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HomeMy WebLinkAboutBIL 120 Draft 02 2022-2024 COUNTY OF HAWAI`I f-:::A=.'''°�1* STATE OF HAWAI`I 4-n-r .f'44 OF'Np'''- BILL NO. 120 (DRAFT 2) ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII 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 HAWAII: 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, except when such property has a net taxable real property value of$2,000,000 or more. (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. 2 (g) The director shall waive the penalty for any violation of this section resulting from the death of a taxpayer." 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. INTRODUCED BY: a_ 1' Ett,~ COUNCIL ME A ,.COUNTY OF HAWAI`I , Hawai`i Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: REFERENCE Comm. 674.3 3