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Home My WebLink AboutBIL 163 Draft 02 2024-2026 �VNt'i's'',�Y •. COUNTY OF HAWAI`I •: � '�a STATE OF HAWAI`I E OF'HZ%' BILL NO. '163 (DRAFT 2) ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19,ARTICLE 8,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. Chapter 19, article 8, of the Hawai`i County Code 1983 (2016 Edition, as amended)is amended by adding a division to be appropriately inserted and to read as follows: "Division . `Aina Knpuna Dedication. Section 19- . `Aina knpuna dedication; definitions For the purposes of this division: "Agriculture"means the production and cultivation of plant and animal life for food, fiber, or raw materials for processed products, including,but not limited to, forestry, aquaculture,beekeeping, grazing, dairying, agricultural tourism,farm stays,roadside stands for the sale of agricultural products grown on the same property,the growing of fruits,vegetables, and flowers, and accompanying services and facilities. "Commercial purposes"includes: (1) The production,processing,manufacturing,warehousing, distribution, sale, or offer for sale of goods; and (2) Residential rental uses for a term less than six months. This definition does not include agriculture. "Descendant"means the same as defined in the Hawai`i Revised Statutes, section 560:1-201. Section 19- . ',Tana knpuna dedication; establishment,eligibility. (a) There is established a special land reserve to enable the owner of a parcel of land to dedicate it as `aina knpuna for a dedication period of ten years, during which time the property is: (1) Subject to the minimum tax; and (2) Exempt from penalties or interest due to delinquency, including any incurred during the two tax years immediately preceding dedication as `aina knpuna. (b) A property is eligible for dedication as 'aim knpuna,if: (1) The property is not larger than twenty acres; (2) The property is owned in fee simple,whether in whole, in part, or held in trust,by: 4 (A) One or more descendants of a person who owned the property at any time prior to January 1, 1926; or (B) A privately held corporation,limited liability company, or other entity in which: (i) More than fifty percent of the ownership interest is owned by one or more descendants of a person who owned the property at any time prior to January 1, 1926; and (ii) Stock is not owned by, sold to, or offered for sale to the public; (3) The total amount of real property taxes assessed on the property for the ten tax years immediately preceding a petition for dedication as aina kupuna is more than$10,000,unless the property is assessed according to its agricultural use under section 19-57, in which case the total amount of real property taxes that would have been assessed absent the agricultural use assessment for the ten tax years immediately preceding a petition for dedication as `aina kupuna must be more than $10,000; (4) The owner of the property does not own any other property dedicated as `aina kupuna; and (5) At least one owner or trustee or member of the board of the directors on behalf of an owner, as the case may be,resides within the County. Section 19- . `Aina kupuna dedication; conditions,termination (a) With respect to a property dedicated as `aina kupuna,the,following are prohibited: (1) Conveyance of the property to any person other than another descendant of a person who owned the property at any time prior to January 1, 1926; (2) Use of the property for commercial purposes beyond thirty days after a warning notice has been issued to the owner by the(director or other later date as the director may specify in the notice; and (3) Any other action that results in the property being no longer eligible for the dedication. (b) Failure to comply with the prohibitions set forth in subsection(a) shall terminate the dedication retroactive to the date of the initial dedication or, if applicable,the date of the most recent renewal; in which case, all differences in the amount of taxes that were paid and those that would have otherwise been due from assessment, absent the dedication,will be due and payable with a ten percent penalty from the respective dates that these payments would have been due. (c) The additional taxes and penalties, due and owing as a result of a termination of the dedication will be a paramount lien upon the property as provided in this chapter. Section 19- . `Aina kupuna dedication; petition process. (a) No later than September 1 immediately preceding the first tax year in which the dedication is to be applied, any owner who desires to dedicate real property as `aina kupuna shall petition the director, in a form prescribed by the director,including: 11) A signed acknowledgement of and agreement to comply with all restrictions, conditions, and provisions applicable to the dedication; and (2) Sufficient information or documentation to establish eligibility for the dedication. 2 (b) The director may require the petitioner to provide, at the petitioners' expense, supplemental or additional information or documentation as may be necessary to verify ownership of the property, descendancy, or other eligibility under this division,including,but not limited to deeds, court orders,wills,trusts,birth certificates, death certificates, genealogical verification by the Office of Hawaiian Affairs, and other legally valid records. (c) Upon determination that the petitioner and property are eligible for dedication under this division,the director shall declare the property to be dedicated as `aina kupuna and notify the petitioner thereof. The petitioner shall, at the petitioner's expense, record the dedication with the State bureau of conveyances or land court, as applicable. The director shall prescribe the form of the dedication to be recorded. (d) Upon determination the petitioner or the property is not eligible for dedication as `aina kupuna,the director shall notify the petitioner no later than October 15 immediately following when the petition was made. The petitioner may appeal the determination as in the case of an appeal from an assessment. Section 19- . 'Jana knpuna dedication; renewal. (a) If an owner fails or declines to renew the dedication by September 1 of the final tax year of the dedication period: (1) The dedication will terminate at the end of the fmal tax year; and (2) The director shall thereafter tax the property as otherwise provided in this chapter. (b) No later than March 1 immediately preceding the final tax year of the dedication period, the director shall notify the owner,by mail, of the provisions of subsection (a) and the form in which the renewal must be made. Section 19- . Annual report. (a) The director shall submit to the council an annual report on or before December 31 of each year. (b) The annual report shall include the following: (1) Annual number of applicants; (2) Total number of participants. (3) Estimated total of the annual tax relief through this dedication; and (4) Estimated average of the annual tax relief per participant." SECTION 2. Notwithstanding any provision to the contrary, any owner who desires to dedicate real property as aina kupuna for the tax year beginning July 1, 2027, shall petition the director, in a form prescribed by the director,no later than December 31, 2026. Upon determination the petitioner or the property is not eligible for dedication as aina kupuna,the director shall notify the petitioner no later than February 15,2027. SECTION 3. New material is underscored. hi printing this ordinance,the underscoring need not be included. 3 • SECTION 4. 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 5. This ordinance shall take effect upon its approval. INTRODUCED BY: e— 71- 4-----" MEMBER, COUNTY OF HAWAI`I .tef2---- ,Hawai`i Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: , REFERENCE Comm, 909.6 IIIB III5 II IIIIIII 4