HomeMy WebLinkAboutBIL 051 Draft 03 1996-1998
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COUNTY OF HAWAII;:' STATE OF HAWAII
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BILL NO. 51
(Draft 3)
ORDINANCE NO.
97 84
AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE 1983
(1995 EDITION), RELATING TO REAL PROPERTY TAXATION.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII.
SECTION 1. Chapter 19 of the Hawaii County Code 1983 (1995
edition) is amended as follows:
"Chapter 19
REAL PROPERTY TAXES
Article 1. Administration
Section 19-1. Purpose.
The purpose of this chapter is to implement the authority
granted to the County to assess, impose and collect real property
tax based on an amendment to the State Constitution which was
adopted on November 7, 1978, by the electorate. This chapter will
provide for the administration, assessment, and collection of real
property tax, including exemptions therefrom, dedication of land,
and appeals.
(1981, Ord. No. 613, sec. 1.)
Section 19-2. Definitions.
(a) Wherever used in this chapter:
(1) "County" means the County of Hawaii.
(2) "Director" means the director of finance of the
County of Hawaii or his authorized subordinate.
(3) "Property" or "real property" means and includes all land
and appurtenances thereof and the buildings, structures,
fences, and improvements erected on or affixed to the same, and
any fixture which is erected on or affixed to such land,
building, structures, fences, and improvements, including all
machinery and other mechanical or other allied equipment and
the foundations thereof, whose use thereof is necessary to the
utility of such land, buildings, structures, fences, and
improvements, [of]~ whose removal therefrom cannot be
accomplished without substantial damage to such land,
buildings, structures, fences, and improvements, excluding,
however, any growing crops.
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iil "Dedicated lands" are lands which are restricted in their
use for specified periods of time by covenants executed between
the landowners and the director of finance as provided by this
chapter.
1..5.l "Market value" is the most probable sale price of a
property in terms of money in a competitive and open market
assuminq that the buyer and seller are actinq prudently and
knowledqeably. allowinq sufficient time for the sale. and
assuminq that the transaction is not affected by undue stress.
(1981, Ord. No. 613, sec.2.)
Section 19-3. Duties and responsibilities of the director.
(a) The director shall have the following duties and powers, in
addition to any others prescribed or granted by this chapter:
(1) Assessment: To assess, pursuant to law, all real property
situated within the geographic boundary of the County for
taxation of real property and to make any other assessment by
law required to be made by the director;
(2) Collections: To be responsible for the collection of all
taxes imposed by this chapter and for such other duties as are
provided by law;
(3) Construction of revenue laws: To construe the provisions
of this chapter, the administration of which is within the
scope of the director's duties, whenever requested by any
officer or employee of the County, or by any taxpayer;
(4) Enforcement of penalties: To see that penalties are
enforced when prescribed by this chapter (the administration of
which is within the scope of the director's duties) for
disobedience or evading of its provisions, and to see that
complaint is made against persons violating any provisions of
this chapter; in the execution of these powers and duties, the
director may call upon the corporation counselor prosecuting
attorney, whose duties it shall be to assist in the institution
and conduct of all proceedings or prosecutions for penalties
and forfeitures, liabilities and punishments for violation of
the provisions of this chapter in respect to the assessment and
taxation of real property;
(5) Forms: To prescribe forms to be used in or in connection
with the provisions of this chapter including forms to be used
in the making of returns by taxpayers or in any other
proceedings connected with the provisions of this chapter and
to change the same from time to time as deemed necessary;
(6) Maps: The director shall provide for the County maps drawn
to appropriate scale, showing all parcels, blocks, lots, or
other divisions of land based upon ownership, and their areas
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or dimensions, numbered or otherwise designated in a systematic
manner for convenience of identification, valuation, and
assessment. [The maps, as far as possible, shall show the
names of owners of each division of land, and shall be revised
from time to time as ownerships change and as further divisions
of parcels occur. The director shall also maintain, as and
when such information is available, maps showing present use,
zoning, and physical use capabilities of land located within
the County for the guidance of assessors and the information of
various tax review tribunals and the general public.]
The director shall charge fees for the use and other
disposition of tracings of these maps, including copies or
prints made therefrom, by private persons or firms as provided
for by this chapter.
(7) Inspection, examination of records and property: The
director shall have the authority to inspect and examine the
records and property of all public officers without charge, and
to examine the books and papers of account of any person for
the purpose of enabling the director to obtain all information
that could in any manner aid him in discharging his duties
under this chapter.
(8) Inspection, examination of real property: To inspect and
examine the real property of any person for the purpose of
enabling the director to attain all information that could in
any manner aid him in discharging his duties under this chapter.
(9) Recommendations for legislation: To recommend to the mayor
such amendments, changes or modifications of the provisions of
this ordinance or any applicable State statutes as may seem
proper or necessary to remedy injustice or irregularity or to
facilitate the assessment of property under this chapter.
(10) Report to mayor: To report to the mayor annually, and at
such other times and in such manner as the mayor may require,
concerning the acts and doings and the administration of his
department, and such other matters of information concerning
real property taxation as may be deemed of general interest;
the mayor shall transmit copies of such reports to the council
within thirty days of receipt.
(11) Rules and regulations: To promulgate such rules and
regulations as he may deem proper and to effectuate the
purposes for which his department is constituted and to
regulate matters of procedure by or before him pursuant to the
provisions of chapter 91, HRS.
(12) Compromises: With the approval of the corporation counsel
to compromise any claim arising under this chapter not
exceeding $500, and if a claim exceeds $500, the director shall
obtain the approval of the council, the administration of which
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is within the scope of his duties; and in any such case there
shall be placed on file and in his department's office a
statement of (A) the amount of tax assessed, or proposed to be
assessed, (B) the amount of penalties and interest imposed or
proposed to be assessed, (C) the amount of penalties and
interest imposed or which could have been imposed by law with
respect to the item (A), as computed by him, (0) the total
amount of liability as determined by the terms of the
compromise, and the actual paYments thereon with the dates
thereof and (E) the reasons for the compromise.
(13) Retroactivity of rulings: To prescribe the extent, if any,
to which any ruling, regulation, or construction of the
provisions of this chapter shall be applied without retroactive
effect.
(14) Remission of delinquency penalties and interest: Except in
cases of fraud or wilful violation of the provisions of this
chapter or wilful refusal to make a return setting forth the
information required by this chapter (but inclusion in a return
of a claim of nonliability for the tax shall not be deemed a
refusal to make a return), he may remit any amount of penalties
or interest added, under this chapter, to any tax that is
delinquent for not more than [ninety]one hundred eiahtv days,
in a case of excusable failure to file a return or pay a tax
within the time required by this chapter, or in a case of
uncollectibility of the whole amount due; and in any such case
there shall be placed on file in his office a statement showing
the names of the person receiving such remission, the principal
amount of the tax, and the year or period involved.
(15) Closing agreements: To enter into an agreement in writing
with any taxpayer or other person relating to the liability of
such taxpayer or other person, under this chapter, the
administration of which is within the scope of his duties, in
respect to any taxable period, or in respect of one or more
separate items affecting the liability for any taxable period;
such agreement, signed by or on behalf of the taxpayer or other
person concerned, and by or on behalf of the County, shall be
final and conclusive, and except upon a showing of fraud or
malfeasance, or misrepresentation of a material fact, (A) the
matters agreed upon shall not be reopened, and the agreement
shall not be modified, by any officer or employee of the
County, and (B) in any suit, action or proceeding, such
agreement, or any determination, assessment, collection,
paYment, refund or credit made in accordance therewith, shall
not be annulled, modified, set aside or disregarded.
(16) Other powers and duties: In addition to the powers and
duties contained in this section, the powers and duties
contained in this chapter for levying, assessing, collecting,
receiving, and enforcing paYments of the tax imposed hereunder,
and otherwise relating thereto, shall be severally and
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respectively conferred, granted, practiced, and exercised for
levying, assessing, cOllecting, and receiving and enforcing
payment of the taxes imposed under the authority of this
chapter.
(1981, Ord. No. 613,sec.3.)
Section 19-4. Oaths.
Unless otherwise provided for. [T]the director may administer
all oaths or affirmations required to be taken or be administered
under this chapter.
(1981, Ord. No. 613,sec.4.)
Section 19-5. Hearings and subpoenas.
The director may conduct any inquiry, investigation, or
hearing, relating to any assessment, or the amount of any tax, or
the collection of any delinquent tax, including any inquiry or
investigation into the financial resources of any delinquent
taxpayer or the cOllectibility of any delinquent tax. The director
may administer oaths and take testimony under oath relating to the
matter of inquiry or investigation, and subpoena witnesses and
require the production of books, papers, documents, and records
pertinent to such inquiry. If any person disobeys such process, or,
having appeared in obedience thereto, refuses to answer pertinent
questions put to him by the director or to produce any books,
papers, documents or records, pursuant thereto, the director may
apply to the third circuit court setting forth such disobedience to
process or refusal to answer, and such court or judge shall cite
such person to appear before such court or judge to answer such
questions or to produce such books, papers, documents, or records,
and upon his refusal to do so commit such person to jail until he
testifies but not for a longer period than sixty days.
Notwithstanding the serving of the term of commitment by any person,
the director may proceed in all respects as if the witness had not
previously been called upon to testify. Witnesses (other than the
taxpayer or his or its officers, directors, agents and employees)
shall be allowed their fees and mileage as in cases in the circuit
courts to be paid on vouchers of the County, from any moneys
available for expenses of the director.
(1981, Ord. No. 613, sec. 5.)
Section 19-6. Timely mailing treated as timely filing and paying.
(a) General Rule. Any report, claim, tax return, statement or
other document required or authorized to be filed with or any
payment made to the County which is:
(1) Transmitted through the United States mail, shall be
deemed filed and received by the County on the postmarked date
[shown by the post office cancellation marked] stamped upon the
envelope or other appropriate wrapper containing it.
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(2) Mailed but not received by the County or where received
and the [cancellation mark]oostmarked date is illegible,
erroneous, or omitted, shall be deemed filed and received on
the date it was mailed if the sender establishes by competent
evidence that the report, claim, tax return, statement,
remittance, or other document was deposited in the United
States mail on or before the date due for filing; and in cases
of the nonreceipt of a report, tax return, statement,
remittance, or other document required by law to be filed, the
sender files with the County a duplicate within thirty days
after written notification is given to the sender by the County
of its nonreceipt of the report, tax return, statement,
remittance, or other document.
(b) Registered Mail, Certified Mail, Certificate of Mailing. If
any report, claim, tax return, statement, remittance, or other
document is sent by United States registered mail, certified mail,
or certificate of mailing, a record authenticated by the United
States Postal Service of the registration, certification, or
certificate shall be considered competent evidence that the report,
claim, tax return, statement, remittance, or other document was
delivered to the director of department of finance, and the date of
registration, certification, or certificate shall be deemed the
postmarked date.
(1981, Ord. No. 613, sec.6.)
Section 19-7. Tax collection; general duties, powers of director.
The director shall collect all taxes under this chapter
according to the assessments and shall be liable and responsible for
the full amount of the taxes assessed, unless he shall under oath
account for the noncollection of the same, or if he shall be
released from accountability as provided in section 19-9. The
corporation counsel shall assist the director in the collection of
all taxes under this chapter.
(1981, Ord. No. 613, sec.7; Am. 1984, Ord. No. 84-10, sec.2.)
Section 19-8. District court judges; misdemeanors and actions for
tax collections.
Except as otherwise provided in this chapter, the district
court judges for the third circuit court for the State, as
authorized in 231-12, HRS, shall have jurisdiction to try
misdemeanors arising under this chapter and all complaints for the
violation of this chapter and to impose any of the penalties therein
prescribed and shall also have the jurisdiction to hear and
determine all civil actions and proceedings for the collection and
enforcement of collection and payment of all taxes assessed
thereunder, and all actions or judgments obtained in tax actions and
proceedings, notwithstanding the amount claimed.
(1981,Ord. No. 613,sec.8)
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Section 19-9. Director; collection, records of delinquent taxes,
uncollectible delinquent taxes.
The director shall be responsible for the collection and
general administration of all delinquent taxes. He shall duly and
accurately account for all delinquent taxes collected.
The department of finance shall prepare and maintain a complete
record, open to pUblic inspection, of the amounts of taxes assessed
which have become delinquent and the name of the delinquent taxpayer
in each case, but it shall not be necessary to periodically compute
on the records the amount of penalties and interest upon delinquent
taxes.
The department may from time to time prepare lists of all taxes
delinquent which in its judgment are uncollectible. Such taxes as
the department finds to be uncollectible shall be entered in a
special record and be deleted from the other books kept by the
department, and the department shall thereupon be released from any
further accountability for their collection; provided, that no
account shall be so deleted until it shall have been delinquent for
at least two years. Any items so deleted may be transferred back to
the delinquent tax roll if the department finds that the alleged
facts as previoUSly presented to it were not true, or that such
items are in fact collectible.
(198l,Ord. No. 6l3,sec.9;Am.1984,Ord.No. 84-l0,sec.3.)
Section 19-10. Legal representative.
The corporation counselor the prosecuting attorney shall
assign one of his deputies as attorney and legal advisor and
representative of the director. The corporation counselor the
prosecuting attorney may proceed to enforce paYment of delinquent
taxes by any means provided by law. Any legal proceeding may be
instituted in the name of the director or his deputy.
(198l,Ord. No. 6l3,sec.lO)
Section 19-11. Abstracts of registered conveyances, copies of
corporation exhibits, etc., furnished to director.
The director may request abstract of titles. For the purpose
of assisting the director in arriving at a correct valuation of the
property within each district, the registrar of conveyances, or any
other agency so requested by the department, shall furnish to the
department, monthly, quarterly, or as otherwise as required by the
department, an abstract of the conveyances of, or other documents
affecting title to, or assessment of, real property in each
district, which have been entered for record at the bureau of
conveyances, executed, or filed, as the case may be, during the
periOd covered by such abstract. The director of regulatory
agencies shall each year furnish the department as requested, copies
of the annual corporation exhibits of any or all corporations owning
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real property in any district or any information contained in such
exhibits.
(1981,Ord. No. 613, sec. 11.)
Section 19-12. Returns, made when; form; open to public; failure to
file.
Whenever the director finds that the filing of returns under
this section is advisable for the making of assessments and so
orders, the director shall give, to the taxpayers during the month
of December, of the year such order is made, public notice (by
publication thereof, in English, at least three times on different
days during the month, in a newspaper of general circulation in the
County of Hawaii, published in the English language) requiring such
taxpayers to file with the director, on or before January 15 of the
succeeding year, returns in the manner and form required by this
section. After such publication of notice, every person owning, or
having possession, custody or control of, real property whether
entitled to exemption or not, shall during the month of January,
file upon forms prescribed by the director and in the manner
required by such forms, a return signed as provided in section 19-13
setting forth the description and location of all real property
belonging to such person or of which he had possession, custody or
control on January 1, and setting forth the taxpayer's opinion of
the [fair] market value thereof as of January 1. It shall be
sufficient to describe his real property by setting forth the
location and a brief description in sufficient detail to identify
the real property.
Whenever the director shall determine that there are not
sufficient evidences of value to form the basis of a sound
appraisal, for assessment purposes, of the value of the real
property or real properties or portions thereof, of any taxpayer it
may, upon notice of not less than thirty days, require the taxpayer
to file a return as described in the foregoing paragraph.
All returns made under this section shall be open to inspection
by the public. unless protected from disclosure bv the provisions of
the Uniform Information Practices Act. and shall be admissible in
evidence against the person making the return, in any State court in
any action wherein the value of the real property, or portion
thereof, covered by the return may be in dispute.
Returns made under this section shall be taken into
consideration by the director in making appraisals for assessment
purposes; the opinion of any taxpayer as to [fair] market value
shall not be binding upon the director but no taxpayer shall be
deemed to be aggrieved by any assessment made to his property which
is based upon the opinion of value set forth in his return unless he
shows lack of uniformity or inequality as set forth in section
19-93. The opinion of value shall constitute a rebuttable
presumption that the [fair] market value of the real property on the
date of the return was not greater than the value stated in such
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return in any subsequent proceeding brought to condemn the property
or any part thereof for public purposes.
Failure to file a return required under this section, shall
render the taxpayer liable for paYment of an added tax as follows:
In case of failure to file any tax return required to be filed on a
day described therefor (determined with regard to any extension of
time for filing), unless it is shown that the failure is due to
reasonable cause and not due to neglect, there shall be added to the
amount required to be shown as tax on the return, five percent of
the amount of the tax if the failure is for not more than one month,
with an additional five percent for each additional month or
fraction thereof during which the failure continues, not exceeding
twenty-five percent in the aggregate. For the purposes of this
section, the amount of tax required to be shown on the return shall
be reduced by the amount of any part of a tax which was paid on or
before the date prescribed for paYment of the tax and by the amount
of any credit against the tax which may be claimed upon the return.
(1981, Ord. No. 613,sec.12.)
Section 19-13. Returns to be signed.
Every return required to be made for real property taxation
purposes shall be signed by the person required to make the return
or by some duly authorized person in the taxpayers' behalf.
The director may require that, if any person or persons
actually prepare or sign a return for another person, such form of
statement of such facts and of authority to sign such return as may
be prescribed by the director shall be signed by the person so
preparing or signing the return, and the director may by regulation
define the classes of persons to whom this provision shall apply.
No oath shall be required upon any real property tax return.
(198l,Ord. No. 613,sec.13.)
Section 19-14. Returns by fiduciaries.
Every executor, administrator, trustee, guardian, or other
fiduciary shall make a return of the real property represented by
him in such capacity in the County in which returns shall be
required to be made pursuant to the provisions of this chapter.
(1981, Ord. No. 613, sec.14.)
Section 19-15. Returns of corporations and co-partnerships.
The returns, statements or answers required by this chapter
shall, in the case of a corporation, be made by any officer thereof,
or, in a case of a co-partnership, by any member thereof.
(1981,Ord. No. 613,sec.15.)
Section 19-16. Notices, how given.
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Unless otherwise provided, every notice, the g1v1ng of which by
the director is required or authorized, shall be deemed to have been
given on the date when the notice was mailed properly addressed to
the addressee at his last known address or place of business.
(1981, Ord. No. 6l3,sec.16.)
Section 19-17. Federal or other tax officials permitted to inspect
returns; reciprocal provisions.
Notwithstanding the provisions of any law making it unlawful
for any person, officer, or employee of the County to make known
information imparted by any tax return or permit any tax return to
be seen or examined by any person, it shall be lawful to permit a
duly accredited tax official of the United States or of any state or
territory or the Mu1tistate Tax Commission to inspect any tax return
of any taxpayer, or to furnish to such official, commission, or the
authorized representative thereof an abstract of the return or
supply him with information concerning any item contained in the
return or disclosed by the report of any investigation of the return
or of the subject matter of the return for tax purposes only. The
Mu1tistate Tax Commission may make such information available to a
duly accredited tax official of the United States or to a duly
accredited tax official of any state or territory, or the authorized
representative thereof, for tax purposes only.
(1981, Ord. No. 613, sec.17.)
Section 19-18. Records open to public.
All maps and records compiled, made, obtained, or received by
the director any of his subordinates shall be public records, and in
case of the death, removal, or resignation of any such officers,
shall immediately pass to the care and custody of their respective
successors. The information and all maps and records connected with
the assessment and collection of taxes under this chapter shall,
during business hours, be open to the inspection of the public[.]
unless protected from disclosure bv the provisions of the Uniform
Information Practices Act.
(1981, Ord. No. 613,sec.18.)
Section 19-19. Evidence, tax records as.
In respect of any tax imposed or assessed under this chapter,
the administration of which is within the scope of the director's
duties and except as otherwise specifically provided in the law
imposing the tax, the notices of assessments, records of
assessments, and lists or other records of paYments and amounts
unpaid prepared by or under the authority of the director, or copies
thereof, shall be prima facie proof of the assessment of the
property or person assessed, the amount due and unpaid, and the
delinquency in paYment and that all requirements of law in relation
thereto have been complied with.
(1981, Ord. No. 613,sec.19.)
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Section 19-20. Due date on Saturday, Sunday or holiday.
When the due date for any remittance or document required by
this chapter falls on a Saturday, Sunday or legal holiday, the
remittance or document shall not be due until the next succeeding
day which is not a Saturday, Sunday or legal holiday.
(1981, Ord. No. 613,sec.20.)
Section 19-21. Changes, etc., in assessment lists.
