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HomeMy WebLinkAbout09/24/2014 Public hearing transcript re BILL#2554 PUBLIC HEARING SEPTEMBER 24, 2014 A public hearing of the Council of the County of Kauai was called to order by Mason K. Chock, Sr., Chair, Finance & Economic Development (Tourism / Visitor Industry / Small Business Development / Sports & Recreation Development / Other Economic Development Areas) Committee, on Wednesday, September 24, 2014, at 2:16 p.m., at the Council Chambers, 4396 Rice Street, Suite 201, Historic County Building, Lihu`e, and the presence of the following was noted: Honorable Tim Bynum Honorable Mason K. Chock, Sr. Honorable Gary L. Hooser Honorable Ross Kagawa Honorable Mel Rapozo (present at 2:16 p.m.) Honorable JoAnn A. Yukimura Honorable Jay Furfaro The Clerk read the notice of the public hearing on the following: "Bill No. 2554 — A BILL FOR AN ORDINANCE AMENDING CHAPTER 5A, KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO REAL PROPERTY TAXES (Real Property Tax Relief for the 2014 Tax Year)," which was passed on first reading and ordered to print by the Council of the County of Kaua`i on September 10, 2014, and published in The Garden Island newspaper on September 14, 2014. (Mr. Rapozo was noted as present.) Mr. Sato: We have no written testimony, and three (3) registered speakers. The first speaker is Ian Miles, followed by Carmela De Marco. Mr. Chock: Great. Mr. Miles, please. Please come up, sit down, and introduce yourself. If you could turn your microphone on, please. Again, first introduce yourself. IAN MILES: I am Ian Miles. My status changed in the last year to rental because I did not know any of this so I rented out a room. Then I would not be eligible for this particular Bill. Is that my understanding? Is that correct, if my status changed in the last year? I was a Homestead, then because of the one hundred percent (100%) use tax, I lose my Homestead apparently, and then do I have to fill out a form by September 30th to...yes. Ms. Yukimura: Steve may know. Mr. Miles: Does someone know the answers to these things? PUBLIC HEARING 2 SEPTEMBER 24, 2014 BILL NO. 2554 Mr. Chock: Would you like to? Chair. Mr. Furfaro: For all of these Bills, there will be opportunities for people to apply for the new statuses, that is an affirmative. Mr. Miles: Alright. Mr. Furfaro: Okay. Mr. Miles: Even though September 30th, according to the Tax Department, is the last day? Mr. Furfaro: Yes, but there are Bills here that are extending it. Mr. Miles: Which are part of what we are going to listen to right now? Mr. Furfaro: No. They are parts of different Bills. Mr. Miles: So, I cannot apply for an extension or I should apply for an extension anyway? I am a little confused by the whole process. Mr. Chock: Why do you not give it a go then. Mr. Bynum: Without knowing your individual circumstances, the Bills that are here before us, some of them address the removal of the cap. Mr. Miles: Right. Mr. Bynum: One bill allows people kind of, if there was a mistake made about that reclassification, to have that looked at again. Mr. Miles: Right. Mr. Bynum: But that September 30th deadline is very important for those folks and for anyone in this community. (Ms. Yukimura was noted as not present.) Mr. Bynum: It is our deadline to apply for exemptions. One of these bills would say, "If you were eligible last year, it would be retroactive to last year." So, I hope that answers your question, but each bill...a couple of these bills address the removal of the cap, the Mayor's bill and Councilmember Kagawa and Rapozo's bill. Mr. Miles: Yes. Mr. Bynum: Others address next year's taxes, and one bill that Councilmember Hooser and I are introducing will give people an opportunity if they believe they were miscategorized last year, to get a second look at that. PUBLIC HEARING 3 SEPTEMBER 24, 2014 BILL NO. 2554 Mr. Miles: Okay. Mr. Bynum: But they will have to be eligible last year and it mistakenly placed. So, if that circumstance fits. So, that is a brief overview of the bills that are before us. Some affect next year and some affect the cap. There is one that will an opportunity for a second look at that classification. Mr. Miles: Okay. Mr. Chock: Thank you. Chair? Hold on. Mr. Furfaro: I have prepared, and I am going to be asking Yvette to make them available to people in the public, a little worksheet here that has all of these bills listed, and the piece that I do not want people to be confused with as I passed these out that identifies all of the bills, we do not necessarily know which ones will survive the reviews. Mr. Miles: I understand. Mr. Furfaro: And there are different parts. For example, Mr. Hooser and Bynum are speaking about having a shared-use portion for the Bill, which would divide