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HomeMy WebLinkAboutCOM 0962.014 2018-2020 i �-� .A,l-AlTK.A Y� E+GEL LLP' Edmond w.�A. ®®%% n►HajISUICa A[IA i All F IT/IT4:1)Ll.tR/1:[1Y I.A4 PARTNFR8111P Danielle N.Degele ewh@hdkona.com ATTORNEYS AT LAW ddm@hdkona.com 75-1000 Henry Street,Suite 208 Kailua-Kona,Hawaii 96740 Telephone:(808)326.7300 Fax:(808)326-7725 COUNTY CLERK COUNTY OF HAWAIII RECEIVED June 3, 2020 Time_ mm Date N 0 3 2020 VIA ELECTRONIC MAIL Aaron Chung, Council Chair and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, HI 96720 ��}tlrlc.int_ewtil�lca'��r�+ ttaw�liic;c�rlr�i� �Tov Re: Testimony Re arding Resolution 658 20 Dear Chairman Chung and Members of the Hawaii County Council: It is my understanding that the Hawaii County Council will be discussing and likely passing Resolution 658 20 at a special meeting scheduled for June 4, 2020. Resolution 658 20 will set the real property tax rates for the County of Hawaii's fiscal year commencing on June 1, 2020 and ending on June 30, 2021, including the tax rates for the newly created property classifications, Residential Tier One and Residential Tier Two. Based upon the reasons set forth below, the tax rate for the Residential Tier Two classification should not be set any higher than the tax rate for the Residential Tier One classification for the upcoming fiscal year. In accordance with Section 19-27 of the Hawaii County Code, notice of assessments for the upcoming fiscal year were sent out by the County of Hawaii to property owners on or before March 15,2020. If property owners desired to appeal the assessed values,property classifications and/or assessment methods concerning their properties, the owners were required by Section 19- 91 of the Hawaii County Code to file an appeal on or before April 9, 2020. Bill 169, which created the residential two tier tax structure, was introduced on May 13, 2020. After being fast-tracked by the Council through its first and second readings on May 13, 2020 and May 20, 2020, respectively, it was signed by Mayor Harry Kim on May 21,2020 and became Ordinance No. 20 39. My concern is that as a result of the timing of the introduction of Bill 169 and the enactment of Ordinance 20 39, the due process rights of property owners affected by the residential two tier tax structure will be violated if the tax rates for property classified as Residential Tier Two are set higher than the tax rates for property classified as Residential Tier One for the upcoming fiscal Comm. oo •�� ef. o: e . Date—JUN 2020 Aaron Chang, Council Chair and Members of the Hawaii County Council Hawaii County Council June 3,2020 Page 2 year. In other words, because Bill 169 was introduced and Ordinance 20 39 was enacted after the April 2020;deadline for appealing assessed values, property classifications and assessment method ;had already lapsed, property owners affected by the residential two tier tax structure will 3 -have no recourse or pr©cess during the upcoming fiscal year to address the impact of the structure on tee real property take'g,that they will be required to pay. This is particularly concerning for property owners whose properties are assessed at or slightly above the $2,000,000 threshold for property classified as Residential Two Tier as it would have been to their benefit to appeal the assessed values of their properties if they knew that the County would enact the two tier tax structure. As it now stands, the earliest that property owners affected or aggrieved by Ordinance No. 20 39 may seek any redress or relief imposed by the ordinance is after the notice of assessments are sent out on or before March 15, 2021 and before the expiration of the April 9, 2021 appeal deadline. Thus to avoid depriving these property owners from their due process rights which are guaranteed by the United States and Hawaii constitutions,and which the Council has been sworn to uphold, the Council should not set the tax rate for Residential Tier Two property higher than the tax rate for Residential Tier One property for the upcoming fiscal year. Thank you for the opportunity to comment on Resolution 658 20. Sincerely, Edmund W.K. Haitsuka EWH:ewh w 5 4'9 ii