HomeMy WebLinkAboutCOM 0589.003 2020-2022 Ashley L. Kierkiewicz 0 Office: (808)961-8265
Council Member Fax: (808)961-8912
District 4 Puna
ashley.kierkiewicz@hawaiicounty.gov
HAWA `IC OUNTY COUNCIL
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Hawaii County Building
25 Aupuni Street - Hilo,Hawaii 96720
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TO: Maile Medeiros David, Council Chair
and Members of the Hawaii County Council
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FROM: Ashley L. Kierkiewicz, Council Member
DATE: February 15, 2022
SUBJECT: Proposed Amendment to Bill No. 111, Draft 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.
Please see below a proposed amendment to Bill No. 111, Draft 2. The proposed amendment
would amend paragraph(4) of subsection(f) relating to the appropriation of funds collected from
the residential tier two property at the higher tax rate. The proposed amendment is shown in
Ramseyer format with respect to the contents of Bill No. 111 Draft 2; material to be added is
underscored.
SECTION I of Bill No. 111, Draft 2, 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:
Comm. No.
Ref. To: ONWAYWI
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Ref. Date B-1 5 2022
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HawaVi County Is an Equal Opportunity Provider and Employer
(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 housing and homelessness. This requirement shall not
extend beyond June 30, 2027, unless otherwise amended by
ordinance."
A copy of Draft 3 of this bill, that would result if this proposed amendment were adopted, is
attached with the amendment incorporated therein.
Mahalo.
AK/j s
Att.
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AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 11, SECTION 19-90, OFT E
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 Hawaii 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 housing and 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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