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Home My WebLink AboutCOM 0604.001 2014-2016 ri William P. Kenoi •**t,Iyr 14it;, Deanna S. Sako Mayor �'. Director • •'11• •••"?,••• Lisa K.Miura -_mer Depu!,Director • County of Hawaii Finance Department 25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720 (808)961-8234 • Fax(808)961-8569 July 15, 2016 F, Karen Eoff, Finance Chair and Members of the Committee on Finance Hawai`i County Council c� 25 Aupuni Street Hilo, Hawai`i 96720 Re: Overview of Dedicated and Non-dedicated Agriculture Programs L with the Real Property Tax Division Attached is a power point overview regarding the dedicated and nondedicated agriculture programs with the Real Property Tax Division. This will be provided during the Finance Committee meeting on Monday July 18, 2016. I will participate via videoconference from Hilo Council Chambers together with Real Property Tax Acting Administrator Keito Jo. Real Property Tax Administrator Stanley Sitko will be available in Kona Council Chambers. Sincerely, 11Th4(flt4k Lisa Miura, Deputy Director of Finance Attachment: Power Point Overview • Comm. No. �•O*• I Hawaii County is an Equal Opportunity Employer and Provider Ref. To: i Ref. Date JUN 1 8 2016 .46.0,9F DEPARTMENT OF FINANCE REAL PROPERTY TAX DIVISION Agricultural Summary JULY 13, 2016 Discussion Topics 0- Agricultural Use Programs Non-Dedicated Agricultural Use Timeline Dedicated Agricultural Use Timeline Agricultural Rates Agricultural Distribution w 2016 Cost in Revenue Summary Resource Considerations Exemption/Program Distribution Non - Dedicated A Application Finding of Facts Breach • Due December 31. • Completion: End of • Subdivided into parcels • Completed & Signed by January. less than five acres in all Owners/Recorded • Site Inspection: size. Lessees. Verification that the • Condominium regime • Map or appropriate land is put to the is declared. document delineating general agricultural use • Owner or Lessee the area to receive category as applied. petitioned change to benefit. • Permissibility under the county zoning the County zoning. other than agricultural. • No notification • Failure to maintain requirement for active and continuous approval/disapproval. agricultural use. • Retroactive tax and io% penalty not to exceed the current tax year and 99817 _L A!4C IA,14 S past two years. Automatic renewal year-to-year unless otherwise cancelled, conveyed, or breached. 11\10 ....................._ , ica • .„-------'. ,,_,:,,,„,,,, e ted Agricu . , , Application Finding of Facts Breach • Due September 1. • Completion: November • Sold, unless Affidavit of • Completed & Signed by 15. Continuation is filed. all Owners/Recorded • Site Inspection: • Subdivisions: Lessees. Verification that the land • Each parcel subject to • Map or appropriate is put to the general the original dedication. document delineating agricultural use category • Failure to initiate a as applied. change in use. the area to receive • Permissibility under the • benefit. • Failure to maintain active County zoning. and continuous • Minimum annual • Minimum Lot Size agricultural use.income requirements > Requirements. • Retroactive tax and io% $2000. • Notification of penalty not to exceed the Approval/Disapproval no rollback tax schedule. later than December 15. • Recordation to occur thereafter ($31RS, $26LC). ft 'AR( :_ 14.L 4S Notification of the owner by mail of the expiration of the dedication period by June 30 preceding the last year of dedication. ___ —...... ...................____ 1 __ , 1 Agriculturalse ... - INTENSIVE AGRICULTURE (NON DEDICATED RATE$4000/ACRE) (DEDICATED RATE$2000/ACRE) TRUCK CROPS CONFINED ANIMALS AQUACULTURE BEE-KEEPING a Iii , >...,�.+ ,� ,� 4. HOG DENSITY:Pen dimensions or uNii 0 ***Allow fallow for normal 10-30/Acre free-range. ***Inclusive of area HIVE DENSITY: 1-5 rotation not to exceed 20- POULTRY DENSITY:Coop used for tank raising, hives/Acre for 40%of total area and no dimensions or 60 large-240 staging,and storage pollination or more than 6mos.—1 year small/Acre free-range. of equipment& 5 hives/Acre for (ginger 2-3 years)*** **`Free-range must include supplies. honey production house/shelter with feed&water. ORCHARDS (NON DEDICATED RATE $3000/ACRE) (DEDICATED RATE $1500/ACRE) LARGE TREES SMALL TREES Avocado • Lychee • Mango Palm • Papaya • Coffee le,, • DENSITY: Between 30-70 trees/Acre DENSITY: Between 360-600 trees/Acre ***Credit to be given for planned crop only in the initial ***Credit to be given for planned crop only in the initial • year of establishment with inspections required in year of establishment with inspections required in succeeding years to monitor progresssucceeding years to monitor progress. ......