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HomeMy WebLinkAbout2015_0109_AgendaPacketCOUNTY OF KAUAI BOARD OF REVIEW NOTICE OF HEARING & AGENDA Friday, January 9, 2015 1:00 p.m. or shortly thereafter Mo'ikeha Building, Meeting Room 2A / 2B 4444 Rice Street Lihue, Kauai, Hawaii 96766 Oath of Office for new Members Julie Caspillo and Donald Kolenda CALL TO ORDER ELECTION OF CHAIR AND VICE CHAIR FOR 2015 APPROVAL OF MINUTES a. Open Session Minutes of October 10, 2014 ESTABLISH FORMAT FOR HEARING OF APPEALS a. Reprints from the County of Kaua`i's webpage on Understanding your Real Property Taxes and Information for Taxpayers concerning Property Assessments Appeals to the Board of Review b. Overview of assessment policies and update from the Real Property Assessment Office on changes to the laws c. Orientation from the County Attorney on the duties and responsibilities of quasi - judicial boards and the format for presentation of appeals APPEALS SCHEDULED — None SCHEDULED MEETING DATES FOR 2015 Effective February 6, meeting dates are the first and second Friday of each month, with exception of County holidays, until all appeals have been reviewed ANNOUNCEMENTS Next Meeting: Friday, February 6, 2015, 1:00 p.m. EXECUTIVE SESSION Pursuant to sections 92 -4, 92- 5(a)(4), 92 -9 (a)(14)(b) and 92- 6(a)(2), Hawaii Revised Statutes, the Board may adjourn its regular meeting and move into executive meeting, closed to the public, for the purposes of: (1) Receiving and approving Executive Session minutes and (2) Consulting with the Board's Attorney on questions and issues pertaining to its powers, duties, privileges, immunities and liabilities. An Equal Opportunity Employer a. Executive Session Minutes of October 10, 2014 RETURN TO OPEN SESSION Ratify Board of Review actions taken in Executive Session and make those decisions public ADJOURNMENT Cc: Deputy County Attorney Adam Roversi EXECUTIVE SESSION Pursuant to Hawai'i Revised Statutes §92 -7(a), the Board may, when deemed necessary, hold an executive session on any agenda item without written public notice if the executive session was not anticipated in advance. Any such executive session shall be held pursuant to H.R.S. §924 f and shall be limited to those items described in H.R.S. §92 -5(a). l PUBLIC COMMENTS and TESTIMONY Persons wishing to offer comments are encouraged to submit written testimony at least 24 -hours prior to the meeting indicating: 1. Your name and if applicable, your position/title and organization you are representing; 2. The agenda item that you are providing comments on; and 3. Whether you will be testifying in person or submitting written comments only. 4. If you are unable to submit your testimony at least 24 hours prior to the meeting, please provide 10 copies of your written testimony at the meeting clearly indicating the name of the testifier; and While every effort will be made to copy, organize and collate all testimony received, materials received on the day of the meeting or improperly identified may be distributed to the members after the meeting is concluded, The length of time allocated to persons wishing to present verbal testimony may be limited at the discretion of the chairperson or presiding member, Send written testimony to: Board of Review Attn: Barbara Davis Office of Boards and Commissions 4444 Rice Street, Suite 150 L-1hu`e, HI 96766 E- mail:bdavis ,kauai.gov Phone: (808) 241 -4919 Fax: (808) 241 -5127 If you need an alternate format or auxiliary aid to participate, please contact the Office of Boards & Commissions at 2414919 at least five (5) working days prior to the meeting. COUNTY OF KAUAI ` r Minutes of Meeting OPEN SESSION Board/Committee: BOARD OF REVIEW Meeting'Date October 10, 2014 Location Mo`ikeha Building, Meeting Room 2 A/B Start of Meeting: 1:04 p.m. End of Meeting: 2:06 p.m. Present Chair Jose Diogo; Vice -Chair Dottie Bekeart; Members: Cayetano Gerardo and Russell Kyono Also: Deputy County Attorney Stephen Hall; Boards & Commissions Office Staff: Support Clerk Barbara Davis; Administrator Paula Morikami; Tax Manager Kim Hester; COK Appraiser Mike Hubbard. Excused Absent SUBJECT DISCUSSION ACTION Call To Order Chair Diogo called the meeting to order at 1:04 p.m. with 4 members present. Approval of Open Session Minutes of July 11, 2014 Mr. Gerardo moved to approve the minutes as Minutes circulated. Ms. Bekeart seconded the motion. Motion carried 4:0 Communication Letter dated September 23, 2014, to the Honorable Mayor Bernard P. Carvalho, Jr,, from Board Member Craig De Costa resigning his position from the Board based on his recent appointment as Per Diem Judge assigned to Family District Court Ms. Bekeart moved to receive the communication. Mr. Kyono seconded the motion. Motion carried 4: 0 Appeals 8. 