Except as specifically provided in this chapter, no changes in,
additions to or deductions from, the real property tax assessments
on the assessment lists prepared as provided in section 19-28 shall
be made except to add thereto property or assessments which may have
been omitted therefrom, or to deduct therefrom adjustments on
account of duplicate assessments and [clerical]departmental errors,
such as but not limited to. transposition in figures, typographical
errors and errors in calculation.
(1981,Ord. No. 613, sec.21.)
Section 19-22. Adjustments and refunds.
(a) This subsection shall apply to taxes assessed and collected
under this chapter.
(1) In the event of adjustments on account of duplicate
assessments and [clerical]departmental errors, such as but not
limited to. transposition in figures, typographical errors, and
errors in calculations, the adjustments may be entered upon the
records although the full amount appearing on the records prior
to such adjustment has been paid.
(2) There may be refunded in the manner provided in subsection
(b) of this section any amount collected in excess of the
amount appearing on the records as adjusted, or any amount
constituting a duplication of paYment in whole or in part.
(3) Whenever any real property is deemed by the director to be
exempt. except for the minimum tax. from taxation under section
19-87, if there shall have been paid prior to the effective
date of the exemption any real property taxes applicable to the
periOd following the effective date of the exemption, there
shall be refunded to the nonprofit or limited distribution
mortgagor owning the property in the manner provided in
subsection (b) all amounts representing the real property
taxes. except for the minimum tax. which have been paid on
account of the property and attributable to the period
following the effective date of the exemption.
(4) No such adjustment for refund or taxes owed shall be
entered on the records [nor refund made] except within two
years after the end of the tax year in which the amount to be
refunded was due and payable, unless a written application for
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the adjustment [or refund] has been filed within such period.
(b) This subsection shall apply to all real property taxes.
(1) All refunds and adjustments shall be paid by voucher
approved by the director, setting forth all the details of each
transaction. [PaYment of such refund or adjustment shall be
made out of the real property tax trust fund hereinafter
created; provided, that ifllt the person entitled to a refund
or adjustment is delinquent in the paYment of the tax, the
director, after notice to the delinquent taxpayer, shall
withhold the amount of the delinquent taxes, together with
penalties and interest thereon from the amount of the refund or
adjustment and apply the same to the amount owed.
[(2) There is created and established a fund known as the real
property tax trust fund to be used for the purpose of making
refunds and adjustments of taxes collected under this chapter.
The director may, from time to time, deposit taxes collected
under this chapter to the credit of the real property tax trust
fund so that there may be maintained at all times a fund not
exceeding $50,OOO.l
(c) This subsection shall apply to a refund for an overpaYment of a
tax.
(1) If the amount already paid exceeds the amount determined
to be the correct amount of the tax due, and the taxpayer
requests a refund of the overpaYment, the amount of overpaYment
together with interest, if any, shall be refunded in the manner
provided in subsection (b) above. The interest shall be
allowed [and paidl at a rate [of two-thirds of one percent for
each calendar month or fraction thereoflbased upon the averaae
interest rate earned on county investments durin9 the previous
fiscal year as determined bY the director. The interest rate
shall be established as a monthly rate and paid for each
calendar month or fraction thereof beginning with the first
month after the due date of the return and continuing until the
date that the director approves the refund voucher. If the
director approves the refund voucher within ninety days from
the due date or the date the return is received, whichever is
later, no interest on the overpaYment will be allowed or paid.
However, if the director exceeds the time allowed herein,
interest will be computed from the due date of the return until
the date that the director sends the refund warrant to the
taxpayer.
(2) If any overpaYment of taxes results or arises from (A) the
taxpayer filing an amended return, or from (B) a determination
made by the director and such overpaYment is not shown on the
original return as filed by the taxpayer, interest on the
overpaYment shall be allowed and paid from the first month
after the due date of the original return to the date that the
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director signs the refund voucher. If the director does not
send the refund warrant to the taxpayer within forty-five days
after his approval, interest will continue until the date that
the director sends the refund warrant to the taxpayer.
(1981, Ord. No. 613, sec.22.)
Section 19-23. Partial payment of taxes.
Whenever a taxpayer makes a partial payment of a particular
assessment of taxes, the amount received by the director shall first
be credited to interest, then to penalties, and then to principal.
(1981, Ord. No. 6l3,sec.23.)
Section 19-24. Abetting, etc., misdemeanor.
All persons wilfully aiding, abetting or assisting in any
manner whatsoever any person to commit any act constituted a
misdemeanor by this chapter, shall be deemed guilty of a misdemeanor.
(1981, Ord. No. 613, sec.25.)
Section 19-25. Neglect of duty, etc., misdemeanor.
Any officer or employee of the department of finance, any
person duly authorized by the director, or any pOlice officer, on
whom duties are imposed under this chapter, who wilfully fails or
refuses or neglects to perform faithfully any duty or duties of him
required by this chapter, shall be deemed guilty of a misdemeanor.
(1981, Ord. No. 613, sec.26.)
Section 19-26. Penalty for misdemeanor.
[Any person convicted of any misdemeanor under this chapter,
for which no punishment is otherwise prescribed, shall be fined not
more than $500, or (if a natural person) imprisoned for not more
than one year or both.]Any person convicted of a violation of any
provision of this chapter shall be auilty of a misdemeanor. and
shall be sentenced accordina to Chapter 706 of the Hawaii Revised
Statutes.
(1981, Ord. No. 613, sec.27.)
Article 2. Notice of Assessments and Lists.
Section 19-27. Notice of assessments; addresses of persons entitled
to notice.
On or before March 15 preceding the tax year, the director
shall give notice of the assessment for the tax year against each
known owner, by personal delivery to the owner of or by mailing to
him on or before such date postage prepaid and addressed to him at
his last known place of residence or address a written notice
identifying the property involved by the tax key and the general
class established in accordance with section 19-53[(d)]1gl and
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setting forth separately the valuation placed upon buildings, and
the valuation placed upon all other real property, exclusive of
buildings, determined pursuant to section 19-53[(d)]~, the
exemption, if any, allowed or denied, as the case may be, and the
amount of the exemption applied to the buildings and the amount
applied to all other real property, exclusive of buildings, and the
net taxable value of the buildings and the net taxable value of all
other real property, exclusive of the buildings.
In addition to the foregoing, the director shall in each year
give notice of the assessments for the year by public notice (by
publication thereof at least three times on different days during
the month of March of such year in a newspaper of general
circulation, published in the English language) of a time when
(which shall not be less than a period of ten days prior to March 31
preceding the tax year)and of a place where the records of taxable
properties maintained for the district may be inspected by any
person for the purpose of enabling him to ascertain what assessments
have been made against him or his property and to confer with the
director so that any errors may be corrected before the filing of
the assessment list.
(1981, Ord. No. 613, sec.28.)
Section 19-28. Assessment lists.
On or before April 19 preceding the tax year the director shall
have prepared from the records of taxable properties a list in
duplicate of all assessments made, which list shall be signed and
sworn to by the person preparing it. The assessment list shall
identify the property assessed by its tax key and shall set forth
the general class of the property established in accordance with
section 19-53[(d)]1ftl, the valuation of buildings and the valuation
of all other real property, exclusive of buildings, the amount of
exemption allowed on buildings and the amount of exemption allowed
on all other real property, exclusive of the buildings, and the net
taxable value of the buildings and the net taxable value of all
other real property, exclusive of the buildings. The assessment
list shall be the lists in accordance with which taxes shall be
collected, subject only to change made by any court or other
tribunal having jurisdiction, where appeals from assessments have
been duly taken and prosecuted to final determination, and subject
to section 19-21. There shall be noted upon such lists all appeals
taken for the year and the amount involved in each case. The
original of the assessment lists shall be retained by the person
preparing it, one copy shall be held by the county clerk. [The
lists may be made up of a separate sheet or card for each property.]
(1981, Ord. No. 613, sec.29.)
Section 19-29. Informalities not to invalidate assessments,
mistakes in names or notices, etc.
No assessment or act relating to the assessment or collection
of taxes under this chapter shall be illegal or invalidate such
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assessment, levy, or collection on account of mere informality, nor
because the same was not completed within the time required by law,
nor, if the notice by publication provided for by section 19-27 has
been given, on account of a mistake in the name of the owner or
supposed owner of the property assessed, or failure to name the
owner, or failure to give the notice of assessment by personal
delivery or mail provided for by section 19-27.
(1981, Ord. No. 613, sec. 30.)
Article 3. Tax Bills, PaYments and Penalties.
Section 19-30. Tax rolls; tax bills.
The director shall prepare tax rolls from the assessment lists
provided for by section 19-28, showing thereon, in each case, names
and addresses of the assessed and amount of taxes which shall not be
less than [$25] as provided for in section 19-90.
The director shall mail, postage prepaid, or deliver, each year
on or before the billing dates as provided for by section 19-31, to
all known persons assessed for real property taxes for such year,
respectively, or to their agents, tax bills demanding paYment of
taxes due from each such person respectively, but no person shall be
excused from the paYment of any tax or delinquent penalties thereon
by reason of failure on his part to receive, or failure on the part
of the director so to mail or deliver such bill. The bill, if
mailed, shall be addressed to the person concerned at his last known
address or place of residence. Whenever any bill covers taxes for
any real property owned, as joint tenants or as tenants in common or
otherwise, by more than one person, the bill may be sent to anyone
co-owner and upon written request shall be sent to each known
co-owner but shall, in any event, demand the full amount of the
taxes due upon such real property.
(1981, Or. No. 613, sec.3l;Am. 1990, Ord. No. 90-138, sec.2.)
Section 19-31. Taxes; due when; installment paYments; billing and
delinquent dates.
All real property taxes shall be due and payable on and after
July 1 of each tax year and the paYment thereof shall be determined
in the following manner:
All known persons assessed for real property taxes shall be
billed not later than the billing date designated in the schedule
listed herein; sUbject however, to the limitations heretofore
provided in section 19-30. Each taxpayer shall pay the real
property taxes due from him for the year in which the taxes are
assessed, in two equal installments on or before the dates
designated in the following schedule:
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Fiscal Year Schedule
(Billing Date)
July 20
(1st Payment)
August 20
(2nd Payment)
February 20
All such taxes due on the first payment date of such year from
each taxpayer, which remain unpaid after the date, shall thereupon
become delinquent, and the balance of such taxes due on the second
paYment date of such year from each taxpayer, which remain unpaid
after the date, shall there upon become delinquent. Any pavrnent
made to the County which is transmitted throuah the United States
mail shall be deemed filed and received bY the County on the
postmarked date stamped upon the envelope or other appropriate
wrapper containina it.
(1981, Ord. No. 613, sec.32.)
Section 19-32. Penalty for delinquency.
There shall be added to the amount of all delinquent taxes, a
penalty of [up to] ten percent of such delinquent taxes as
determined by the director, which penalty shall be and become a part
of the tax and be collected as a part thereof.
All delinquent taxes and penalties shall bear interest at the
rate of one percent for each month or fraction thereof until paid,
beginning with the first calendar month following the calendar month
designated for paYment in section 19-31. The interest shall be and
become a part of the tax and be collected as a part thereof.
No taxpayer shall be exempt from delinquent penalties by reason
of having made an appeal on the assessment, but the tax paid,
covered by an appeal duly taken, shall be held in a trust account as
provided in Section [19-101]19-102.
(1981, Ord. No. 613, sec.33;Am. 1984, Ord. No. 84-20, sec.2.)
Section 19-33. Assessment of unreturned or omitted property;
review; penalty.
If, when returns are required under this chapter, any person
refuses or neglects to make such returns, or declines to
authenticate the accuracy thereof as provided in section 19-12, or
omits any property from a return, the director shall make the
assessment according to the best information available and shall add
to the assessment or tax lists for the year or years during which it
was not taxed, the property unreturned or omitted. Likewise, if for
any other reason any real property has been omitted from the
assessment lists for any year or years, the director shall add to
the lists the omitted property. Notice of the action shall be given
the owner, if known, within ten days after the assessment or
addition, by mailing the same addressed to him at last known place
of residence. Any owner desiring a review of the assessment or the
addition may appeal to the [panel]board of review by filing with
the director a written notice thereof in the manner prescribed in
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section 19-[97]~ at any time within thirty days after the date of
mailing such notice, or may appeal to the tax appeal court by filing
written notice of appeal with, and paying the necessary costs to,
such court within the period and in the manner prescribed in section
19-98.
A penalty of ten percent shall be added by the director to the
amount of any assessment made by him pursuant to this section, which
penalty shall be and become a part of the assessment so made; but no
such penalty shall be imposed where the failure to assess or tax the
property was not due to the refusal or neglect of the owner to
return the property or authenticate the accuracy of his return.
For the purpose of determining the date of delinquency of taxes
pursuant to assessments under this section, such taxes shall be
deemed delinquent if not paid within thirty days after the date of
mailing of notice of assessment, or if assessed for the current
assessment year, within thirty days after the date of mailing the
notice or on or before the next installment paYment date, if any,
for such taxes, whichever is later.
(1981,Ord. No. 613, sec.34.)
Section 19-34. Reassessments.
Any property assessed to a person or persons who did not have
the record title upon January 1 preceding the tax year in which the
assessment was made, may be, and in any case where the attempted
assessment of property is void or so defective as to create no real
property tax lien on the property and the taxes have not been fully
collected, the property shall be assessed as omitted property in the
manner provided in section 19-33.
(1981, Ord. No. 613, sec.35.)
Article 4. Remissions.
Section 19-35. Remission of taxes on acquisition by government.
Whenever any real property is acquired for public purposes by
the United States, the State or the County, and whenever any
government lease or other tenancy shall terminate, the director is
authorized to remit the taxes due thereon for the balance of the
taxation period or year from and after the date of acquisition of
the property, or the termination of the government lease or other
tenancy, as the case may be.
In case the State or the County takes possession of real
property which is the subject of eminent domain proceedings
commenced for the acquisition of the fee simple estate in such land
by the State or the County, taxes are authorized to be remitted as
provided in sections 101-35 to 39, HRS, subject to section
101-39(1), HRS.
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In case the owner of real property grants to the State or the
County a right of entry with respect to such real property and the
State or the County enters into possession under the authority of
the right of entry with intention to acquire the fee simple estate
therein and to devote the real property to public use, the State or
the County shall certify to the director the date upon which it took
possession, and upon receipt of the certificate the director is
authorized to remit the real property tax on the parcel of land or
portion of a parcel of land so coming into the possession of the
State or the County for the balance of the taxation period which is
subsequent to the date of possession.
In case the United States takes possession of real property
which is the subject of eminent domain proceedings commenced for the
acquisition of the fee simple estate in such land, taxes are
authorized to be remitted for the balance of the taxation period or
year after such taking, as provided in this paragraph. The
remission shall be allowed conditionally upon the presentation to
the director, of a written notice and agreement, signed by the
person, or one or more of the persons, owning the land, stating the
date of such taking of possession by the United States, and agreeing
that out of the first funds received by such owner or owners from
such condemnation there shall be paid sufficient moneys to discharge
the lien for any real property taxes existing upon the land prorated
up to and including the date of such taking possession of the
property, provided that the notice may be accompanied by paYment of
the prorated amount of taxes in lieu of such agreement. Section
lOl-39,HRS, is hereby made applicable to such land and the owner or
owners thereof and to the conditional remission authorized by this
paragraph. It is further provided that in the event the prorated
taxes up to the time of such taking possession shall not be paid by
the owner or by one or more of the owners of the land within ten
days after receipt by such owner or owners of the compensation for
the condemnation, or within such additional time as shall be allowed
by the director, then the conditional remission of taxes shall be
void, and such owner or owners shall be liable for all taxes,
penalties, and interest which would have accrued had no such
conditional remission been allowed.
(198l,Ord. No. 6l3,sec.36.)
Section 19-36. Remission of taxes in cases of certain disasters.
In any case of the damage or destruction of real property as
the result of a tidal wave, earthquake, fire, landslides, or
volcanic eruption, or as the result of flood waters overflowing the
banks or walls of a river or stream, or other disasters the director
is authorized to remit taxes due on such property, to the extent and
in the manner hereinafter set forth:
(1) The director shall determine whether the property was
wholly destroyed, or was partially destroyed or damaged, and in
the latter event shall determine what percentage of the value
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of the whole property was destroyed or otherwise lost by reason
of the disaster.
(2) If the property was wholly destroyed, the amount remitted
shall be such portion of the total tax on the property for the
tax year in which such destruction occurred as shall constitute
the portion of the tax year remaining after such destruction.
[However, at no time shall the remission be less than $25.00 as
specified in section 19-90.]
(3) If the property was partially destroyed or was damaged,
the percentage of the value destroyed or otherwise lost,
determined as provided in paragraph (1), shall be applied to
the total tax on the property and of the amount of tax so
determined there shall be remitted such portion as shall
constitute the portion of the tax year remaining after such
partial destruction or damage. [However, at no time shall the
remission be less than $25.00 as specified in section 19-90.]
(4) Application for a remission of taxes pursuant to this
section shall be filed with the director on or before June 30
of the tax year involved, or within sixty days after the
occurrence of the disaster, whichever is the later. Any amount
of taxes authorized to be remitted by this section, which has
been paid, shall be refunded upon proper application therefor
out of real property tax collections.
(5) The director shall have the authority to extend the period
for the remission of taxes for property that was wholly or
partially damaged or destroyed for the percentage of the
property which was affected by such disaster, for a periOd not
to exceed one year after the tax year in which the disaster
took place.
(1981, Ord. No. 613, sec. 37;Am.1990, Ord. No. 90-90,
sec.2.;Am. 1995, Ord. No. 95-135, sec.2.)
Article 5. Liens, Foreclosure.
Section 19-37. Tax liens: co-owners' rights; foreclosure;
limitation.
Every tax due upon real property, as defined by section 19-2,
shall be a paramount lien upon the property assessed, which lien
shall attach as of July 1 in each tax year and shall continue for
six years. If proceedings for the enforcement or foreclosure of the
lien are brought within the applicable period hereinabove
designated, the lien shall continue until the termination of said
proceedings or the completion of such sale.
In case of cotenancy, if one cotenant pays, within the periOd
of the aforesaid government lien, all of the real property taxes,
interest, penalties, and other additions to the tax, due and
delinquent at the time of paYment, he shall have, pro tanto, a lien
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on the interest of any noncontributing cotenant upon recording in
the bureau of conveyances, within ninety days after the payment so
made by the cotenant, a sworn notice setting forth the amount
claimed, a brief description of the land affected by tax key or
otherwise, sufficient to identify it, the tax year or years, and the
name of the cotenant upon whose interest such lien is asserted.
When a notice of such tax lien is recorded by a cotenant, the
registrar shall forthwith cause the same to be indexed in the
general indexes of the bureau of conveyances. In case the land
affected is registered in the land court, the notice shall also
contain a reference to the number of the certificate of title of
such land and shall be filed and registered in the office of the
assistant registrar of the land court, and the registrar, in his
capacity as assistant registrar of the land court, shall make a
notation of the filing thereof on each land court certificate of
title so specified.
The cotenant.s lien shall have the same priority as the lien or
liens of the government for the taxes paid by him, and may be
enforced by an action in the nature of suit in equity. The lien
shall continue for three years after recording or registering, or
until termination of the proceedings for enforcement thereof if such
proceedings are begun, and notice of the tendency thereof is
recorded or filed and registered as provided by law, within the
period.
The director or his subordinate, in case of a government lien,
and the creditor cotenant, in a case of a cotenant.s lien, shall, at
the expense of the debtor, upon payment of the amount of the lien,
execute and deliver to the debtor a sworn satisfaction thereof,
including a reference to the name of the person assessed or cotenant
affected as shown in the original notice, the date of filing of the
original notice, a description of the land involved, and the number
of the certificate of title of such land if registered in the land
court, which, when recorded in the bureau of conveyances or filed
and registered in the office of the assistant registrar of the land
court, shall, in the case of a cotenant.s lien, which contains the
reference to the book and page of the original lien, be entered in
the general indexes of the bureau of conveyances, and if a notation
of the original notice was made on any land court certificate of
title the filing of such satisfaction shall also be noted on the
certificate.
This section as to cotenancy shall apply, as well, in any case
of ownership by more than one assessable person.
Upon enforcement or foreclosure by the government in any manner
whatsoever, of any such real property tax lien, all taxes of
whatsoever nature and however accruing due at the time of the
foreclosure sale from the taxpayer against whose property such tax
lien is so enforced or foreclosed shall be satisfied as far as
possible out of the proceeds of the sale remaining after payment of
(1) the costs and expenses of the enforcement and foreclosure
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including a title search, if any, (2) the amount of subsisting real
property tax liens, and (3) the amount of any recorded liens against
the property, in the order of their priority, provided a claim for
the surplus has been filed with the director within one year from
the date of the sale.