the use of the property and actually require an affidavit and which part if rental, which is permitted home use. Then we have another bill that is pretty similar, and it is introduced by the Administration yet to come out, that basically says, rather than do the affidavit and the proration year, there will be an opportunity to have a blended rate. Now, those two (2) bills compete with each other, right? Mr. Miles: Right. Mr. Furfaro: And I do not know which one will pass. Mr. Miles: Yes. Well, I hope one (1) of them passes. Mr. Furfaro: I have prepared, for the public and the members, this little summary sheet. Mr. Miles: That is good. Mr. Furfaro: If you could reference this, I would appreciate it. Mr. Miles: Yes... Mr. Furfaro: I am sorry I am a little hoarse right now. Mr. Miles: No. The thing is when I come in and I get a tax bill, I have not studied any of this. So, the simpler you can make it for me to understand, the better. Mr. Chock: Understood. What I would like to suggest is that, I mean, we have our Director of Finance here that might be able to help you as well with some specific questions that you have regarding each of the bills. PUBLIC HEARING 4 SEPTEMBER 24, 2014 BILL NO. 2554 (Mr. Rapozo was noted as not present.) Mr. Chock: For more clarification, Councilmember Kagawa has... Mr. Kagawa: I love what Chair Furfaro did with this sheet. So, to answer your direct question you asked if you would not be affected or helped by Bill No. 2554. This is the exact language of what this Bill is doing. (Ms. Yukimura was noted as present.) Mr. Kagawa: "Those in the Homestead and Residential tax classes who have received a real property tax bill that is increased by more than five hundred dollars ($500) will receive a tax credit for seventy percent (70%) of the assessed taxes in which it exceeded some of the taxes assessed for 2013 tax year over five hundred dollars ($500)." So, if you are in the Homestead or Residential tax class, then you will benefit by this Bill. Mr. Miles: Okay. Mr. Kagawa: So, you will pay your first five hundred dollars ($500) and thirty percent (30%) of anything over five hundred dollars ($500). That will be your tax liability for 2013, if that helps. Mr. Miles: Yes. Mr. Kagawa: Thank you. Mr. Miles: Thank you. Mr. Chock: Again, these are all under review. So, if everyone can take a look at the summary that Council Chair has put together. They are also taken in the same order that we will be hearing them today. So, as you review them, if you have comments on them that you would like to share with us, that is what we would like to hear at this time. Thank you, Mr. Miles. Mr. Miles: Alright. Thank you. Mr. Furfaro: I think Bynum wanted the floor. Mr. Chock: Oh, I am sorry. Did you want the floor? Do you want him? Mr. Bynum: No, just a quick comment. Just that, this handout, I want to acknowledge staff for their work on this. I had asked for a bullet point summary on our Bill, and this all of them. This is excellent and this will cut to the chase. So, hopefully this will be available to the public online somehow as well. It is a very useful tool. Mr. Furfaro: It is available at certain opportunities. Although the staff put it together, you can thank me for the concept. Mr. Bynum: Well, thank you very much. PUBLIC HEARING 5 SEPTEMBER 24, 2014 BILL NO. 2554 Mr. Furfaro: But it is a good working piece. The more important part to me is the public needs to realize that some of the bills compete with each other. Mr. Bynum: Yes. Mr. Furfaro: That is the most important part. So, you cannot get everything. Mr. Bynum: And bills can be amended. Mr. Furfaro: Yes. Mr. Chock: Thank you. Mr. Sato: Our next registered speaker is Carmela De Marco, followed by Barbara Smith. CARMELA DE MARCO: Yes. I have owned my property since 1985. Last...Carmela De Marco. I live in Po`ipu. I have owned my property since 1985. Last year, I was assessed at Vacation Rental, which I do not have. I have a long-term rental. By the time I found out about my tax bill, they said I could not appeal it. This year my property tax went up to five thousand one hundred thirty-six dollars ($5,136). Two (2) years ago, it was one thousand three hundred thirty-nine dollars ($1,339), and I received from the County of Kaua`i, a letter saying that there was a circuit breaker tax that would be going forward, and I had relied on that. I thought that covered me because I have had this forever. To get a five thousand dollars ($5,000) bill, I had to use my credit card to pay it, and I paid because I always pay my taxes on time. Now, next month I have to face that bill. What is this? I would like some relief on this and I would really like you honor what you said on this letter that the circuit breaker tax would go forward, and that would at least be