Ag Dedication Program For Hawaii County

Dated: 06/11/2014

Views: 1259

The Hawaii County ag dedication program was designed to encourage the commercial agricultural use of land on a long term basis by offering lower assessments which in turn will reduce the real property tax burden on the farmer or rancher.   The minimum annual gross income per farm operation shall be $2,000. The operation may include multiple parcels that need not be contiguous. The use of the property must adhere to generally acceptable standards or recognized practices within the agricultural industry in Hawaii.  The pasturing and grazing of animals is not an allowable agricultural use on a parcel not County-zoned for agricultural use.   The dedicated land will be assessed based on its actual commercial agricultural use, versus its market value.

The term of the dedication is 10 years, with special provisions for leases with less than 10 years remaining, but a minimum of 5 years remaining.  The “commercial agricultural use” means that the land is being used on a continuous and regular basis for agricultural activities with the purpose of generating income, monetary gain, or economic benefit in the form of money.

An owner who desires to dedicate a parcel to an agricultural use must submit a petition to dedicate by September 1 of any calendar year. The dedication petitions are available at the Real Property Tax offices in Hilo and Kona, and at the county website: www.hawaiipropertytax.com. The petition must be complete and have the signatures of all owners, and the lessor if required.

But be careful.  Any violation in the terms and conditions of the dedication will be considered a breach and could result in the imposition of rollback taxes and a penalty. The rollback taxes will be based on the difference in taxes that were assessed and which would have been calculated based on the market value. Any rollback tax and penalty assessed becomes a paramount lien on the parcel.

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Martha Tumbleson - R(S)

Martha grew up in a small northern Indiana town where strong moral and ethical values shaped her character from an early age. She learned that if you work hard every day, take pride in what you do, a....

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