The liens may be enforced by action of the director in the
circuit court of the third circuit, and the proceedings had before
the circuit court shall be conducted in the same manner and form as
ordinary foreclosure proceedings as provided for in chapter 634,
HRS. If the owners or claimants of the property against which a
lien is sought to be foreclosed are at the time out of the County or
cannot be served within the County, or if the owners are unknown,
and the fact shall be made to appear by affidavit to the
satisfaction of the court, and it shall in like manner appear prima
facie that a cause of action exists against such owners or claimants
or against the property described in the complaint, or that such
owners or claimants are necessary or proper parties to the action,
the director may request the court that service be made in the
manner provided by sections 634-23 to 634-29, HRS.
In any such case, it shall not be necessary to obtain judgment
and have execution issued and returned unsatisfied, before
proceeding to foreclose the lien for taxes in the manner herein
provided.
(1981, Ord. No. 6l3,sec.38iAm 1988, Ord. No. 88-74,sec.l.)
Section 19-38. Tax liens; foreclosure without suit, notice.
All real property on which a lien for taxes exists may be sold
by way of foreclosure without suit by the director, and in case any
lien, or any part thereof, has existed thereon for three years,
shall be sold by the director at public auction to the highest
bidder, for cash, to satisfy the lien, together with all interest,
penalties, costs, and expenses due or incurred on account of the
tax, lien, and sale, the surplus, if any, to be rendered to the
person thereto entitled. The sale shall be held at any public place
proper for sales on execution, after notice published at least once
a week for at least four successive weeks immediately prior thereto
in any newspaper with a general circulation of at least sixty
thousand published in the State and any newspaper of general
circulation published and distributed in the County. If the address
of the owner is known or can be ascertained by due diligence,
including an abstract of title or title search, the director shall
send to each owner notice of the proposed sale by registered mail,
with request for return receipt. If the address of the owner is
unknown, the director shall send a notice to the owner at his last
known address as shown on the records of the department of finance.
The notice shall be deposited in the mail at least forty-five days
prior to the date set for the sale. The notice shall also be posted
for a like period in at least three conspicuous public places within
the County and if the land is improved, one of the three postings
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shall be on the land.
(1981, Ord. No. 613,sec.39.)
Section 19-39. Same; registered land.
If the land has been registered in the land court, the director
shall also send by registered mail a notice for the proposed sale to
any person holding a mortgage or other lien registered in the office
of the assistant registrar of the land court. The notice shall be
sent to any such person at his last address as shown by the records
in the office of the registrar, and shall be deposited in the mail
at least forty-five days prior to the date set for the sale.
(1981, Ord. No. 613, sec.40.)
Section 19-40. Same; notice, for of.
The notice of sale shall contain the names of the persons
assessed, the names of the present owners (so far as shown by the
records of the director and the records, if any, in the office of
the assistant registrar of the land court) the character and amount
of the tax, and the tax year or years, with interest, penalties,
costs, expenses, and charges accrued or to accrue to the date
appointed for the sale, a brief description of the property to be
sold, and the time and place of sale, and shall warn the persons
assessed, and all persons having or claiming to have any mortgage or
other lien thereon or any legal or equitable right, title, or other
interest in the property, that unless the tax, with all interest,
penalties, costs, expenses, and charges accrued to the date of
paYment, is paid before the time of sale appointed, the property
advertised for sale will be sold as advertised. The director may
include in one advertisement of notice of sale notice of foreclosure
upon more than one parcel of real property, whether or not owned by
the same person and whether or not the liens are for the same tax
year or years.
(1981, Ord. No. 613, sec.41.)
Section 19-41. Same; postponement of sale, etc.
If at the time appointed for the sale, the director shall deem
it expedient and for the interest of all persons concerned therein
to postpone the sale of any property or properties for want of
purchasers, or for other sufficient cause, he may postpone it from
time to time, until the sale shall be completed, giving notice of
every such adjournment by a public declaration thereof at the time
and place last appointed for the sale; provided, that the sale of
any property may be abandoned at the time first appointed or any
adjourned date, if no proper bid is received sufficient to satisfy
the lien, together with all interest, penalties, costs, expenses,
and charges.
(1981, Ord. No. 613, sec.42.)
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Section 19-42. Same; tax deed; redemption.
The director or his subordinate shall, on payment of the
purchase price, make, execute, and deliver all proper conveyances
necessary in the premises and the delivery of the conveyances shall
vest in the purchaser the title in fee thereto, and such title shall
be free and clear of any lien, claim, or encumbrance against such
property except the lien for real property taxes subsequent to that
for which the property was sold, sUbject only to any mineral rights
of the State and any easements in favor of any governmental entity;
provided, that the taxpayer may redeem the property sold by paYment
to the purchaser at the sale, within one year from the date of the
sale, of the amount paid by the purchaser, together with all costs
and expenses which the purchaser was required to pay, including the
fee for recording the deed, and in addition thereto, interest on
such amount at the rate of twelve percent a year.
(1981, Ord. No. 613, sec. 43;Am. 1988, Ord. No. 88-74,sec.2.)
Section 19-43. Same; Costs.
The director by rules or regulation may prescribe a schedule of
costs, expenses, and charges and the manner in which they shall be
apportioned between the various properties offered for sale and the
time at which each cost, expense, or charge shall be deemed to
accrue; and such costs, expenses, and charges shall be added to and
become a part of the lien on the property for the last year involved
in the sale or proposed sale, the tax for which is delinquent. Such
costs, expenses, and charges may include provision for the making of
and the securing of certificates of searches of any records to
furnish information to be used in or in connection with the notice
of sale or tax deed, or in any case where the director shall deem
such advisable; provided, that the director shall not be required to
make such searches or to cause them to be made except as provided by
section 19-39 with respect to mortgages or other liens registered in
the office of the assistant registrar of the land court.
(1981, Ord. No. 6l3,sec.44.)
Section 19-44. Tax deed as evidence.
The tax deed referred to in section 19-42 is prima facie
evidence that:
(1) The property described by the deed was duly assessed or
taxed in the years stated in the deed and to the persons
therein named;
(2) The property described by the deed was subject on the date
of the sale to a lien or liens for real property taxes,
penalties, and interest in the amount stated in the deed, for
the tax years therein stated, and that the taxes, penalties,
and interest were due and unpaid on the date of sale;
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(3) Costs, expenses, and charges due or incurred on account of
the taxes, liens, and sale had accrued at the date of the sale
in the amount stated in the deed;
(4) The person who executed the deed was the proper officer;
(5) At a proper time and place the property was sold at public
auction as prescribed by law, and by the proper officer;
(6) The sale was made upon full compliance with sections 19-38
to 19-43 and all laws relating thereto, and after giving notice
as required by law;
(7) The grantee named in the deed was the person entitled to
receive the conveyance.
(1981, Ord. No. 613, sec.45.)
Section 19-45. Disposition of surplus moneys.
The director shall pay from the surplus all taxes, including
interest and penalties, of whatsoever nature and howsoever accruing,
as provided in section 19-37 and further he may pay from the surplus
the cost of a search of any records where such search is deemed
advisable by him to ascertain the person or persons entitled to the
surplus; provided, nothing herein contained shall be construed to
require the director to make or cause any such search to be made.
All proceeds remaining after paYment of the costs and expenses
of the enforcement and foreclosure of the tax lien, including a
title search, and the amount of subsisting real property taxes,
shall be distributed to lienholders of record in the order of their
priority who have filed claims for the surplus with the director
within one year from the date of sale. Any lien, claim or
encumbrance against the property remaining unsatisfied after the
distribution of the surplus moneys shall be extinguished and
unenforceable against the property and the purchaser to whom the
property is conveyed by the director. If, in order to ascertain the
person or persons entitled to the surplus, the director deems it
advisable to conduct a search of any records, he may pay from the
surplus the cost of such search; provided, nothing herein contained
shall be construed to require the director to make or cause any
search to be made. Any lienholder failing to file a claim for the
surplus within one year from the date of the sale shall have no
right to the surplus. The director shall pay from any surplus
remaining after distribution to record lienholders who have filed
claims, all taxes, including interest and penalties, of whatsoever
nature and howsoever accruing due at the time of the foreclosure
sale from the taxpayer against whose property such tax lien is so
enforced or foreclosed. If after paYment of all taxes surplus
funds remain, the director shall pay the surplus to the taxpayer
against whose property the tax lien was foreclosed, provided that
the taxpayer has filed a claim for the surplus with the director
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within two years from the date of sale. Any surplus remaining after
paYment to all those entitled as herein set forth shall be deposited
into the County general fund.
If the director is in doubt as to the person or persons
entitled to the balance of the fund, he may refuse to distribute the
surplus and any claimant may sue the director in the third circuit
court. The director may require the claimants to interplead, in
which event he shall state the names of all claimants and shall
cause them to be made parties to the action. If there are persons
entitled to the fund who have not filed a claim, or if in the
director's opinion there may be other persons entitled to the fund
who are unknown, the director may apply for an order or orders
joining these persons.
Any orders of the court or summons in the matter may be served
as provided by law or the rules of court, and all persons having any
interest in the moneys who are known, including the guardians of
such of them as are under legal age or under any other legal
disability (and if anyone or more of them is under legal age or
under other legal disability and without a guardian, the court shall
appoint a guardian ad litem to represent them therein) shall have
notice of the action by personal service upon them. All persons
having any interest in the moneys whose names are unknown or who if
known do not reside within the State or for any reason cannot be
served with process within the State shall have notice of the action
as provided by sections 634-23 to 634-29, HRS, except that any
publication of summons shall be in at least one newspaper of general
circulation published in the State and having a general circulation
in the County, and the form of notice to be published shall provide
a brief description of the property which was sold.
All expenses incurred by the director shall be met out of the
surplus moneys realized from the sale.
(1981, Ord. No. 613, sec.46; Am. 1988, Ord. No. 88-74, sec. 3; Am.
1994, Ord. No. 94-60,sec.2.)
Article 6. Rate; Levy
Section 19-46. Tax base and rate.
Except as exempted or otherwise taxed, all real property shall
be subject to a tax upon one hundred percent of its [fair] market
value determined in the manner provided by ordinance, at such rate
as shall be determined in the manner provided in section 19-90. No
taxpayer shall be deemed aggrieved by an assessment, nor shall an
assessment be lowered, except as the result of a decision on an
appeal as provided by law.
(1981, Ord. No. 613, sec.48;Am. 1982, Ord. No. 765, sec.2.)
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Section 19-47. Tax year; time as of which levy and assessment made.
For real property tax purposes, "tax year" shall mean the
fiscal year beginning July 1 of each calendar year and ending June
30 of the following calendar year. Real property shall be assessed,
and taxes sharI be levied thereon, as of January 1 preceding each
tax year upon the basis of valuations determined in the manner and
at the time provided in this chapter.
(1981, Ord. No. 613, sec.49.)
Section 19-48. Assessment of property; to whom in general.
Real property shall be assessed in its entirety to the owner
thereof[; provided that where improved residential land has been
leased for a term of fifteen years or more, the real property shall
be assessed in its entirety to the lessee or his successor in
interest holding the land for such term under such lease and the
lessee or successor in interest shall be deemed the owner of the
real property in its entirety for the purpose of this ordinance;
provided, however, that the lease and any extension, renewal
assignment, or agreement to assign the lease (1) shall have been
duly entered into and recorded in the bureau of conveyances or filed
in the office of the assistant registrar of the land court prior to
January 1 preceding the tax year for which the assessment is made,
and (2) shall provide that the lessee shall pay all taxes levied on
the property during the term of the lease.
"Improved residential land" as used herein means land improved
with a single-family dwelling on it].
For the purposes'of this chapter, life tenants, personal
representatives, trustees, guardians, or other fiduciaries may be,
and persons holding government property under an agreement for the
conveyance of the same to such persons shall be considered as owners
during the time any real property is held or controlled by them as
such. Lessees holding under any government lease shall be
considered as owners during the time any real property is held or
controlled by them as such, as more fully provided in section 19-84;
and further, notwithstanding any provisions to the contrary in this
chapter, any tenant occupying government land, whether such
occupancy be on a permit, license, month to month tenancy, or
otherwise, shall be considered as owner where such occupancy has
continued for a period of one year or more, as more fully provided
in section 19-84. Persons holding any real property under an
agreement to purchase the same, shall be considered as owners during
the time the real property is held or controlled by them as such;
provided the agreement to purchase (1) shall have been recorded in
the bureau of conveyances, and (2) shall provide that the purchasers
shall pay the real property taxes levied on the property. Persons
holding any real property under a lease for a term [to last during
the lifetime of the lessee]of ten years or more shall be considered
as owners during the time the real property is held or controlled by
them as such; provided that the lease (1) shall have been duly
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entered into and recorded in the bureau of conveyances or filed in
the office of the assistant registrar of the land court prior to
January 1 preceding the tax year for which the assessment is made,
and (2) shall provide that the lessee shall pay all taxes levied on
the property during the term of the lease.
(1981, Ord. No. 613, sec. 50)
Section 19-49. Imposition of real property taxes on
reclassification.
A portion of real property taxes shall be imposed upon and paid
by the owner or owners thereof when:
(1) The property of the owner has been leased for a term of
[fifteen]ten years or more; and
(2) The classification of the property has been changed to a
classification of a higher use during the life of the lease; and
(3) The classification to a higher use has occurred without
the lessee[, who occupies the property,] petitioning for such
higher classification. Taxes which are imposed upon the owners
of property under this section shall be paid by the owner of
such property without being transferred to the lessee [who
occupies the property] and such tax shall be the" difference
between the assessed valuation of the property after the
classification change times the applicable tax rate less the
assessed valuation of the property as it existed prior to the
classification change times the applicable tax rate.
(1981, Ord. No. 613, sec. 51.)
Section 19-50. Assessment of property of corporations or
co-partnerships.
Property of a corporation or co-partnership shall be assessed
to it under its corporate or firm name.
(1981, Ord. No. 613, sec. 52.)
Section 19-51. Fiduciaries, liability.
Every personal representative, trustee, guardian, or other
fiduciary shall be answerable as such for the performance of all
such acts, matters, or things as are required to be done by this
chapter in respect to the assessment of the real property he
represents in his fiduciary capacity, and he shall be liable as such
fiduciary for the payment of taxes thereon up to the amount of the
available property held by him in such capacity, but he shall not be
personally liable. He may retain, out of the money or other
property which he may hold or which may come to him in his fiduciary
capacity, so much as may be necessary to pay the taxes or to recoup
himself for the payment thereof, or he may recover the amount
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thereof paid by him from the beneficiary to whom the property shall
have been distributed.
(1981, Ord. No. 613, sec.53.)
Section. 19-52. Assessment of property of unknown owners.
The taxable property of persons unknown, or some of whom are
unknown, shall be assessed to "unknown owners," or to named persons
and "unknown owners," as the case may be. The taxable property of
persons not having record title thereto on January I, preceding the
tax year for which the assessment is made, may be assessed to
"unknown owners,. or to named persons and .unknown owners,. as the
case may be. Such property may be levied upon for unpaid taxes.
(1981, Ord. 613, sec.54.)
Article 7. Tax Mapsi Valuations.
Section 19-53. Valuationi considerations in fixing.
(a) The director of finance shall cause the [fair] market value of
all taxable real property to be determined and annually assessed by
the market data and cost approaches to value using appropriate
systematic methods suitable for mass valuation of properties for
taxation purposes, so selected and applied to obtain, as far as
possible, uniform and equalized assessments throughout the CountY[i
provided, that the land value of land classified and used for
agriculture, whether such lands are dedicated pursuant to section
19-55 or not, shall, for real property tax purposes, be the value of
such land for agricultural use without regard to any value that such
land might have for other purposes or uses, or to neighboring land
uses, as determined as provided in subsection (f)(l) of this
section. Lands classified as native forest shall be assessed as
provided in subsection (h) of this section]. In making such
determination and assessment, the director shall separately value
and assess, within each class established in accordance with
subsection [(d)]~ of this section:
(1) Buildings[, and]
fA) In determinina the value of buildinas. consideration
shall be aiven to any additions. alterations. remodelina.
modifications or other new construction. improvement or
repair work undertaken upon or made to existina bui1dinas
as the same may result in hiaher assessable valuation of
said bui1dinas.
(2) All other real property, exclusive of buildings.
(b) [All property shall be valued by appropriate systematic methods
so selected and applied so as to obtain, as far as possible, uniform
and equalized assessments throughout the County.
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(c)] So far as practicable, records shall be compiled and kept
which shall show the methods established by or under the authority
of the director for the determination of values.
ecl Whenever land has been divided into lots or parcels as provided
by law. each such lot or parcel shall be separately assessed.
(d) [Classification of land:]When a Condominium Property Reaime is
declared for a property. each unit shall be classified upon
consideration of its actual use into one of the aeneral classes in
the same manner as land.
eel Classification of land:
(1) Except as otherwise provided in subsection [(d)]1gl(2) of
this section, land shall be classified, upon consideration of
its highest and best use, into the following general classes:
(A) Improved residential,
(B) Unimproved residential,
(C) Apartment,
(D) Hotel and Resort,
(E) Commercial,
(F) Industrial,
(G) Agricultural or Native Forests,
(H) Conservation, and
(I) Homeowner.
(2) In assigning land to one of the general classes the
director of finance shall give major consideration to the
districting established by the land use commission pursuant to
chapter 205, Hawaii Revised Statutes, the districting
established by the County in its general plan and zoning
ordinance, use classifications established in the general plan
of the State, and such other factors which influence highest
and best use, except that parcels which are used exclusively as
the owner's principal residence shall be classified as
"Homeowner" without regard to the highest and best use,
provided that the director has granted to the owner a home
exemption in accordance with sections 19-71 to 19-72.
(A) The homeowner class is exclusively reserved for
properties which are used as the owner's principal
residence. Uses which shall not qualify as "Homeowner"
include:
(i) Real property which is valued according to its
agricultural or native forest use pursuant to
subsection 19-53(f)(l), or (h)~
(ii) Real property which is dedicated to an
agricultural use or native forest use cateaory
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pursuant to section 19-55, or section 19-58.4 (Native
Forest Dedication),
(iii) Real property which is used for commercial or
income producing purposes,
(iv) Real property which is used for residential
rental purposes, whether for short or long term lease,
(v) Real property which is used for any [other]
purpose[s except] other than the owner's principal
residence.
(3) [When property is subdivided into condominium units, each
unit shall be classified upon consideration of its actual use
into one of the general classes in the same manner as land
except that units which have been allowed a home exemption for
the tax year shall be classified homeowner.]Whenever there is
an overlap or contradiction in districtina or use
classification between the County and the State. zoned
districts by the County shall take precedence.
(4) "Improved residential" shall mean land which is classified
as residential by the department of finance upon consideration
of its highest and best use, and is property which fulfills the
provisions of at least one of the following subparagraphs:
(A) Land which has been subdivided prior to any
assessment year as a lot for single-or two-family
residential use in conformity with the then existing
County zoning ordinances, and has been approved for sale
or approved as being in conformity with all the
subdivision requirements of the County, or
(B) Land which is in actual single-or two-family
residence use at a density of at least a single-or
two-family residential building per acre, or
(C) Land which is sufficiently developed with necessary
land improvements to support a use density of at least a
single-or two-family residential building per acre.
(5) "Unimproved residential" shall mean all residential class
lands not classified as "improved residential" or "homeowner."
(e) [Whenever land has been divided into lots or parcels as provided
by law, each such lot or parcel shall be separately assessed.
(f)] (1) In determining the value of lands which are classified and
used for agriculture, whether such lands are dedicated pursuant
to section 19-55 or not, consideration shall be given to rent,
productivity, nature of actual agricultural use, the advantage
or disadvantage of factors such as location, accessibility,
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transportation facilities, size, shape, topography, quality of
soil, water privileges, availability of water and its cost,
easements and appurtenances, and to the opinions of persons who
may be considered to have special knowledge of land values.
Lands classified as tree farm property pursuant to chapter 186,
Hawaii Revised Statutes, shall be considered for classification
and valuation as agricultural.
(2) A deferred or roll back tax shall be imposed on the owner
of agricultural lands assessed according to its agricultural
use as provided in subsection [(a)]!gl of this section in the
event of a change in land use classification by the authorized
State agency to urban or rural districts or upon the
subdivision of the land into parcels of five acres or less,
provided that the tax shall not apply if the owner dedicates
the land as provided in section 19-55 within three years from
the date of the change in land use classification and fulfills
all of the requirements of the dedication. The deferred tax
shall be due and payable at the end of the third year following
the change in land use classification provided that the land
shall continue to be used for agriculture during this period.
