BIL 323 Draft 02 2006-2008 - Laserfiche WebLink

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(~]~ In the case of a renewal which immediately follows an expiring term, the assessment base for the new five- or ten-year 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, preceding the termination of the dedication term. [~]~ 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 termination of the dedication after SeRtember 1, 2009 or other unauthorized termination, 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 separate 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 are 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 ofa marriage or legal separation, (D) Transferred to a trustee for the beneficial use of a spouse, or the surviving spouse of a deceased transferor, or by a trustee of such a trust to the spouse of the trustor, (E) Subject to a title change between spouses and said change does not result in a loss of the home exemption status, (F) And the heirs, surviving spouse, divorced spouse, or trustee, within sixty days after receiving title to the property, petitions the director, in writing, to continue the dedication and the property continues to qualify for the home exemption as defined in sections 19-71 and 19-72, or (G) The dedication shall not be cancelled if the lessee purchases the leased fee interest from the lessor.