HomeMy WebLinkAboutCOM 0589.001 2020-2022 •.;`tYOFy--�`
Aaron S. Y. Chung (•?..
•?•1,� q�,''.1. Phone No.: (808)961-8272
Council Member ,��,�k�'''', Fax No.: (808)961-8912
;' �` 'fir aaron.chung@hawaiicounty.gov
District 2 South Hilo ' :* '
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HA WAI I COUNTY COUNCIL
County of Hawai'1
Hawai`i County Building
25 Aupuni Street =
Hilo,Hawai`i 96720 -4
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To: Maile Medeiros David, Council Chair r—
and Members of the Hawaii County Council t
From: flAaron S. Y. Chung, Council Member
Date: January 31, 2022
Re: Proposed Amendments to Bill No. 111; an Ordinance Amending Chapter 19,
Article 11, Section 19-90, of the Hawai`i County Code 1983 (2016 Edition, as
Amended), Relating to Real Property Taxes
Please see below proposed amendments to Bill No. 111. The proposed amendments would
amend paragraph(4) of subsection(f) relating to residential tier two property tax. The proposed
amendment is shown in Ramseyer format with respect to the contents of Bill No. 111; material to
be deleted is bracketed and stricken, and material to be added is underscored.
SECTION 1 of Bill No. 111 is amended 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; Comm. o. 5$9►•
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(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) No less than seventy-five percent of the revenue collected annually
from [assessments on properties classified as] the tax on residential tier
two property that is applied to the net taxable real property value of
$2,000,000 or more shall be appropriated each fiscal year to County-
sponsored programs designed to address homelessness. This
requirement shall not extend beyond June 30, 2027, unless otherwise
amended by ordinance."
A copy of the Draft 2 of this bill, that would result if these proposed amendments are adopted, is
attached with the amendments incorporated therein.
ASYC:awm
Att.
2
AN ORDINANCE AMENDING CHAPTER 19,ARTICLE 11, SECTION 19-90, OF THE
HAWAII COUNTY CODE 1983 (2016 EDITION,AS AMENDED), RELATING TO
REAL PROPERTY TAXES.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. 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) No less than seventy-five percent of the revenue collected annually
from the tax on residential tier two property that is applied to the net
taxable real property value of$2,000,000 or more shall be appropriated
each fiscal year to County-sponsored programs designed to address
homelessness. This requirement shall not extend beyond June 30, 2027,
unless otherwise amended by ordinance."
SECTION'2. New material is underscored. In printing this ordinance, the underscoring
need not be included.
SECTION 3. Severability. If any provision of this ordinance, or the application thereof
to any person or circumstance, is held invalid,the invalidity does 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 severable.
SECTION 4. This ordinance shall take effect on July 1, 2022.
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