The total amount of deferred taxes shall be computed commencing
at the end of the third year following the change in
classification where the land has continuously been used for
agriculture, provided however that where the land has been put
to a higher urban or rural use prior to the expiration of the
three-year period the amount of deferred taxes shall be
computed commencing at the end of the year in which the land
has been put to such higher urban or rural use, and shall be
retroactive to the date the assessment was made pursuant to
subsection [(a)]!gl of this section provided the retroactive
period shall not exceed ten years. Where the owner has
subdivided the land into parcels of five acres or less, the
deferred tax shall commence from the date the conversion was
made retroactive to the date the assessment was made pursuant
to subsection [(a)]!gl of this subsection but for not more than
ten years. Any other provisions to the contrary
notwithstanding, the deferred or roll back tax shall apply only
if a change in land use classification has been made as a
result of a petition by any property owner or lessee and shall
apply only upon lands owned by the owner or lessee who has
petitioned for the change in classification. The deferred or
roll back tax shall not apply to lands owned by any owner or
lessee who has not petitioned for the change in classification
provided the owner or lessee shall continue to use the land in
its agricultural use for a period of three years after the
change in land use classification is made, or where the change
in classification or zoning is initiated by any government
agency or instrumentality. The deferred or roll back tax shall
be based on the difference in assessed value between the
highest and best use and the agricultural use of the land, at
the rate applicable for the respective years.
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(A) Where the owner subdivides the land into parcels of
five acres or less, the deferred tax shall be due and
payable within sixty days of such conversion, sUbject to a
ten percent[per annum] penalty.
(B) Where the owner changes the land use classification,
the deferred tax shall be due and payable within three
years of such conversion except that where the land has
been put to its higher urban or rural use, the tax shall
be due and payable at the end of the year in which the
land has been put to such higher use, subject to a ten
percent per annum penalty. Any other provisions to the
contrary notwithstanding, the land shall continue to be
assessed in its agricultural use as provided in subsection
[(a)]1gl of this section until the land is put to its
higher urban or rural use for a period of three years
following the change in classification whichever is
shorter, provided that for purposes of determining the
amount of deferred taxes to be assessed to the owner or
lessee, the retroactive period shall include the period
during which the land is continued to be assessed in its
agricultural use following the change in classification.
Any tax due and owing shall attach to the land as a
paramount lien in favor of the County as provided for by
ordinance.
(3) Where lands located within agricultural districts are put
to agricultural uses, that portion of such lands not usable or
suitable for any agricultural use, whether dedicated pursuant
to section 19-55 or not, the tax upon such unusable or
unsuitable land shall be deferred and shall be payable upon
conversion as provided under this section.
(4) A portion or portions of a parcel of land that is being
assessed as pasture, whether it is dedicated under the
provisions of section 19-55 or not, may be taken out of
production for a specified time period, not to exceed 10 years,
as part of a good forestry plan in order to restore a degraded
native forest such that it meets the requirements of the native
forest category as stated in section 19-53(h). Such a plan
indicating the acreage and area, as well as the specific forest
restoration work to be done, shall be filed with the director
of finance by September 1 and approved by the director by
December 15. If the plan is approved, the land shall continue
to be given the same pasture assessment.
(A) The owner shall provide to the director of finance
yearly evidence that the forest restoration plan is being
implemented, as well as a signed and notarized affidavit
by a recognized forestry professional that the restoration
plan is likely to succeed within the designated time
period. The owner shall continue to fulfill all other
requirements of the agricultural assessment, including
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providing yearly proof that any portion of the parcel not
being restored to a native forest, but still being
assessed for an agricultural use, continues to be used and
maintained substantially and continuously in the approved
agricultural use.
(B) If, at the end of the time period designated by the
plan, the land meets the requirements of the native forest
category as described in (h) of this section, then it
shall be classified as a native forest. If, at the end of
the time period designated in the plan, the land does not
meet the requirements of the native forest category, the
land may be returned to its designated agricultural use as
pasture or it shall be assessed and taxed at [fair] market
value.
(C) If the land is dedicated according to section 19-55,
it shall remain dedicated as pasture or native forest and
shall continue to be subject to all rollback taxes and
penalties applicable to dedications.
[(g)]1fl In determining the value of buildings, consideration shall
be given to any additions, alterations, remodeling, modifications or
other new construction, improvement or repair work undertaken upon
or made to existing buildings as the same may result in higher
assessable valuation of said buildings; provided, however, that they
increase in value resulting from any additions, alterations,
modifications or other new construction, improvements or repair work
to buildings undertaken or made by the owner-occupant thereof
pursuant to the requirements of any urban redevelopment,
rehabilitation or conservation project under the provisions of part
II of chapter 53, Hawaii Revised Statues, shall not increase the
assessable valuation of any building for a period of seven years
from the date of certification as hereinafter provided.
It is further provided that the owner-occupant shall file with
the director of finance, in the manner and place which the director
may designate, a statement of the details of the improvements
certified in the following manner.
(1) In the case of additions, alterations, modifications or
other new construction, improvements or repair work to a
building that are undertaken pursuant to any urban
redevelopment, rehabilitation or conservation project as
hereinabove mentioned, the statement shall be certified by the
mayor or any government official designated by the mayor and
approved by the council, that the additions, alterations,
modifications, or other new construction, improvement or repair
work to the buildings were made satisfactorily comply with the
particular urban redevelopment, rehabilitation or conservation
act provision, or
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(2) In the case of maintenance or repairs to a residential
building undertaken pursuant to any health, safety, sanitation
or other governmental code provision, the statement shall be
certified by the mayor or any governmental official designated
by the mayor and approved by the council, that
(A) The building was inspected by them and found to be
substandard when the owner-occupant made the claim, and
(B) The maintenance or repairs to the buildings were made
and satisfactorily comply with the particular code
provision.
[(h)]1gl "Native [F]{orests" means lands which have 60 percent or
greater native species forest cover. Native species are defined as
those indigenous to the Hawaiian islands. Indigenous in this
context shall mean plants that became established or evolved in the
Hawaiian islands without the aid of human beings. The forest cover
requirement may be met by native species in either the tree layer or
the understory layer, or a combination of the two; provided a
minimum 25 percent of the forest cover shall be tree cover.
(1) The director of finance shall determine whether or not
land qualifies as a [N]native [F]{orest by using current
natural resource or vegetation maps or other acceptable
evidence. Other acceptable evidence includes, but is not
limited to:
(A) A written affidavit by a recognized professional in
the field of natural resources, or
(B) A finding by a county, state or federal agency or
department with the relevant expertise in the field of
natural resources.
(2) The following shall also apply to land classified
[N]native [F]{orest:
(A) If the cover of native forest species falls below 60
percent, the [N]native [F]{orest classification shall be
rescinded.
(B) Land taxed as [N]native [F]{orest shall be maintained
according to sound land management practices such that
soil erosion is minimized, foreign species are controlled,
and the watershed is protected.
(C) The [N]native [F]{orest [class]assessment is
available only for parcels which are covered with at least
five intact and contiguous acres of native forest.
(3) In determining the value of lands which are classified
[N]native [F]{orest, the director shall assign the value of the
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lowest agricultural use category that the land could qualify
for if it were to be put into agricultural use.
(1981, Ord. 613, sec. 56iAm. 1982, Ord. No. 834, sec.2iAm.
1984, Ord. No. 84-2l,sec.liAm. 1990, Ord. No. 90-l36,sec.2iAm.
1990, Ord. No. 90-157, sec. liAm. 1991, Ord. No.
9l-143,sec.2iAm. 1996, Ord. 96-71, sec.2.)
Section 19-54. Water tanks.
Any provision to the contrary notwithstanding, any tank or
other storage receptacle required by any government agency to be
constructed or installed on any taxable real property before water
for home and farm use is supplied, and any other water tank, owned
and used by a real property taxpayer for storing water solely for
his own domestic use, shall be exempted in determining and assessing
the value of such taxable real property.
(1981, Ord. No. 613, sec. 57.)
Section 19-55. Dedicated lands.
(a) A special land reserve is established to enable the owner of
any parcel of la~d within an agricultural district, a rural
district, a conservation district, or any urban district to dedicate
his land for a specific ranching or other agricultural use and to
have his land assessed at its value in such use provided, that if
the land is located within an urban district:
(1) A lessee of the land with a term of ten or more years
remaining from the date of the petition shall also be deemed an
owner of the land within these provisionsi
(2) The land dedicated must be used for the cultivation of
crops such as sugar cane, pineapple, truck crops, orchard
crops, ornamental crops, or the like, or tree farmsi
(3) The land dedicated must have been substantially and
continuously used for the cultivation of crops such as sugar
cane, pineapple, truck crops, orchard crops, ornamental crops,
or the like, or tree farms, for the five-year period
immediately preceding the dedication requesti provided further,
that land situated within an agricultural district may be
dedicated for a period of twenty years and shall be taxed at
fifty percent of its assessed value in such use.
(b) If any owner desires to use his land for a specific ranching or
other agricultural use and to have his land taxed at its assessed
value in this use or fifty percent of its assessed value as the case
may be, he shall so petition the director of finance and declare in
his petition that his land can best be used for the purpose for
which he requests permission to dedicate his land that if his
petition is approved he will use his land for this purpose.
(c) If the owner desires to change from one specific ranching or
other agricultural use to another ranching or other agricultural use
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he shall so petition the director of finance and declare in his
petition that:
(1) His land can best be used for a ranching or other
agricultural purpose other than that for which he originally
requested permission; and
(2) He will use his land for that new purpose if his petition
is approved.
(d) Upon receipt of a petition as provided above in subsections (b)
and (c), the director shall make a finding of fact as to whether the
land in the petition area is reasonably well suited for the intended
use. The finding shall include and be based upon the productivity
ratings of the land in those uses for which it is best suited, a
study of the ownership, size of operating unit, the present use of
surrounding similar lands and other criteria as may be appropriate.
The director shall also make a finding of fact as to whether
the intended use is in conflict with the overall development plan of
the state. If both findings are favorable to the owner, the
director shall approve the petition and declare that the owner's
land is dedicated land; provided, that for lands in urban districts,
the director shall make further findings respecting the economic
feasibility of the intended use of the land. If all three findings
are favorable, the director shall approve the petition and declare
the land to be dedicated. In order to place prospective buyers on
notice of the roll back liability, the petitioner shall within
thirty days of notice of approval record the dedication in
accordance with the procedures of the bureau of conveyances.
(e) The approval of the director of the petition to dedicate shall
constitute a forfeiture on the part of the owner of any right to
change the use of his land to a use other than agriculture for a
minimum period of ten years or twenty years as the case may be,
[automatically renewable indefinitely,] subject to cancellation QI
renewal as follows:
(1) [In the case of a ten-year dedication, the owner may after
the ninth year and years thereafter give notice of cancellation
by filing with the director, a written notice of cancellation,
on or before December 31, to be effective as of July 1 of the
following tax year;
(2) In the case of a twenty-year dedication, the owner may
during the nineteenth year and years thereafter give notice of
cancellation as provided by this subsection;]At least one
hundred eiahty days prior to any cancellation or termination.
the department of finance shall notify the owner by mail of
such cancellation or termination. The owner shall reapplY for
renewal of the dedication by filina an application with the
director on or before September 1 of the tenth or twentieth
year as the case may be. The renewal petition shall. in all
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respects. be processed similarlY to an oriainal petition. Upon
approval by the director of succeedina dedications. the
property shall continue to be assessed in accordance with the
provisions of the dedication;
[(3)llll In the case of a change in a major land use
classification not as a result of a petition by any property
owner or lessee such that the owner's land is placed within an
urban district, the dedication may be cancelled within sixty
days of the change by the owner. Upon any conveyance or any
change in ownership during the period of dedication, the land
shall continue to be subject to the terms and conditions of the
dedication unless a release has been issued by the director.
Any other provision to the contrary notwithstanding an
approved change in use as provided in subsections (c) and (d)
shall not alter the original dedication period.
(f) Failure of the owner to observe the restrictions on the use of
his land shall cancel the dedication and special tax assessment
privilege retroactive to the date of the dedication, but in any
event, shall not exceed the term of the original dedication, and all
differences in the amount of taxes that were paid and those that
would have been due from assessment in the higher use shall be
payable with a ten percent [a year] penalty from the respective
dates that these paYments would have been due. The additional taxes
and penalties, due and owing as a result of a breach of the
dedication, shall be a paramount lien upon the property as provided
for by this chapter.
(1) Failure to observe the restrictions on the use means
failure for a period of twelve consecutive months to use the
land in that manner requested in the petition or the overt act
of changing the use for any period; provided that a change in
land use classification upon petition by the owner of such
dedicated lands, or the petition by the owner for ~ change in
use as provided in subsection (c), and the owner's subsequent
change in use of such dedicated lands, shall not be deemed to
constitute a failure of the owner to observe the restrictions
on the use
(2) If an owner is permitted to change his use as provided in
subsections (c) and (d), he shall be allowed up to thirty-six
months from the date of the approval of his petition to convert
to the new ranching or agricultural use. If the owner fails to
make the conversion within the specified time limit he will be
subject to the taxes and penalties provided above. For
purposes of assessment of taxes and penalties, the conversion
period shall be considered in addition to the specified
dedication period, except, however, in the case of leased lands
whose term expires prior to or in conjunction with the end of
the dedication period, the conversion period shall be
considered as a part of the dedication period. The petitioner
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shall submit progress reports of his efforts in converting from
one agricultural use to another agricultural use to the
director of finance by the anniversary date of the petition
approval and yearly, thereafter, as long as such conversion
period remains.
Any other provisions to the contrary notwithstanding, when
a portion of the dedicated land is subsequently applied to a
use other than the use set forth in the original petition, only
such portion as is withdrawn from the dedicated use and applied
to a use other than ranching or other agricultural use shall be
taxed as provided by this subsection.
(g) The director shall prescribe the form of the petition. The
petition shall be filed with the director of finance by September 1
of any calendar year and shall be approved or disapproved by
December 15. If approved, the assessment based upon the use
requested in the dedication shall be effective on January 1 of the
next calendar year
(h) The owner may appeal any disapproved petition as in the case of
an appeal from an assessment.
(i) The term "owner" as used in this section includes lessees of
real property whose lease term extends at least ten years from the
date of the petition in the case of a ten-year dedication or lessees
of real property whose lease term extends at least twenty years from
the date of the petition in the case of a twenty-year dedication.
(j) The term "agricultural use" as used in this section shall
include aquaculture.
(k) A special land reserve is established to enable the owner of
any parcel of land within an urban district to dedicate his land for
a specific livestock use such as feed lots, calf-raising and like
operations in dairy, beef, swine, poultry and aquaculture, but
excluding grazing or pasturing, and to have his land assessed at its
value in such use; provided, that
(1) A lessee of the land with a term of ten or more years
remaining from the date of the petition shall also be deemed an
owner of the land within these provisions;
(2) The land dedicated must be used for livestock uses such as
feed lots, calf-raising and like operations in dairy, beef,
swine, poultry and aquaculture but excluding grazing and
pasturing;
(3) The land dedicated must have been substantially and
continuously used in the livestock uses enumerated in (2)
hereinabove;
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(4) And such livestock use must be compatible with the
surrounding uses.
(1981, Ord. No. 613, sec.58;Am. 1984, Ord. No. 84-21, sec.2;Am.
1991, Ord. No. 91-143, sec.3.)
Section 19-56. Golf course assessment.
Property operated and used as a golf course shall be assessed
for property tax purposes on the following basis:
The value to be assessed by the director shall be on the basis
of its actual use as a golf course rather than on the valuation
based on the highest and best use of the land.
In determining the value of actual use, the factors to be
considered shall include, among others rental income, cost of
development, sales price and the effect of the value of the golf
course on the value of the surrounding lands.
(198l,Ord. No. 613, sec. 59.)
Section 19-57. [Conditions precedent to special assessment of land
as golf course.
In order to qualify in having land assessed in valuation as a
golf course the owner of any parcel of land desiring or presently
using his land for a golf course shall as a condition precedent
qualify as follows:
(1) Dedication of land.
(A) The owner of any parcel of land for a golf course
shall petition the director of finance and declare in his
petition that he will dedicate his parcel of land for a
golf course.
(B) The approval by the director of finance of the
petition to dedicate the land shall constitute forfeiture
on the part of the owner of any right to change the use of
the land for a minimum period of ten years, automatically
renewable indefinitely, subject to cancellation by either
the owner or the director of finance upon five years'
notice at any time.
(C) The failure of the owner to observe the restrictions
on the use of his land to that of a golf course shall
cancel the special tax assessment privilege retroactive to
the date of the dedication but not more than ten years
prior to the tax year in which the exemption is
disallowed; and all differences in the amount of taxes
that were paid and those that would have been due from
assessment in the higher use shall be payable with a six
percent a year penalty from the respective dates that
these paYments would have been due. Failure to observe
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the restrictions on the use means failure for a period of
over twelve consecutive months to use the land in that
manner requested in the petition as a golf course by the
overt act of changing the use for any period. Nothing in
this paragraph shall preclude the County from pursuing any
other remedy to enforce the covenant on the use of the
land as a golf course.
(D) The director of finance shall prescribe the form of
the petition. The petition shall be filed by September 1
of any calendar year and shall be approved or disapproved
by December 15 of such year. If approved, the assessment
based upon the use requested in the dedication shall be
effective on January 1 of the next calendar year.
(E) The owner may appeal any disapproved petition as in
the case of an appeal from an assessment.
(F) The term "owner" as used in this section includes
lessees of real property whose lease term extends at least
ten years effective from the date of the petition.
(G) The amount of additional taxes due and owing where
the owner has failed to observe the restriction on the use
shall attach to the property as a paramount lien in favor
of the County as provided for by this chapter.
(2) Covenant not to engage in discrimination. The owner shall
covenant in his petition with the director of finance that he
will not discriminate against any individual in the use of the
golf course facilities because of the individual's race, sex,
religion, color or ancestry.]RESERVED.
(1981, Ord. No. 613, sec.60.)
Section 19-58. Certain lands dedicated for residential use.
(a) The term "owner" as used in this section means a person who is
the fee simple owner of real property, or who is the lessee of real
property whose lease term extends at least ten years from the
effective date of the [petition]dedication.
(b) A special land reserve is established to enable the owner of
any parcel of land within a hotel, apartment, resort, commercial, or
industrial district to dedicate his land for residential use and to
have his land assessed at its value in residential use; provided that
(1) The land dedicated shall be limited to a parcel used only
for single-family dwelling residential use;
(2) The owner of the land dedicated shall use it as his
[home]princioal residence and qualify to be in the homeowner's
class oer section 19-53(e)(2)(A); and
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(3) Not more than one parcel of land shall be dedicated for
residential use by any owner.
(c) If any owner desires to use his land for residential use and to
have his land assessed at its value in this use, he shall so
petition the director of finance and declare in his petition that if
his petition is approved, he will use his land for single-family
dwelling residential use only and that his land so dedicated will be
used exclusively as his [home]principal residence.
Upon receipt of any such petition, the director of finance
shall make a finding of fact as to whether the land described in the
petition is being used by the owner for single-family dwelling
residential use only and exclusively as his [home]principal
residence. If the finding is favorable to the owner, the director
shall approve the petition and declare the land to be dedicated.
(d) The approval of the petition by the director of finance to
dedicate shall constitute a forfeiture on the part of the owner of
any right to change the use of his land for a minimum period of ten
years[, automatically renewable thereafter for additional periods of
ten years subject to cancellation by either the owner or the
director of finance]. At least one hundred eiqhty days prior to the
cancellation date. the department of finance shall notify the owner
by mail of such cancellation. The owner of a dedicated property
must renew the dedication on or before September 1 of the tenth year
of the oriqinal dedication or any subsequent renewal period in order
to continue the dedication for the next ten Years.
e) Failure of the owner to observe the restrictions on the use of
his land or the sale of the property shall cancel the special tax
assessment privilege retroactive to the date of the dedication, or
the latest renewal ten-year period, and all differences in the
amount of taxes that were paid and those that would have been due
from assessment in the higher use shall be payable with a ten
percent [per year] penalty from the respective dates that these
paYments would have been due. Failure to observe the restrictions
on the use means failure for a period of over twelve consecutive
months to use the land in the manner requested in the petition or
the overt act of changing the use for any period, or the sale of the
real property. Nothing in this subsection shall preclude the County
from pursuing any other remedy to enforce the covenant on the use of
the land.
