HomeMy WebLinkAboutBIL 028 Draft 02 2022-2024 JMSYOi M,
COUNTY OF HAWAII •�� ''`- �� •' STATE OF HAWAII
•
BILL NO. 28
(DRAFT 2)
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 7, SECTION 19-53 AND
ARTICLE 10, SECTION 19-71, OF THE HAWAII COUNTY CODE 1983 (2016
EDITION,AS AMENDED),RELATED TO REAL PROPERTY TAXES.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Purpose. The purpose of this ordinance is to safeguard certain
agriculturally productive properties which are also used as an owner's primary residence or as
affordable rental housing from rising assessment values.
SECTION 2. Chapter 19, article 7, section 19-53, of the Hawai`i County Code 1983
(2016 Edition, as amended), is amended by amending subsection(e)to read as follows:
"(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 [ex's] 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
(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)](ii)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.
[(3](iii)Real property which is used for any purpose other than the
owner's principal residence[.-], with the exception of any
property valued according to its agricultural use pursuant to
sections 19-57, 19-59, or 19-60.
(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. _ - . . .. .
"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
Real property which is used for commercial or income-producing
purposes shall not qualify as "affordable rental housing,"except:
(i) Real property with uses legally permitted as a home occupation
in accordance with the zoning code; or
(ii) Real property with agricultural use pursuant to sections 19-57.,
19-59, or 19-60.
(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."
2
SECTION 3. Chapter 19, article 10, section 19-71, of the Hawai`i County Code 1983
(2016 Edition, as amended), is amended by amending subsection(a)to read as follows:
"(a) Real property owned and occupied as a principal home shall be exempt to the
following extent from property taxes:
(1) Totally exempt where the value of the property is not in excess of
$50,000;
(2) Where the value of the property is in excess of$50,000, the exemption
shall be the amount of$50,000.
Provided that:
(A) No such exemption shall be allowed to any corporation, co-
partnership, or company;
(B) The exemption shall not be allowed on more than one home for
any one taxpayer and that such taxpayer shall certify under penalty
of perjury that such taxpayer has no other home exemption in any
other jurisdiction;
(C) The taxpayer has acquired said home by a recorded deed;
(D) A husband and wife shall not be permitted exemption of separate
homes owned by each of them, unless they are living separate and
apart, in which case they shall be entitled to one exemption, to be
apportioned equally between each of their respective homes;
(E) [' • _ . • - •-• - , . .. - ' :] Those
portions of the real property and/or structures, including the
principal home, used by any person for commercial purposes,
[except as provided in subsection(b) or] which [is] are legally
permitted as a home occupation in accordance with the zoning
code, shall [net] be [entitled-to-an] excluded from this exemption
[ ' - - . . - .. •: ], but shall be entitled to an exemption
with respect to the portion thereof used exclusively as a home;
(F) [ : , •- . - ••• - , .. - ' . . .
- . . -. •. . ]Notwithstanding paragraph
19-71(a)(2)(E) above, having portions of the principal home
located on the real property used exclusively as residential housing
rental for a term of not less than six months and legally permitted
by all codes, shall not prevent eligibility for the exemption; and
(G) In the case of a lease of Hawaiian homestead lands, where either a
husband or wife is of non Hawaiian descent, either spouse shall be
entitled to the home exemption in the same manner as if either
spouse was considered the owner thereof,provided proof of
marriage is submitted to the director of finance."
3
SECTION 4. Chapter 19, article 10, section 19-71, of the Hawai`i County Code 1983
(2016 Edition, as amended), is amended by amending subsection(b)to read as follows:
"(b) The use of a portion of any real property, [big-or-she] accessory buildings,
or structures used for the sole purpose of[any] agricultural activities as defined in
section 25-1.5 use permitted pursuant to section [205 2(d) or 205 4.5, Hawai`i
Revised Statutes,] shall not affect the exemptions otherwise provided [fef] by this
section."
SECTION 5. 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 6. 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 that can be given effect without the invalid provision or
application, and to this end the provisions of this ordinance are severable.
SECTION 7. This ordinance shall take effect on January 1, 2024.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
, Hawai`i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
113.2
RE,_�,SERE-NCE Comm.
4