Loading...
HomeMy WebLinkAboutCOM 0073.001 2018-2020 4os�tY of y ;' • •L • 4147 TE OFM�' J TAX BOARD OF REVIEW County of Hawai'i d� C", 101 Pauahi Street, Suite 4 -� Hilo,Hawaii 96720-4224 ca - December 27, 2019 The Honorable Harry Kim, Mayor County of Hawaii 25 Aupuni Street Hilo, Hawaii 96720 The Honorable Aaron Chung and Members of the County Council County of Hawaii 25 Aupuni Street Hilo, HI 96720 Dear Mayor Kim, Chairman Chung and Members of the County Council: Pursuant to Chapter 19 of the Hawaii County Code, enclosed please find the 2019 Annual Report of the Real Property Tax Board of Review. Thank you for your time. Respectfully submitted, ./0&44,/,7--" Grace Reinhard Chairperson /enclosure cc: Deanna Sako, Director of Finance Lisa Miura, Real Property Tax Administrator Comm. No.DEC'• I Ref. To: QL Ref. Date 2' 7 21119 -1v o!y+t- Harry Kim ,N: Deanna S. Sako •c ; ,�:•I Finance Director Mayor ._ • • 4.'.4'of N.+!�` Steven A.Hunt Deputy Director 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 Hawai`i Civic Center • 74-5044 Ane 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 2019 ANNUAL REPORT December 15, 2019 • 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 2019-2020 tax year. The recommendations relate to both legislative and administrative matters. • The following is a list of the officers and members of the Board: Emygrace Reinhard, Chairperson Michael Hughes, Vice-Chairperson Wesley Takai Nelson Harano Reiko Ford Board Membership • The following is a list of the Board members and when their term ends: Board Member Term Ends — December 31, Wesley Takai 2019 Emygrace Reinhard 2020 Michael Hughes 2021 Nelson Harano 2022 Reiko Ford 2023 • Hawai`i County is an Equal Opportunity Provider and Employer 2019 Tax Board of Review Annual Report 2 Activities Organizational Meeting The annual organizational meeting of the Board was held on March 6, 2019 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. Emygrace Reinhard was elected as Chairperson and Michael Hughes as Vice- Chairperson. The annual workshop date and place was set and there was a general legal discussion of Chapter 19. Real Property Tax Administrator Lisa Miura 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. 2019 Board of Review Statewide Conference The 2019 Board of Review Statewide Conference was not held this year. Due to staffing shortage, City and County of Honolulu was not able to plan and organize this year's statewide conference. The conference has proven to be very beneficial to all attendees and the Oahu staff has done a great job in organizing the event throughout the years. This Board supports this statewide conference and hope that it continues to be offered in the future. Workshop A workshop was held on June 12, 2019, at the Aupuni Center Conference Room in Hilo with Board Members, Real Property Tax Office Administration, Appraisal Supervisor, Appraiser V (Commercial Appraisers), Valuation Analysts and support staff in attendance. Also present were Finance Director Deanna Sako and Deputies Corporation Counsel Craig Masuda, J Yoshimoto, and Keyra Wong. Opening remarks were provided by the Finance Director and Lisa Miura, Tax Administrator. Mr. Yoshimoto did a presentation on the Role of the Board of Review. Various Real Property Tax staff presented information on the sales ratio analysis, legislative changes, update of the Kilauea volcano eruption event, short term vacation rentals program, agricultural use and various other programs offered by The division. The Board was provided the opportunity to present questions to the tax office personnel and administration. The workshop continues to be a very beneficial and worthwhile session to the Board. Appeal Hearings Three hundred Ninety-five (395) appeals, which included 274 from East Hawaii and 121 from West Hawaii, including appeals from amended assessment notices, were scheduled for hearing this tax year for a combined total of$593,909,000 disputed. This is an increase from 221 cases in the previous tax year. There were six (6) sessions held in 2019 Tax Board of Review Annual Report 3 East Hawaii (August 27, 28; September 17, 18; October 22, 29) and four (4) sessions held in West Hawaii (August 13, 14; September 10, 11). Complaint Hearing As required by Chapter 19-97(e), a notice was published on September 1, 2019, specifying a period (September 3 — 16, 2019)within which complaints may be filed by a taxpayer. One complaint was filed this year. The Board held its complaint hearing on October 22, 2019. A copy of the complaint is attached 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 occur 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. The continuation of the annual workshop is highly recommended as it allows the administrative staff to present a broad array of relevant tax matters and information for the Members. 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 presence of the Real Property Administrator and/or Assistant Administrator at each meeting/hearing has proven itself to be essential and is recommended to continue. The Board has relied upon the administration in many instances for information on office policies and procedures before rendering decisions. 6. The Board recommends continued funding to allow the Board and support staff to attend the statewide conference as it provides multiple benefits to all participants. 2019 Tax Board of Review Annual Report 4 7. The Board recommends that they be accompanied by both Corporation Counsel and the Board Clerk to all conferences, workshops, meetings and other related matters. 