City introduces
resolution to aid
farmers on taxesThe measure would allow
more time to deal with a new
ordinance involving agricultural
land valuation
Two Honolulu City Council members, Donavan Dela Cruz and Barbara Marshall, have introduced a resolution they say will help farmers who are facing huge property taxes increases.
Problems began for the farmers when an ordinance was passed in last year that changes the method of agricultural land valuation. The new calculation would mean farmers, especially those closer to higher value residential areas, could see their tax bills jump from a few hundred dollars to thousands. Under the old system, ag lands had a set valued of $2,500 per acre regardless of location.
Under the new ordinance, farmers had until Sept. 2 to notify the state tax division of how much land they had dedicated to farming, which would mitigate their tax bills. But few farmers were aware of the new law, and many said they received no notification from the state.
New tax bills were scheduled to be mailed out beginning Dec. 15.
Dela Cruz and Marshall's resolution urges the city administration to allow farmers more time to comply.
The full council must vote on the measure.
"This should resolve some of the concerns regarding lack of notification and allow time for a better understanding of the process," Dela Cruz said.
The resolution also urges that compromises be negotiated between the city and farmers who failed to file the petition on time to dedicate their land for agricultural purposes.
"The other thing I think people have to realize is that there is an appeals process so any type of unfairness whether its the amount of their assessment, I would definitely urge people to appeal," he said
The original ordinance, intended to make sure agricultural land is being used for farming, rather than so-called "gentleman's farms," imposed a higher tax rate on agricultural lands not actively used for farming. But under the new rules the county will appraise agricultural lands at fair market value and assess a certain percentage of their value depending on the length of time the land is dedicated to agriculture.
Farmers on leased land, especially on short month-to-month agreements, also complained landlords would be unwilling to indicate how long a period their land would be dedicated to agriculture.
Dela Cruz said he also plans to focus on solutions to lease issues.
Myron Murakami, one of the farmers who was concerned about the new law because farm his on the edge of an urban area in Kahaluu, said he's pleased the issue will be addressed by the council. "At least they are taking notice of the situation," he said
Still, for Murakami, it's a bit like closing the barn door after the horse has already left.
"I think they'd probably be better to wash the table and start over rather than tinker with what's already there. It's easier," he said.