The additional taxes and penalties, due and owing as a result
of failure to use or any other breach of the dedication shall be a
paramount lien upon the property as provided for by this chapter.
(f) The director of finance shall prescribe the form of the
petition. The petition shall be filed with the director of finance
by September 1 of any calendar year and shall be approved or
disapproved by December 15. If approved, the [assessment based upon
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the use requested in the] dedication shall be effective on
[January]~ 1 of the [next calendar]followina tax year.
(g) The owner may appeal any disapproved petition as in the case of
an appeal from an assessment.
(1981, Ord. No. 613, sec. 61.)
Section 19-58.1. Certain lands dedicated to nonspeculative
residential use.
(a) The term "owner" as used in this section shall mean the fee
owner or the lessee of real property with an unexpired lease term of
not less than ten years from the effective date of the
[petition]dedication.
(b) Any owner of property who qualifies under sections 19-71 and
19-72 for home exemption and uses the property exclusively for
residential use may dedicate said property in its entirety to
nonspeculative residential use and have that parcel assessed in the
manner provided by section 19-58.2, except that a husband and wife,
although living separate and apart, shall be entitled to dedicate
only one parcel to the nonspeculative residential use.
Exclusive residential use as used in this section shall not
permit the owner to conduct any commercial activities on the
property. Those owners who have dedicated their property to
agricultural use or receive[d] the benefit of agricultural use QL
native forest assessment shall not be eligible for this
nonspeculative residential use dedication.
(c) Any owner who desires to dedicate property to nonspeculative
residential use and to have the property assessed in the manner
established by section 19-58.2, shall so petition the director.
Upon receipt of any such petition, the director shall make a finding
of fact as to whether or not the property described in the petition
is qualified for a home exemption pursuant to the terms and
conditions of sections 19-71 and 19-72. If the finding is favorable
to the owner, the director shall approve the petition and declare
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-year periods. At
least one hundred eiahty 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
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of the tenth year. The renewal petition shall, in all respects, be
processed similarlY to an original petition. Upon approval by the
director of succeeding dedications, the assessed valuation shall
continue to be assessed in accorqance 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 [fair] market
valuation as of January I, 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
[condominium units or] separate parcels, or the declaration of a
condominium property reaime. 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 of a 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,
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(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,
(G) The dedication shall not be cancelled if the lessee
purchases the leased fee interest from the lessor.
(2) Provided further that, except as provided herein,
retroactive taxes shall not be assessed when:
(A) A person receives title to property dedicated to
nonspeculative residential use by ways of testacy or
intestacy and does not petition the director to continue
the dedication as provided in section 19-58.1(f)(1)(A).
(B) The dedicated property is jointly owned by spouses
and upon the death of one spouse, ownership is transferred
to the surviving spouse, and the surviving spouse does not
petition the director to continue the dedication as
provided in section 19-58.1(f)(1)(B).
(C) The property is wholly or partially destroyed or
damaged as a result of fire, seismic or tidal wave,
volcanic eruption, earthquake, flood waters and wind or
rain storm.
The owner may cancel the dedication for the reasons
enumerated in paragraph (2)(C) by submitting written
notice of the cancellation within sixty days of the damage
or destruction. Cancellations shall become effective July
1 of the next tax year, and the property shall be assessed
in accordance with section 19-53(a).
(g) The director shall prescribe the form of the petition. [The
petition shall be filed with the director by November I, 1991 and
shall be approved or disapproved by December 31, 1991, in order to
qualify for the following tax year. In any year after 1991, t]~he
petition shall be filed with the director by September 1 of any
calendar year and shall be approved or disapproved by December
[31]12 of that year.
(h) Upon approval, the dedication shall become effective July 1 of
the following tax year. In determining the assessed value, the
[fair] market valuer, the market data approach shall be utilized]
shall be determined as reauired in section 19-53(a). [In the event
that the real property tax office is unable to determine the fair
market value for the dedication based on the market data approach,
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the prior assessed value shall be utilized until the calculation is
completed. Upon completion of the market data approach calculation,
then that fair market value shall be the dedicated value for the
remaining term of the dedication.] The owner may appeal any
disapproved petition or.cancellation of dedication as in the case of
an appeal from an assessment.
(1990, Ord. No. 90-137, sec. 3iAm. 1991, Ord. No. 91-109, sec.2iAm.
1991, Ord. No. 91-122, sec.2.)
Section 19-58.2. Nonspecu1ative residential use assessment.
Properties approved by the director for dedication to
nonspecu1ative residential use shall be assessed for real property
tax purposes in the following manner:
(a) Property, approved for nonspecu1ative residential use
dedication, shall be assessed for real property tax valuation
purposes on its market [data information available on the calendar
year of the application.]value as of [T]ihe assessment date [shall
be] January 1 of the calendar year following the petition approval.
This assessment shall be frozen for the dedication period, except
for adjustments as provided for in this section.
(b) Upon approval by the director of succeeding dedications by the
owner of the same property, the assessed valuation shall continue to
be assessed in accordance with the provisions of section 19-58.2(a).
(c) If any improvements are undertaken on the dedicated property,
and such improvements increase the [fair] market value of the
dedicated property, the assessment shall be increased based on the
[fair] market value of the improvements undertaken, however, the
assessed valuation for ensuing tax years shall be determined in
accordance with the provisions of section 19-58.2(a).
(d) If any improvements are undertaken on the dedicated property,
the owner shall obtain the required building permit for the
construction of new or additional improvements or renovations of the
dedicated property. Violation of this reporting requirement will
result in cancellation of the dedication and activate paYment of
retroactive taxes and penalties.
(e) In the case where additional dwelling units are constructed or
a single-family dwelling unit is renovated or converted into a two
or more family dwelling unit all in accordance with article 25,
chapter 25, Hawaii County Code of 1983, the dedication shall not be
cancelled provided the owners within sixty days of the change submit
a written application to continue the dedication and file the claim
for home exemption and the owners would continue to be eligible for
the home exemption. If the owner fails to submit the written
application in a timely manner or uses the additional dwelling units
or renovated areas for rental or income producing purposes the
dedication shall be cancelled and the retroactive taxes imposed.
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(f) If the dedicated property loses the home exemption under which
it was dedicated, or if the dedicated property or any portion
thereof is sold by way of a conveyance which is subject to
conveyance tax under the terms of chapter 247, Hawaii Revised
Statutes, the dedication shall be deemed breached. OCCUDanCy of a
seDarate livina unit by an immediate family member is Dermissible
under this section and is not considered a breach of dedication
Drovided all other Drovisions are met. For the DurDose of this
section immediate family is defined as: Darents. brothers. sisters.
SDouses. children. Darents-in-law. arandDarents. and arandchildren.
(g) Retroactive assessments shall be imposed upon the breach of the
dedication. The retroactive assessment shall be calculated as the
cumulative difference between the amount that should have been owed
without the dedication less the amount actually paid for each of the
years deemed to be in breach plus [interest]Denalty at a rate of ten
percent [per year]. If the dedicated property is sold, the
retroactive assessment for that year shall be calculated as the
difference between the dedicated value and the higher of either the
actual selling price or the value of the property at its actual
use. In the case of properties dedicated to nonspeculative use,
notice of assessment as prepared under section 19-27 shall delineate
the dedicated value and [fair] market value, beginning tax year
1993-94.
(1990, Ord. No. 90-137, sec. 3iAm. 1991, Ord. No. 91-122, sec. 3.)
Section 19-58.3. [Rules and regulations.
The director of finance may promulgate rules and regulations as
may be necessary to administer sections 19-58.1 and 19-58.2.]
RESERVED.
(1990, Ord. No. 90-137,sec.3)
Section 19-58.4. Native Forest Dedication.
Any DrODerty five acres or laraer within Aaricultural.
Intensive Aaricultural. ODen or UnDlanned zoned districts. which is
covered with at least five intact and contiauous acres of native
forest is e1iaible for dedication as native forest DrODerty if it
meets the classification reauirements of native forest as
established by the director of finance.
.Native forests. means lands which have 60 Dercent or areater
native sDecies forest cover. Native sDecies are defined as those
indiaenous to the Hawaiian islands. Indiaenous in this context
shall mean Dlants that became established or evolved in the Hawaiian
islands without the aid of human beinas. The forest cover
reauirement may be met by native sDecies in either the tree layer or
the understory layer. or a combination of the two; Drovided a
minimum 25 Dercent of the forest cover shall contain tree cover.
Land taxed as native forest shall be maintained accordina to sound
land manaaement Dractices such that soil erosion is minimized.
foreian sDecies are controlled. and the watershed is Drotected.
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(a) An owner who desires to dedicate the land for [N]native
[F]forest preservation for a period of twenty years shall petition
the director of finance and demonstrate in the petition that the
land qualifies as [N]native [F]forest as provided [in section
19-53(h)]herein. The term "owner" includes lessees of real property
whose term extends at least twenty years from the effective date of
the [petition]dedication.
(b) The petition shall be filed with the director of finance by
September 1 of any calendar year and shall be approved or
disapproved by December 15. If approved, the [assessment based upon
the use requested in the] dedication shall be effective on
[January]Jyly 1 of the [next calendar]followinq tax year.
(c) The director of finance shall determine whether or not land
qualifies as native forest by usinq current natural resource or
veqetation maps or other acceptable evidence. Other acceptable
evidence includes. but is not limited to:
(1) A written affidavit by a recoqnized professional in the
field of natural resources. or
(2) A findinq bY a county. state or federal aqency or
department with the relevant expertise in the field of natural
resources.
If the director's findings are favorable, the petition shall be
approved and the land shall be declared dedicated. Approval of the
petition to dedicate shall constitute a forfeiture on the part of
the owner of any right to change the use of the land to a use other
than preservation for a minimum period of twenty years. The
[N]native [F]forest classification shall be rescinded and all
retroactive taxes and penalties due to a breach of the dedication
shall be imposed if:
(1) The cover of native forest species falls below 60 percent;
(2) The property is rezoned to a higher use at the owner's
request;
(3) The property is subdivided into parcels of five acres or
less in size; or
(4) The dedicated property or any portion thereof is sold by
way of a conveyance which is sUbject to conveyance tax under
the terms of chapter 247, Hawaii Revised Statutes, unless the
director of finance submits a notarized affidavit signed by the
owner to the bureau of conveyances stating that the land shall
continue to be subject to the full requirements of the
dedication, including the full penalties and roll back taxes
imposed for violation.
In order to place prospective buyers on notice of the roll
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back tax liability, the owner shall, within sixty days of
notice of approval, record the dedication in accordance with
the procedures of the bureau of conveyances.
(d) Other provisions to the contrary notwithstanding, a portion or
portions of a parcel that is being assessed and dedicated as pasture
may be taken out of production as part of an approved forest
restoration plan set forth in this chapter for the duration of the
approved restoration period without breaching the terms of the
agricultural use dedication.
(1) Such a plan indicatina the acres and area. as well as the
specific forest restoration work to be done. shall be filed
with and approved by the director of finance. If the plan is
approved. the land shall continue to be aiven the same pasture
assessment.
(2) The owner shall provide to the director of finance yearly
evidence that the forest restoration plan is beinq implemented.
as well as a siqned and notarized affidavit by a recoqnized
forestry professional that the restoration plan is likelY to
succeed within the desiqnated time period. The owner shall
continue to fulfill all other requirements of the aqricultural
assessment. includinq providina yearly proof that any portion
of the parcel not beina restored to a native forest. but still
beinq assessed for an aqricultural use. continues to be used
and maintained substantiallY and continuously in the approved
aqricultural use.
If at the end of the time period designated by the native
forest restoration plan, the land meets the requirements of the
[N]native [F]forest class described in this chapter, then it
shall be classified and rededicated as a [N]native [F]forest.
If, at the end of the time period designated in the plan, the
land does not meet the requirements of the [N]native [F]forest
class, the owner may return the land to its designated use as
pasture or it shall be assessed and taxed at [fair] market
value.
(e) [A petition for Native Forest dedication shall be for a
twenty-year period, which land shall be taxed at fifty percent of
its assessed value.] At least one hundred eiqhty days prior to the
cancellation. the department of finance shall notify the owner by
mail of such cancellation. The owner may reapply for renewal of the
dedication by filing an application with the director on or before
September 1 of the twentieth year. The renewal petition shall, in
all respects, be processed in the same manner as an original
petition. Upon approval of succeeding dedications by the director
of finance, the property shall continue to be assessed in accordance
with the provisions of this section.
(f) While dedicated, the land shall be assessed at a preferential
per acre value in its restricted preservation use[in a manner set
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forth in section 19-53(h)]. In determinina the value of lands which
are classified native forest. the director shall assian the value of
the lowest aaricultura1 use cateaorv that the land could aualifv for
if it were to be put into aaricultural use.
(g) If forest[s] dedicated for [N]native [F]forest preservation is
destroyed in whole or in part by fire, hurricane or other disasters,
the director may continue the dedication upon submittal and approval
of a forest restoration plan as provided in this
section[19-53(f)(4)].
(h) Failure of the owner to observe the restrictions on the use of
the land or the sale of the property shall cancel the special tax
assessment privilege retroactive to the date of the dedication, or
the latest renewal period, and all differences in the amount of
taxes that were paid and those that would have been due from
assessment in the higher use shall be payable with a ten percent
[per year] penalty.
(i) The owner may appeal a petition that has been disapproved as in
the case of an appeal from an assessment.
(1996, Ord. No. 96-71, sec. 3.)
Article 8. [ Wasteland Development.]RESERVED.
Section 19-59. [Definitions.
When used in this article:
(1) "Department" means the department of finance;
(2) "Director" means the director of the department of finance;
(3) "Wasteland" means land which is classified as such by the
director of the department of finance; and
(4) The term "owner" shall include any person leasing the real
property of another under a lease having a stated term of not
less than thirty years.]RESERVED.
(1981, Ord. No. 6l3,sec.63.)
Section 19-60. [Eligibility.
Any property of not less than twenty-five acres in area is
eligible for classification as wasteland development property if it
meets the classification requirements of wasteland property as
established by the director of finance. No real property under a
lease having an unexpired term of less than thirty years shall be
eligible for classification as wasteland development
property.]RESERVED.
(1981, Ord. No. 613, sec. 63.)
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Section 19-61. [Application.
The owner of any property may apply to the director of finance
for classification of his land as wasteland development property.
The application shall include a description of the property, the
manner in which the property will be developed, and such additional
information as may be required by the director. The application
shall state that all persons having any interest in or holding any
encumbrance upon the property have joined in making the application
and that all of them will comply with the laws and regulations
relating to the use, building requirements, and development of real
property.]RESERVED.
(1981, Ord. No. 613, sec. 64.)
Section 19-62. [Classification.
Within four months after the filing of the application with the
director of finance, the director shall make a finding of fact as to
the eligibility of such land for classification as wasteland
development property, whether it can be developed in the manner
specified by the owner, whether the development will add to the
development of the economy of the State, and whether the development
will broaden the tax base of the State. The determination shall be
based upon all available information on soils, climate, land use
trends, watershed values, present use of surrounding similar lands,
and other criteria as may be appropriate.
Upon the finding by the director that the property is eligible
for classification as wasteland development property, that it can be
developed in the manner specified by the owner, that the development
will add to the economy of the State, and it will broaden the tax
base of the State, the property shall be classified as wasteland
development property. If the director finds it otherwise for any
one of the above criteria, the application shall be disapproved.
The applicant may appeal any disapproved application as in the
case of an appeal from an assessment.
Land classified as wasteland development property shall be
administered by the department of finance and the department may
from time to time make rules and regulations for their
administration pursuant to chapter 91, Hawaii Revised
Statutes.]RESERVED.
(1981, Ord. No. 613, sec. 65.)
Section 19-63. [ Development and maintenance of wasteland
development property.
Within one year following the approval of the application, the
owner shall develop that portion of his land as specified in his
application and as approved by the director of finance. Additional
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areas shall be developed each year as prescribed by the
director.]RESERVED.
(1981, Ord. No. 613, sec. 66.)
Section 19-64. [Special tax assessment.
Any property classified as wasteland development property by
the director of finance shall be, for a period of five years,
assessed for real property tax purposes at its value as wasteland.
The five-year period shall commence from January 1 of the calendar
year following the approval of the application.]RESERVED.
(1981, Ord. No. 613, sec.67.)
Section 19-65. [Declassification.
Thirty days after notification to the owner by the department
of finance for noncompliance of any law, ordinance, rule or
regulation, the director of finance may declassify any land
classified as wasteland development property. The department shall
notify the owner of the declassification and in that event, the
director shall cancel the special tax assessment provided in section
19-64 retroactive to the date that the property qualified for
special tax assessment and the difference between the real property
taxes that would have become due and payable but for such
classification for all the years the land was classified as
wasteland development property and the real property taxes paid by
the owner during such period shall become immediately due and
payable together with a five percent a year penalty from the
respective dates that such additional tax would otherwise have been
due.]RESERVED.
(1981, Ord. No. 613, sec.68.)
Section 19-66. [Appeals.
Any person aggrieved by the additional assessment for any year
may appeal from such assessment in the manner provided in the case
of real property tax appeals.]RESERVED.
(1981, Ord. No. 613, sec.69.)
Article 9. Nontaxable PropertYi Assessment.
Section 19-67. Nontaxable property.
For purposes of accountability, the director of finance shall
assess at the nominal sum of $lQQ each parcel of real property which
is completely exempt from taxation.
(1981, Ord. No. 613, sec. 70iAm. 1990, Ord. No. 90-138, sec.3.)
Article 10. Exemptions.
Section 19-68. Claims for certain exemptions.
(a) None of the exemptions from taxation granted in sections 19-71,
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[19-74,l 19-76 to 19-78 and 19-89.2 shall be allowed in any case,
unless the claimant shall have filed with the department of finance,
on or before December 31 preceding the tax year for which such
exemption is claimed, a claim for exemption in such form as shall be
prescribed by the department.
The exemption from taxation granted for disabilities in section
19-73 [andl1Q 19-75 shall be allowed from the next tax paYment date,
provided that the claimant shall have filed a claim for the
disability exemption along with a copy of the physician's
certificate of disability with the department on or before June 30
for the first half paYment or December 31 for the second half
paYment on such form as shall be prescribed by the department.
(b) A claim for exemption once allowed shall have continuing effect
until:
(1) The exemption is disallowed;
(2) The assessor voids the claim after first giving no less
than thirty days notice (either to the claimant or to all
claimants in the manner provided for by ordinance), that the
claim or claims on file will be voided on a certain date[, less
than thirty days after such noticel;
(3) The five-year period for exemption, as allowed in section
19-78, expires; or
(4) The claimant makes the report required by subsection (d).
(c) A claimant may file a claim for exemption even though there is
on file and in effect a claim covering the same premises, or a claim
previously filed and disallowed or otherwise voided. However, no
such claim shall be filed if it is identical with one already on
file and having continuing effect. The report required by
subsection (d) may be accompanied by or combined with a new claim.
(d) Any person who has been allowed an exemption under sections
19-71, 19-73 to 19-78 or 19-89.2 has a duty to report to the
assessor within thirty days after he ceases to qualify for such an
exemption for one of, but not limited to, the fOllowing reasons:
(1) He ceases to be the owner, lessee, or purchaser of the
exempt premises;
(2) A change in the facts previously reported has occurred
concerning the occupation, use, or renting of the premises,
buildings or other improvements thereon; or
(3) Some other change in status has occurred which affects his
exemption.
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Such report shall have the effect of voiding the claim for
exemption previously filed, as provided in subsection (b)(4).
The report shall be sufficient if it identifies the property
involved, states the change in facts or status, and requests
that the claim for exemption previously filed be voided.
In the event the property comes into the hands of a
fiduciary who is answerable as provided for by this chapter,
the fiduciary shall make the report required by this subsection
within thirty days after his assumption of his fiduciary duties
or within the time otherwise required, whichever is later.
Any person who has a duty of making a report as required
by this subsection, who within the time required fails to make
a report, shall be liable for a civil penalty. The amount of
the penalty shall be $100 [or the amount of the taxes on the
property computed without the claim for exemption as of January
1 of the year in which the report was due, whichever is
lesser]. The penalty shall be recovered as provided for by
ordinance. In addition to this penalty, the taxes due on the
property plus any additional penalties and interest thereon
shall be collected as property taxes and shall be a lien on the
property as provided for by ordinance.
(e) In addition to any penalty set forth in article 10, any
individual who files a fraudulent claim for exemption or attests to
any false statement, with the intent to defraud or to evade the
paYment of taxes or any part thereof, or who in any manner
intentionally deceives or attempts to deceive the department of
finance, shall be fined $1,000. This fine shall attach as a
paramount lien against the property for which the claim for
exemption is filed.
