BIL 323 Draft 03 2006-2008 - Laserfiche WebLink

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COUNTY OF HAWAII STATE OF HAWAII BILL NO. ~~~ (DRAFT 3) ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 7, SECTIONS 19-53, 19-58.1 AND 19-58.2, HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO REAL PROPERTY TAXES-NONSPECULATIVE RESIDENTIAL USE. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`L• SECTION 1. Purpose. The council finds that the nonspeculative residential use program is no longer needed due to the following: (1) the current three percent cap on assessed valuation in the homeowner class, (2) the surge in real property valuation upon renewal, and (3) its very limited usage. The surge in real property valuation has caused the nonspeculative residential use dedicated assessment value to increase substantially even though it would still be below market value. The intent of the nonspeculative residential use program is to protect the homeowner from excessive real property valuation increases if they agreed not to sell their property during their dedicated period. The nonspeculative residential use homeowner would be allowed to convert into the homeowner class program without penalty through September 1, 2009; however, for those who choose to remain in the nonspeculative residential use program, renewal petitions will continue to be accepted subject to section 19-58.1(c). When the final nonspeculative residential use participant has been converted, the nonspeculative residential use program will be repealed. SECTION 2. Chapter 19, article 7, subsection 19-53(g), Hawaii County Code 1983 (2005 Edition, as amended), is amended to read as follows: "(g) Limitation on homeowner assessment. (1) For properties in the homeowner class as of January 1, 2004 and not dedicated to nonspeculative residential use, the assessed value of the property shall not increase more than three percent per tax year tax until the parcel is sold or any portion thereof sold by way of conveyance which is subject to conveyance tax under terms of chapter 247, Hawaii Revised Statutes, at which time the property will be assessed at market value. In addition to the three percent limit of this subsection any improvements undertaken on the property within the tax year shall be assessed at market value. All parcels entering this class after January 1, 2004 shall have the assessed value as of January 1 of the following year and be subject to the above provisions.