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HomeMy WebLinkAbout2022-09-21 Minutes TAX BOARD OF REVIEW MEETING MINUTES APPEAL HEARINGS Tuesday, September 21, 2022 Aupuni Center | Aupuni Center Conference Room 101 Pauahi Street, Hilo, Hawaii CALL TO ORDER Chairperson Nelson Harano called the meeting to order at 9:00 a.m. Present: Board Members Nelson Harano, Diane Blancett-Maddock, Michael Okumoto, Deputy Corporation Counsel Sinclair Salas-Ferguson, Real Property Tax Assistant Administrator Keita Jo, Appraisal Supervisor Dionne Costa, Real Property Tax Administrator filling in for Board Clerk Lisa Miura Dale Tokuuke was excused. STATEMENTS FROM THE PUBLIC There were no statements from the public. APPROVAL OF MINUTES There were no minutes to approve. TAX APPEAL CASE HEARINGS Note: As no members from the public are present, Deputy Corporation Counsel Sinclair Salas- Ferguson did not make the public advisory. For each appeal case, the appraiser submitted a packet of information to the Board, unless there had been a prior settlement with the Appellant or withdrawal. If the Appellant was not present, any information sent in by the Appellant was presented to the Board along with the appraisers’ packet. . CASE # 44601 – HAMILTON TRUST/STATE OF HAWAII TMK 2-1-007-029-0000 The parcel is a 7,839 square foot parcel which is located in Keaukaha in the South Hilo District. This is an oceanfront property less than a quarter mile from the Hilo Harbor and less than 2 miles from downtown Hilo. The fee simple ownership is held under the State of Hawaii, while the lessee is the Hamilton Trust. The land value is under appeal. There is an improvement on this parcel, however, only the land is under appeal. Appellant was not present for the hearing. Appellant requested land value per appeal form is $1,000. County recommended sustaining the county value of $76,400 based on the fee simple value of the land and a sale in the area. Ms. Blancett-Maddock moved to sustain the County’s 2022 land value of $76,400 as the appellant did not prove the assessed value of the property exceeds by more than 20% the ratio of assessment to market value. Mr. Harano seconded the motion. Prior to the vote, the appraiser stated the Appeal Data Worksheet is incorrect as she inverted the building and land values. Appraiser confirmed the land value is $196,800 for the land. Ms. Blancett-Maddock withdrew her motion. Board members re-reviewed the information based on the error on the Appeal Data Worksheet presented by the county. Further discussion and questions by the Board were made to the County. Ms. Blancett-Maddock moved to sustain the County’s land value of $196,800 as the tax payer has not shown the assessed value of the property exceeds by more than 20% the ratio of assessment to market value. Mr. Harano seconded the motion. A call for discussion was made. Ms. Blancett-Maddock discussed the purchase price of the property approximately 14 years ago and stated the assessment value hasn’t increased by much. Motion did not pass by a vote of 2:1. Mr. Okumoto was the nay vote, therefore the County assessment stands. CASE #44478 – HUNT,DAVID J TMK 4-5-015-015-0000 Right after this case was called, Mr. Jo received an email immediately from a Hilo Clerk stating Mr. Hunt called the office after 9:00am requesting a streaming link for the appeal hearings. From the appellant’s prior email, Mr. Hunt was moving sailboats in the Seattle area. The Board was informed and they requested Mr. Jo try calling the appellant now as there is no streaming available. Keita called immediately and left Mr. Hunt a voicemail. The parcel is at 45-3355 Ulu Street in Honokaa. Subject is a 16,004 square foot parcel with a 720 square foot dwelling with 0 bedrooms and 1 bathroom. The subject parcel has been discounted 20% as it is bordered by 3 roadways. The improvements were built in 2016 and has a grade of 3-. The 2022 land and building values are under appeal. The appellant was not present for the hearing due to reasons mentioned earlier. Documentation from the appellant was included in the appeal packet as to why the appellant is requesting a lowered property value. Appraiser presented the County’s case and recommended sustaining the County’s land value of $166,100 and building value of $159,100. A call for questions was made. Mr. Okumoto moved to sustain the county’s values for both land at $166,100 and building $159,100 because the assessed value of the property does not exceed by more than 20% the ratio of assessment to market value. There is no lack of uniformity or inequality resulting from the use of illegal assessment methods or an error in the application