RES 146 Draft 02 2000-2002 - Laserfiche WebLink

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WHEREAS, numerous lessees on Hawaiian Home Lands Homesteads in Hawaii County are delinquent on payment of real property taxes, penalties, and interests; and WHEREAS, in the Hawaii State Supreme Court case of In re Ainoa, 60 Haw. 487 (1979), in affirming County's right to levy real property tax on Hawaiian Home Lands, the Court recognized that it is the value of the underlying fee interest that is being assessed, and not the leasehold. The Court further held that the improvements upon the lease is also taxable; and WHEREAS, while the right to levy real property tax on Hawaiian Home Lands has been recognized by the Hawaii State Supreme Court, the enforcement of that levy is not as clear. Section 4 of the Admission Act provides that "the encumbrances authorized to be placed on Hawaiian Home Lands by officers other than those charged with the administration of said Act, shall not be increased, except with the consent of the United States". The Hawaiian Homes Commission Act did not authorize the State or local government to apply tax liens to Hawaiian Home Lands. To the extent that a real property tax lien is an encumbrance on the property created by non-administrators of DHHL, an act of Congress would be required to attach it to Hawaiian Home Lands. fine disposition of Hawaiian Home Lands by County tax sale would seem to be in contravention of this intent where Section 19-37 states that the tax lien is upon "the property assessed"; and WHEREAS, pursuant to Hawaiian Homes Commission Act, Section 210, DHHL can cancel the lease for nonpayment of taxes. Then, pursuant to Section 216(d) of the Hawaiian Homes Commission Act, it is DHHL, not the County, which has the primary tax collection/enforcement authority under the Hawaiian Homes Commission Act and has a first lien against the lessee's interest for taxes and other expenses paid by DHHL; and WHEREAS, foreclosure attempts on the improvements would also pose practical problems in that the leases can only be given to qualified Native Hawaiians, according to priority determined by DHHL; and WHEREAS, DHHL, pursuant to Section 208(7), Hawaiian Homes Commission Act, may pay the real property taxes owed by the homestead lessees and DHHL imposes a lien on that lease, pursuant to Hawaiian Homes Commission Act, Section 216; and WHEREAS, in 1994 the County Council of the County of Hawaii Committee on Finance adopted Communication No. 449 authorizing the Director of Finance to compromise the penalties and interests portion of real property taxes owed by lessees of Hawaiian Home Lands Homestead in exchange for DHHL paying the real property tax of these lessees and the delinquent real property tax was paid; and _ _ _