HomeMy WebLinkAboutBIL 104 Draft 01 2022-2024STATE OF HAWAIJ
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BILL NO® 104
AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 1, SECTION 19-2; CHAPTER
19, ARTICLE 7, SECTION 19-53; AND CHAPTER 19, ARTICLE 11, SECTION 19-90,
OF THE HAWAIJ COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING
TO THE CREATION OF A LONG-TERM RENTAL CLASS FOR REAL PROPERTY
TAXES.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAIJ:
SECTION 1. Chapter 19, article 1, section 19-2, of the Hawaii County Code 1983 (2016
Edition, as amended), is amended by adding a new definition of "long-term rental" to be
appropriately inserted and to read as follows:
""Long-term rental" means property occupied and Linder a sinned lease for
ten consecutive months or more to the same tenant(s), with the exception
that shorter lease terms maw provided provided to multiple tenants who are
students, traveling physicians or nurses so long as the cumulative number of
days under the lease meets or exceeds ten months per calendar year."
SECTION 2. Chapter 19, article 7, section 19-53, of the Hawai'i County Code 1983 (2016
Edition, as amended), is amended by amending paragraph 19-53(e)(1) to read as follows:
"(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;
(13) Affordable rental housing;
(C) Apartment;
(D) Hotel and resort;
(E) Commercial;
(F) Industrial;
(G) Agricultural or native forests;
(H) Conservation; [and]
(1) Homeowner[-.], and
Q Long-term rental."
SECTION 3. Chapter 19, article 7, section 19-53, of the Hawai'i County Code 1983 (2016
Edition, as amended), is amended by adding new subsections designated (k), (1), and (m), to be
appropriately inserted and to read as follows:
"(k) Eligibility for long-term rental class.
(1) Real property occupied and under a signed lease for ten consecutive months or more
to the same tenant(s), with the exception that shorter lease terms may be provided to
multiple tenants who are students, traveling physicians or nurses, so long as the
cumulative number of days under lease meets or exceeds ten months per calendar
year.
(2) All dwelling units on long-term rental properties must be leased.
(3) A long-term rental classification shall not be disallowed or ineligible by sole reason
that the owner's principal residence is located on the same property.
(1) Application for long-term rental class.
No long-term rental classification shall be granted unless the claimant shall annually have
filed with the department of finance a claim for such classification in such form as shall be
prescribed by the department. The claim shall include, but not be limited to, a signed lease
or excise tax returns, or both. For the 2025 tax year, claims shall be accepted from July 1,
2024 through December 31, 2024. For tax years thereafter, claims shall be accepted from
January I through December 31 of the applicable tax year.
m) Breach of long-term rental class.
(1) Failure of the property owner to maintain a lease for at least ten cumulative months to
the same tenant(s); or a shorter lease to multiple tenants who are students, traveling
physicians, or nurses, where the cumulative number of days under lease meets or
exceeds ten months per calendar year shall breach the classification.
(2) Any conveyance of the property or portion of the property subject to conveyance tax
under chapter 247, Hawaii. Revised Statutes, as amended, shall breach the
classification.
(3) Upon breach of the classification as stated in (1) or (2) of this section, the tax
assessment shall be cancelled retroactive to the date of the classification, but for not
more than the current year, and all difference in the amount of taxes that were paid
and those that would have been due from the assessment in the higher classification
shall be payable with a ten percent penalty.
SECTION 4. Chapter 19, article 11, section 19-90, of the Hawaii County Code 1983
(2016 Edition, as amended), is amended by adding a new subsection designated (g), to be
appropriately inserted and to read as follows:
'(g) Long-term rental tax rate.
In determining the tax rate for a property that is classified as long-term rental, the tax rate
shall be 125% of the affordable rental housing tax rate rounded to the nearest five cents."
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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 which 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, 2025.
INTRODUCED BY:
COMC5ER, COUNTY OF HAWAI'l
COUNCIL BER, COUNTY OF HAWAPI
Hawaii
Date of Introduction:
Date of I st Reading:
Date of 2nd Reading:
Effective Date:
600
REFERENCE Comm, —