeMy WebLinkAboutCOM 0146.000 2016-2018 COUNTY CLERK 'o:'• COUNTY OF HAWAI'I RECEIVED :.r ��:•' Time 10 3'1 a wl By Dated 4 27— 'oi'N►' TAX BOARD OF REVIEW County of Hawaii 101 Pauahi Street, Suite 4 Hilo, Hawaii 96720-4224 December 21, 2016 The Honorable Harry Kim, Mayor County of Hawaii 25 Aupuni Street Hilo, Hawaii 96720 The Honorable Valerie Poindexter and Members of the County Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 Dear Mayor Kim, Chairman Poindexter and Members of the County Council: Pursuant to Chapter 19 of the Hawaii County Code, enclosed please find the 2016 Annual Report of the Real Property Tax Board of Review. Thank you for your time. Respectfully submitted, 41Z-411."0 D•nald David Chairman /enclosure ( , OP cc: Collins Tomei, Director of Finance m.No. (0, Ref.To: Ref.Date -. t _� William P.Kenoi -.;t1-tf!'.. Deanna S. Sako Mayor Ma y �,Ie Finance Director • Lisa K.Miura •, :: f � 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 IIawai`i Civic Center • 74-5044 Ane Keohokalole Hwy. • Bldg.D,2nd Flr. • Kailua Kona,IIawai`i 96740 Fax(808)327-3538 • Appraisers(808)323-4881 • Clerical(808)323-4880• Website:www.hawaiipropertytax.corn REAL PROPERTY TAX BOARD OF REVIEW 2016 ANNUAL REPORT December 15, 2016 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 2016-2017 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 Richard Dinges Melvin Ventura Emygrace Reinhard 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 December with two nights away from home or the office. Hawai`i County is an Equal Opportunity Provider and Employer 2016 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, Richard Dinges 2016 Donald David 2017 Melvin Ventura 2018 Wesley Takai 2019 Emygrace Reinhard 2020 Activities Organizational Meeting The annual organizational meeting of the Board was held on March 2, 2016, 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. Donald David was re-elected as Chairperson and Wesley Takai as Vice-Chair. A tentative workshop date and place were also set and there was a general legal discussion of Chapter 19. There were no discussions of any bills relating to assessments. Real Property Tax Administrator Stanley Sitko was also in attendance and provided comments. 2016 Board of Review Statewide Conference The 2016 Board of Review Statewide Conference was held on May 26, 2016 at the Honolulu International Airport Interisland Terminal Conference Rooms on Oahu. There were approximately 120 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. Topics presented and discussed were statistical comparison of appeal data and case studies on Tax Appeal Court decisions. City and County of Honolulu's Managing Director, Roy Amemiya Jr., was also in attendance and provided remarks. 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 location of the conference worked well especially for those traveling from outer islands. The coordinators organized a great conference. 2016 Tax Board of Review Annual Report 3 Workshop A workshop was held on June 23, 2016, 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. Opening remarks were provided by Mrs. Sako and Mr. Sitko. Ms. Hall 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 commercial properties, 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. The workshop continues to be very beneficial to the Board. Appeal Hearings Three hundred ninety-nine (399) appeals, which included 182 from East Hawaii and 217 from West Hawaii, plus appeals from amended assessment notices, were scheduled for hearing this tax year. This is an increase from 233 cases in the previous tax year. There were five (5) sessions held in East Hawaii (July 12, 13; August 16, 17; and September 13) and six (6) sessions held in West Hawaii (August 23, 24; September 20, 21; and October 18, 19). Complaint Hearing As required by Chapter 19-97(e), a notice was published on September 4, 2016, specifying a period (September 6 — 19, 2016) within which complaints may be filed by a taxpayer. No complaints were filed. The complaint hearing was held on October 19, 2016, at 1:30 p.m. Comments and Recommendations Administrative Matters 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 2016 Tax Board of Review Annual Report 4 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. 5. The Board recommends that they be accompanied by both Corporation Counsel and the Board Clerk to all conferences, workshops, meetings and other related matters. 6. The Board appreciates the impromptu training sessions conducted by Corporation Counsel and the Real Property Tax division. 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. 7. The Board recommends that additional one-on-one training be provided by the division and Corporation Counsel for the newest appointed member. This training session should include basic information on programs, appeal procedures and the specifications of their role as a member. 8. The public has a misconception that the Real Property Tax division sets the tax rates and the Board recommends that the County continue to provide outreach interaction to dispel this. 9. The Board recommends that the department improve its procedures on disallowances of exemptions previously held by taxpayers. All disallowances should be sent via certified mail. If mail has been returned for any reason, other reasonable measures should be taken to verify addresses and/or occupancy, including site visits. 10. The Board commends the division for their effort to enforce both the exemption and agricultural use programs as recommended in the 2012 IAAO audit, even with the number of appeals for disallowance of exemptions and agricultural use that were presented this year. Legislative Matters 1. 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 2016 Tax Board of Review Annual Report 5 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. 2. 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. 3. The Board recommends that the current code be amended to change the current $50.00 appeal filing fee to be non-refundable. Close Chairman's Comments I wanted to thank Richard Dinges for his service as his term ends. We will miss his professional and competent contributions along with his humor and personality. Thank you to Deputy Corporation Counsel Belinda Castillo Hall for the guidance that she provided to the Board. Also to the Real Property Tax Division for the competent and professional service provided by their staff and administration. Board Clerk Elizabeth `Nina' Swain coordinated our meetings impeccably, Administrator Stan Sitko, Acting Assistant Administrator Keita Jo and their staff provided us with professional, detailed, thorough and consistent information which all contributed to the Board making an informed decision for each appeal case presented. 2016 Tax Board of Review Annual Report 6 Submitted by Members of the Tax Board of Review: A„, -0 -,,:',. �� A 3Zfiel,c, Do 'Id 1 Wesley Ta ai Chairman Vice- airman (<1,) /, tk Of‘L' ,f, :1)/Arr. Richard Dinges elvin Ventura Member Member 41-------- Enygrace Reinhard ember