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TAX BOARD OF REVIEW
County of Hawaii ,
101 Pauahi Street, Suite 4 --
Hilo,Hawaii 96720-4224
December 1, 2017
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 • . it -•
Donald David
Chairman
/enclosure
cc: Deanna Sako, Director of Finance
am No, (0G7
Ref. To:
Ref. Date DEC 2 2 201 '.
/0777-?-!. �l J•,
• ,tE OFNr�-
Harry Kim County of Hawaii Deanna S. Sako
Mayor Finance Director
DEPARTMENT OF FINANCE-REAL PROPERTY TAX
Aupuni Center • 101 Pauahi Street • Suite 4 • Hilo_Hawaii 96720-4679 • Fax(808)961-8415
Appraisers(808)961-8354 • Clerical(808)961-8201 • Collections(808)961-8282
West Hawai`i Civic Center • 74-5044 Me Keohokalole Hwy. • Bldg.D,2nd Flr. • Kailua Kona,Hawai`i 96740
Fax(808)327-3538 • Appraisers(808)323-4881 • Clerical(808)323-4880•
Website:www.hawaiipropertytax.com
REAL PROPERTY TAX BOARD OF REVIEW
2017 ANNUAL REPORT
December 1 , 2017
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 2017-2018 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
Melvin Ventura
Emygrace Reinhard
Michael Hughes
Note: Michael Hughes was appointed by the Mayor in July 2017 and later confirmed by
the County Council to fill the vacant seat, however, due to the late appointment and the
number of meetings that were held he was not able to participate in any of the meetings
for the year.
Board Membership
The following is a list of the Board members and when their term ends:
Board Member Term Ends - December 31,
Donald David 2017
Melvin Ventura 2018
Wesley Takai 2019
Emygrace Reinhard 2020
Michael Hughes 2021
Hawai`i County is an Equal Opportunity Provider and Employer
2017 Tax Board of Review Annual Report 2
Activities
Organizational Meeting
The annual organizational meeting of the Board was scheduled for March 1, 2017, and
rescheduled to March 29, 2017, due to lack of quorum. The meeting was held 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.
The annual workshop date and place was set and there was a general legal discussion of
Chapter 19. Real Property Tax Administrator Stanley Sitko was also in attendance and
provided comments as well as updates on state bills relating to assessments that was
pending before the House and Senate.
2017 Board of Review Statewide Conference
The 2017 Board of Review Statewide Conference was held on May 23, 2017 at the
Honolulu International Airport Interisland Terminal Conference Rooms on Oahu. There
were approximately 90 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 effects of zoning on classification and valuation in real property tax ordinances,
competent appraisers and County property tax relief programs. City and County of
Honolulu's Mayor, Kirk Caldwell, and Maui's Mayor, Alan Arakawa, were 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, Board Clerks, Appraisers, Support Services and
Treasury/Tax Relief/Collections. A question and answer open discussion forum was also
held. The location of the conference worked well and very convenient for those traveling
from outer islands. The coordinators provided a great conference for the attendees.
Workshop
A workshop was held on June 8, 2017, at the Aupuni Center Conference Room in Hilo
with Board Members, Real Property Tax Office Administration, Appraisal Supervisor,
Appraiser V (Commercial Appraisers), Valuation Analyst and support staff in attendance.
Also present were Finance Director Collins Tomei, Deputy Director Deanna Sako, and
Deputies Corporation Counsel Craig Masuda and J Yoshimoto.
Opening remarks were provided by Mr. Tomei and Mr. Sitko. Mr. Masuda did a
presentation on the Role of the Board of Review. Various Real Property Tax staff
presented information on the sales ratio analysis, update on geographical information
systems (GIS), training provided for appraisers and legislative changes. Mrs. Miura also
provided information on the new and upcoming changes for the division. The Board was
provided the opportunity to present questions to the tax office personnel and
2017 Tax Board of Review Annual Report 3
administration. The workshop continues to be a very beneficial and worthwhile session to
the Board.
Appeal Hearings
One hundred ninety-five (195) appeals, which included 76 from East Hawaii and 119 from
West Hawaii, plus appeals from amended assessment notices, were scheduled for
hearing this tax year for a combined total of$326,450,500 disputed. This is a decrease
from 399 cases in the previous tax year. There were two (2) sessions held in East Hawaii
(August 8, 9) and four (4) sessions held in West Hawaii (July 25, 26; August 29, 30). In
2008, an all-time high of 1,516 cases were adjudicated by the Board across 22 sessions.
Complaint Hearing
As required by Chapter 19-97(e), a notice was published on September 3, 2017,
specifying a period (September 5 — 18, 2017) within which complaints may be filed by a
taxpayer.
One complaint was filed. The reason for the complaint was the lack of an assessed
building value on the neighboring parcel. The Board heard the complaint on October 11,
2017, at 10:00 a.m., and is attaching a copy of the complaint hereto as Exhibit A.
Comments and Recommendations
Administrative Matters
1. 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.
2. 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.
3. 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.
2017 Tax Board of Review Annual Report 4
4. 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.
