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HomeMy WebLinkAboutBIL 023 Draft 01 2024-2026COUNTY OF HAWAI`I ,ATV OF Ht� y6H•, STATE OF HAWAI`I +To•� Ni MOM.' �Ta c►•N►..P BILL NO. 23 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 1, SECTION 19-2 AND ARTICLE 8, SECTION 19-61 OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO SHORT-TERM COMMERCIAL AGRICULTURAL USE DEDICATION. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`I: SECTION 1. Chapter 19, article 1, section 19-2, of the Hawaii County Code 1983 (2016 Edition, as amended), is amended by amending the definition of "short-term commercial agricultural use dedication" to read as follows: ""Short-term commercial agricultural use dedication" means the use of land on a continuous and regular basis for a minimum of [three] five years that demonstrates the owner is engaged in commercial agricultural activities from: (1) Intensive agriculture; (2) Orchards; (3) Feed crops and fast rotation forestry; (4) Pasture and slow rotation forestry; or (5) Diversified agriculture." SECTION 2. Chapter 19, article 8, section 19-61, of the Hawaii 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] five 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] five years, or in the case of a recorded agricultural lease the term of the lease up to [three] five years, provided: (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; (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 [tlfree] five years of the dedication period, except when greater fallow periods are necessary as described in the dedication petition; (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 (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 3. Chapter 19, article 8, section 19-61, of the Hawaii County Code 1983 (2016 Edition, as amended), is amended by amending subsection (d) to read as follows: "(d) Approval by the director of the petition to dedicate shall constitute a forfeiture on the part of the owner of any right to change the use of the land to a use other than short-term commercial agriculture for a minimum period of [three] five years, unless otherwise provided by this chapter, subject to cancellation or renewal as follows: (1) At least one hundred eighty days prior to any cancellation or termination, the department of finance shall notify the owner by mail of such cancellation or termination. The owner shall reapply for renewal of the dedication by filing an application with the director on or before September 1 of the last year of dedication. The renewal petition shall, in all respects, be processed similarly to an original petition. Upon approval by the director of succeeding dedications, the property shall continue to be assessed in accordance with the provisions of the dedication. (2) In the case of a change in zoning not as a result of a petition by any property owner or lessee such that the owner's land is placed within any zoned district other than a County zoned district of agricultural, residential and agricultural, family agricultural, intensive agricultural, or agricultural project district, the dedication may be cancelled within sixty days of the change by the owner. (3) Upon any conveyance or any change in ownership during the period of dedication, the land shall no longer continue to be subject to the terms and conditions of the dedication." SECTION 4. Chapter 19, article 8, section 19-61, of the Hawaii County Code 1983 (2016 Edition, as amended), is amended by amending subsection (f) to read as follows: "(f) Breach of dedication; deferred or rollback taxes; penalties and interest. (1) A deferred or rollback tax shall be imposed on the owner of short-term commercial agricultural use dedicated lands upon failure of the owner to observe any restriction, condition, or provision on the use of the land. IQ (2) The deferred or rollback tax shall commence from the date the failure to observe the restriction, condition, or provision, retroactive to the date the assessment was made but for not more than [thfee] five years. (A) Failure to observe the restrictions on the use means failure for a period of six consecutive months to use the land in the manner requested in the petition or the overt act of changing the use for any period; provided that the petition by the owner for a change in use as provided in subsection (f), and the owner's subsequent change in use of such dedicated lands, shall not be deemed to constitute a failure of the owner to observe the restrictions on the use. (B) Any other provisions to the contrary notwithstanding, when a portion of the dedicated land is subsequently applied to a use other than the use set forth in the original petition, only such portion as is withdrawn from the dedicated use and applied to a use other than the commercial agricultural category shall be taxed as provided by this subsection. (3) Calculating deferred or rollback taxes. (A) The deferred or rollback tax shall be based on the difference between the assessed market value at highest and best use and the short-term commercial agricultural use of the land at the rate applicable for the respective years. (B) All differences in the amount of taxes that were paid and those that would have been due from assessment in the higher use shall be due and payable with a ten percent penalty. (C) If the owner of dedicated land breaches a condition of the dedication before its completion, deferred or rollback taxes shall be imposed on the subject parcel, retroactive from the end of the tax year in which the breach occurs. (D) In any case in which deferred or rollback taxes are imposed after successful completion of an agricultural dedication period, the deferred or rollback taxes shall be retroactive only to the end of the completed dedication period, and shall not be imposed for any time covered by a successfully completed agricultural dedication period. (E) In cases involving a breach of a [thfee-yeaf] five -Rear dedication, rollback taxes shall be assessed to the date of the dedication. (4) The additional taxes and penalties due and owing shall be a paramount lien upon the property as provided for by this chapter." 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. 3 SECTION 7. This ordinance shall take effect upon its approval. Hawai'i Date of Introduction: Date of I st Reading: Date of 2nd Reading: Effective Date: REFERENCE Comm. 96 INTRODUCED BY: U�NCILMEMBER, COUNTY OF HAWAI'l 0