BIL 104 Draft 06 2022-2024 - Laserfiche WebLink

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SECTION 4. 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 for twelve consecutive months and under a signed lease for six consecutive months or more to the same tenant(s) shall be eligible. (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. (4) No property in the residential class with a net taxable real property value of $2,000,000 or more shall be eligible for the long-term rental classification. (5) The long-teiui rental class is exclusively reserved for properties that meet the eligible requirements for this class and have the annual required application timely filed. Real property that is used for commercial or income-producing purposes shall not qualify as "long-term rental," except: (A) Real property with uses legally permitted as a home occupation in accordance with the zoning code., or (B) Real property with agricultural use pursuant to sections 19-57, 19-59, or 19-60. (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. Claims shall be accepted from January 1 through December 31 for the next applicable tax year. (m) Breach of long-term rental class. (1) Failure of the property owner to maintain a lease for at least six consecutive months to the same tenant(s) shall breach the classification. (2) Any use of the property for vacation rental use shall breach the classification. (3) Any conveyance of the property or portion of the property subject to conveyance tax under chapter 247, Hawai`i Revised Statutes, as amended, shall breach the classification. (4) Upon breach of the classification as stated in this subsection, 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." 2