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Home My WebLink AboutBIL 189 Draft 01 2022-2024AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 1, SECTION 19-2, ARTICLE 7, SECTION 19-53, AND ARTICLE 8, SECTION 19-61 OF THE HAWAI‘I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO REAL PROPERTY TAXES. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I: SECTION 1. Purpose. The purpose of this ordinance is to clarify definitions for community food sustainability use and diversified agriculture, add properties under the community food sustainability use assessment and short-term agricultural use dedication, which are also used as an owner’s primary residence, to the homeowner tax classification, and to remove the limit of three consecutive renewals for the short-term commercial agricultural use dedication program. SECTION 2. Chapter 19, article 1, section 19-2, of the Hawai‘i County Code 1983 (2016 Edition, as amended), is amended by amending definitions of “Community food sustainability use” and “Diversified agriculture” to read as follows: ““Community food sustainability use” means the present use of agricultural or residential and agricultural zoned land on a continuous and regular basis that demonstrates the owner is engaged in agricultural activities to provide food to the community, including: (1) Intensive agriculture; (2) Orchards; [or] (3) Diversified agriculture[.]; or (4) Pasture for food production. “Diversified agriculture” means a blend of [intensive agriculture and orchards] agricultural activities while transitioning from one category to the other during the term of the dedication[.] or on a continuous and regular basis.” SECTION 3. Chapter 19, article 7, section 19-53, of the Hawai‘i County Code 1983 (2016 Edition, as amended), is amended by amending subsection (a) to read as follows: “(a) Except as provided below, the director of finance shall cause the market value of all taxable real property to be determined and annually assessed by the market data, income and cost approaches to value using appropriate systematic methods suitable for mass valuation of properties for taxation purposes, so selected and applied to obtain, as far as possible, uniform and equalized assessments throughout the County. In making such determination and assessment, the director shall separately value and assess within each class established in accordance with subsection (e) of this section: (1) Buildings. In determining the value of buildings, consideration shall be given to any additions, alterations, remodeling, modifications or other new construction, improvement or repair work undertaken upon or made to existing buildings as the same may result in higher assessable valuation of said buildings. (2) All other real property, exclusive of buildings. Exception. The value of land classified and used for agriculture as determined pursuant to section 19-57 [or], 19-57.1, 19-59, 19-60, or 19-61 shall be the value of such land for such agricultural use without regard to any value that such land might have for other purposes or uses. The director shall update the agricultural use values at least every five years and shall consult with agriculturalists and/or experts in the field when making such determination. The establishment of the agricultural use rate values shall be made in accordance with chapter 91, Hawai‘i Revised Statutes. (3) Real property leased and located within the Waikoloa Workforce Housing project shall be valued under this chapter based on comparison with like properties within the same project.” SECTION 4. 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 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 used for commercial or income-producing purposes, except as exempted under section 19-71(a) or (b). (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. (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, 19-57.1, 19-59, [or] 19-60[.], or 19-61. (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. 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, 19-57.1, 19-59, [or] 19-60[.], or 19-61. (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.” SECTION 5. Chapter 19, article 8, section 19-61, of the Hawai‘i County Code 1983 (2016 Edition, as amended), is amended by amending subsection (a) to read as follows: “(a) A special land reserve is established to enable the owner of any parcel of land, or lessee of a recorded agricultural lease with a minimum of three years remaining on the lease at time of petition, to dedicate the land for a specific short-term commercial agricultural use, and to have the value of the land assessed in such use for a period of three years, or in the case of a recorded agricultural lease the term of the lease up to three years, provided: [(1) The total combined period of dedication for short-term commercial agricultural use shall not exceed three consecutive three year terms.] [(2)] (1) The land dedicated for commercial activity must be used on a continuous and regular basis for intensive agriculture, orchards, feed crops and fast rotation forestry, pasture and slow rotation forestry, or diversified agriculture and have a minimum lot size per farm operation as determined by the minimum lot size schedule for that dedicated category of commercial activity as provided for in the administrative rules and regulations of the department, except where the dedication petition indicates a commercially viable agricultural operation on a smaller lot; [(3)] (2) The land dedicated for short-term commercial agriculture use for intensive agriculture, orchards, or diversified agriculture is fallow for no more than one out of every three years of the dedication period, except when greater fallow periods are necessary as described in the dedication petition; [(4)] (3) The land dedicated for short-term commercial agricultural use for intensive agriculture, orchards, or diversified agriculture shall not grow any crops identified by the State department of agriculture as a noxious weed; and [(5)] (4) The land is within a County zoned district of agricultural, residential and agricultural, family agricultural, intensive agricultural, agricultural project district, or any other County zoned district meeting with the approval of the director of planning.” SECTION 6. 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 7. 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 8. This ordinance shall take effect upon its approval. INTRODUCED BY: _______________________________________ COUNCIL MEMBER, COUNTY OF HAWAI‘I _______________________________________ COUNCIL MEMBER, COUNTY OF HAWAI‘I _______________, Hawai‘i Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: