Posted on: Tuesday, August 3, 2004

Vote set for tomorrow on farm tax breaks

Advertiser Staff

Dozens of supporters of a controversial bill that would grant tax breaks for agricultural property rallied in front of city hall yesterday.

City Council leaders hope to overturn Mayor Jeremy Harris' veto of Bill 35 tomorrow, but it remains unclear whether that would produce any results.

Harris says the bill would illegally unbalance the city budget by granting up to $9.6 million in tax relief, and that he will refuse to implement the measure despite any action by the council.

Council chairman Donovan Dela Cruz said he believes the bill can be enforced in court if necessary, and that the measure is needed to protect farmers from unfair tax burdens.

Harris says he will consider tax breaks for farmers on a case-by-case basis this year, but will not extend the offer to owners of vacant agricultural land.

Dela Cruz said the administration's plan leaves too much land unfairly taxed. Bill 35 would allow the council to lower taxes on any farmland this year while planning changes to the tax law for next year.

Dela Cruz yesterday introduced a new bill that would also grant a seven-year tax exemption on the value of improvements to farm land, such as roads and irrigation and drainage systems.

It takes six of the council's nine votes to overturn a veto. The council passed Bill 35 last month by a vote of 7-2, with Gary Okino and Barbara Marshall voting in opposition.