HomeMy WebLinkAboutBIL 104 Draft 07 2022-2024OF It
STATE OF HAWAIJ
BILL NO. 104
(DRAFT 7)
ORDINANCE NO.
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 HAWAI'I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING
TO THE CREATION OF A LONG-TERM RENTAL CLASS FOR REAL PROPERTY
WNWIM
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAPI:
SECTION 1. Purpose. The purpose of this ordinance is to provide a voluntary tax
incentive to increase available housing stock in the rental market through the creation of a new
long-term rental real property tax classification.
SECTION 2. 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 under a signed lease for six
consecutive months or more to the same tenant(s)."
SECTION 3. Chapter 19, article 7, section 19-53, of the Hawaii 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;
(B) 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 4. Chapter 1.9, article 7, section 1.9-53, of the Hawaii 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 probertv occuaied under a sinned lease for six consecutive months or more to
the same tenant(s) shall be eligible.
(2) Except for the owner's principal residence, all dwelling units on long-term rental
properties must be leased.
(3) No property in the residential class with a net taxable real property value of
$2,000,000 or more shall be eligible for the long --term rental classification.
(4) The long-term rental class is exclusively reserved for properties that meet the
eligibility requirements for this class and have the annual required application timely
filed. Real property that is used for commercial or income -producing purposes shall
not qualify as "long-term rental," except:
(A) Real property with uses legally permitted as a home occupation in accordance
with the zoning; code, or
(B) Real property with agricultural use pursuant to sections 19-57, 19-57.1, 19-59,
19-60, or 19-61.
(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. Claims shall be accepted from January 1 through
December 31 for the next annlicable tax vear.
(m) Breach of long-term rental class
(1) Failure of the property owner to maintain a lease for at least six consecutive months
to the same tenant(s) shall breach the classification.
(2) Ay use of the property for vacation rental use shall breach the classification.
(3) 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.
(4) Upon breach of the classification as stated in this subsection, 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 5. 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.
Notwithstanding any provision to the contrary, the tax rate for a property that is
classified. as long-term rental shall not be lower than the affordable rental housing tax rate
rounded to the nearest five cents."
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 which 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 on January 1, 2026.
Iff JEW I 343WITRIVAMWI
COUNCIL MEMBER, COUNTY OF HAWAPI
, Hawai'i
Date of Introduction:
Date of I st Reading:
Date of 2nd Reading:
Effective Date:
Reference Comm. 600.50