HomeMy WebLinkAboutBIL 023 Draft 01 2024-2026COUNTY OF HAWAI`I
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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.
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(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.
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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
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