BIL 176 Draft 01 2002-2004 - Laserfiche WebLink

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favorable to the owner, the director shall approve the petition and declaze the property to be dedicated to nonspeculative residential use. In order to place prospective buyers on notice of the dedicated status and the retroactive tax liability, the petitioner shall within sixty days of the notice of approval of the petition record the notice of dedication in accordance with the procedures established by the bureau of conveyances. The petitioner shall furnish the director with a copy of the recorded notice. Nonrecordation of the notice, within the prescribed period, shall be grounds for disallowance of the dedication. (d) Each petition for dedication shall be for [ten-yeaz] five-year periods. At least one hundred eighty days prior to the cancellation, the department of finance shall notify the owners by mail of such cancellation. The owner shall reapply for renewal of the dedication by filing an application with the director on or before September 1 of the [tenth] fifth year. The renewal petition shall, in all respects, be processed similazly to an original petition. Upon approval by the director of succeeding dedications, the assessed valuation shall continue to be assessed in accordance with the provisions of the nonspeculative residential use dedication. (e) In the case of a renewal which immediately follows an expiring term, the assessment base for the new dedication term shall be the dedicated value on the expiration date plus fifty percent of the amount of increase between the dedicated value and the market valuation as of January 1, following the termination of the dedication term. (f) If, during any period of dedication, any breach of the dedication requirements should occur, the special nonspeculative residential use assessment privilege shall be canceled and retroactive taxes shall be imposed. Breach of the dedication shall include the failure to maintain the home exemption status of the property, violating the exclusive residential use provision, dedicating the property to agricultural use or receiving the benefit of the agricultural use assessment, subdivision of the property into sepazate parcels, or the declaration of a condominium property regime, or the sale of the dedicated property or any portion thereof sold by way of a conveyance which is subject to conveyance tax under the terms of chapter 247, Hawaii Revised Statutes. Retroactive taxes due and owing as a result of the breach shall be a paramount lien on the property. (1) Provided, that the nonspeculative residential use dedication shall not be breached if the dedicated property meets the criteria as listed below: The following also includes provisions that aze not subject to the conveyance tax under the terms of chapter 247, Hawaii Revised Statutes, and are included for further clarification. (A) Transferred to the owner's heirs by testacy or intestacy, (B) Jointly owned by spouses and upon the death of one spouse ownership is transferred to the surviving spouse, (C) Transferred to a spouse or former spouse in connection with a property settlement agreement or decree of dissolution of a marriage or legal separation,