14- 0000074 J.Herring Christie Kariakin 5 -8- 006 - 007 -0000 Mr. Kariakin was in attendance and presented his testimony. Ms. Hester was in attendance on behalf of Mr. Herring for the County and presented her report to the Board. The Board reviewed all testimony resented in Executive Session. O 3, 14- 0000025 J.Herring Kalihiwai Investors, LLC (Pitt 500) 5 -3 -001- 016 -0006 4, 14- 0000026 J,Herring Kalihiwai Investors, LLC (Pitt 600) 5 -3- 001 - 016 -0006 p 5. 14- 0000027 J.Herring Kalihiwai Investors, LLC 5 -3- 001 - 016 -0009 3 6, 14- 0000028 J.Herring Kalihiwai Investors, LLC 5 -3- 001 - 016 -0010 Board of Review Open Session October 10, 2014 I'._- J SUBJECT DISCUSSION I ACTION 7, 14- 0000029 J.Herring Kalihiwai Investors, LLC 5 -3- 001 - 016 -0011 A letter was presented by Galen T. Nakamura, Esq., on behalf of Kalihiwai Investors, LLC, requesting a continuance to 2015 as the owner was out of State and the appraisal consultant was not available. Chair Diogo granted the deferral to February 2015, 1, 14- 0000136 M.Hubbard Chris Bonner 2 -8- 016 - 007 -0004 The appellant was not present but provided a brief email statement to the appraiser. Mr. Hubbard was present for the County and presented his report to the Board. The Board reviewed all testimony resented in Executive Session. 2, 14- 0000084 J.Herring Terry /Carol Wells 5 -3- 001 - 016 -0006 Ms. Bekeart moved to accept the County's stipulated value of $1,250,800. Mr. Kyono seconded the motion. Motion carried 4:0 Executive Deputy Attorney Hall read the Hawaii Revised Session Statutes as outlined on the agenda. Mr. Kyono moved to go into Executive Session at 1:55 p.m. Ms. Bekeart seconded the motion. Motion carried 4:0 Return to Open Ratify Board of Review actions taken in Executive Session for appeals The meeting resumed in Open Session at 2:05 p.m. Session shown on the attached listing and make those decisions public. Ms. Bekeart moved to ratify the Board's actions and make those decisions public. Mr. Kyono seconded the motion. Motion carried 4:0 8, 14- 0000074 J.Herring Christie Kariakin 54- 006 - 007 -0000 Ms. Bekeart moved to grant the home exemption for the year 2014 and also change the Tax Use Classification to Homestead. Mr. Gerardo seconded the motion. Motion carried 4:0 Ms. Bekeart moved to amend her original motion to include both the homeowner's exemption and the low income exemption as well as the Homestead Tax Use Class and to uphold the County's assessed value of $331, 900. Mr. Gerardo seconded the motion. Motion carried 4:0 Board of Review Open Session October 10, 2014 Page 3 K SUBJECT DISCUSSION ACTION 1, 14- 0000136 M.Hubbard Chris Bonner 2 -8- 016 - 007 -0004 Ms. Bekeart moved to sustain the County's assessment of $753,200. Mr. K ono seconded the motion. Motion carried 4:0 Adjournment There are no further appeals scheduled for calendar year 2014. Mr. Gerardo moved to adjourn the meeting at 2:06p. m. Ms. Bekeart seconded the motion. Motion carried 4:0 Submitted by: Barbara Davis, Staff Support Clerk O Approved as circulated. O Approved with amendments. See minutes of Reviewed and Approved by: meeting. Jose R. Diogo, Chair Kauai County - Understanding Real Property Taxes r" r - Bringing Government to the People -ril1nLj ;-6 -i Page 1 of 5 �1 � 1 ' You are here: Government ► Departments ► Finance 1 Real Property ► Understanding Real Property Taxes ,V Real Property 1-D Collections j-❑ Exemption Information ❑ Forms & Handouts p Maps ❑ Pay Property Taxes Online p Real Property Search ❑ RPA Appeals ❑ Tax Appeal Court ❑ Tax Rates D Taxpayer Information '- ❑ Understanding Real Property Taxes Menu Controls* + - ,a , UNDERSTANDING YOUR REAL PROPERTY TAXES M Download this document UNDERSTANDING YOUR REAL PROPERTY TAXES BERNARD P. CARVALHO, JR., MAYOR County of Kauai Department of Finance REAL PROPERTY ASSESSMENT DIVISION 4444 Rice Street, Suite A -454 Lihue, HI 96766 Phone No. (808) 241 -4224 FAX No. (808) 241 -6252 Each year Kauai residents make an investment in their County when they pay their real property taxes. Every dollar is returned in the form of vital services we often take for granted; services such as fire and police protection, street maintenance and lighting, water, sewer and refuse collection, and recreational facilities and activities. v- Finance These services are financed through a variety of revenue sources F p Admin - Accounting - Budgeting Information Technology including federal and state grants water and sewer fees, fuel tax, motor N3- 0 Division of Purchasing vehicle weight tax and, most importantly the real property tax. The County 0 Real Property of Kauai could not operate without the real property tax as approximately it- C] Treasury Division I Q Reports Reports 45% of every revenue dollar collected comes from this source. 