Honolulu County Agricultural Land

State

Hawaii

Year

2006

Eligible Land Uses

Agricultural/Farmland

Eligibility Criteria

Prerequisite Designation or Certification

Management Plan

Multi-Year Commitment

Plot/Land Size Criteria

None

Method of Preferential Treatment

Current Use Valuation

Different Assessment Ratios

Different Tax Rates

Is There a Penalty for Change of Use?

Yes

Description of Method of Preferential Treatment

Land dedicated to agricultural use for 1 year is assessed at 5% of its fair market value; 3% of its fair market value if dedicated for 5 years; 1% of fair market value if dedicated for 10 years; and 1% of fair market value if dedicated for either 5 or 10 years in the case of pastureland. If the highest per-acre valuation for lands dedicated for 5 years exceeds the average agricultural production value per acre for vegetables, melons, and fruit crops (excluding pineapples), as determined by the director of budget and fiscal services, the the percent of fair market value for lands dedicated for 5 years will be reduced so as not to exceed the average agricultural production value. The percent of fair market value for 10 year dedications will also be changed so as not to exceed the percent of fair market value for 5 year dedications by more than .33 times and 1.67 times for land dedicated for 1 year. Lands classified as agricultural land are subject to a special tax rate. Lands for which the assessor has approved a petition for dedication as vacant agricultural land, which has no residential buildings and is not dedicated for agricultural purposes, shall be classified and assessed at 50% of the land’s fair market value for a period of 10 years.

Location Criteria

None

Income Production Criteria

None

Prerequisite Designation or Certification Criteria

Owner must petition and the county must accept the dedication of land for agriculture use.

Management Plan Criteria

An agricultural plan must be submitted at the time the owner applies for approval of dedicating the land.

Multi-Year Commitment Criteria

Land can be dedicated for 1, 5 or 10 years. Land must be substantially, at least 75%, used for agricultural purposes.

Description of Penalty

When the dedication of the land is cancelled the owner is subject to rollback tax and a penalty. The rollback is the tax that would have been owed if tax was imposed at 100% of market value. An additional penalty of 10% for each year's rollback tax is also assessed.

State Funding for Local Tax Loss

Local government covers all of its tax loss

Record ID

HI018_PA06

Sources

Honolulu Ord 1990 §8-7.3 (in effect for 2006)

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