„..---. r._ r. .�� __„.... ...... ...„-• __ Agricultural se � -- �-� FAST ROTATION FORESTRY/FEED CROPS (NON DEDICATED RATE $1000/ACRE) (DEDICATED RATE $500/ACRE) FAST ROTATION FORESTRY FEED CROPS Eucalyptus Grasses • Alfalfa ` ., I 7., r �` * '''''''. ,..„?.,,,, . ,,,. ` ' '''' . '''''ti . *11-4.- , ' ,1 1 et , . ,, i ... . ..., ..„:„..., ,, .. . ...,, . ,..,..., - , :,_. . 1 " -,,,.ii,, . . .t.=, ., ,.. , ..... . ,. .. . ,...., _ , Cultivation of trees harvested within 8—20 years. Utilization as material for paper production or Biomass or Feed&Forage crops as a supplement for feed in areas of Biofuel. Signs of management must be present(ie.weed poor pasture. Signs of management with properly control and plantings in rows,etc.) managed operations producing 3 to 5 harvests annually. SLOW ROTATION FORESTRY (NON DEDICATED RATE ($420/ACRE) (DEDICATED RATE ($210/ACRE) Eucalyptus • Koa • Ohi'a Cultivation of trees harvested in excess of 40 years. Utilization as material for lumber to be used in the construction trade. Proper forestry management is required to ensure maximum production and marketability(ie.weed control and plantings in rows,etc.). ***Spot harvesting not to be considered forestry due to lack of sustained management unless converting natural growth into managed forestry through replanting efforts. Agriculturalse mr PASTURE & GRAZING (NON DEDICATED RATE ($28-420/ACRE) (DEDICATED RATE ($14-210/ACRE) POOR PASTURE AVERAGE PASTURE GOOD PASTURE ($28/ACRE) ($120/ACRE) ($420/ACRE) M_a • CATTLE: 1 head/15-20 Acres CATTLE 1 head/7-10 Acres CATTLE 1 head/Acre SHEEP/GOATS:5 head/15-20 Acres SHEEP/GOATS:5 head/7-10 Acres SHEEP/GOATS:5 head/Acre HORSE: 1 head/18-25 Acres HORSE 1 head/3 Acres HORSE: 1 head/1.5 Acres • Perimeter fencing requirement on all sides with the exception of natural barricades that restrain freely grazing animals. Pasture use to be granted if fencing has started with completion within the first year required. Pasture use may include multiple parcels,with use granted if adjacent parcels in pasture use with perimeter fencing encompassing the boundaries of all parcels involved. • Permanent water source required • Proper ranching management to include herd rotation on 60-90 day schedule. . -. ,7..,P‘ir.•.,P:t..;;;',„:!..4,1A,,....,,,,,,V4.‘-',,-,--,27;.,- ...,„ „, Agricultural Dis toils ition . A Honokao • , , ,, . • ..• ••.._ •• —..•11111.e . . ,* --' • 0 • •I ilip\411I . • • la , . .• ..• • *a e - . ,..., .4 -%,. ...4.'• , Ar ', 1. • . 1. ft At 4 foiltt -. •• • r...uno, :47.• 17. - ..... . , • *; . . _ Keala tekua • • • , - ''.. V• ‘ ...- . Is r. r• ... . ..,40?...„ 4 , • ..,41,/.;" '- ''' : • • s = . ,:. , . ...7- . •, • • : s % • • ' • Dedicated .. ..t., • Non-Dedicated • • County Council Districts , Mile, 0 '10 20 honour'.enstelOWNIMO 1 County o.-,a#,31. Department of Fmance RPT D,Islor 2016 Dedicated vs. Non-Dedicated Thn map e s a war 0,••on?,r ano*vol..r•elaNn*2 am,or••4 2016 Cn evenue S PARCEL COUNT 20 yr. Dedication, 10 yr. Dedication, 373 _ 477 Native Forest, COST IN REVENUE 98 10 yr. Dedication, Non- Dedicated on 20 yr. Dedication, $1. 1MM Dedicated, $3.729MM 95 9,817 10,765 Parcels Native Forest, $o.468MM Non-Dedicated, $33.418MM 00 (I + $39.566MM Resource Considerations 20-Yr Ag Dedication: 373 Native Forest Dedication: 98 io-Yr Ag Dedication: 477 Non-Dedicated: 9,817 Application Staff: Appraisal (15) Valuation Analyst (2) Inspection Recordation Current resource considerations. Correspondence Resource considerations on any Data Management change to existing program. Additional resources needed to manage Complaint Appeal Resolution increased process requirements due to shifts from non-dedicated to dedicated programs. Fxemption / Program Distribution Open Space, DHHL - Non-Profit, 789 Building, Kuleana, Disability, 2,116 Low Income Housing, Government, 3,605 Roadway, Credit Affordable Rental, Unions, Historic 1,111 Residential, PUC, 372 Disabled Veterans, 572 Agricultural, 10,765 DHHL-Land, 2,646 Roadway, 1,881 . ... Miscellaneous, 10 Homeowner's , 38,918 62,785 Active Exemptions/Program Benefits