Hawaii Administrative Rules
Title 18 - DEPARTMENT OF TAXATION
Chapter 234 - NATURAL DISASTER CLAIMS COMMISSIONS
Section 18-234-07 - Valuation of losses; certification of losses

Universal Citation: HI Admin Rules 18-234-07

Current through August, 2024

(a) The total losses sustained by a claimant shall be the difference between the fair market value of the real or personal property immediately prior to the disaster and the fair market value of the real or personal property immediately after the disaster.

(b) The fair market value of real property losses may be determined by using the market, income, or cost method of valuation. The commission may consider real property tax assessments in ascertaining the fair market value of land or buildings.

(c) The fair market value of personal property losses may be determined by using business records, reference manuals, indexes, and other written materials used for valuation purposes. Factors that may be considered in making the calculation include acquisition cost, date of acquisition, depreciation allowance, method of depreciation, and salvage value.

(d) The fair market value of crop losses shall be determined as follows:

(1) The commission shall seek the assistance of the University of Hawaii in establishing standards or formulas to assist the commission in calculating as equitably as possible the value of crop losses;

(2) All claimants filing for relief subject to this subsection shall disclose and make available to the University of Hawaii or its designated agents any information the University of Hawaii or its designated agents believe is necessary to establish the standards or formulas; and

(3) The commission shall adopt the standards and formulas set by the University of Hawaii or its designated agents and apply the standards and formulas when calculating the value of crop losses.

The commission shall not certify the crop losses of any claimant who does not disclose or make available the requested information.

(e) The fair market value of livestock, poultry, and other animals may be determined as follows:

(1) The commission may seek the assistance of the University of Hawaii in establishing standards or formulas to assist the commission in calculating as equitably as possible the value of losses;

(2) The commission may require all claimants filing for relief subject to this subsection to disclose and make available to the University of Hawaii or its designated agents any information the University of Hawaii or its designated agents believe is necessary to establish the standards or formulas; and

(3) The commission may adopt the standards and formulas set by the University of Hawaii or its designated agents and apply the standards and formulas when calculating the value of losses.

(f) After the commission determines the total losses sustained by a claimant as set forth in this section, the commission shall deduct from this amount, any or all of the following:

(1) All insurance recoveries resulting from the loss;

(2) The portion of losses attributable to insurable property which exceed $ 100,000;

(3) Federal income tax benefits; and

(4) All other recoveries.

The resulting net amount shall be the amount certified to the director as the loss for which tax relief may be given.

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