COM 0770.000 2020-2022 - Laserfiche WebLink

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COUNTY OF HAWAII Notes to the Basic Financial Statements June 30,2021 automatically renewable indefinitely. Cancellation of the dedication by either the owner or the Director of Finance may only be made upon five years' written advance notice and no earlier than the end of the fifth tax year. Any person who becomes an owner of the dedicated real property shall be subject to the restrictions and retroactive tax assessment provisions. If the dedication is approved,the exemption based upon the dedication shall be effective July I of the tax year following the approval of the dedication. The dedicated exempt property or portion of the property approved shall be subject to the minimum tax provisions of Section 19- 90(e)of the Hawaii County Code. If there is a breach in the agreement,the property would be subject to roll back taxes,including penalty and interest. Low and Moderate-Income Housing Exemption—Section 19-87 of the Hawaii County Code and Rule 37 of the Rules and Regulations of the Director of Finance provides an exemption for a housing project which is owned and operated by a nonprofit or limited distribution mortgagor or by a qualified entity from taxation. Must participate in long-term housing project that have regulatory agreements mandating rent levels,occupancy of the project is limited to the elderly,handicapped,low or moderate income families. Applicants must submit an application form along with a copy of the recorded regulatory agreement. The exemption is equal to 100%of the assessed value for the portion of the real property that is dedicated as low- and moderate-income rentals. If the entire property is dedicated,then the net taxable is zero but the property is still subject to the minimum tax per Section 19-90(e)of the Hawaii County Code. The exemption shall continue so long as the rental housing project is owned and operated by a nonprofit or limited mortgagor. If the rental units do not comply with the regulatory conditions,the property would be subject to roll back taxes,including penalty and interest. Non Dedicated Agricultural Use Assessment—Section 19-57 of the Hawaii County Code and Rule 34 of the Rules and Regulations of the Director of Finance reduces assessments to encourage local agricultural production as well as the preservation of agricultural lands that could otherwise be further developed,by valuing these lands at the at two times the dedicate agricultural use value as opposed to the market value. Unlike the Dedicated Agricultural Use program,the zoning for this program must be agricultural. An application form must be filed along with a plot plan and provide details as to what agricultural activities is conducted on the property. Upon review and approval,the application is effective as of January I for the following tax year. Renewal of the application shall be in such form and at such time as requested by the director. Valuation consideration is given to the type of agricultural activity. Any breach to the terms of would result in an immediate rollback calculation of current plus two yeas taxes plus penalties and interest. Commercial Agricultural Use Dedication—Section 19-60 of the Hawaii County Code and Rule 31 of the Rules and Regulations of the Director of Finance provides reduced assessments to encourage local agricultural production as well as the preservation of agricultural lands that could otherwise be further developed,by valuing the dedicated lands at the agricultural use value as opposed to the market value. An application form must be filed along with a plot plan and provide details as to what agricultural activities is conducted on the property. Upon - 54 -