(f) If the assessor is of the view that, for any tax year, the
exemption should not be allowed, in whole or in part, he may at any
time within [five]~ years of January 1 of that year disallow the
exemption for that year, in whole or in part, and may add to the
assessment list for that year the amount of value involved, in the
manner provided for by ordinance for the assessment of omitted
property; provided, that if an assessment or addition under this
subsection is made after April 9 preceding the tax year, the taxes
on the amount of value involved in the assessment or addition so
made shall be made a lien as provided for by this chapter by
recording a certificate setting forth the amount of tax involved,
penalties, and interest.
(g) In any case of recordation of a certificate for the amount of
the civil penalty under subsection (d), or for the amount of tax,
penalties, and interest assessed or added under subsection (f), a
person shall be deemed to have an interest arising before the
recordation of the certificate only if and to the extent that he
acquired his interest in good faith and for a valuable consideration
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without notice of a violation of the requirements of subsection (d)
having occurred.
(1981, Ord. No. 613, sec. 72;Am. 1987, Ord. 87-116, sec. 2;Am. 1990,
Ord. No. 90-138, sec. 4;Am. 1994, Ord. No. 94-24, sec.1iAm. 1995,
Ord. 95-83, sec.2.).
Section 19-69. [Rules and regulations.
The director of finance may promulgate rules and regulations as
may be necessary to administer sections 19-70 to 19-84.]RESERVED.
(1981, Ord. No. 613, sec. 73.)
Section 19-70. Assignment of partial exemptions.
Unless otherwise specifically provided, allowable exemptions
shall be applied first to the value of the buildings on the land and
the remainder of the unused exemption, if any, to the value of the
land.
(1981, Ord. No. 613, sec. 74.)
Section 19-71. Homes.
(a) Real property owned and occupied [only] as [his or their] ~
principal home as of the date of assessment [by an individual or
individuals,] shall be exempt lonlyl to the fOllowing extent from
property taxes:
(1) Totally exempt where the value of the property is not in
excess of $40,000;
(2) Where the value of the property is in excess of $40,000,
the exemption shall be the amount of $40,000.
Provided:
(A) That no such exemption shall be allowed to any
corporation, co-partnership, or company;
(B) That the exemption shall not be allowed on more than
one home for anyone taxpayer;
(C) That where the taxpayer has acquired his home by a
deed made on or after July I, 1951, the deed shall have
been recorded on or before December 31 immediately
preceding the year for which the exemption is claimed;
(D) That a husband and wife shall not be permitted
exemption of separate homes owned by each of them, unless
they are living separate and apart, in which case they
shall be entitled to one exemption, to be apportioned
equally between each of their respective homes [in
proportion to the value thereof]; and
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(E) That a person living on premises, a portion of which
is used for commercial purposes, shall not be entitled to
an exemption with respect to such portion, but shall be
entitled to an exemption with respect to the portion
thereof used exclusively as a home;
(F) That in the case of a lease of Hawaiian homestead
lands, where either a husband or wife is of non-Hawaiian
descent, either spouse shall be entitled to the home
exemption in the same manner as if either spouse was
considered the owner thereof. provided proof of marriaae
is submitted to the director of finance.
(b) The use of a portion of any building or structure for the
purpose of drying coffee and the use of a portion of real property,
including structures, in connection with the planting and growing
for commercial purposes, or the packing and processing for such
purposes, of flowers, plants, or foliage, shall not affect the
exemptions provided for by this section.
(c) Where two or more individuals by life estate and remainder.
jointly, by the entirety, or in common own or lease land on which
their homes are located, each home, if otherwise qualified for the
exemption granted by this section, shall receive the exemption. If
a portion of land held by life estate and remainder. jointly, by the
entirety, or in common by two or more individuals is not qualified
to receive an exemption, such disqualification shall not affect the
eligibility for an exemption or exemptions of the remaining portion.
(d) A taxpayer who is sixty years of age or over and who qualifies
under subsection (a) shall be entitled to one of the following
multiples of home exemption:
Age of Taxpayer
Multiple to be Used
in Computing Home
Exemption Amount
60 years of age or over
but not 70 years of age or
over
70 years of age or over
2.0
2.5
For the purpose of this subsection, a husband and wife who own
property by life estate and remainder. jointly, by the entirety, or
in common, on which a home exemption under the provisions of
subsection (a) has been granted shall be entitled to the applicable
multiple of home exemption set forth above when at least one of the
spouses qualifies each year for the applicable multiple of home
exemption.
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(e) For purposes of this section, the term "principal home" is
defined as the place where an individual has a true, fixed,
permanent home and principal establishment, and to which place the
individual has, whenever absent, the intention of returning. It is
the place in which an individual has voluntarily fixed [their]
habitation, not for mere special, temporary, or vacation purpose,
but with the intention of making a permanent home.
(1981, Ord. No. 613, sec. 75;Am. 1982, Ord. No. 766, sec.3;Am. 1990,
Ord. No. 90-138, sec.5.)
Section 19-72. Home, lease, lessees defined.
For the purpose of section 19-71 the word "home" includes:
(1) The entire homestead when it is occupied by the taxpayer
as such;
(2) A residential building on land held by the lessee or his
successor in interest under a lease for a term of [five]ten
years or more for residential purposes and owned and used as a
residence by the lessee or his successor in interest, where the
lease and any extension, renewal, assignment, or agreement to
assign the lease, have been duly entered into and recorded
prior to January 1 preceding the tax year for which the
exemption is claimed, and whereby the lessee agrees to pay all
taxes during the term of the lease;
(3) An apartment which is a living unit (held under a
proprietary lease by the tenant thereof) in a multi-unit
residential building on land held by a cooperative apartment
corporation (of which the proprietary lessee of such living
unit is a stockholder) under a lease for a term of [five]tgn
years or more for residential purposes and which apartment is
used as a residence by the lessee-stockholder, where the lease
and any extension or renewal have been duly entered into and
recorded prior to January 1 preceding the tax year for which
the exemption is claimed, and whereby the lessee-stockholder
agrees to pay all taxes during the term of the lease[provided
that:
(A) The exemption shall not be allowed in respect to any
cooperative apartment unit where the owner of the
cooperative apartment unit claims exemption on a home or
other cooperative apartment unit; and
(B) The owner or owners of a cooperative apartment
building or premises shall not be permitted exemptions
where a husband and wife owner of a cooperative apartment
unit own separate cooperative apartment units or separate
homes owned by each of them, unless they are living
separate and apart, in which case the owner of the
cooperative apartment or premises shall be entitled to
one-half of one exemption];
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(4) An apartment in a multi-unit apartment building which is
occupied by the owner of the entire apartment building as his
residence[, provided that:
(A) The exemption shall not be allowed in respect to any
apartment owner who claims any other home exemption; and
(B) A husband or wife owner of the aforementioned type of
apartment shall not be allowed a full exemption where the
husband and wife are living separate and apart and each is
maintaining an apartment or home entitled to an exemption,
in which case they shall be entitled to one exemption to
be apportioned between each of their respective homes in
proportion to the value thereof];
(5) That portion of a residential duplex and that portion of
land appurtenant to the duplex which are occupied by the owner
of the duplex and land as his residence~[, provided that:
(A) The exemption shall not be allowed in respect to any
duplex owner who claims any other home exemption;
(B) The portion of the appurtenant land shall not be
exempt unless owned in fee by the duplex owner; and
(C) A husband or wife owner of the duplex shall not be
allowed a full exemption where the husband and wife are
living separate and apart and each is maintaining a duplex
or home entitled to an exemption, in which case they shall
be entitled to one exemption to be apportioned between
each of their respective homes in proportion to the value
thereof;
(6) Premises held under an agreement to purchase the same for
a home, where the agreement has been duly entered into and
recorded prior to January 1 preceding the tax year for which
the exemption is claimed, whereby the purchaser agrees to pay
all taxes while purchasing the premises.
(7)]~ An apartment which is a living unit (held under a
lease by the tenant thereof) in a multi-unit residential
building used for retirement purposes under a lease for a term
to last during the lifetime of the lessee and his or her
surviving spouse and which apartment is used as a residence by
the lessee and his or her surviving spouse, and where the
apartment unit reverts back to the lessor upon the death of the
lessee and his or her surviving spouse, and where the 'lease has
been duly entered into and recorded prior to January 1
preceding the tax year for which the exemption is claimed, and
whereby the lessee agrees to pay all taxes during the term of
the lease.
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[The subletting by the taxpayer of not more than one room
to a tenant shall not affect the exemption provided for by
section 19-71.]
As used in section 19-71, in the first paragraph of
section 19-48 and in section 19-68, the word "lease" shall be
deemed to include a sub-lease, and the word "lessee" shall be
deemed to include a sub-lessee.
(1981, Ord. No. 613, sec.76.)
Section 19-73. Homes of totally disabled veterans.
Real property owned and occupied as a home by any person who is
totally disabled due to injuries received while on duty with the
armed forces of the United States, or owned by any such person
together with his or her spouse and occupied by either or both
spouses as a home, or owned or occupied by a widow or widower of
such totally disabled veteran who shall remain unmarried and who
shall continue to own and occupy the premises as a home, is hereby
exempted except for the minimum tax from all property taxes, other
than special assessments, provided:
(1) That such total disability was incurred while on duty as a
member of the armed forces of the United States, and that the
department of finance may require proof of total disability;
(2) That the home exemption shall be granted only as long as
the veteran claiming exemption remains totally disabled;
(3) [That the exemption shall not be allowed on more than one
house for anyone person;
(4)] That a person living on premises, a portion of which is
used for commercial purposes, shall not be entitled to an
exemption with respect to such portion, but shall be entitled
to an exemption with respect to the portion used exclusively as
a home; provided, that this exemption shall not apply to any
structure, including the land thereunder, which is used for
commercial purposes.
For the purposes of this section, the word "home" includes the
entire homestead when it is occupied by a qualified totally disabled
veteran as a home; houses where the disabled veteran owner sublets
not more than one room to a tenant; and premises held under an
agreement to purchase the same for a home, where the agreement has
been duly entered into and recorded prior to January 1 preceding the
tax year for which exemption is claimed, whereby the purchaser
agrees to pay all taxes while purchasing the premises. !
I
(1981, Ord. No. 613, sec.77.) ,
Section 19-74. Persons affected with [leprosy]Hansen's Disease.
Any person who has been declared by authority of law to be a
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person affected with [leprosy]Hansen's Disease in the communicable
stage and is admitted to a hospital for isolation treatment, shall,
so long as he is so hospitalized, and thereafter for so long as such
person has been so declared to be therefrom temporarily released,
shall, so long as he remains or continues under temporary release,
be exempted except for the minimum tax from real property taxes on
all real property owned by him on the date when he was declared to
be a person so affected with [leprosy]Hansen's Disease, up to, but
not exceeding, a taxable value of $[25,000]50.000.
(1981, Ord. No. 613, sec. 78iAm. 1982, Ord. No. 766, sec.4.)
Section 19-75. Exemption, persons with impaired sight or hearing
and persons totally disabled.
(a) Definitions as used in this chapter.
(1) "Blind" means a person whose central visual acuity does
not exceed 20/200 in the better eye with correcting lenses, or
whose visual acuity is greater than 20/200 but is accompanied
by a limitation in the field of vision such that the widest
diameter of the visual field subtends an angle no greater than
twenty degrees.
(2) "Deaf" means a person whose average loss in the speech
frequencies (five hundred to two thousand Hertz) in the better
ear is eighty-two decibels, A.S.A., or worse.
(3) "Person totally disabled" means a person who is totally
and permanently disabled, either physically or mentally, and
who except for such total disability would be able to engage in
any substantial gainful business or occupation.
(b) Any person who is blind or deaf, as defined in subsection (a)
of this section, [so]as long as the person's sight or hearing is so
impaired, shall be exempt except for the minimum tax from real
property taxes on all real property owned by the person up to, but
not exceeding a taxable value of $50,000. The impairment of sight
or hearing shall be certified to by a licensed ophthalmologist,
optometrist or otolaryngologist, as the case may be, on forms
prescribed by the department of finance.
(c) Any person who is totally disabled, as defined in subsection
(a) of this section, as long as the person is totally disabled,
shall be exempt except for the minimum tax from real property taxes
on all real property owned by him up to, but not exceeding a taxable
value of $50,000. The disability shall be certified to by ill a
physician licensed under chapter 453 or 460, or both, (2) a
qualified out-of-state physician who is currently licensed to
practice in the state in which the physician resides. or (3) a
commissioned medical officer in the United States military service
or Public Health Service, enaaaed in the discharae of one's official
duty. Certification shall be on forms prescribed by the department
of finance. For disabled veterans. the proof of disability
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submitted for section 19-73(1) by the Veterans Administration. can
be substituted for the physician's certification of disability.
Official documentation from the Social Security Administration can
also be substituted for the physician's certification of disability.
(d) Any person suffering from a temporary or momentary impairment
of sight, hearing, or total disability shall be required to submit
an annual certification or recertification, performed by a qualified
ophthalmologist, optometrist, otolaryngologist, or licensed
physician, as the case may be, attesting to the continued impairment
of sight, hearing, or total disability. The exemption shall be
disallowed for failure to submit the required annual certification
or recertification report.
(e) Any person who qualifies for the exemptions identified in
subsection (b) or (c) of this section shall be allowed to apply for
only one of the exemptions established in this section.
(f) In the case of a lease of Hawaiian homestead land, where either
a husband or wife is of non-Hawaiian descent, either spouse shall be
entitled to the blind, deaf, or totally disabled exemption in the
same manner as if either spouse was considered the owner thereofL
provided proof of marriaae is submitted to the director of finance.
(g) In the event that a person qualifies for the home exemption as
provided in section 19-71 and the blind, deaf, or totally disabled
exemption as provided in this section, the exemptions shall be
granted to the claimant in the following order[.]~ [T]the home
exemption shall be granted first, then followed by the applicable
blind, deaf, or totally disabled exemption on the property claimed
as the owner's principal residence. Thereafter, the exemption
provided by this section shall be applied to any other property
designated by the claimant.
(1981, Ord. No. 613, sec.79iAm. 1982, Ord. No. 766, sec.5iAm. 1989,
Ord. No. 89-150, sec.2iAm. 1990, Ord. No. 90-152,sec.2.)
Section 19-76. Nonprofit medical, hospital indemnity associationsi
tax exemption.
Every association or society organized and operating under
chapter 433, HRS, solely as a nonprofit medical indemnity or
hospital service association or society or both shall be, from the
time of such organization, exempt except for the minimum tax from
real property taxes on all real property owned by it.
(1981, Ord. No. 613, sec.80.)
Section 19-77. Charitable, etc., purposes.
(a) There shall be exempt except for the minimum tax from real
property taxes real property designated in subsection (b) or (c) and
meeting the requirements stated therein, actually and (except as
otherwise specifically provided) exclusively used for nonprofit
purposes. If an exemption is claimed under one of these subsections
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(b) and (c), an exemption for the same property may not also be
claimed under the other of these subsections.
(b) This subsection applies to property owned in fee simple,
leased, or rented for a period of one year or more, by the person
using the property for the exempt purposes, hereinafter referred to
as the person claiming the exemption. If the property for which
exemption is claimed is leased or rented, the lease or rental
agreement shall be in force and recorded in the bureau of
conveyances.
Exemption is allowed by this subsection to the following
property:
(1) Property used for school purposes including:
(A) Kindergartens, grade schools, junior high schools,
and high schools, which carryon a program of instruction
meeting the requirements of the compulsory school
attendance law, section 298-9, Hawaii Revised Statutes, or
which are for preschool children who have attained or will
attain the age of five years on or before December 31 of
the school year, provided that any claim for exemption
based on any of the foregoing uses shall be accompanied by
a certificate issued by or under the authority of the
department of education stating that the foregoing
requirements are met;
(B) Junior colleges or colleges carrying on a general
program of instruction of college level. The property
exempt from taxation under this paragraph is limited to
buildings for educational purposes (including
dormitories), housing owned by the school or cOllege and
used as residence for personnel employed at the school or
college, campus and athletic grounds, and realty used for
vocational purposes incident to the school or college.
(2) Property used for hospital and nursing home purposes,
including housing for personnel employed at the hospital; in
order to qualify under this paragraph the person claiming the
exemption shall present with the claim a certificate issued by
or under the authority of the State department of health that
the property for which the exemption is claimed consists in, or
is a part of, hospital or nursing home facilities which are
properly constituted under the law and maintained to serve, and
which do serve the pUblic.
(3) Property used for church purposes including incidental
activities, parsonages, and church grounds, the property exempt
except for the minimum tax from [taxation]real property taxes
being limited to realty exclusive of burying grounds (exemption
for which may be claimed under paragraph (4)).
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(4) Property used as jemeteries (excluding, however, property
used for cremation purposes) maintained by a religious society,
or by a corporation, association or trust organized for such
purpose. Property used as individual or family burial plots
shall be exempted for the portion that is actually used for
such purposes.
(5) Property dedicated to public use by the owner, which
dedication has been accepted by the State or County, reduced to
writing, and recorded in the bureau of conveyances[; and
property which has been set aside for public use, and actually
used therefor for a period not less than five years].
(6) Property owned by any nonprofit corporation, admission to
membership of which is restricted by the corporate charter to
members of a labor union; property owned by any government
employees' association or organization, one of the primary
purposes of which is to improve emploYment conditions of its
members; property owned by any trust, the beneficiaries of
which are restricted to members of a labor union; property
owned by any association or league of credit unions chartered
by the United States or the State, the sole purpose of which is
to promote the development of credit unions in the State.
Notwithstanding any provision in this section to the contrary,
the exemption shall apply to property or any portion thereof
which is leased, rented, or otherwise let to another, if such
leasing, renting, or letting is to a nonprofit association,
organization, or corporation.
(c) This subsection shall apply to property owned in fee simple or
leased or rented for a period of one year or more, the lease or
rental agreement being in force and recorded in the bureau of
conveyances at the time the exemption is claimed, by either:
(1) A corporation, society, association, or trust having a
charter or other enabling act or governing instrument which
contains a provision or has been construed by a court of
competent jurisdiction as providing that in the event of
dissolution or termination of the corporation, society,
association, or trust, or other cessation of use of the
property for the exempt purpose, the real property shall be
applied for another charitable purpose or shall be dedicated to
the public, or
(2) A corporation chartered by the United states under Title
36, United States Code, as a patriotic society. Exemption is
allowed by this subsection for property used for charitable
purposes which are of a community, character building, social
service, or educational nature, including museums, libraries,
art academies, and senior citizen housing facilities qualifying
for a loan under the laws of the United States as authorized by
section 202 of the Housing Act of 1959 as amended by the
Housing Act of 1961, the Senior Citizens Housing Act of 1962,
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the Housing Act of 1964, and the Housing and Urban Development
Act of 1965.
(3) Claimants shall submit to the director of finance
documentation from the Internal Revenue Service verifvino their
exemption status.
(d) If any portion of the property which might otherwise be
exempted under this section is used for commercial or other purposes
not within the conditions necessary for exemption (including any use
the primary purpose of which is to produce income even though such
income is to be used for or in furtherance of the exempt purposes)
that portion of the premises shall not be exempt but the remaining
portion of the premises shall not be deprived of the exemption if
the remaining portion is used exclusively for purposes within the
conditions necessary for exemption. In' the event of an exemption of
a portion of a building, the tax shall be assessed upon so much of
the value of the building (including the land thereunder and the
appurtenant premises) as the proportion of the floor space of the
nonexempt portion bears to the total floor space of the building.
(e) The term "for nonprofit purposes," as used in this section
requires that no monetary gain or economic benefit inure to the
person claiming the exemption, or any private shareholder, member,
or trust beneficiary. "Monetary gain" includes without limitation
any gain in the form of money or money's worth. "Economic benefit"
includes without limitation any benefit to a person in the course of
his business, trade, occupation, or emploYment.
(1981, Ord. No. 613, sec. 81;Am. 1987, Ord. No. 87-116, sec.3.)
Section 19-78. Property used in manufacture of pulp and paper.
All real property in the [State, both real and personal,]Countv
actually and solely used or to be used, whether by the owner or
lessee thereof, in connection with the manufacture of pulp and paper
[from bagasse fibre,] shall be exempt except for the minimum tax
from property taxes for a period of five years from the first day of
January following commencement of construction of a plant or plants
on the property for such purpose.
(1981, Ord. No. 613, sec. 82.)
Section 19-79. Crop shelters.
