HomeMy WebLinkAboutBIL 256 Draft 01 2012-2014COUNTY OF HAWAII
ORDINANCE NO.
STATE OF HAWAII
BILL NO. 256
AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 7 TAX MAP; VALUATIONS,
OF THE HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING
TO VALUATIONS; CONSIDERATIONS IN FIXING.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The purpose of this measure is to modify the Hawaii County Code to
include the income approach as consideration in the valuation of taxable real property.
SECTION 2. Chapter 19, Article 7, Section 19 -53 of the Hawaii County Code 1983
(2005 edition, as amended), is hereby amended to read as follows:
Section 19 -53. Valuation; considerations in fixing.
(a) Except as provided below, the director of finance shall cause the market
value of all taxable real property to be determined and annually assessed
by the market data, income 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. In making such
determination and assessment, the director shall separately value and
assess within each class established in accordance with subsection (e) of
this section:
(1) Buildings.
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.
(2) All other real property, exclusive of buildings.
Exception. The value of land classified and used for agriculture as
determined pursuant to section 19 -57 or 19 -60 shall be the value of
such land for such agricultural use without regard to any value that
such land might have for other purposes or uses. The director shall
update the agricultural use values at least every five years and shall
consult with agriculturalists and /or experts in the field when
making such determination. The establishment of the agricultural
use rate values shall be made in accordance with chapter 91,
Hawaii Revised Statutes.
(3) Real property leased and located within the Waikoloa Workforce
Housing project shall be valued under this chapter based on
comparison with like properties within the same project.
(b) 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.
(c) Whenever land has been divided into lots or parcels as provided by law,
each such lot or parcel shall be separately assessed.
(d) When a condominium property regime is declared for a property, each unit
shall be classified upon consideration of its actual use into one of the
general classes in the same manner as land.
(e) Classification of land:
(1) Except as otherwise provided in subsection (e)(2) of this section,
land shall be classified, upon consideration of its highest and best
use, into the following general classes:
(A) Residential;
(B) Affordable rental housing;
(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
nondedicated agricultural use pursuant to
►a
subsection 19 -57.
(ii) Real property which is dedicated to an agricultural
use or native forest use.
(iii) Real property which is used for commercial or
income - producing purposes, except as exempted
under section 19 -71(a) or (b).
(iv) Real property which is used for residential rental
purposes, whether for short-term or long -term lease,
except as exempted under section 19 -71(a) and
affordable rental housing.
(v) Real property which is used for any purpose other
than the owner's principal residence.
(B) The affordable rental housing class is exclusively reserved
for properties which meet the eligible requirements for this
class and have the annual required application timely filed.
Uses which shall not qualify as "affordable rental housing"
include:
(i) Real property which is valued according to its
nondedicated agricultural use pursuant to section
19 -57.
(ii) Real property which is dedicated to an agricultural
use or native forest use.
(iii) Real property which is used for commercial or
income - producing purposes, except uses which is
legally permitted as a home occupation in
accordance with the zoning code.
(3) Whenever there is an overlap or contradiction in districting or use
classification between the County and the State, zoned districts by
the County shall take precedence.
(f) 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 the 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 Statutes, 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 and satisfactorily
comply with the particular urban redevelopment, rehabilitation or
conservation act provision, or
(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.
(g) Limitation on homeowner assessment.
(1)
For properties in the homeowner class as of January 1, 2004 and
not dedicated to nonspeculative residential use, the assessed value
of the property shall not increase more than three percent per tax
year until the parcel is sold or any portion thereof sold by way of
conveyance which is subject to conveyance tax under terms of
chapter 247, Hawaii Revised Statutes, at which time the property
will be assessed at market value. In addition to the three percent
limit of this subsection any improvements undertaken on the
property within the tax year shall be assessed at market value. All
parcels entering this class after January 1, 2004 shall have the
assessed value as of January 1 of the following year and be subject
to the above provisions.
(2)
Those properties dedicated to nonspeculative residential use as of
January 1, 2004 may terminate the dedication without imposition
of retroactive taxes upon filing and approval of petition for such
termination with the director of finance by September 1, 2009.
Upon termination of the dedication these properties shall be
assessed at the market value and subject to section 19- 53(g)(1).