2 REAL PROPERTY TAX POWERS Hawaii's four counties now have full control over their real property tax system after voters approved a constitutional amendment transferring the responsibility for property valuation, exemptions, and tax collection from the State to the counties. Since the transfer in 1981, the County of Kauai has worked to refine the real property tax system and has developed improvements to the law. ASSESSMENTS AT FULL VALUE The need to insure "truth in taxation" has brought about a major change in the way property has been assessed beginning in 1983. Property is now being assessed at 100% of fee simple market value, making it easier for homeowners to see what their property is actually worth. i httn• /%ananar 1ra»ai 1 7/17/101 A Kauai County - Understanding Real Property Taxes Page '? of 5 Assessing at full market value eliminates the mathematical calculations and guesswork of the past. FAIR MARKET VALUE Locating, identifying and appraising your property at fair market value and approval of exemptions are the responsibility of the Real Property Assessment Division of the Department of Finance. Market value, or the price most people will pay for your property, is the standard used to measure equity in assessments. Over the years great strides have been made to improve the methods used to assess property in a uniform and fair manner. Property owners are encouraged to visit the Real Property Assessment Division located at 4444 Rice Street, Lihue, HI. You can inspect your records at the front counter or ask to speak to an appraiser regarding your assessment. APPRAISING YOUR PROPERTY Because our County has only a few appraisers for approximately 35,000 taxable parcels, a personal inspection of your property is normally undertaken only at the time of construction or remodeling. The "Mass Appraisal Method of Valuation" is used thereafter, but your property is still given individual consideration. A computer is used to update your property value through a land and building indexing system. The appraisal process continues throughout the year, but the values established by the Real Property Assessment Division as of October 1 constitute the values which will be used during the following tax year which begins July 1. HOMEOWNERS EXEMPTIONS As a property owner you should be aware that there are homeowner exemptions which can reduce your net taxable value providing you occupy the property as your principal residence on September 30 preceding the tax year. These home exemptions are: ■ BASIC HOME EXEMPTION — Homeowners not 60 years f age will be eligible for a single home exemption of $160,000. ■ ADDITIONAL AGE EXEMPTION — This exemption was established to help senior citizens living on fixed retirement incomes. Homeowners between the ages of 60 and 70 are eligible for additional exemption amounts, where the Basic Exemption is increased to $180,000. For homeowners over 70 years, additional exemption amount is $200,000. ■ ADDITIONAL HOME EXEMPTION BASED ON INCOME — Real Property which qualifies for the Basic Home Exemption and /or Additional Age Exemption may be entitled to an additional exemption of up to $120,000 provided the annual gross income of the owner - occupant(s), does not exceed the qualified Gross Income ceiling for that year. The gross income will change each January 1; contact the Real Property Assessment office for the current amount for the next taxable year. YOU MUST APPLY ANUALLY FOR THIS ADDITIONAL EXEMPTION. 'kffn•//xxmmT trm»i 17/11/')111 A C C Kauai County - Understanding Real Property Taxes Page 3 of 5 ■ TOTALLY DISABLED VETERAN EXEMPTION – If you are a totally disabled vet —due to injuries received while on active duty with the U.S. Armed Forces, your home is exempted from all real property taxes, except the minimum tax of $100.00. ■ DISABILITY EXEMPTION – Special exemptions of up to $50,000 are also available for property owners who are totally disabled, blind, deaf, or who are Hansen's Disease sufferers. This special exemption is in addition to the basic and multiple home exemptions. PLEASE NOTE: The staff of the Real Property Assessment Division will not automatically grant homeowner exemptions. You must file a claim on or before September 30 for the next tax year but, once filed, except for the additional exemption based on income, no additional action is required until your status changes. In addition to exemptions cited, there may be other types of