Any other law to the contrary notwithstanding, any permanent
structure constructed or installed on any taxable real property
[consisting of frames or supports and covered by rigid plastic,
fiberglass, or other rigid and semi-rigid transparent or translucent
material, and including wooden laths,] used primarily for the
protection of crops shall be exempted in determining and assessing
the value of such taxable real property~[for ten years or for a
period of ten years from the first day of January following
commencement of construction or installation of the structure on the
property for such purpose; provided that any temporary structure so
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constructed or installed and covered by flexible plastic or other
flexible transparent or translucent material, used for such purpose,
shall be so exempted not subject to the ten-year limitation;
provided, further, that s]~uch exemption shall continue only [so]~
long as the structure is maintained in good condition. [Only
structures used for commercial agricultural or horticultural
purposes shall be included in the exemption.]
(1981, Ord. No. 613, sec.83.)
Section 19-80. Exemption, dedicated lands in urban districts.
(a) Portions of [taxable] real property which are dedicated and
approved by the director of finance as provided for by this section
shall be exempt[ed in determining and assessing the value of such
taxable] except for the minimum tax from real property taxes.
(b) Any owner of taxable real property in an urban district
desiring to dedicate a portion or portions thereof for landscaping,
open spaces, public recreation, and other similar uses shall
petition the director of finance stating the exact area of the land
to be dedicated and that the land is not within the setback and open
space requirements of applicable zoning and building code laws and
ordinances, and that the land shall be used, improved, and
maintained in accordance with and for the sole purpose for which it
was dedicated, except that land within a historic district may be so
dedicated without regard to the setback and open space requirements
of applicable zoning and building code laws and ordinances.
The director shall make a finding as to whether the use to
which such land will be dedicated has a benefit to the public at
least equal to the value of the real property taxes for such land.
Such finding shall be measured by the cost of improvements, the
continuing maintenance thereof, and such other factors as the
director may deem pertinent. If the director finds that the public
benefit is at least equal to the value of real property taxes for
such land, he shall approve the petition and declare such land to be
dedicated land.
(c) The approval of the petition by the director shall constitute a
forfeiture on the part of the owner of any right to change the use
of his land for a minimum period of ten years[, automatically
renewable indefinitely, subject to cancellation by either the owner
or the director upon five years' notice at any time after the end of
the fifth year]. At least one hundred eiahty days prior to the
cancellation. the department of finance shall notifY the owner by
mail of such cancellation. The owner of a dedicated property must
renew the dedication on or before September 1 of the tenth year of
the oriainal dedication or any subseauent renewal period in order to
continue the dedication for the next ten years.
(d) Failure of the owner to observe the restrictions on the use,
improvement, and maintenance of his land shall cancel the special
tax exemption privilege retroactive to the date of the original
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dedication, or to the latest renewal date whichever is later. and
all differences in the amount of taxes that were paid and those that
would have been due from the assessment of the tax exempted portion
of his land shall be payable together with [interest]penaltv of
[five]ten percent [a year] from the respective dates that these
payments would have been due. Failure to observe the restrictions
on the use means failure for a period of over twelve consecutive
months to use, improve, and maintain the land in the manner
requested in the petition or any overt act changing the use for any
period-. Nothing in this paragraph shall preclude the County from
pursuing any other remedy to enforce the covenant on the use of the
land.
(e) The director shall prescribe the form of the petition. The
petition shall be filed with the director by September 1 of any
calendar year and shall be approved or disapproved by December 15 of
such year. If approved, the [exemption based upon the use requested
in the] dedication shall be effective [January]Julv 1[,] of the
[next calendar]fo11owinQ tax year.
(f) The owner may appeal any disapproved petition as in the case of
an appeal from an assessment.
(g) The director shall make and adopt necessary rules and
regulations including such rules and regulations governing mlnlmum
areas which may be dedicated for the improvement and maintenance of
such areas.
(h) "Landscaping" means lands which are improved by landscape
architecture, cultivated plantings, or gardening.
"Open spaces" means lands which are open to the public for
pedestrian use and momentary repose, relaxation, and
contemplation.
"Public recreation" refers to lands which may be used by the
public as parks, playgrounds, historical sites, camp grounds,
wildlife refuge, scenic sites, and other similar uses.
"Owner" includes lessees of real property whose lease term
extends at least ten years from the effective date of the
[petition]dedication.
(1981, Ord. No. 613, sec.84.)
Section 19-81. [Exemptions for air pOllution control facility.
The value of all property in the County (not including a
building and its structural components, other than a building which
is exclusively a treatment facility) actually and SOlely used or to
be used as an air pollution control facility as the term is defined
in chapter 237, Hawaii Revised Statutes, shall be exempted from the
measure of the taxes imposed by this chapter; provided, however, the
property exemption shall be applicable only with respect to a
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certified facility which is property (1) the construction,
reconstruction or erection of which is completed by the taxpayer
after June 30, 1969, or (2) acquired by the taxpayer after June 30,
1969, if the original use of the property commences with the
taxpayer after June 30, 1969; provided further, the facility is
placed in service by the taxpayer before July I, 1975.
Application for the exemption provided herein shall first be
made with the State director of health who shall, if satisfied that
the facility meets the pollutipn emission criteria established by
the State department of health, certify to that fact. Upon receipt
of the certification from the department of health, the director of
finance shall exempt the facility from the tax imposed by this
chapter. A new certificate shall be obtained from the director of
health and filed with the director of finance every two years
certifying that the pollution control facility complies with the
pollutant emission criteria established by the department of
health. The director of finance shall furnish all forms required by
this section.
The director of finance shall promulgate rules and regulations
necessary to administer this section.]RESERVED.
(1981, Ord. No. 613, sec. 85.)
Section 19-82. Alternate energy improvements, exemption.
(a) The value of all improvements in the County (not including a
building or its structural components, except where alternate energy
improvements are incorporated into the building, and then only that
part of the building necessary to such improvement) actually used
for an alternate energy improvement shall be exempted from the
measure of the taxes imposed by this article.
(b) As used in this section "alternate energy improvement" means
any construction or addition, alteration, modification, improvement,
or repair work undertaken upon or made to any building which results
in:
(1) The production of energy from a source, or uses a process
which does not use fossil fuels, nuclear fuels, or geothermal
source. Such energy source may include, but shall not be
limited to, solid wastes, wind, solar, or ocean waves, tides,
or currents.
(2) An increase level of efficiency in the utilization of
energy produced by fossil fuels or in the utilization of
secondary forms of energy dependent upon fossil fuels for its
generation.
(c) Alternate energy production or energy by-products transferred,
marketed, or sold on a commercial basis shall not qualify for
exemption under the provisions of this section. Provided further,
that alternate energy improvements used primarily for personal
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consumption and producing excess energy incidental to personal
consumption may transfer, market, or sell such excess energy
produced and continue to qualify for the exemption as provided for
by the provisions of this section; however, the transfer, marketing,
or sale shall be limited to less than twenty-five percent of the
total energy output produced by such improvements. Nuclear fission
and geothermal energy sources shall be excluded from the provisions
of this section.
(d) Application for the exemption provided by this section shall be
made with the director of finance on or before December 31,
preceding the tax year for which the exemption is claimed, except
that no claim need be filed for the exemption of solar water
collections, heaters, heat pumps and similar devices. The director
of finance may require the taxpayer to furnish reasonable
information in order that he may ascertain the validity of the claim
for exemption made under this section and may adopt rules and
regulations to implement this section.
(1981, Ord. No. 613, sec. 86;Am. 1983, Ord. No. 83-57, sec.2.)
Section 19-83. [Fixtures used in manufacturing or producing
tangible personal products.
There shall be exempted and excluded from the measure of the
taxes imposed by this chapter, all fixtures which are categorized as
machinery and other mechanical or other allied equipment which are
primarily and substantially used in manufacturing or producing
tangible personal products.]RESERVED.
(1981, Ord. No. 613, sec.87.)
Section 19-84. Public property, etc.
The following real property shall be exempt from taxation:
(1) Real property belonging to the United States, to the
State, or to the County; provided, that real property belonging
to the United States shall be taxed upon the use or occupancy
thereof as provided in section 19-85, and there shall be a tax
upon the property itself if and when the Congress of the United
States so permits, to the extent so permitted and in accordance
with any conditions or provisions prescribed in such act of
Congress; provided, further, that real property belonging to
the State or the County, or belonging to the United States and
in the possession, use, and control of the State, shall be
taxed on the fee simple value thereof, and private persons
shall pay the taxes thereon and shall be deemed the "owners"
thereof for the purposes of this chapter, in the following
cases:
(A) Property held on January 1 preceding the tax year
under an agreement for its conveyance by the government to
private persons shall be deemed fully taxable, the same as
if the conveyance had been made;
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(B) Property held on January 1 preceding the tax year
under a government lease shall be entered in the
assessment lists and such tax rolls for that year as fully
taxable for the entire tax year, but adjustments of the
taxes so assessed may be made as provided for by this
chapter so that such tenants are required to pay only so
much of the taxes as is proportionate to the portion of
the tax year during which the real property is held or
controlled by them;
(C) Property held under a government lease commencing,
after January 1 preceding the tax year or under an
agreement for its conveyance or a conveyance by the
government, made after January 1 preceding the tax year,
shall be assessed as omitted property as provided for by
this chapter, but the taxes thereon shall be prorated so
as to require the paYment of only so much of the taxes as
is proportionate to the remainder of the tax year;
(0) Property where the occupancy by the tenant for
commercial purposes has continued for a period of one year
or more, whether the occupancy has been on a permit,
license, month-to-month tenancy, or otherwise, shall be
fully taxable to the tenant after the first year of
occupancy, and the property shall be assessed in the
manner provided in subdivisions (B) and (C) of this
paragraph for the assessment of properties held under a
government lease; provided that the property occupied by
the tenant solely for residential purposes on a
month-to-month tenancy shall be excluded from this
paragraph;
(E) In any case of occupancy of a building or structure
by two or more tenants, or by the government and a tenant,
under a lease for a term of one year or more, the tax
shall be assessed to the tenant upon so much of the value
of the entire real property as the floor space occupied by
the tenant proportionately bears to the total floor space
of the structure or building;
For the purposes of subdivisions (B) and (C) of this
subsection: "Lease" means any lease for a term of one year
or more or which is renewable for such period as to
constitute a total term of one year or more. A lease
having a stated term shall, if it otherwise comes within
the meaning of the term "lease," be deemed a lease
notwithstanding any right of revocation, cancellation, or
termination reserved therein or provided for thereby.
Whenever a lease is such that the highest and best use
cannot be made of the property by the lessee, the measure
of the tax imposed on such property pursuant to
subdivisions (B) and (C) shall be its fee simple value
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upon consideration of the highest and best use which can
be made of the property by the lessee.
Provided, further, that real property belonging to the
United States, even though not in the possession, use, and
control of the State, shall be taxed on the fee simple
value thereof, and private persons shall pay the taxes
thereon and shall be deemed the "owners" thereof for the
purposes of this chapter, in the following cases:
(i) Property held on January 1 preceding the tax year
under an agreement for the conveyance of the same by
the government to private persons shall be deemed
fully taxable, the same as if the conveyance had been
made, but the assessment thereof shall not impair and
shall be so made as to not impair, any right, title,
lien, or interest of the United States.
(ii) Property held under an agreement for the
conveyance of the same or a conveyance of the same by
the government, made after January 1 preceding the tax
year, shall be assessed as omitted property as
provided by this chapter, but the taxes thereon shall
be prorated so as to require the paYment of only so
much of such taxes as is proportionate to the
remainder of the tax year, and in the case of property
held under an agreement for the conveyance of the same
but not yet conveyed, the assessment thereof shall not
impair, and shall be so made as to not impair, any
right, title, lien, or interest of the United states.
(2) Real property under lease to the State or the County under
which lease the lessee is required to pay the taxes upon such
property;
(3) Subject to section 101-39(B), Hawaii Revised Statutes, any
real property in the possession of the State or County which is
the subject of eminent domain proceedings commenced for the
acquisition of the fee simple estate in such land by the State
or County; provided the fact of such possession has been
certified to the director as provided by section 101-36 or
101-38, Hawaii Revised Statutes, or is certified not later than
December 31 preceding the tax year for which such exemption is
claimed;
(4) Real property with respect to which the owner has granted
to the State or County a right of entry and upon which the
State or County has entered and taken possession under the
authority of the right of entry with intention to acquire the
fee simple estate therein and to devote the real property to
public use; provided the State or County shall have, prior to
December 31 preceding the tax year for which the exemption is
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claimed, certified to the director the date upon which it took
possession;
(5) Any portion of real property within the area upon which
construction of buildings is restricted or prohibited and which
is actually rendered useless and of no value to the owners
thereof by virtue of any ordinance establishing setback lines
thereon; provided, that in order to secure the exemption the
person claiming it shall annually file between December 15 and
December 31 preceding the applicable tax year a sworn written
statement with the director describing the real property in
detail and setting forth the facts upon which exemption is
claimed, together with a written agreement that in
consideration of the exemption from taxes he will not make use
of the land in any way whatsoever during the ensuing year. Any
person who has secured such exemption who violates the terms of
the agreement shall be fined twice the amount of the tax which
would be assessed upon the land but for such exemption;
(6) Real property exempted by any laws of the United States
which exemption is not subject to repeal by the council;
(7) Any other real properly exempt by law.
(1981, Ord. No. 613, sec.88.)
Section 19-85. Lessees of exempt real property.
(a) When any public real property which for any reason is exempt
from taxation is leased to and used or occupied by a private person
in connection with any business conducted for profit, such use or
occupancy shall be assessed and taxed in the same amount and to the
same extent as though the lessee were the owner of the property and
as provided in subsection (b), provided, that:
(1) The foregoing shall not apply to the following:
(A) Federal property for which paYments are made in lieu
of taxes in amounts equivalent to taxes which might
otherwise be lawfully assessed;
(B) Any property or portion thereof taxed under any other
provision of this chapter to the extent and for the period
so taxed.
(2) The term "lease" shall mean any lease for a term of one
year or more, or which is renewable for such period as to
constitute a total term of one year or more. A lease having a
stated term shall, if it otherwise comes within the meaning of
the term "lease," be deemed a lease notwithstanding any right
of revocation, cancellation, or termination reserved therein or
provided for thereby.
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(3) The assessment of the use or occupancy shall be made in
accordance with the highest and best use permitted under the
terms and conditions of the lease.
(b) The tax shall be assessed to and collected from such lessee as
nearly as possible in the same manner and time as the tax assessed
to owners of real property, except that the tax shall not become a
lien against the property. In case the use or occupancy is in
effect on January 1 preceding the tax year, the lessee shall be
assessed for the entire year but adjustments of the tax so assessed
shall be made in the event of the termination of the use or
occupancy during the year so that the lessee is required to pay only
so much of the tax as is proportionate to the portion of the tax
year during which the use or occupancy is in effect, and the
director is hereby authorized to remit the tax due for the balance
of the tax year. In case the use or occupancy commences after
January 1 preceding the tax year, the lessee shall be assessed for
only so much of the tax as is proportionate to the period that the
use or occupancy bears to the tax year.
The assessment of the use or occupancy of real property made
under this section shall not be included in the aggregate value of
taxable realty for the purposes of section 19-90 but the council, at
the time that it is furnished with information as to the value of
taxable real property, shall also be furnished with information as
to the assessments made under this section, similarly determined but
separately stated.
If a use or occupancy is in effect on January 1 preceding the
tax year, the assessment shall be made and listed for that year and
the notice of assessment shall be given to the taxpayer in the
manner and at the time prescribed by this chapter, and when so
given, the taxpayer, if he deems himself aggrieved, may appeal as
provided for by this chapter; if a use or occupancy commences after
January 1 preceding the tax year of if for any reason an assessment
is omitted for any tax year, the assessment shall be made and listed
and notice thereof shall be given in the manner and at the time
prescribed by this chapter, and an appeal from an assessment so made
may be taken as provided by this chapter.
(1981, Ord. No. 613, sec.89.)
Section 19-86. Property of the United States leased under the
National Housing Act.
Real property belonging to the United States leased pursuant to
title VIII of the National Housing Act, as amended or supplemented
from time to time:
(1) Shall not be taxed under this chapter upon the lessee's
interest or any other interest therein, except as provided in
paragraph (2).
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(2) Shall be taxed under this chapter to the extent of and
measured by the value of the lessee's interest in any portion
of the real property (including land and appurtenances thereof
and the buildings and other improvements erected on or affixed
on the same) used for, or in connection with, or consisting in,
shops, restaurants, cleaning establishments, taxi stands,
insurance offices, or other business or commercial facilities.
The tax shall be assessed to and collected from the lessee.
The assessment of such property shall not impair, and shall be
so made as to not impair, any right, title, lien, or interest
of the United States.
(1981, Ord. No. 613, sec. 90.)
Section 19-87. Exemption for low and moderate-income housing.
(a) For the purposes of this section, "nonprofit or limited
distribution mortgagor" means a mortgagor who qualifies for and
obtains mortgage insurance under sections 202, 22l(d)(3), or 236 of
the National Housing Act as a nonprofit or limited distribution
mortgagor.
(b) Real property used for a housing project which is owned and
operated by a nonprofit or limited distribution mortgagor or which
is owned and operated by a person, corporation or association
regulated by Federal or State laws or by a political subdivision of
the State or agency thereof as to rents, charges, profits,
dividends, development costs and methods of operation, shall be
exempt except for the minimum tax from property taxes.
(c) Exemptions claimed under section 53-38, Hawaii Revised
Statutes, shall disqualify the same property from receiving an
exemption under this section.
(d) The director of finance shall promulgate rules and regulations
necessary to administer this section.
(1981, Ord. No. 613, sec.91.)
Section 19-88. Claim for exemption.
(a) Notwithstanding any provision in this chapter to the contrary,
any real property exempt from property taxes under section 19-87
shall be exempt except for the minimum tax from property taxes from
the date the property is qualified for the exemption; provided that
a claim for exemption is filed with the director within sixty days
of the qualification. As used herein, the date of the qualification
shall be the date when the mortgage made by a nonprofit or limited
distribution mortgagor and insured under sections 202, 221(d)(3) or
236 of the National Housing Act is filed for recording with the
registrar of the bureau of conveyances or the assistant registrar of
the land court of the State, whichever is applicable.
(b) After the initial year of the qualification, the claim for
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exemption shall be filed in the manner provided by applicable law or
rule or regulation.
(c) In the event property taxes have been paid to the County in
advance for real property subsequently becoming qualified for the
exemption, the director of finance shall refund to the nonprofit or
limited distribution mortgagor owning the property that portion of
the taxes attributable to and paid for the period after the
qualification.
(1981, Ord. No. 613, sec. 92.)
Section 19-89. [Other 'exemptions] Exemption for certain Hawaiian
Homes property.
Exemptions from real property taxes as set forth in chapter 53,
[chapter 154,] chapter 183, chapter 186, chapter 234, chapter 239
and chapter 514A, Hawaii Revised Statutes, and in section 208 of the
Hawaiian Homes Commission Act, and which were enacted prior to
November 7, 1978, shall remain in effect and be recognized by this
County in its administration of the real property tax system,
provided, that all references to the director of taxation or the
department of taxation shall now be deemed to refer to the
designated representative of the mayor who shall also be subject to
approval by the council. Hawaiian home lands, as defined in section
201, Hawaiian Homes Commission Act, 1920, as amended, real property,
exclusive of buildings, leased and used as a homestead (houselots,
farm lots, and pastoral lots), pursuant to section 207(a) and
subject to the conditions of sections 208 and 216 of the Hawaiian
Homes Commission Act, 1920, shall be exempt from real property
taxes, except for the minimum tax, and as provided for by this
section. Disposition of Hawaiian home lands for other than
homestead purposes is deemed fully taxable and will not qualify for
the exemption granted by this section. The respective homestead
lessee of Hawaiian home lands shall continue to qualify and receive
other personal exemptions, provided that claims for the exemptions
are timely filed, including the seven-year limitation on the
exemption afforded by section 208 of the Hawaiian Homes Commission
Act, 1920.
(1981, Ord. No. 613, sec. 93jAm. 1992, Ord. No. 92-129, sec. 1.)
Section 19-89.1. Historic residential real property dedicated for
preservation, exemption.
(a) Portions of residential real property which are dedicated and
approved by the director of finance as provided for by this section,
shall be exempt except for the minimum tax from real property
taxation [except as provided by section 19-67]. The owners shall
assure reasonable visual access to the public.
