HomeMy WebLinkAboutCOM 0589.009 2020-2022 Aaron S. Y Chum-
Phone No.: (808)961-8272
Council Member �JrrFax No.: (808)961-8912
District 2 South Hilo aaron.chung@hawaiicounty.gov
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HAWAII COUNTY COUNCIL
County ofHawai'i
Hawai'i County Building
25 A upuni Street
Hilo,Haivai'i 96720
ri C—,
To: Maile Medeiros David, Council Chair
and Members of the Hawaii County Council
From: aron S. Y. Chung, Council Member
Date: March 2, 2022
Re: Proposed Amendment to Bill No. 111, Draft 3, 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 3. The proposed amendment
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,
Draft 3; material to be deleted is bracketed and stricken, and material to be added is underscored.
SECTION I of Bill No. 111, Draft 3, 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;
Ref. To:
Hawai'i County Is An Equal Opportunity Provider And Employer Ref. Date - 2 2022
(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 an fesidenlial fief two pfopefty that is applied to the net
tffliable real Pfopefty value of$2,000,000 of mefe] pursuant to this
subsection, calculated as the difference in revenue from the residential
tier one property tax rate to the residential tier two property tax rate,
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 the Draft 4 of this bill,that would result if these proposed amendments are adopted, is
attached with the amendments incorporated therein.
ASYC:awm
Att.
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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 flawai`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
pursuant to this subsection, calculated as the difference in revenue from
the residential tier one property_tax rate to the residential tier two
property tax rate, 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."
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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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