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HomeMy WebLinkAboutRES 690 Draft 02 2016-2018 Hawaii County Council-51 October 17,2018 Res. 690-18: REQUESTS 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 Requests relief from the full assessment of real property taxes as a means to support businesses that report substantial financial losses due to the recent volcanic activity. Reference: Comm. 1072 Intr. by: Ms. O'Hara Negative: FC-142 (Due to a vote of 1-aye, 7-noes, 1-absent) AMENDED TO DRAFT 2 AND FAILED: Ayes: Council Member O'Hara— 1. Noes: Council Members Chung, David, Kanuha, Lee Loy, Poindexter, Richards, and Acting Chair Eoff—7. Absent: Council Member Ruggles — 1. Excused: None. Page 4 -,,-0;;;Oi N, .' r COUNTY OF HAWAII +„��_" VII. STATE OF HAWAII i;.1,OF::-0 RESOLUTION NO. 690 18 (DRAFT 2) A RESOLUTION REQUESTING AN AMNESTY PERIOD 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. BE IT 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. Dated at , Hawai`i, this _day of , 20 . INTRODUCED BY: drid COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawai`i CHUNG X DAVID X I hereby certify that the foregoing RESOLUTION was by EOFF X the vote indicated to the right hereof adopted by the COUNCIL of the K 1NUHA X County of Hawaii on LEE LOY X O'HARA X ATTEST: POINDEXTER X RICHARDS X RUGGLES X --- 1 7 1 0 Reference: C-1072.6/FC COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER RESOLUTION NO. 69A _4X18 F r (DRA 2