HOUSE OF REPRESENTATIVES             H.C.R. NO.37          
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                     HOUSE CONCURRENT
                        RESOLUTION
REQUESTING THE COUNTIES TO CONSIDER ANNUAL LABOR COSTS IN
   AGRICULTURAL LAND VALUATIONS.



 1        WHEREAS, article VIII, section 3 of the Constitution of
 2   the State of Hawaii provides that the "taxing power shall be
 3   reserved to the State, except so much thereof as may be
 4   delegated by the legislature to the political subdivisions, and
 5   except that all functions, powers and duties relating to the
 6   taxation of real property shall be exercised exclusively by the
 7   counties"; and
 8   
 9        WHEREAS, the State transferred the real property tax
10   function to the counties in chapter 246A, Hawaii Revised
11   Statutes; and
12   
13        WHEREAS, it is still in the general interest of the State
14   to ensure that the counties continue to evaluate property
15   valuations fairly and equitably in order to ensure the
16   viability of essential state needs, such as agriculture
17   production; and
18   
19        WHEREAS, while the valuation of agricultural land for real
20   property tax purposes includes the consideration of many items,
21   it is not clear that current valuation processes for
22   agricultural land incorporates the consideration for annual
23   labor costs; and
24   
25        WHEREAS, labor costs can differ depending on the crop, for
26   example the production of eucalyptus groves requires virtually
27   no labor during the twenty years of growth before their
28   harvest, but annual or shorter duration crops require regular
29   workers to plant, maintain, and harvest the crops; and
30   
31        WHEREAS, providing a credit for the agricultural lands
32   that support the employment of workers who plant, maintain, and
33   harvest annual or short duration crops, would allow the
34   agricultural lands that provide essential items to the economy
35   to compensate for the higher labor costs; now, therefore,
36   
37        BE IT RESOLVED by the House of Representatives of the
38   Twentieth Legislature of the State of Hawaii, Regular Session

 
Page 2                                                     
                                  H.C.R. NO.37          
                                                        
                                                        

 
 1   of 1999, the Senate concurring, that each of the counties are
 2   requested to incorporate the consideration of labor costs in
 3   the valuation of agricultural lands and so that the differences
 4   in labor costs will be compensated in the valuation of the
 5   property; and
 6   
 7        BE IT FURTHER RESOLVED that in the alternative, the
 8   counties are requested to devise a system of credits from
 9   property taxes that will alleviate the increased costs of
10   agricultural production that provides regular employment to
11   workers; and
12   
13        BE IT FURTHER RESOLVED that certified copies of this
14   Concurrent Resolution be transmitted to the Mayor and the
15   Chairperson of the Council of each county.
16 
17 
18 
19                         OFFERED BY:  ____________________________