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Form #:B-52 <br />7/ 18/91 <br />DEPARTMENT OF FINANCE <br />REQUEST FOR COUNCIL ACTION <br />DEPARTMENT: Finance DATE: <br />STAFF CONTACT: Nancv Crawford PHONE <br />9/3/08 <br />x8092 <br />A. REQUEST: <br />Requesting amendment to Hawaii County Code, Chapter 2, Article 4, adding clarification of Lien Parity as it <br />relates to payments, when such parity is required by law. The immediate application will apply to payments <br />received on real property taxes and special taxes for Business Improvement Districts and Community <br />Facilities Districts. <br />B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): <br />Hawaii County Code Chapter 32(Community Facilities Districts) and Chapter 35 (Business Improvement <br />Districts) both require that their respective liens for outstanding special taxes be on a parity with the lien of <br />real property tax assessments. As such districts are formed and taxation begins the issue of applying partial <br />payments correctly must be addressed. <br />The Department of Finance, Real Property Tax Division bills for these special taxes in addition to real <br />property tax. At this time the Kailua Village Business Improvement District is our only district with special <br />taxes, but it is anticipated that the County will have additional districts of both types in the future. <br />In cases where the payment received for outstanding taxes, interest and penalty is less than the full amount <br />due the Real Property Tax Division must fulfill the parity lien requirements by allocating the partial payment <br />on a pro rata basis for the various outstanding tax types. <br />The addition of the Lien Parity language clarifies the required treatment of such partial payments. <br />SIGNED: ~ DATE: 9~~/Q g <br />Departmen ead <br />