HomeMy WebLinkAboutBIL 120 Draft 01 2022-2024 "JNSY.os.......
.COUNTY OF HAWAII i•E6`:" STATE OF HAWAII
1TE oF•b"
BILL NO. 120
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAI`I COUNTY CODE 1983
(2016 EDITION, AS AMENDED) BY ADDING A NEW ARTICLE RELATING TO A
REAL PROPERTY TAX STABILIZATION PROGRAM.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`I:
SECTION 1. Chapter 19 of the Hawai`i County Code 1983 (2016 Edition, as amended)
is amended by adding a new article to read as follows:
"Article 14. Stabilization Program.
Section 19-106. Definitions.
As used in this article:
"Stabilized tax" means real property tax that is equal to the tax levied in the tax year
in which a qualifying homeowner enrolled in the stabilization program.
"Unstabilized tax"means real property tax that would otherwise be levied for a
given tax year on property in the homeowner class, absent stabilization.
Section 19-107. Stabilization program established.
(a) There is established a real property tax stabilization program which shall be
administered by the department of finance.
(b) Stabilization of real property taxes shall not take precedence over any provision of
property tax exemption, relief, or penalty otherwise applicable to qualifying
taxpayers.
(c) The director shall adopt rules and regulations necessary to administer this article,
subject to chapter 91, Hawai`i Revised Statutes.
Section 19-108. Enrollment.
(a) Any taxpayer who is eighty-five years of age or older and who owns property as a
principal residence in the homeowner class is qualified to enroll in the stabilization
program as provided by this article.
(b) Enrollment in the stabilization program shall be allowed from the next tax year,
provided that the taxpayer shall have filed a claim for enrollment with the
department of finance on or before December 31 of the year immediately preceding
the tax year for which enrollment is claimed.
(c) A claim for enrollment shall be made on a form as prescribed by the director.
(d) Upon determination that a claimant is entitled to stabilization, the director shall
stabilize the claimant's real property taxes for the subject property in accordance
with section 19-109.
Section 19-109. Stabilization.
Stabilization shall be granted on a continuous basis, commencing with the tax year
that immediately follows enrollment into the stabilization program, in the manner
hereinafter set forth:
(1) Except as to the minimum tax, the real property tax levied on property subject
to stabilization shall be the lesser of the stabilized tax or the unstabilized tax.
(2) Should the unstabilized tax be less than the stabilized tax, the stabilized tax
shall be reduced so as to be equal to the unstabilized tax, provided that the
reduction in the unstabilized tax was caused by one or more of the following:
(A) A decrease in the homeowner tax rate;
(B) A granting of an exemption to the taxpayer for the subject property;
(C) An increase in an exemption already granted; or
(D) A decrease in the net taxable value of the property as assessed by the
director.
(3) The stabilized tax shall be adjusted to reflect increases in one or more of the
following:
(A) The assessed value of property resulting from any construction of new
buildings or any improvements, additions, alterations, remodeling, or
modifications undertaken upon or made to existing buildings; or
(B) The unstabilized tax resulting from the disallowance or expiration of any
exemption granted to the subject property at the time the claim for
enrollment was filed or thereafter.
Section 19-110. Disenrollment; violations and penalties.
(a) Any taxpayer who is delinquent by at least two tax payment dates shall be
disenrolled.
(b) A taxpayer shall file a report to the director within thirty days after the taxpayer
ceases to own the subject property. A taxpayer who fails to file a report shall be liable
for a civil penalty of$100.
(c) Any taxpayer whose property ceases to qualify to be in the homeowner class and who
fails to file a report to the director for disenrollment shall be in breach of the
stabilization program and shall be liable for a civil penalty of$100 and for the penalty
as provided by subsection (e).
(d) Any taxpayer who files a fraudulent claim with the intent to deceive shall be in
breach of the stabilization program and shall be liable for a fine of$1,000 and for the
penalty as provided by subsection (e).
(e) Upon a breach of the stabilization program, the tax stabilization shall be cancelled
retroactive to the date of enrollment, but for not more than the current tax year plus
the two immediately preceding tax years, and all differences in the amount of taxes
that were paid and those that would have been due absent stabilization shall be due
and payable with a ten percent penalty.
(f) The director shall give notice of disenrollment to the affected taxpayer no less than
thirty days prior to a specified date of disenrollment.
(g) The director shall waive the penalty for any violation of this section resulting from
the death of a taxpayer."
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SECTION 2. 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 3. This ordinance shall take effect upon its approval.
INTRO CED BY:
COUNCIL R, COUNTY OF HAWAI`I
, Hawai`i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE Comm. 674
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