5. 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.
6. The Board recommends that they be accompanied by both Corporation Counsel and
the Board Clerk to all conferences, workshops, meetings and other related matters.
7. 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.
8. 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.
9. 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.
10. The Board commends the division for their effort to review the enforcement of the
exemption program by expanding their options to verify the claimant's eligibility and to
understand the owner's possible financial consequences of the disallowance of an
exemption, especially one in the homeowner's classification with the three percent
(3%) growth cap.
11. The Board commends the division for their effort to enforce both the exemption and
agricultural use programs as recommended in the 2012 IAAO audit.
12. The Board appreciates the effort by the appraisal staff in settling a number of appeals
which reduced the hearing time of each scheduled day. It is recommended that each
of the settlements be reviewed for next year's assessment to determine what effect, if
any, the settlement has to similar properties within the appealed parcel's
neighborhood.
13. On the proposed settlement letters between the division and the taxpayers, the Board
recommends that the land classification also be included along with the settlement
values and exemptions.
2017 Tax Board of Review Annual Report 5
Legislative Matters ,
1. The Board again recommends 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.
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 continue to recommend that Section 19-53(e)(2)(A) be amended to include
in the homeowner's class an owner/occupied property used for care giving and/or care
home.
3. The Board strongly recommends that the current code be amended to change the
current $50.00 appeal filing fee to be non-refundable.
Close
Chairman's Comments
After five years on the Board, three as Chair, I gained an understanding of how competent
and professional the staff and administration of the Real Property Tax Division are. They
should be commended for balancing the needs of the County and property owners.
. 2017 Tax Board of Review Annual Report 6
Submitted by Members of the Tax Board of Review:
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Donald—David Wesley Takai
Chairma Vice-Chairman
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MeV in Ventura w mygrace Reinhard
Member Member
(Pending Oath of Office)
Michael Hughes
Member
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i Recent Sales in Area Previous Parcel i Next Parcel i Return to Main Soh Page 1 Hawaii Home , Real Property Home
I Owner and Parcel Information
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1' LATHAM,AP9..R W' Fee Owner,JointTenancy iI
Owner Name [LfiTHAM,f C Rlhltl JOY Fee Owner ;Today's Date i September 10,2017 i
I IPCSBOX1313 n= i
;Mailing Address iAS'AAU,HI 56755=1393 [Parcel Number 56002015.000
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1Location Address 1 56-2878 HALEAKALA VIEW PLACE Project Name
!Property Class 1 AGRICULTURAL ;Parcel Map '9;v Patt#�lap I
Plat TMi( Maas,
INeighbarhaad Code £5651-5 [Land Area(acres) i 10
[Legal Information I LOT 218 1.515 AC LOT 248 2.961.AC MAP 37 LCAPP 1120 Land Area(approximate sq ft) l 435,600
Assessment Information Show Historical_AsseEmPnts
i Market i € Net Taxable Market ! Assessed € Net Taxable [ Total
I Year
Property 1 Land Dedicated Land •Land . ; Building Building i Budding Building I Taxable I
Class I Use Value I Exemption Value ! Value Value s Exemption Value Value 1
Value { ,e<...-.. -ro
2017 2 AGRICULTURAL I $312,000 i $4,200 $0 $4,200 § $0 s $0 $0 I $0 _ $4,200
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Appeal Information
parcel. i
{Io appeal information on
1Land Information
Property Class Square Footagea Acreage Agricultural Usage
AGRICULTURAL 1 435,600 10 Yes
Agricultural Assessment Information
1� Acres in Production Agricultural Type , Agricultural Value !
10 SolliB Use.A X4,200
i This parcel:has land in agricultural usage and therefore agricultural usage assessments have been made.
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Improvement Information
I No improvement information available for this parcel.
Other Building and Yard Improvements
Description i quantity Year Built 1 Area Gross Building Value
i No information associated with this parcel.