grandfathered in. You did not do that. There is a loss of trust here. I have this letter here and you can look at it. I feel I should have been grandfathered in, and this circuit breaker tax that you have removed without any notice to us. Just ignored what you promised. You cannot say one thing and just take it away and not even discuss it. Then you have a bill from one thousand three hundred dollars ($1,300) to five thousand dollars ($5,000). I am seventy-seven (77) years old. I am on social security. I do not have that kind of money. Because houses around me are selling in the million dollars does not mean that I have the money to compete. I have owned my house since 1985 when they were not selling for one million dollars ($1,000,000), and I would like some relief on this. I would also like that tax cap put back on as you promised. I would really like that back. Thank you. Ms. Yukimura: Question. Mr. Chock: We have some clarifying questions here. Councilmember Yukimura for your consideration. Ms. Yukimura: Yes, Ms. De Marco, the Bill before us would give you relief for this year. You would pay no more than five hundred dollars ($500) of that increase plus thirty percent (30%) of the balance. Then, your status PUBLIC HEARING 6 SEPTEMBER 24, 2014 BILL NO. 2554 has been changed now. It was incorrectly done to Vacation Rental, but it is not a long-term rental? Ms. De Marco: Yes. I did not send the survey form in the year, and they just automatically put me as a Vacation Rental without even asking me. Ms. Yukimura: Okay, that is wrong. Ms. De Marco: And that was wrong. By the time I got my tax bill, I could not appeal it. Ms. Yukimura: Could you... Ms. De Marco: This year I did send in the survey form and then I called them because they still had me as a Vacation Rental, and they said, "Oh, we did not received your form." I said, "I sent it certified mail. You have it." Then they looked again, and they found it. (Mr. Rapozo was noted as present.) Ms. De Marco: So, anyway, I would just like to have it go back to where it was. Ms. Yukimura: Well, I do not believe there was any promise to restore the cap, at least an official promise, but I would love to have copies of what you say is a letter from the County. Ms. De Marco: Yes. Ms. Yukimura: I am sure it is not from the County Council. Ms. De Marco: It is from the Real Property Assessment Division. Ms. Yukimura: Right. Ms. De Marco: Department of Finance. Ms. Yukimura: So, that is from the Administration, but staff will make a copy and then return you the original. Okay. So now that they have your certified mail, they have changed your status to long-term rental? Ms. De Marco: But they changed my classification or something because they increased my taxes to five thousand one hundred thirty-six dollars ($5,136). Ms. Yukimura: Okay. So, may I take it that you are in favor of at least, this interim relief Bill that is before us? Ms. De Marco: Yes, very much in favor. Ms. Yukimura: Okay. Thank you very much. PUBLIC HEARING 7 SEPTEMBER 24, 2014 BILL NO. 2554 Ms. De Marco: Thank you. Mr. Chock: Thank you. One (1) more question here from Councilmember Hooser. Mr. Hooser: Yes. Hello again. Ms. De Marco: Hi. Mr. Hooser: Last time when you were here, did you have the opportunity to talk to the Director of Finance about the letter you... Ms. De Marco: I did. Mr. Hooser: ...had mentioned? Ms. De Marco: Yes. Mr. Hooser: Okay. Another one of the bills we are talking about would allow if there was a mistake on your classification, which it appears to be, would allow a mistake to be corrected retroactively. Ms. De Marco: Okay. Mr. Hooser: So, that is one of the other biplls on the list that we are working on, and they are all works in progress. So, there are several items here that if they move forward, and I expect many of them will, will provide you with some immediate relief. I am hopeful. Ms. De Marco: I appreciate it because I have my statement coming next month on my credit card. Mr. Hooser: Okay. Thank you. Mr. Chock: Thank you. Ms. De Marco: Thank you. Mr. Chock: Next speaker, please. Mr. Sato: Next registered speaker is Barbara Smith. BARBARA SMITH: Good afternoon. I am Barbara Smith. I live on the North Shore. I have been a permanent resident for over eighteen (18) years, owned property just before Hurricane `Iniki. My husband and I live there. We retired from California and wanted to find a wonderful place, which we did. It was quite a shock getting our assessment and the tax for this year. It went up over eighty percent (80%). We do not rent. It happens that the property had two (2) buildings on it. We combined it to make it a home. I would very much like to reinstate the tax cap. Going from two percent (2%) up to eighty percent (80%) is a bit of a hike, to say the least, and