(b) An owner of taxable real property that is the site of a
historic residential property that has been placed on the Hawaii
Register of Historic Places after January 1, 1977, desiring to
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dedicate a portion or portions thereof for historic preservation,
shall petition the director of finance.
(c) The director of finance shall approve the petition and
determine what portion or portions of the real property shall be
exempt [ed] except for the minimum tax from real property taxes.
The director shall consult with the State Historic Preservation
Office in making this determination. The director may take into
consideration whether the current level of taxation is a material
factor which threatens the continued existence of the historic
property, and may determine the total area or areas of the real
property that shall be exempted.
(d) The approval of the petition of the director shall constitute a
forfeiture on the part of the owner of any right to change the use
of his property for a minimum period of ten years[, automatically
renewable indefinitely, subject to cancellation by either the owner
or the director upon five years notice at any time after the end of
the fifth year]. The owner of a dedicated property must renew the
dedication on or before September 1 of the tenth year of the
oriQina1 dedication or any subsequent renewal period in order to
continue the dedication for the next ten Years.
(e) Failure of the owner to observe the restrictions of subsection
(d) shall cancel the tax exemption and privilege retroactive to the
date of the dedication, and all differences in the amount of taxes
that were paid and those that would have been due but for the
exemption allowed by this section shall be payable together with
[interest]pena1tv at [twelve]ten percent [per annum] from the
respective dates that these paYments would have been due, provided
the provision in this paragraph shall preclude the County from
pursuing any other remedy to enforce the covenant on the use of the
land.
(f) Any person who becomes an owner of real property that is
permitted an exemption under this section shall be subject to the
restrictions and duties imposed under this section.
(g) The director shall prescribe the form of the petition. The
petition shall be filed with the director by September 1 of any
calendar year and shall be approved or disapproved by December 15 of
such year. If approved, [T]the [exemption provided for by this
section]dedication shall be effective [January]Jy1y 1 of the [next
ca1endar]fo11owinq tax year.
(h) An owner applicant may appeal any determination as in the case
of an appeal from an assessment.
(i) Subject to chapter 91, Hawaii Revised Statutes, the director
shall adopt rules and regulations decreed necessary to accomplish
the foregoing.
(1981, Ord. No. 837, sec. 2.)
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Section 19-89.2. Credit union exemption.
(a) Real property owned in fee simple or leased for a period of one
year or more by a Federal or State credit union which is actually
and exclusively used for credit union purposes shall be exempt
except for the minimum tax from real property taxes. If the
property for which exemption is claimed is leased, the lease
agreement shall be in force and recorded in the bureau of
conveyances at the time the exemption is claimed. As used in this
section, "Federal credit union" means a credit union organized under
the Federal Credit Union Act of 1934, 12 U.S.C. chapter 14, as
amended, and "State credit union" means a credit union organized
under the Hawaii Credit Act, HRS chapter [410]412, as amended.
(b) If any portion of the property which might otherwise be
exempted under this section is used for commercial or other purposes
not within the conditions necessary for exemption (including any use
the primary purpose of which is to produce income even though such
income is to be used for or in furtherance of the exempt purposes)
that portion of the premises shall not be exempt but the remaining
portion of the premises shall not be deprived of the exemption if
the remaining portion is used exclusively for purposes within the
conditions necessary for exemption. In the event of an exemption of
a portion of a building, the tax shall be assessed upon so much of
the value of the building (including the land thereunder and the
appurtenant premises) as the proportion of the floor space of the
nonexempt portion bears to the total floor space of the building.
(1987, Ord. No. 87-116.sec.4.)
Section 19-89.3. Exemptions for enterprise zones.
Buildings or other like structures which are built as a result
of new construction by a qualified business within an enterprise
zone shall be exempt except for the minimum tax from real property
taxes for a period of three (3) years. A qualified business in an
enterprise zone must satisfy the requirements of Hawaii County
Ordinance No. 94-8 and section 209E, Hawaii Revised Statutes, as
amended.
(1995, Ord. No. 95-14, sec. 2.)
Article 11. Determination of Rates.
Section 19-90. Real property taxi determination of rates.
(a) Unless a different meaning is clearly indicated by the context,
as used in this section:
(1) "Net taxable lands" means all other real property
exclusive of buildings.
(2) "Net taxable real property" or "net taxable buildings" or
"net taxable lands" means, as indicated by the context, the
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percentage of the [fair] market value of property determined
under section 19-46 which the director of finance certifies as
the tax base as provided by this chapter, less exemptions as
provided by this chapter and, in all cases where appeals from
the director's assessment are then unsettled, less fifty
percent of the value in dispute.
(b) The council may increase or decrease the tax rate for buildings
and for all other real property, exclusive of buildings for net
taxable land and net taxable buildings of each class of property
established in accordance with section 19-53[(d)]1gl of this
chapter. A resolution setting the tax rates shall be adopted on or
before June 20 preceding the tax year for which property tax
revenues are to be raised according to the fOllowing procedures:
(1) The council shall advertise its intention to increase or
decrease tax rates and the date, time, and place of a public
hearing in a newspaper of general circulation. The date of the
public hearing shall not be less than ten days after the
advertisement is first published and shall set forth the tax
rates to be considered by the council.
(2) After the public hearing provided for in paragraph (1),
the council shall readvertise and reconvene within three weeks
to adopt a resolution fixing the tax rates for the tax year for
which property tax revenues are to be raised. The
advertisement shall state the new rates to be fixed and the
date, time and place of the meeting scheduled for fixing such
rates. The date, time, and place of the meeting shall also be
announced at the public hearing required by paragraph (1). If
the resolution fixing the tax rates is not adopted within three
weeks from the public hearing required by paragraph (1), the
council shall again advertise and meet as required by paragraph
(1) .
(3) If after adopting an increase or decrease in the tax rates
as provided by paragraphs (1) and (2), the council determines
that it requires a further increase or decrease in tax rates or
fails to act in any specified period, the council shall
readvertise and follow the requirements of paragraph (1) and
(2).
(4) If no action is taken bv the Council to increase or
decrease the tax rates. then the tax rates as previouslY set
shall be applicable to the subseauent tax Year.
(c) The council shall set the tax rates for each class of property
using the following method:
(1) Net taxable lands and net taxable buildings within each
class of property shall be assigned a percentage of the total
revenue to be derived from real property.
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(2) The percentage of revenue to be raised from net taxable
lands and net taxable buildings within each class, shall be
multiplied by the total revenue to be raised from real property
in order to determine the amount of revenue to be derived.
(3) The amount of revenue to be raised from net taxable
buildings within each class shall be divided by the net taxable
value of buildings in that class to determine the tax rate
which shall be expressed in terms of tax per $1,000 of net
taxable buildings computed to the nearest cent.
(4) The amount of revenue to be raised from net taxable lands
within each class shall be divided by the net taxable value of
lands in that class to determine the tax rate which shall be
expressed in terms of tax per $1,000 of net taxable lands
computed to the nearest cent.
(d) If the tax rates for the tax year are increased or decreased
the council shall notify the director of finance of the increased or
decreased rates, and the director shall employ such rates in the
levying of property taxes as provided by this chapter.
(e) The director of finance shall on or before May 1 preceding the
tax year furnish the council with a calculation certified by him as
being as nearly accurate as may be, of the net taxable real property
within the County, separately stated for each class established in
accordance with section 19-53[(d)]1gl of this chapter for net
taxable lands and for net taxable buildings plus such additional
data relating to the property tax base as may be necessary.
(f) Insofar as the validity of any tax rate is concerned, the
provisions of subsections (b) and (e) of this section as to dates,
shall be deemed directory; provided that all other provisions of
subsections (b) and (e) and all provisions of subsections (c) and
(d) shall be deemed mandatory.
(g) Notwithstanding any provision to the contrary, there shall be
levied upon each individual parcel of real property taxable under
this chapter a minimum real property tax of $25 per year.
(1981, Ord. No. 613, sec.94;Am. 1990, Ord. No. 90-138, sec.6.)
Article 12. Appeals.
Section 19-91. Appeals.
Any taxpayer, who may deem himself aggrieved by an assessment
made by the director or by the director's refusal to allow any
exemption, may appeal from the assessment or from such refusal to
the board of review or the tax appeal court pursuant to section
232-16,HRS, on or before April 9 preceding the tax year, as provided
in this chapter. Where such an appeal is based upon the ground that
the assessed value of the real property for tax purposes is
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excessive, the valuation claimed by the taxpayer in the appeal shall
be admissible in evidence, in any subsequent condemnation action
involving the property, as an admission that the [fair] market value
of the real property as of the date of assessment is no more than
the value arrived at when the assessed value from which the taxpayer
appealed is adjusted to one hundred percent [fair] market value;
provided, that such evidence shall not in any way affect the right
of the taxpayer to any severance damages to which he may be entitled.
(19B1, Ord. No. 613, sec.95.)
Section 19-92. Appeals by persons under contractual obligations.
Whenever any person is under a contractual obligation to pay a
tax assessed against another, the person shall have the same rights
of appeal to the board of review and the tax appeal court and the
supreme court, in his own name, as if the tax were assessed against
him. The person against whom the tax is assessed shall also have a
right to appeal and be heard on any such application or
appeal.(1981, Ord. No. 613, sec.96.)
Section 19-93. Grounds of appeal, real property taxes.
In the case of a real property tax appeal, no taxpayer shall be
deemed aggrieved by an assessment, nor shall an assessment be
lowered or an exemption allowed, unless there is shown (1)
assessment of the property exceeds by more than twenty percent the
assessment of market value used by the director [as the real
property tax base], or (2) lack of uniformity or inequality, brought
about by illegality of the methods used or error in the application
of the methods to the property involved, or (3) denial of an
exemption to which the taxpayer is entitled and for which he has
qualified, or (4) illegality, on any ground arising under the
Constitution or laws of the United States or the laws of the State
or the ordinances of the County in addition to the ground of
illegality of the methods used, mentioned in clause (2)
(1981, Ord. No. 613, sec. 97;Am. 1982, Ord. No. 766, sec.6.)
Section 19-94. Second appeal.
In every case in which a taxpayer appeals a real property tax
assessment to the board of review or to a tax appeal court and there
is pending an appeal of the assessment, the taxpayer shall not be
required to file a notice of the second appeal; provided the first
appeal has not been decided prior to April 9 preceding the tax year
of the second appeal; and provided further the director gives notice
that the tax assessment has not been changed from the assessment
which is the subject of the appeal.
(1981, ord. No. 613, sec.98.)
Section 19-95. Small claims.
Any protesting taxpayer who would incur a total tax liability,
not including penalties and interest, of less than $1,000 by reason
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of the protested assessment on payment in question, may elect to
employ the small claims procedures of the tax appeal court as set
out in section 232-5, HRS.
(1981, Ord. No. 613, sec. 99.)
Section 19-96. Appointment, removal, compensation.
There is created a board of review for the County which shall
consist of five members who shall be citizens of the State and
residents of the County, shall have resided at the time of
appointment for at least three years in the State, and shall be
appointed by the mayor and confirmed by the council as provided by
Charter. A chairman shall be elected annually by members [from the
membership]of the board. The vice chairman shall serve as the
chairman of the board during the temporary absence [from the County,
illness], or disqualification of the chairman. Any vacancy in the
board shall be filled for the unexpired term as provided for in the
Charter. Each member may [receive and be paid out of the treasury
compensation for his services]be compensated in the same manner as
board and commission members covered under section 13-4(0) of the
Hawaii County Charter for each day's actual attendance and [his]
actual traveling expenses. No officer or employee of the County
shall be eligible for appointment to any such board.
(1981, Ord. No. 613, sec.100.)
Section 19-97. Board of review; duties, powers, procedure before.
(a) The board of review for the County shall hear all disputes
between the director and any taxpayer in all cases in which appeals
have been duly taken and the fact that a notice of appeal has been
duly filed by a taxpayer shall be conclusive evidence of the
existence of a dispute; provided that this provision shall not be
construed to permit a taxpayer to dispute an assessment to the
extent that it is in accordance with his return unless he shows lack
of uniformity or inequality as set forth in section 19-93. The
chairperson shall dismiss those appeals which have not been timely
filed or whose fee pursuant to section 19-100 has not been paid.
(b) A second or more boards of review may be created when in the
opinion of the director, the volume of the work of the existing
board (or boards) creates undue delay in the completion of the
board's work or undue hardship upon the members of the existing
board (or boards). The provisions of this chapter shall be fully
applicable to each board and each board shall function independently
from every other board of review created under this chapter. The
boards of review may provide rules and regulations for the
segregation of the real property tax appeals to be heard by each of
the boards.
(c) The board shall hold pUblic meetings at some central location
in the County commencing not later than April 9 of each year and
shall hear, as speedily as possible, all appeals presented for each
year. The board shall have the power and authority to decide all
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questions of fact and all questions of law, excepting questions
involving the Constitution or laws of the United States, necessary
to the determination of the objections raised by the taxpayer or the
County in the notice of appeal; provided, that the board shall not
have power to determine or declare an assessment illegal or void.
Without prejudice to the generality of the foregoing, each board
shall have power to allow or disallow exemptions pursuant to law
whether or not previously allowed or disallowed by the director and
to increase or lower any assessment.
(d) The board shall base its decision on the evidence before it,
and, as provided in section 19-19, the assessment made by the
director shall be deemed prima facie correct. Assessments for the
same year upon other similar property situated in the County shall
be received in evidence upon the hearing. In increasing or lowering
any real property assessment, the board shall be governed by this
chapter. The board shall file with the director its decision in
writing on each appeal decided by it, and a certified copy thereof
shall be furnished by the director forthwith to the taxpayer
concerned by delivery thereof to him, or by mailing the copy
addressed to his last known place of residence or business.
(e) Upon completion of its review of the property tax appeals for
the current year, the board shall compile and submit to the mayor
and the council, and shall file with the director for the use of the
public, a copy of a report covering such features of its work as, in
the opinion of the board, will be useful in attaining the objectives
set forth in this chapter. In this report the board shall
additionally note instances in which, in the opinion of the board,
the director, in the application of the methods selected by him,
erred as to a particular property or particular properties not
brought before the board by any appeal, whether the error is deemed
to have been by way of underassessment or overassessment. Before
commencing this phase of its work the board shall publish, during
the first week of September a notice specifying a period of at least
ten days within which complaints may be filed by any taxpayer. Each
complaint shall be in writing, shall identify the particular
property involved, shall state the valuation claimed by the taxpayer
and the grounds of objection to the assessment, and shall be filed
with the director who shall transmit the same to the board. Not
earlier than one week after the close of the period allowed for
filing complaints, the board shall [hear the same]hold the hearina
on the complaint submitted, after first giving reasonable notice of
the hearing to all interested taxpayers and the director. Like
notice and hearing shall be given in order for the board to include
in its report any other property not brought before it by an appeal.
The board may proceed by districts designated by their tax map
designation, and may from time to time publish the notice above
provided for as work proceeds by districts.
(f) The director, in the making of assessments for the succeeding
year, shall give due consideration to the report of the board made
pursuant to subsection (e).
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(g) The board and each member thereof in addition to all other
powers shall also have the power to subpoena witnesses, administer
oaths, examine books and records, and hear and take evidence in
relation to any subject pending before the board. It may request
the tax appeal court, to order the attendance of witnesses and the
giving of testimony by them, and the production of books, records
and papers at the hearings of the board.
(1981, Ord. No. 613, sec. 101;Am. 1985, Ord. No. 85-102, sec. 2.)
Section 19-98. Tax appeal court.
An appeal to the tax appeal court may be filed by a taxpayer or
the director as provided in sections 232-8 to 232-14, HRS, and
sections 232-16 to 232-18, HRS.
Appeals to the State supreme court shall conform to sections
232-19 to 232-21, HRS.
(1981, Ord. No. 613, sec.102.)
Section 19-99. Appeal to board of review.
The notice of appeal of a real property assessment must be
lodged with the director on or before the date fixed by law for the
taking of the appeal. An appeal to the board of review shall be
deemed to have been taken in time if the notice thereof shall have
been [deposited in the mail, postage prepaid,]postmarked and
properly addressed to the director, on or before such date.
The notice of appeal must be in writing and any such notice,
however informal it may be, identifying the assessment involved in
the appeal, stating the valuation claimed by the taxpayer and the
grounds of objection to the assessment shall be sufficient. Upon
the necessary information being furnished by the taxpayer to the
director, the director shall prepare the notice of appeal upon
request of the taxpayer or County and any notice so prepared by the
director shall be deemed sufficient as to its form.
The appeal shall be considered and treated for all purposes as
a general appeal and shall bring up for determination all questions
of fact and all questions of law, excepting questions involving the
Constitution or laws of the United States, necessary for the
determination of the objections raised by the taxpayer in the notice
of appeal. Any objection involving the Constitution or laws of the
United States may be included by the taxpayer in the notice of
appeal and in such case the objections may be heard and determined
by the tax appeal court on appeal from a decision of the board of
review; but this provision shall not be construed to confer upon the
board of review the power to hear or determine such objections. Any
notice of appeal may be amended at any time prior to the board's
decision; provided the amendment does not substantially change the
dispute or lower the valuation claimed.
(1981, Ord. No. 613, sec. 103.)
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Section 19-100. Costs; deposit for an appeal.
The costs to be deposited by the taxpayer on appeal to the
board of review shall be $15 for each real property tax appeal.
The cost to be deposited by the taxpayer on any appeal to the
tax appeal court or the State supreme court shall be as provided in
sections 232-22 and 232-23, HRS.
(1981, Ord. No. 613, sec. 104;Am. 1991, Ord. No 91-61, sec.2.)
Section 19-101. Costs, taxation.
In the event of an appeal by a taxpayer to the board of review,
if the appeal is compromised, or [sustained]amended as to fifty
percent or more of the valuation in dispute, the costs deposited
shall be returned to the appellant. Otherwise the entire amount of
costs deposited shall be retained by the County.
(1981, Ord. No. 613, sec. 105.)
Section 19-102. Taxes paid pending appeal.
The tax paid upon the amount of any assessment, actually in
dispute and in excess of that admitted by the taxpayer, and covered
by an appeal to the tax appeal court duly taken, shall be paid by
the director into the "litigated claims account." If the final
determination is in whole or in part in favor of the appealing
taxpayer, the director shall repay to him out of the account, or if
investment of the account should result in a deficit therein, out of
the general fund of the County, the amount of the tax paid upon the
amount held by the court to have been excessive or nontaxable,
together with interest at [the]s rate [of six percent a year]to be
determined by the director based upon the averaoe interest rate
earned on county investments durino the previous fiscal Year.
Interest shall be calculated from the date of each paYment into the
litigated claims account[, the interest to be paid from the general
fund of the County]. The balance, if any, of the payment made by
the appealing taxpayer, or the whole of the payment, in case the
decision is wholly in favor of the director, shall, upon the final
determination become a realization of the general fund.
In a case of an appeal to a board of review, the tax paid upon
the amount of the assessment actually in dispute and in excess of
that admitted by the taxpayer, shall during the pendency of the
appeal and until and unless an appeal is taken to the tax appeal
court, be held by the director in the general fund of the County.
In the event of final determination of the appeal in the board of
review, the director shall repay to the appealing taxpayer out of
the general fund the amount of the tax paid upon the amount held by
the board to have been excessive or nontaxable, together with
interest at [the]s rate [of six percent a year]to be determined by
the director based upon the averaae interest rate earned on county
investments durina the previous fiscal Year. Interest shall be
calculated from the date of each paYment into the general fund of
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the County. The balance, if any, of the payment made by the
appealing taxpayer, or the whole of the payment, in case the
decision is wholly in favor of the director, shall, upon the final
determination become a realization of the general fund.
(1981, ord. No. 613, sec.106iAm. 1991, Ord. No. 91-61,sec.3.)
Section 19-103. Amendment of assessment list to conform to decision.
The director shall alter or amend the assessment and the
assessment list in conformity with the decision of judgment of the
last board or court to which an appeal may have been taken."
(1981, Ord. No. 613, sec. 107.)
SECTION 2. Material to be deleted is bracketed. New material is
underscored. In printing this ordinance, brackets, bracketed
material and underscoring may be deleted.
SECTION 3. In the event, any portion of this ordinance is declared
invalid, such invalidity shall not affect other portions of this
ordinance.
SECTION 4. The Revisor of the County Code is authorized to amend
gender references to gender neutral language in Chapter 19, as
amended.
SECTION 5. This ordinance shall take effect upon its approval.
Introduced by
Hilo, Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
~'fEe.cti:ve -Date:
June 2, 1997
June 2, 1997
June 18, 1997
July 3, 1997
Reference Comm. 172.06
.
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