exemptions which the Council may approve from time to time. Please check with the assessors office for more information. ASSESSMENT NOTICES Another important time frame is the period when assessment notices are mailed to property owners. These notices are mailed each year by December 1. You have until December 31 to appeal your assessment. When you receive your notice, study it carefully. It lists your land classification, property value, exemptions and net taxable value. If you find an error or have questions on your assessment, contact the Real Property Assessment Division. APPEAL PROCESS Should you want to appeal, you will find the process is quite simple and requires no legal counsel. Appeals are heard by a five- member Board of Review composed of property owners like yourself. The taxpayer is asked to state his case and then the appraiser explains how the assessment was determined. There is a $25.00 fee to appeal for owner occupants and $75.00 for all other property owners. Property owners may also appeal directly to the Tax Appeal Court, which could require legal assistance if you choose not to follow the small claims procedure or file your appeal with the Board of Review. An appraiser will be happy to explain the appeal process and your rights under the law. Many property owners regretfully do not question their assessment until they receive their tax bill. The first half of the tax year's bill is mailed on July 20 and payment is due on August 20. The second half is mailed the following January 20 and payment is due on February 20. You should remember that tax assessment appeals can only be made between March 15 and April 9 prior to the mailing of your tax bill. There is no avenue for appeal after you have received your bill. CALCULATION OF TAXES The formula for real property taxes is: (Assessed Value- Exemptions) x Tax Rate = Taxes After the assessment of the property has been made, and any �1*r�•����nin�� ll�n»ni �����% ����or• r�vs��s�4�Ti�s�r�« Fvh .�r�4r.R.'�........../D....in I'I /I flP1AI A Kauai County - Understanding Real Property Taxes Page 4 of 5 exemptions subtracted from the assessed value, the remaining value is known as the net taxable value. This is the starting point for the calculation of taxes. As part of the budget- making process every year, the County Council sets the tax rates. The tax rates are set separately for each class of property, and for land and buildings. The classes are: Residential, Vacation Rental, Commercial, Industrial, Agriculture, Conservation, Hotel /Resort, and Homestead. Other than Homestead, the classes are based on the property's highest and best use, which is usually the same as the zoning. The Homestead class is made of properties which are used only as the owner's principle residence, no matter what the zoning is. Owner- occupied farms are also included in the Homestead class. The tax rate is the amount of taxes on the property for each $1,000 of net taxable value. For example, if the tax rate is $8.00 and the net taxable value is $100,000, the taxes would be $800.00. IMPORTANT DATES The tax year begins on July 1 and extends until the following June 30. These are the important dates to remember: Date Importance Sept Deadline for filing exemption claims and recordation of ownership 30 documents Oct 1 Assessment set for use during next tax year Dec 1 Assessment notices mailed Dec 31 Deadline for assessment appeals Jan 20 Second half year tax bills mailed Feb. 20 Second half tax year payment is due Mar 31 Certified assessment roll to County Council June Tax Rate set by County Council 20 July 1 Tax Year Commences Deadline for filing dedication petitions July 20 First half year tax bills mailed Aug. First half tax payments due 20 TAX MAP KEY IS IMPORTANT Homeowners should know their tax map key number. Real property is mapped and indexed numerically according to a tax key system which identifies your property. All matters concerning your property should be made in reference to the tax map key. T Terms Of Use Privacy Statement 1 Disclaimers u bookmark us Copyright 2004 - 2014 County of Kauai. Printer - Friendly Language Translation All Rights Reserved, httn• / /www kanai unv/ CimvemmPnt /T)PnartmPntc/Finnnr.P/RPnIP 1'0)/l ? / ?01 d Real Property Assessment - Taxpayer Information r - r/ - - Bringing Government to al — I Ill the People site map I location Search You are here: Government ► Departments ► Finance , Real Property ► Taxpayer Information Taxpayer information Board of Review Appeals Page 1 of 2 VI INFORMATION FOR TAXPAYERS CONCERNING PROPERTY ASSESSMENTS APPEALS TO THE BOARD OF REVIEW Appeals from real property assessments made by the Real