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.
Kamaaina Visiting ►Government Business E- Services *� Site Search & Site Map A to 2 Page Listing
httn• / /xananai lraitai 17/17/7(111
S M T W T F S S M T W T F S
1 2 3 1 2 3 4
4 5 6 7 8 9 10 5 6 7 8 9 10 11
11 12 13 14 15 16 17 12 13 14 15 16 17 18
18 19 20 21 22 23 24 19 20 21 22 23 24 25
25 26 27 28 29 30 31 26 27 28 29 30 31
S M T W T F S S M T W T F S
1 2 3 4 5 6 7 1
8 9 10 11 12 13 14 2 3 4 5 6 7 8
15 16 17 18 19 20 21 9 10 11 12 13 14 15
22 23 24 25 26 27 28 16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31
S M T W T F S S M T W T F S
1 2 3 4 5 6 7 1 2 3 4 5
8 9 10 11 12 13 14 6 7 8 9 10 11 12
15 16 17 18 19 20 21 13 14 15 16 17 18 19
22 23 24 25 26 27 28 20 21 22 23 24 25 26
29 30 31 27 28 29 30
S M T W T F S S M T W T F S
1 2 3 4 1 2 3
5 6 7 8 9 10 11 4 5 6 7 8 9 10
12 13 14 15 16 17 18 11 12 13 14 15 16 17
19 20 21 22 23 24 25 18 19 20 21 22 23 24
26 27 28 29 30 25 26 27 28 29 30 31
S M T W T F S S M T W T F S
1 2 1 2 3 4 5 6 7
3 4 5 6 7 8 9 8 9 10 11 12 13 14
10 11 12 13 14 15 16 15 16 17 18 19 20 21
17 18 19 20 21 22 23 22 23 24 25 26 27 28
24 25 26 27 28 29 30 29 30
31
S
M
T
W
T
F
S
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
S M T W T F S
1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31
2015
Notes:
Jan 01: New Year's Day
Jan 19: M Luther King Day
Feb 14: Valentine's Day
Feb 16: Presidents' Day
Apr 03: Good Friday
Apr 05: Easter Sunday
May 10: Mother's Day
May 25: Memorial Day
Jun 21: Father's Day
Jul 04: Independence Day
Sep 07: Labor Day
Oct 12: Columbus Day
Oct 31: Halloween
Nov 11: Veterans Day
Nov 26: Thanksgiving Day
Dec 25: Christmas Day
0
www.calendarlabs.com
.?d 15 hjzzL,-