3 Permit Information
Dateg Permit Number Reason Permit Amount
€ 04/04/2012 I 02012-0338K ` i $1,000
i 01/1112011 1 82011-00191£ I)t1G 680,909
Dept of Public Works Bldg Division Permit and Inspections Information i
Permit I Permit Permit Permit i Permit Description i Estimated Inspection Inspection
i Date Type Number Reason ; 1 Cost Date Status I
1 �F i� NEW DWELLING WITH COURTYARD,LIVING ROOF'€,DINING,KITCHEN, i —
14K 4- I MINE ROOM,PANTRY,MASTER BEDROOM,STUDY/BEDROOM,STUDY,3 1
$09/23/2014 Plumbing • -, New I BATHROOMS,POWDER ROOM,COVERED LANAIS,2 CAR GARAGE WITH ', $4,000 ,03124/2017 COMPLETED D [
90565 i INTERIOR ERIOR STAIR TO UPPER LEVEL.EL UPPER LEVEL OF GARAGE WITH
RECREATION ROOM W
ENCLOSE 154 S.F.OF OPEN LANAI FOR STUDY/BEDROOM, <" -
04/04/2012 Building 6Z012
Alteration on ALTERA'i IONS/CtHANGES OF WINDOWS,DOORS AND WALLS TO 1 $1,000
0338K DWELLING UNDER CONSTRUCTION-02011-0019K. 1
NEW DWELLING WITH COURTYARD,LIVING ROOM,DINING,KIR:11EN, f 1
1 WINE ROOM,PANTRY,MASTER BEDROOM,STUDY/BEDROOM,STUDY,3 1
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BATHROOMS,POWDER ROOM,COVERED LANAIS,2 CAR GARAGE WITH
103122/2011 Electrical 1 E421K- New INTERIOR STAIR TO UPPER LEVEL.UPPER LEVEL OF GARAGE WITH I $30,000 06/0912016 3 COMPLETED I
RECREATION ROOM WITH BAR SINK,BATHROOM,BEDROOM,LANAI. 5
SWIMMING POOL BY SEPARATE PERMIT,SOLAR WA1 R HEATING SYSTEM
i l Viral PANELS ON ROOF. 1
.. NEW DWELLING WITH COURTYARD,LIVING ROOM,DINING,KITCHEN, - 3
WINE ROOM,PANTRY,MASTER BEDROOM,STUDY/BEDROOM,STUDY,3 1 l
1 1 1 BATHROOMS,POWDER ROOM,COVERED LANAIS,2 CAR GARAGE WITH t
'01/1.112011 [[ Building p'21T11 1 New INTERIOR STAIR TO UPPER LEVEL.UPPER LEVEL OF GARAGE WITH $680,000 i ?
I I i 0019K i RECREATION ROOM WITH BAR SINK,BATHROOM,BEDROOM,LANAI.
€ SWIMMING POOL BY SEPARATE PERMIT.SOLAR WATER HEATING SYSTEM!
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Page2of2.
As a courtesy to the public,we provide budding permit data as supplied by the Department of Public Works.As such,no warranties,
expressed or implied,are provided for the data herein,its use or its interpretation,and accuracy. __.
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Sales Information
Sale Instrument 1 Instrument € Instrument bate of Land Court
Conveyance Document ..
Document Cert# Book/Page= €
Sale Date Amount f# Type ; Description ! Recording Tax Type
Number
4612512008 : $1,994 0 10550 FEE './arranty Decd . 0613012098 1 3764265 913527 1 5 Warrantyi CONVEYANCE
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FEE a •
« -Warranty
'06/20/2008 $640,000 08-105505 < Warranty Deed 06/30/2008 ; 3764266 ;9135-3 16100
CONVEYANCE
Deed 1
i Quitclaim 08/22/2007 £ $1,00[3 07-9,54550 FEE Quitclaim deed : 08129/29437 3648413 874371 : 1 daeece
CONVEYANCE ... ..,
FEE i Warranty
04/05/2007 i$650,00€9 07-065594 > € 'Warranty Deed ? 04/12/2007 1 3587052 853611 1300 Deed
= CONVEYANCE €
Warranty
01/0812004 1$387,500: 04-02411.1 FEE E Warranty Deed 02/05/2004 3064759 1683528 3$7 5 Geed
CONVEYANCE
M,
Route 04/17/2003 $0 OTHERRoute Slip 1 04/17/2003 Slip
109/19/2002 0 1 02-198224 ? r,CiNVEYlANCE 1 Deed 11/06/2002 1 2857974 1627536€ 0 I Deed
1
€05/03/1997 1$290,000 9700068612 ` FEE , Warranty .
Deed 05/27/1997 2382754 1492253 230 00 i Warranty CONVEYANCE
'04/07/1397 1 $0 0000049990 f i04/09/1997 . i 127382 314906:
FEE
102/20/1997 1 0 19700045372 CONVEYANCE ; 2374746 1490094 0.00
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06/0911988 ;$385,000,880008981�3 1 FEf Deed 06/24/1988 1559657 ;314906 r 22072/669 '_:, 19:2,50 Deed =
CONVEYANCE €
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Current Tax Bill Information 7016 Tax Payments Show Historical Taxes
Original II Taxes 1 Tax E Net i Amount
Tax PeriodE Description Penalty = Interest Other € Dire
: Clue Date Assessment Credits Tax „_
20171 I Real Property Tax i 08/21/2017 3 $0,00 1 $0.00 1 $100.00 $10.00 i $1.10 i $0.00 1 $111.10
2017-2 Real Property Tax 1 02/20/2018 $0.00 $0.00 1 $100.00 1 $000 1 $0.00 1 $0,00 ' $100,00
11$211.10
Tax bill is computed to 09/30/2017 Or pay online at httpilloavments ehawaii oov/propertvtax/hawaii Other Payment Optian5 Click Here
Recent Sales in Area I Previous Parcel f4e$t Parcel i Return to Main Search Page Hawaii Homg Real Property Houle
iThe Hawaii County Tax Assessor's Office makes every effort to produce the most accurate information possible,No warranties,expressed or implied,are provided a
::foor the data herein,its use or interpretation.Website Updated:September 15,2017 i
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