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HomeMy WebLinkAboutORD 2014-097 2012-2014 JMt',GF,,,,1 . COUNTY OF HAWAI` it ; STATE OF HAWAII ATE Oi N►'� BILL NO. 256 ORDINANCE NO. -4 97 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 Hawai`i 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 Hawai`i 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, Hawai`i 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, Hawai`i 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 2 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, Hawai`i 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, Hawai`i 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. 4 (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: 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, Hawai`i 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. 5 (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. 6 SECTION 5. This ordinance shall take effect upon approval. INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII Hilo , Hawai`i Date of Introduction: June 18, 2014 Date of 1st Reading: June 18, 2014 Date of 2nd Reading: July 2, 2014 Effective Date: July 15, 2014 893 REFERENCE COMM 7 CC ' t ' :i FRK OFFICE OF THE COUNTY CLERK CO1l.l County of Hawai`i Hilo, Hawai`i 20111 JUL 7 AM 9: 26 Introduced By: Valerie T. Poindexter ROLL CALL VOTE Date Introduced: June 18, 2014 AYES { NOES ABS EX First Reading: June 18, 2014 Eoff X Published: N/A Ford X Ilagan X REMARKS: Kanuha X Kern X Onishi X Poindexter X Wille X Yoshimoto X Second Reading: July 2, 2014 9 0 0 0 To Mayor: July 31 2014, Returned: July 17, 2014 ROLL CALL VOTE Effective: July 15, 2014 AYES NOES ABS EX Published: July 24, 2014 Eoff X Ford X REMARKS: Ilagan X Kanuha X Kern X Onishi X Poindexter X Wille X Yoshimoto X 8 0 1 0 I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council published as indicated above. COUNCIL CHAIRPERSON Approved isap•ray-d this 15122 day 20 1 UNTY CLERK Bill No.: 256 MAYOR, COUNTY OF HAWAII Reference: C-893/FC-178 Ord No.: 1.4 97