HomeMy WebLinkAboutBIL 018 Draft 01 2020-2022
AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 11, SECTION 19-90 OF THE HAWAI‘I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO ESTABLISHING A REAL PROPERTY TAX CREDIT FOR PROPERTIES
CLASSIFIED AS RESIDENTIAL TIER TWO PROPERTIES.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I:
SECTION 1. Purpose. The purpose of this ordinance is to establish a real property tax credit for properties classified as residential tier two properties. A property owner of a residential
tier two property who generously contributes their resources to a nonprofit organization that services Hawai‘i Island or towards a County-sponsored homelessness initiative should be
eligible for tax relief in recognition of their contribution and to encourage their continued support for the residents of Hawai‘i Island.
SECTION 2. Chapter 19, article 11, section 19-90 of the Hawai‘i County Code 1983 (2016 Edition, as amended), is amended by amending subsection (f) to read as follows:
“(f) Residential tax rate tiers.
(1) Notwithstanding any provision to the contrary, the council shall establish a separate tax rate each for the residential tier one property and residential tier two property, as defined
below. The tax rates shall be applied as follows:
(A) The tax rate established for the residential tier one property shall be applied to the net taxable real property value under $2,000,000.
(B) The tax rate established for the residential tier two property shall be applied to the net taxable real property value of $2,000,000 or more.
(2) For the purposes of this section, “residential tier one property” shall mean all property, or portions thereof, other than a residential tier two property, within the residential
class. “Residential tier two property” shall mean a property, or portion thereof, which:
(A) Is improved with one or more dwelling units, has a net taxable real property value of $2,000,000 or more, does not have a home exemption, and is classified as residential in consideration
of the highest and best use of the land;
(B) Is vacant land that has a net taxable real property value of $2,000,000 or more, and is classified as residential in consideration of the highest and best use of the land; or
(C) Is a condominium property regime that has a net taxable real property value of $2,000,000 or more, does not have a home exemption, and is classified as residential in consideration
of the highest and best use of the land.
(3) The respective tax rate to be applied to any property within the residential class shall be applied only to the portion used exclusively as residential, provided the highest and
best use of the land is residential.
(4) A property owner whose property is classified as a residential tier two property shall be entitled to a real property tax credit for: (1) contributing to qualifying 501(c)(3) nonprofit
organizations that provide services to the County; or (2) contributing towards County-sponsored homelessness initiatives. The real property tax credit shall be applied on a 1:1 ratio
for each dollar contributed to a qualifying 501(c)(3) nonprofit organization or a County-sponsored homelessness initiative, subject to the approval of the director; provided that the
real property tax credit shall not reduce the real property tax on the applicable property to an amount that would be less than the tax that would be levied under the prevailing residential
rate.
(5) For purposes of this subsection, a qualifying 501(c)(3) nonprofit organization shall meet the following criteria:
(A) Is chartered or otherwise authorized to do business in the State of Hawai‘i for charitable purposes and exempted from Federal income tax by the Internal Revenue Service;
(B) Provides programs and services beneficial to the people of the County of Hawai‘i;
(C) Has a governing board whose members serve without compensation and have no conflict of interest between their regular occupations and the services provided by the nonprofit organization;
(D) Has bylaws or policies which describe the manner in which business is conducted, including management, audit, fiscal policies and procedures, and policies on nepotism and conflict
of interest;
(E) Has at least one year of experience with the service or activity for which the appropriation is sought or can otherwise demonstrate to the satisfaction of the County sufficient expertise
to successfully carry out the service or activity; and
(F) The nonprofit organization must be licensed and accredited in accordance with applicable requirements of Federal, State and County laws.
(6) A property owner seeking the real property tax credit for property classified as residential tier two property must present evidence of the contributions made to 501(c)(3) nonprofit
organizations or County-sponsored homelessness initiatives to the satisfaction of the director. A request for a real property tax credit shall be made on a form as prescribed by the
director and shall include at a minimum the tax map key of the subject parcel and documentation of the contributions made within the applicable tax year, and shall be submitted no later
than September 30 preceding the tax year in which the credit would be provided.”
SECTION 3. New material is underscored. In printing this ordinance, the 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 invalid provision or application, and to this end, the provisions of this ordinance are declared to be severable.
SECTION 5. This ordinance shall take effect on July 1, 2021.
INTRODUCED BY:
_______________________________________
COUNCIL MEMBER, COUNTY OF HAWAI‘I
______________, Hawai‘i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date: