HomeMy WebLinkAboutCA-0019 - New Section to Article X (Financial Procedures)CA -19
PROPOSAL NO.
(For Commission Use Only)
2018-2020 HAWAII COUNTY CHARTER COMMISSION
CHARTER AMENDMENT PROPOSAL FORM
1. GENERAL INFORMATION
Name of Commission Member: Kevin Hopkins
2. If applicable, list the Section number(s) of the charter provision(s) to be deleted or amended:
Add a new Section to Article X — Financial Procedures
3. Provide a brief description of the purpose of the proposed charter amendment; include
a description of the issue the proposal would address:
To reduce the inequity in the current taxation system used by the County, property taxes
will be based on value, with minimum taxes being prohinited.
4. If the proposal is based on a provision(s) in the charter or law of another jurisdiction,
name the jurisdiction and, if possible, attach a copy of the relevant provision(s).
Not applicable
5. If the proposal is based on any written materials you have, please attach a copy with a
citation to its source.
See attached documentation
See reverse side
Form CA -1
Revised 8/29/18
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6. Attach the text of the proposed charter amendment in Ramseyer format (see below).
Ramseyer Format, if proposing:
Amendments to Existing Charter Provisions
Any language being proposed to be added to the Charter shall be underscored.
Any language being proposed to be deleted from the Charter shall be [bracketed and
stricken] .
Replacing Existing Charter Provisions in their Entirety
Clearly indicate the article(s), chapter(s), and/or section(s) of the Charter to be proposed
to be deleted, and provide the text of any provisions proposed to replace the deleted
material.
New Charter Provisions
Provide the text of the new provision(s) and, if possible, indicate where in the Charter the
new material should be inserted.
Form CA -1
Revised 8/29/18
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Hawaii County Charter Proposal—text
"Section 10- . Real Property Tax Rates; Minimum Tax Rate Prohibited.
The council may not establish by ordinance, and the county may not establish by
any other means, a minimum real property tax rate to be levied on taxable parcels of real
property. Unless otherwise provided for by ordinance, any levy of real property taxes
shall be based on the assessed value of the parcel of real property and any improvements
thereto."
Form CA -1
Revised 8/29/18
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Justification for CA
Title: A proposal to lessen inequality in property taxation
Current Situation: The County of Hawaii property tax system, developed to
benefit plantations, large estates, and ranches, has allowed large land owners to
minimize their property tax burden by use of agriculture dedications and
assessments even when their agricultural activities are minimal because the
required evidence of agricultural use is ill-defined /undefined. This has led to
extreme inequalities of treatment of taxpayers (i.e., the wealthy pay a much lower
of market value in taxes than do poor and middle-class taxpayers). The $200
per parcel per annum minimum property has exacerbated these inequalities.
This proposal only concerns minimum tax, not the larger issue.
Three tables are provided on the next page comparing a randomly selected large
(1400+ acre) parcel in Hamakua and an 8,000 ft2 lot which I inherited in
Nanawale. The numbers are from the Tax Office website. TMKs can be
provided. Here are some are the conclusions:
• Based on assessed value, Nanawale land owners pay 5% of their land
value per year in minimum property tax
• The Hamakua parcel pays only 0.935% of its assessed value in minimum
tax
• If % of market price is the basis, the Nanawale taxpayer pays 66 times as
much as the Hamakua land owner.
• The Nanawale taxpayer pays $1,083 per acre vs $0.68 per acre for the
Hamakua land -owner, a difference of 1548 times.
• A land -owner in dedicating 292 acres of land to pasture will pay the same
$200 as the farmer growing vegetables on an 8,000 ft2 lot in Nanawale.
• Note that this only effects parcels valued at less than about $18,018 to
$21,390 depending on the zoning.
• I realize that this will reduce tax revenues slightly but which land -owner
has more money? The poorer landowners are now subsidizing the
m illionaires.
Form CA -1
Revised 8/29/18
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Comparison of Two Parcels
Location
66
Hamakua Ranch
5
Nanawale Lot
Acres
Rate
1412
9.35
0.1846
Market Value
$
1,380,100.00
$
$
4,300.00
Assessed Value
$
103,300.00
$
4,300.00
Assessed Value ($/acre)
$
73.16
$
23,293.61
Tax Rate ($/$1000 assessed value)
$
9.35
$
11.10
Taxes - Total
$
965.86
$
200.00
Taxes - $/acre
$
0.68
$
1,083.42
Taxes - % of market value
0.070%
5%
Taxes - % of assessed value
0.935%
5%
Ratio - Nanawale/Hamakua
% of market value
66
% of assessed value
5
$ per acre
1584
Simulation of Equivalency at
minimum
Minimum tax per parcel
$
200.00
$
200.00
Rate
$
9.35
Assessed value
$
21,390.37
$
4,300.00
Acres @ Assessed
292.38
0.1846
Form CA -1
Revised 8/29/18
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