BIL 104 Draft 01 2022-2024 - Laserfiche WebLink

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SECTION 3. Chapter 19, article 7, section 19-53, of the Hawai'i County Code 1983 (2016 Edition, as amended), is amended by adding new subsections designated (k), (1), and (m), to be appropriately inserted and to read as follows: "(k) Eligibility for long-term rental class. (1) Real property occupied and under a signed lease for ten consecutive months or more to the same tenant(s), with the exception that shorter lease terms may be provided to multiple tenants who are students, traveling physicians or nurses, so long as the cumulative number of days under lease meets or exceeds ten months per calendar year. (2) All dwelling units on long-term rental properties must be leased. (3) A long-term rental classification shall not be disallowed or ineligible by sole reason that the owner's principal residence is located on the same property. (1) Application for long-term rental class. No long-term rental classification shall be granted unless the claimant shall annually have filed with the department of finance a claim for such classification in such form as shall be prescribed by the department. The claim shall include, but not be limited to, a signed lease or excise tax returns, or both. For the 2025 tax year, claims shall be accepted from July 1, 2024 through December 31, 2024. For tax years thereafter, claims shall be accepted from January I through December 31 of the applicable tax year. m) Breach of long-term rental class. (1) Failure of the property owner to maintain a lease for at least ten cumulative months to the same tenant(s); or a shorter lease to multiple tenants who are students, traveling physicians, or nurses, where the cumulative number of days under lease meets or exceeds ten months per calendar year shall breach the classification. (2) Any conveyance of the property or portion of the property subject to conveyance tax under chapter 247, Hawaii. Revised Statutes, as amended, shall breach the classification. (3) Upon breach of the classification as stated in (1) or (2) of this section, the tax assessment shall be cancelled retroactive to the date of the classification, but for not more than the current year, and all difference in the amount of taxes that were paid and those that would have been due from the assessment in the higher classification shall be payable with a ten percent penalty. SECTION 4. Chapter 19, article 11, section 19-90, of the Hawaii County Code 1983 (2016 Edition, as amended), is amended by adding a new subsection designated (g), to be appropriately inserted and to read as follows: '(g) Long-term rental tax rate. In determining the tax rate for a property that is classified as long-term rental, the tax rate shall be 125% of the affordable rental housing tax rate rounded to the nearest five cents." 2