and the assessment methods were legal and constitutional. Seconded the motion with clarification that the 2022 appeal only addresses the lack of uniformity, your reading from an old appeal noted. Mr. Harano so noted. Motion passed by a vote of 3:0. CASE #44260 – GREG HARMON KOHALA HOLDING LLC TMK 5-4-005-048-0000 Mr. Greg Harmon had reported to the West Hawaii Civic Center. Mr. Harmon and West Hawaii Real Property Tax staff immediately contacted the Hilo Real Property Tax Office to inform Board of the situation. Mr. Harmon then provided his appeal documentation to the Kona Real Property Tax staff who emailed to the Hilo Real Property Tax Office Staff in Hilo who then printed the documentation and provided to the Board. Mr. Jo contacted Mr. Harmon by phone for his hearing. Note: As appellant was not on the phone from the start, prior to moving forward, Deputy Corporation Counsel Sinclair Salas-Ferguson announced the general procedures of the appeal hearing and advised Mr. Hunt and the Department of the procedure the Board would be following for the rendering of their decision and the Appellants’ further right to appeal to the Tax Appeal Court located in Honolulu within 30 days from the date of the decision letter that the appellant will be receiving via certified mail. The appellant Greg Harmon is 50% owner of Kohala Holding LLC and was present via telephone. Present for the County was appraiser supervisor, Dionne Costa. The parcel is a 11,382 square foot parcel with a two story wood framed commercial 10,112 square foot building built in 1939. The subject property is known as the Sakamoto Building in Kapaau. The building value is under appeal. Mr. Harmon presented his case requesting a $408,000 building value (differs from the $300,00 the appellant listed on the original appeal form) due to deferred maintenance and stated the county reported square foot size of the building differs from the fee appraisal he received of 7,098 square feet for the building with an additional 256 square foot building in back. The County presented their case and recommended sustaining the building value of $618,000. As the appellant did not mark the appeal to land value despite indicating a different value, only the building value is currently under appeal. A call for questions was made. Mr. Okumoto moved to sustain the county’s building value at $618,000 as the assessed value of the property does not exceed more than 20% the ratio of assessment to market value and there is no lack of uniformity or inequality resulting from the use of illegal assessment methods or an error in the application of the methods. Motion passed by a vote of 3:0. CASE #44315 – WENDY YAMADA TMK 2-2-024-011-0000 The appellant was not present. Present for the County was appraiser supervisor, Dionne Costa. The property has a 7,000 square foot office building located in Hilo on Kilauea Avenue. The property is currently receiving a non profit exemption. Appraiser stated regardless of whether you raise or lower the assessment, taxes are at minimum tax and it doesn’t matter. Appraiser asked if the Board wanted to go forward with the case or just sustain the value. Ms. Blankett-Maddock moved to hear the case and decide based on merits of the case. Mr. Harano asked the County to proceed. The land value and building value are under appeal. The County presented their case and stated recommended to sustain the land value of $416,200 and building value of $1,923,900 based on comparables. County clarified the comparable presented by the appellant is a warehouse building, the purchaser knew there was water damage and as a result paid a lower price. A call for questions was made. Mr. Harano made a motion to sustain the county’s land value as well as the building value as the appellant regardless will be charged at the minimum tax of $200 per year . (Inaudible comment by Corporation Counsel). Mr. Harano stated the reason for his motion is the appellant did not prove the assessed value of the property exceeds by more than 20% the ratio of assessment to market value and there is no lack of uniformity or inequality resulting from the use of illegal assessment methods or an error in the application of the methods. Ms. Blancett Maddock seconded the motion. A call for discussion was made. Motion passed by a vote of 3:0. ANNOUNCEMENTS The next meeting will be on Tuesday, September 27, 2022 at 9:00 a.m. in the Aupuni Center in Hilo and Wednesday, September 28, 2022 at 9:00 a.m. here in the Aupuni Conference Room. ADJOURNEMENT Meeting was adjourned at 10:31a.m. Respectfully Submitted, Lisa Miura Real Property Tax Administrator (filling in as Tax Board Clerk)