I am not alone. Many in our area have tried to figure out what they are going to do next. I hear more and more really considering selling, leaving, or not sure what they can do, where they can go. I know it is not PUBLIC HEARING 8 SEPTEMBER 24, 2014 BILL NO. 2554 just us. I was at the meeting a few weeks ago and one woman who spoke was a pig farmer, I believe, and was trying to figure out what she and her family were going to do with all of the children who were living there. Her comment was, "You are killing us." I think that is what is happening not just to them, it is everybody. It is a combination. Whatever is reasonable or equitable would be helpful. I think this Bill that we are speaking on now is a beginning, but I do not think we ever should have gotten to that point. This was way overbalanced. I do not think anywhere in the United States this has ever happened. I know that the County is in need of money. I think the money in your budget that is there, a lot of times could be changed or dropped. It is going to places that, I think, if you talk to anybody in the community and ask them where they would like their tax dollars to go, it is going to a lot of places that either are not necessary or is not needed. Many of us are retired. We are on fixed incomes at times and we are community minded. Both my husband and I have been in the system of the schools since we moved here either as working or volunteering. We have been on many boards and would like to continue to do that. Love doing that. We are here to support others and be supported by others. Mr. Sato: Three (3) minutes. Ms. Smith: I think it should only be on our... Mr. Chock: Three (3) minutes. Ms. Smith: ...assessed value, and I know that there is many homes that are being at the very high end, but it still needs to be equitable one way or another. I think if someone is paying that much, then they are going to have to pay the tax for that, but those of us who are here and have been here many more years than myself, I do not know how they do it. I seriously do not know how they can survive here. Mr. Chock: So, that was your three (3) minutes. Ms. Smith: Yes. Mr. Chock: I just want to move you towards summarizing if you can, please. Ms. Smith: Yes. Mainly, do something about this. This is a very little bit of a beginning. It should be taken care of for like I said, equitable. So, thank you for your time. Mr. Chock: We have question from Councilmember Yukimura. Ms. Smith: Yes, JoAnn. Ms. Yukimura: Hi, Ms. Smith. Thank you. Have you explored potential existing programs that might help you lower your taxes? Ms. Smith: My husband did. Ms. Yukimura: And none of them really served your needs? PUBLIC HEARING 9 SEPTEMBER 24, 2014 BILL NO. 2554 Ms. Smith: Not really worked for us is what it comes downs to. Ms. Yukimura: Okay. Alright. Thank you. Ms. Smith: Yes. Mr. Bynum: Sorry. Mr. Chock: Hold on. Mr. Bynum: Just because every circumstance is different, you mentioned you have two (2) buildings on your property? Ms. Smith: There is an ohana and a home, originally. We have combined it into one (1) building. Mr. Bynum: Into one (1). Ms. Smith: We have never rented. We have no intention of ever. It is not a vacation rental. Mr. Bynum: So, did your class move from Homestead to a different class? Ms. Smith: It dropped Homestead this year. Mr. Bynum: So, you went out of Homestead? Ms. Smith: Yes. Mr. Bynum: Into a different one? Ms. Smith: Yes. Mr. Bynum: So, that may be a separate issue then the cap. Ms. Smith: Yes, I understand that. Mr. Bynum: Okay. Thank you. That is helpful about how to proceed going forward. Thank you. Ms. Smith: Right. Mr. Chock: One (1) more question here. Councilmember Rapozo. Ms. Smith: Yes. Mr. Rapozo: I guess the question is, why was the Homestead removed? PUBLIC HEARING 10 SEPTEMBER 24, 2014 BILL NO. 2554 Ms. Smith: I am really not sure other than it had this other building that can be used separately. Mr. Rapozo: So, is it two (2) buildings or is it one (1) building? Ms. Smith: It is one (1) building together, but the small cottage that was there is on its own septic tank. It could be. Mr. Rapozo: Okay. Ms. Smith: We will never... Mr. Rapozo: So, it is one (1) building, but it is still actually two (2) separate... Ms. Smith: It is all under one (1) roof. Mr. Rapozo: Right. Yes, I know. Like a condominium is under one (1) roof, too. Ms. Smith: Yes, and it has a separate entry, but it looks like one (1) building. Mr. Rapozo: Okay. Thank you. Mr. Chock: Thank you. Ms. Smith: Okay. Thank you. Mr. Chock: Next speaker. Anyone else would like to speak on this item, Bill No. 2554? There being no further testimony on this matter, the public hearing adjourned at 2:37 p.m. Respectfully submitted, „_, S TT K. SATO Council Services Review Officer :aa 1.