Council defers tax bill again
by Nathan Eagle - THE GARDEN ISLAND
The Kaua‘i County Council on Wednesday unanimously deferred legislation that would overhaul the real property tax system to allow more time for amendments and public input.
The county Real Property Assessment Division had initially given the council an Aug. 27 deadline to act on the proposed reform package submitted in May by the late Mayor Bryan Baptiste’s administration. But the Committee of the Whole on Aug. 20 deferred Bill 2274.
Despite another deferral this week, council members said yesterday that if they pass the bill out of committee on Sept. 17 and give final approval on the council floor Sept. 24 that the new tax rates could still be implemented in time to affect next year’s tax roll.
“It’s still a possibility,” Councilman Tim Bynum said.
The council also unanimously voted to schedule a workshop on the proposed legislation at 9 a.m., Sept. 16, in Council Chambers at the Historic County Building.
“We’re attempting to get a few other people to participate in some of the discussion points,” Council Chair Jay Furfaro said.
The council is looking to invite an economist and representatives from the visitor, farming and banking industries among others to shed light on current trends and the potential impact of the bill, he said.
There have been questions on the exemptions, such as how to apply the $350,000 cap on an apartment valued for less, Furfaro said.
Other concerns involved the administration’s proposed three-to-one ratio, a recommendation that buildings should be assessed at three times the rate of land.
This ratio was proposed to protect residents who have “old-time family homes and land,” Furfaro said, adding that the question is whether it should be rolled through the other three tax rate categories.
The bill would combine the current eight classifications into four: general, resource lands, resort and residential. It would also create a system that taxes based on use instead of zoning.
Members of the resort industry have said the three-to-one ratio’s impact could affect their ability to reinvest in their facilities, which is critical to staying competitive.
Furfaro, who set today as the deadline for council members to submit amendments to the bill, said one change under consideration involves providing tax incentives for property owners in the visitor industry to “keep the plant fresh.”
Another amendment, circulated Wednesday by Councilman Daryl Kaneshiro, involves the proposed resource lands category as it relates to the production of food, fuel and fiber.
Despite the unanimous vote to defer the bill, the council seems split on whether the legislation is being rushed.
Council members Shaylene Iseri-Carvalho and Mel Rapozo said they would rather see the council take its time and do it right, noting the concerns numerous residents have raised about the apparent fast-track course.
But Bynum and Councilwoman JoAnn Yukimura have indicated that enough time has been spent on the bill and the longer the council waits the longer it will take to give residents relief and create a fairer system.
The Real Property Tax Committee — an appointed eight-member group which held public meetings — worked on the bill for roughly a year before the administration sent the legislation to council for approval.
Councilman Ron Kouchi’s absence was excused. He chairs the Committee of the Whole shepherding the bill and is expected to be back next meeting. Furfaro chaired the committee in his stead.
For more information and to read the 147-page bill in its entirety, visit www.kauai.gov.
• Nathan Eagle, staff writer, can be reached at 245-3681 (ext. 224) or neagle@kauaipubco.com
The county Real Property Assessment Division had initially given the council an Aug. 27 deadline to act on the proposed reform package submitted in May by the late Mayor Bryan Baptiste’s administration. But the Committee of the Whole on Aug. 20 deferred Bill 2274.
Despite another deferral this week, council members said yesterday that if they pass the bill out of committee on Sept. 17 and give final approval on the council floor Sept. 24 that the new tax rates could still be implemented in time to affect next year’s tax roll.
“It’s still a possibility,” Councilman Tim Bynum said.
The council also unanimously voted to schedule a workshop on the proposed legislation at 9 a.m., Sept. 16, in Council Chambers at the Historic County Building.
“We’re attempting to get a few other people to participate in some of the discussion points,” Council Chair Jay Furfaro said.
The council is looking to invite an economist and representatives from the visitor, farming and banking industries among others to shed light on current trends and the potential impact of the bill, he said.
There have been questions on the exemptions, such as how to apply the $350,000 cap on an apartment valued for less, Furfaro said.
Other concerns involved the administration’s proposed three-to-one ratio, a recommendation that buildings should be assessed at three times the rate of land.
This ratio was proposed to protect residents who have “old-time family homes and land,” Furfaro said, adding that the question is whether it should be rolled through the other three tax rate categories.
The bill would combine the current eight classifications into four: general, resource lands, resort and residential. It would also create a system that taxes based on use instead of zoning.
Members of the resort industry have said the three-to-one ratio’s impact could affect their ability to reinvest in their facilities, which is critical to staying competitive.
Furfaro, who set today as the deadline for council members to submit amendments to the bill, said one change under consideration involves providing tax incentives for property owners in the visitor industry to “keep the plant fresh.”
Another amendment, circulated Wednesday by Councilman Daryl Kaneshiro, involves the proposed resource lands category as it relates to the production of food, fuel and fiber.
Despite the unanimous vote to defer the bill, the council seems split on whether the legislation is being rushed.
Council members Shaylene Iseri-Carvalho and Mel Rapozo said they would rather see the council take its time and do it right, noting the concerns numerous residents have raised about the apparent fast-track course.
But Bynum and Councilwoman JoAnn Yukimura have indicated that enough time has been spent on the bill and the longer the council waits the longer it will take to give residents relief and create a fairer system.
The Real Property Tax Committee — an appointed eight-member group which held public meetings — worked on the bill for roughly a year before the administration sent the legislation to council for approval.
Councilman Ron Kouchi’s absence was excused. He chairs the Committee of the Whole shepherding the bill and is expected to be back next meeting. Furfaro chaired the committee in his stead.
For more information and to read the 147-page bill in its entirety, visit www.kauai.gov.
• Nathan Eagle, staff writer, can be reached at 245-3681 (ext. 224) or neagle@kauaipubco.com
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