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Home My WebLink AboutCOM 1072.002 2016-2018 Eileen O'Hara OF Phone: (808) 965-2712 h Council Member -c,° �•`�• •. Fax: (808) 961-8912 Council District 4 ��'�''�� Email: eileen.ohara@hawaiicounty.gov •�k . 4,W•� Chair: Environmental • -= -==_-TR Vice Chair: Planning Committee and r,•,• ••;,--:•.°•;;,•P A Agriculture, Water& Management Committee E•6i %4•• ::- g Energy Sustainability Committee County of Hawaii Hawaii County Council 25 Aupuni Street, Suite 1402 • Hilo,Hawaii 96720 n 0n DATE: October 16, 2018 --<--4 TO: • Valerie T. Poindexter, Chair -- Hawai`i County Council m FROM: .` Eileen O'Hara, Council Member Hawai`i County Council SUBJECT: Proposed Amendment to Resolution No. 690-18; A Resolution Requesting An Amnesty Period From January 2019 Through The End Of Fiscal Year 2019-2020, During Which Time Real Property Tax Rates For Properties Zoned Commercial Where A Legal Business Operates Or Plans To Operate In Pahoa And Volcano Village, That Continue To Be Negatively Impacted By The 2018 Lava Event, Shall Be Assessed At The Minimum Tax Rate. Please see below proposed amendments to Resolution No. 690-18. The proposed amendments are shown in Ramseyer format with respect to the contents of Resolution No. 690-18; material to be deleted is bracketed and stricken and material to be added is underscored. 1. The title of the resolution is amended to read as follows: "A RESOLUTION REQUESTING AN AMNESTY PERIOD FROM JANUARY 1 2019, THROUGH [THE END OF FISCAL YEAR 2019 2020] JUNE 30, 2019, DURING WHICH TIME REAL PROPERTY TAX RATES FOR PROPERTIES ZONED COMMERCIAL WHERE A LEGAL BUSINESS [OPERATES] OPERATED OR [PLANS] PLANNED TO OPERATE IN PAHOA AND VOLCANO VILLAGE, THAT [CONTINUE] WAS OR CONTINUES TO BE NEGATIVELY IMPACTED BY THE 2018 LAVA EVENT, SHALL BE ASSESSED AT THE MINIMUM TAX RATE." Comm. No. 1012.2 4(0.14: P rA2WA�� Rod. bald OCT 1 7 201R Hawai`i County is an Equal Opportunity Provider and Employer. 2. The enacting clause of the resolution is amended to read as follows: "BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that an amnesty period on assessing commercial real property taxes shall be applied to take effect [ii] on January 1 2019 and continue [throughout Fiscal Year 2019. 2020] through June 30, 2019, such that all commercial businesses in the areas described above shall pay the minimum tax rate during this period." For illustrative purposes, a copy of the draft resolution that would result if these proposed amendments were adopted is attached with the amendments incorporated therein. EO:eo Att. A RESOLUTION REQUESTING AN AMNESTY ER IOD FROM JANUARY 1,2019, THROUGH JUNE 30,2019,DURING WHICH TIME REAL PROPERTY TAX RATES FOR PROPERTIES ZONED COMMERCIAL WHERE A LEGAL BUSINESS OPERATED OR PLANNED TO OPERATE IN PAHOA AND VOLCANO VILLAGE, THAT WAS OR CONTINUES TO BE NEGATIVELY IMPACTED BY THE 2018 LAVA EVENT, SHALL BE ASSESSED AT THE MINIMUM TAX RATE. WHEREAS, small businesses located on commercially zoned properties in Pahoa and Volcano Village have asserted through business organizations such as the Mainstreet Pahoa Association to have sustained economic losses of between 40-80 percent of their revenues since the May 3, 2018 lava event, and continue to report losses due to a drop in population and a drop in visitor arrivals; and WHEREAS, the cost of paying commercial property taxes during this time of economic stress may cause some small businesses to close; and WHEREAS,the County administration has within its authority,the means to alleviate some of the financial burdens on these small businesses by implementing a temporary amnesty period on the assessments of commercial real property taxes in the areas identified in this resolution, and levy the minimum tax rates to all that qualify; and WHEREAS, this amnesty period on real property taxes shall apply to all properties with commercial zoning where a legal business operates or plans to operate on either side of the Highway 130 bypass from the northerly point of the Pahoa Police Station to the southerly end of the Pahoa High School property including all commercially zoned properties in Pahoa town, and all commercially zoned properties where a legal business operates or intends to operate in Volcano Village; now,therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that an amnesty period on assessing commercial real property taxes shall be applied to take effect on January 1, 2019, and continue through June 30, 2019, such that all commercial businesses in the areas described above shall pay the minimum tax rate during this period. BET I FURTHER RESOLVED that the Real Property Tax division consider utilizing alternative assessment methods provided in Chapter 19_Section 53 (a) of the Hawai`i County Code, such as cost or income basis,when preparing assessments for property that sustains economic losses or general use of the property is negated due to natural and/or man-made disasters. BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this resolution to the Finance.Director and to the Honorable Harry Kim,Mayor.