Property Assessment Division are provided for in Chapter 5A of the Kauai County Code. However, taxpayers are not generally aware of the responsibilities placed on them when they do file an appeal to the Board of Review. Some examples of "proper evidence" are: sales of similar properties or construction cost estimated of the replacement cost of the improvements by an experienced licensed contractor or cost estimator if improvement valuations are appealed. While sales of similar properties are "proper evidence ", sales transactions between relatives, close friends, and persons with close business relationships are usually not considered as friends, and persons with close business relationships are usually not considered as "proper evidence." The fact that a nearby property is assessed lower than that of the property under appeals not sufficient evidence of itself for the Board to lower an assessment. The Real Property Assessment Division uses comparable sales up to one year preceding the assessment date of October 1, to set the assessments. Comparable sales of properties should come from that period of time. 5MM 'kt n- / /,%xnxnxr Vnivn; an's r/( �Tn��PrnmP rnt/n,- ,nnrfman +L,117;non /R a 'a 1TD 11/17/')AI n The Board of Review believes it would be helpful to taxpayers if they were *Real Property -p Collections better able to understand their obligations in this regard. Considerable time (- ❑Exemption Information of taxpayers ers and board members could be saved if taxpayers were aware -D Forms & Handouts of the requirements which must be met in presenting their "case" at appeal ❑ Maps hearings. D Pay Property Taxes Online p Real Property Search I °•-❑ RPA Appeals The count of Kauai is required b Chapter 5A of the Kauai Count Code, Y 4 Y P Y ❑ Tax Appeal Court to assess all real property in its entirety. ❑ Tax Rates L D Taxpayer Information D Understanding Real Property Taxes A taxpayer who files an appeal is obliged to present "proper evidence" to the Board of Review in support of the appeal at the scheduled hearing. The Menu Controls» — 1 law clearly provides that the assessment made by the Director of Budget yFinance and Fiscal Services is presumed to be correct. This means that every I- - D Admin - Accounting - Budgeting person who appeals must show by "proper evidence" that the assessed o -0 Information Technology value made by the director is incorrect. One way of doing this is for the o Division of Purchasing taxpayer to prove that the property value stated in the appeal is correct. o L0 Real Property o.. Treasury Division Unless "proper evidence" is presented, the board must decide in favor of p Reports the Director's assessment. Some examples of "proper evidence" are: sales of similar properties or construction cost estimated of the replacement cost of the improvements by an experienced licensed contractor or cost estimator if improvement valuations are appealed. While sales of similar properties are "proper evidence ", sales transactions between relatives, close friends, and persons with close business relationships are usually not considered as friends, and persons with close business relationships are usually not considered as "proper evidence." The fact that a nearby property is assessed lower than that of the property under appeals not sufficient evidence of itself for the Board to lower an assessment. The Real Property Assessment Division uses comparable sales up to one year preceding the assessment date of October 1, to set the assessments. Comparable sales of properties should come from that period of time. 5MM 'kt n- / /,%xnxnxr Vnivn; an's r/( �Tn��PrnmP rnt/n,- ,nnrfman +L,117;non /R a 'a 1TD 11/17/')AI n Real Property Assessment - Taxpayer Information Page 2 of 2 The personnel of the Real Property Assessment Division are always willing to answer questions and review assessment problems with property taxpayers. In most instances, these discussion result in a clearer understanding of standards and practices utilized by the Division in providing a relatively high degree of fairness in Hawaii's property assessments. Tax Appeal Court Tax Rates Q Real Property Tax Updates -, Title Modified Size Description Date (Kb) Real Property Committee of the Whole Tax 12/15/2006 218.12 Meeting October 14, 2004 Developments Scope & Goal is to accurately Ohana Revenue 4/7/2010 103.97 describe the effects of the Impact Analysis proposed Ohana Amendment, given specific assumptions. L� Terms Of Use I Privacy Statement I Disclaimers I L.-j bookmark us Copyright 2004 - 2014 County of Kauai. Printer - Friendly I Language Translation All Rights Reserved. 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