Report Title:

Real Property Tax; Agricultural Lands

Description:

Requires lands subject to substantial agricultural activities to be assessed at agricultural value and taxed at agricultural rate. Defines "substantial agricultural activities".

HOUSE OF REPRESENTATIVES

H.B. NO.

952

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to real property tax.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the maintenance of an agricultural industry is a matter of statewide concern. A viable agricultural industry is essential to the State's economy not only as a source of gross state revenue but also as a positive contributor to the environment and the aesthetics of the State.

The legislature further finds that, with the demise of large sugar and pineapple cultivation, smaller farming operations are on the increase. However, due to demands for agricultural lands other than for agriculture, some of these lands are being valued as to make them economically unfeasible for agricultural activities.

The purpose of this Act is to assist persons engaged in substantial agricultural activities, by taxing the real property they occupy at agricultural values and rates.

SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§46- Real property tax on lands subject to substantial agricultural activity. (a) Notwithstanding any land use classification, development plan designation, zoning, other designated higher and best use, any provision of chapter 246, or any ordinance, in any tax year, each county shall value any real property for agricultural purposes pursuant to section 246-10(f)(2) and tax the real property at agricultural rates, regardless of whether the real property is dedicated pursuant to section 246-12 or a similar ordinance, if the occupant of the real property engages in substantial agricultural activities on the real property.

(b) For purposes of this section, "substantial agricultural activities" means activities that generate substantially more agricultural products than for mere subsistence and substantial income to provide a living for the occupant of the real property and the occupant's family."

SECTION 3. Each county shall enact an ordinance to implement this Act by December 31, 2006.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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