(3)
Those properties dedicated to nonspeculative residential use as of
January 1, 2004 may continue the dedication and upon termination
of the dedication period the parcel shall be assessed at the market
value and the year following the termination be subject to section
19- 53(g)(1) unless the dedication is renewed as provided in section
19 -58.1.
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(4) Those properties dedicated to nonspeculative residential use as of
the effective date of this ordinance may terminate the dedication
without the imposition of retroactive taxes upon filing and
approval of petition for termination of dedication with the director
of finance by September 1, 2009.
For properties with an effective date of dedication prior to July 1,
2005, or renewals after July 1, 2005, the assessed value shall be the market
value at January 1, 2004 and increased compounded annually by three
percent; and for properties with an effective date of dedication after
July 1, 2005, the assessed value shall be the market value at the effective
date of dedication and increased compounded annually by three percent as
set in the table below rounded to the nearest hundred dollars of assessed
value:
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Effective Date of Market Value at Assessed Value
Dedication Multiplier
Prior to July 1, 2005 January 1, 2004 1.1941
July 1, 2005 January 1, 2005 1.1593
July 1, 2006 January 1, 2006 1.1255
July 1, 2007 January 1, 2007 1.0927
July 1, 2008 January 1, 2008 1.0609
(5)
Paragraphs 19- 53(g)(2), (3), (4) and (5) shall be repealed upon the
final participant in the nonspeculative residential use program
being converted as provided above.
(h) Eligibility for affordable rental housing class.
(1)
Real property occupied as affordable rental housing must be rented
at a rate not to exceed the affordable rental rate for the entire
calendar year claimed and must be legally permitted by all codes.
(2)
All rental units on affordable rental housing properties must be
rented at the affordable rental rates.
(3)
Affordable rental housing properties shall not be excluded by the
owner's principal residence also being on the property.
(4)
For properties in the affordable rental housing class as of January
1, 2008, the assessed value of the property shall not increase more
than three percent per tax year until the parcel is sold or any
portion thereof sold by way of conveyance which is subject to
conveyance tax under terms of chapter 247, Hawaii Revised
Statutes, at which time the property will be assessed at market
value. In addition to the three percent limit of this subsection, any
improvements undertaken on the property within the tax year shall
be assessed at market value. All parcels entering this class after
January 1, 2008, shall have the assessed value as of January 1 of
the following year and be subject to the above provisions.
(i) Application
for the affordable rental housing class.
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(1) No affordable rental housing classification shall be granted unless
the claimant shall annually have filed with the department of
finance, on or before December 31 preceding the tax year for
which such classification is claimed, a claim for such classification
in such form as shall be prescribed by the department and shall
include but not be limited to rental agreements signed by the renter
or excise tax returns.
(2) No affordable rental housing classification shall be granted unless
and until a Hawai'i County real property tax assessor evaluates the
property and establishes its current market value.
(3) The landowner shall submit a certification of rental rates affirming
that the rental rates charged to all renters on that parcel shall be at
the affordable rental rate and that rate will be maintained for the
calendar year.
(j) Breach of affordable rental housing class.
(1) Rental of any unit during the calendar year at a rate higher than the
affordable rental rate shall breach the classification.
(2) Any conveyance of the parcel or portion of the parcel subject to
conveyance tax under terms of chapter 247, Hawai'i Revised
Statutes, shall breach the classification.
(3) Upon breach of the classification, the tax assessment shall be
cancelled retroactive to the date of the classification, but for not
more than the current year, and all difference in the amount of
taxes that were paid and those that would have been due from the
assessment in the higher classification shall be payable with a ten
percent penalty.
SECTION 3. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance, the brackets, bracketed and stricken material and
underscoring need not be included.
SECTION 4. Severability. If any provision of this ordinance, or the application thereof to
any person or circumstance is held invalid, such invalidity shall not affect other provisions or
applications of the ordinance which can be given effect without the provision or application, and,
to the end, the provisions of this ordinance are declared to be severable.
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SECTION 5. This ordinance shall take effect upon approval.
Hawaii
Date of Introduction:
Date of 1St Reading:
Date of 2nd Reading:
Effective Date:
893
REFERENCE COMM
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
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