8. 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. 9. 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. 10: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. 11. 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. 12. The Board appreciates the effort by the administrative and 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. The Board recommends that the breakdown of exemption values also be included along with the values and land class on the proposed settlement agreement letters between the division and the taxpayers. 14. The Board appreciates the effort by the appraisal staff to continue improving the appeal data worksheet that is provided for the Board to review prior to the commencing of the case presentations by the appellant and the County appraiser. This worksheet simplifies and reduces the time spent on each case. Legislative Matters 1. The Board reviewed Communication 645.1 which contained the Report to Hawaii County Council from the Real Property Tax Review Working Group, and Agricultural Committee dated March 16, 2018 (Review Group), and the Board supports the 2019 Tax Board of Review Annual Report 5 recommendation made by the Review Group that the Non-Speculative Residential Program be repealed. The Board believes the Non-Speculative Residential Program is no longer needed because the homeowners class, exemptions and other programs have taken its place. Any changes in the Hawaii 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. The Board highly recommends that the Hawaii County Code be amended for refunding or non-refunding of the $50.00 appeal filing fee as follows: a. Option 1: • Non-refundable appeal filing fee for cases that are withdrawn by the taxpayer. This will help in eliminating appeals that are filed with no merit. • Non-refundable appeal filing fee for cases that have their values sustained by Board decision. • Refundable appeal filing fee for cases that ruled by the Board in favor of the taxpayer with the difference in valuation being twenty percent (20%) or more. b. Option 2: The current code be amended to`change the $50.00 appeal filing fee to be non- refundable. Close Chairperson's Comments (No comments provided) 2019 Tax Board of Review Annual Report 6 Submitted by Members of the Tax Board of Review: mygrace Reinhard Michael Hughes Chairperson Vice-Chairperson Wesley Takai N on Harano Member Member Reiko Ford - Member i 1 September 7, 2019 Grace Reinhard Chairperson,Tax Board of Review Finance Director Real Property Tax Office County of Hawaii Aupuni Ceneters, Suite 4 101 Pauahi Street Hilo, Hawaii 96720I Re: ASSESSEMENTS OF REAL PROPERTY IN HAWAII COUNTY REFORM REPORT TO MAYOR 1. County Real Property assessment should not include a MARKET VALUE, ONLY THE ASSESSMENT for the purpose of tax, unless the staff are realtors who can determine that assessment. 2. A person's ownership of a second or third home should not automatically have a higher assessment than their first, primary residence. Perhaps no one is paying rent in that second home. Maybe it's empty or under renovation repairs or cleaning. If rent is being paid, then general excise tax hopefully is also being paid. A higher tax rate may be imposed, and I would appreciate that instead of an automatic raise in assessment and related tax. AUTOMATIC HIGHER ASSESSMENT, ESPECIALLY FOR "SECOND HOMES" MEANS, IF IT IS A RENTAL, AN INCREASE IN RENT. Maybe we'll need less Section 8 if rents were not so high. That program does not allow others to benefit if families live in a rental most of their adult lives with incredible protections, too high benefits. 3. Inequities! Many homes in the rural area are assessed higher per square foot than urban homes that have all County services within a few miles, especially Police, road, transportation services. Those old "plantation homes" have been left to the next generation who do not want to move there because of the poor services provided to the area, and a family's third or fourth generation live at the home that grandma and grandpa left for all to use. Home ownership, a victory for moving to Hawaii. However, the one whose name is listed as the owner now has a tax bill that seems as though it is an investment. ,+ 4. Not enough staff to survey properties. Perhaps a one-time inclusion of a 1 iv ti■ V RT`3• g i, i w Ye • a , photograph of the homes with the tax payments. 5. THE APPEALS FORM has intimidating words that sound threatening for someone! Illegal? Then an assessor should be fined? Unconstitutional? Who is right? 6. There are so many illegal buildings due to several factors. 7. Agricultural land is still the highest and best use or not of a parcel? What are the rules for agricultlure in a subdivision that consists of just an acre? Animals and pesticides may or may not be the neighbor's comfortable living. Thank you for just asking for our complaints in general, not just for our own parcel's assessment and or tax. Really, thank you for the opportunity to comment. 2 { 4 �' Y Le - '''',. , 1) 'i i1�!) � aONc."311 1U Hi'1—*5,��'" — 2 g t _! d 1 S Ji f t' Get L' � l'1 "Ty.... a ,r LA P t'fr/ :EP 2O 1 'pi t om` sL.. .m .,. "al a_,. ' , Co 01-� '-moi-)at 1 r ,t .* E CZ "qECE V . -1 t SEP 1 1 2019 D ire_etor" ‘.7--f-) )-. oar/k.ceii = 1 6,,,t6,--1--Lt r,,e 0 a vd « COUNTY OF HAWAII R.P.TAX OFFICE ( epi- 4" ° ` i 1c? l 7accA.. .. � e� r �(-4i ;-� 4 ! ( 1�-1' I. Sr~`0-6 Al 22 40t:.. ,111111111111111111r.0111111,111111,11,1iJIaliiiiiiinpiliiiliie t. 1, t 1 ! J d i - -