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COUNTY OF HAWAI`I ir
" f'• STATE OF HAWAII
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BILL NO. 173
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE 1983
(2016 EDITION,AS AMENDED),RELATING TO THE ESTABLISHMENT OF A BED
AND BREAKFAST HOME CLASSIFICATION FOR REAL PROPERTY TAXES.
BE IT ORDAINED•BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. 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;
(I) Homeowner; [ ]
' (J) Long-term rental[7]; and
(K) Bed and breakfast home.
(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 for a
term less than six months, 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, 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, 19-60, or 19-61.
(C) The bed and breakfast home class is exclusively reserved for properties
that are used as the owner's principal residence and are registered as a
TVR under chapter 6,provided that the director has granted the owner a
home exemption in accordance with sections 19-71 to 19-72.
(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 2. Chapter 19, article 7, section 19-53, of the Hawaii County Code 1983
(2016 Edition, as amended) is amended by adding a subsection to be appropriately inserted and
to read as follows:
"( ) Limitation on bed and breakfast home assessment.
(1) For properties in the homeowner class,the assessed value of the property shall
not increase more than three percent per tax year until the parcel is sold or any
portion thereof sold by way of conveyance which is subject to conveyance tax
under terms of chapter 247,Hawaii Revised Statutes, at which time the
property will be assessed at market value.
(2) In addition to the three percent limit of this subsection, any improvements
undertaken on the property within the tax year shall be assessed at market
value.
(3) All parcels entering this class shall have the assessed value as of January 1 of
the following year and be subject to the above provisions."
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SECTION 3. Chapter 19, article 7, of the Hawai`i County Code 1983 (2016 Edition, as
amended) is amended by adding a section to be appropriately inserted and to read as follows:
"Section 19- . Tax amnesty for bed and breakfast homes.
(a) The director shall waive the rollback taxes,penalties, and interest that would have
been imposed on the basis of a violation of section 19-53(e)(2)(A)(ii); provided
that, no later than December 31, 2026,the owner:
(1) Submits a notarized affidavit to the director stating that the rental activity in
violation of section 19-53(e)(2)(A)(ii)will cease before December 31,2026,
and the rental activity ceases and indicated in the affidavit; or
(2) Registers the rental activity in compliance with chapter 6.
(b) This section does not apply to any owner who,prior to the effective date of this
ordinance,was subject to property tax adjustments,rollback taxes,penalties, or
interest on the basis of a violation of section 19-53(e)(2)(A)(ii)."
SECTION 4. 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 5. Severability. If any provision of this ordinance, or the application hereof
to any taxpayer or circumstance, is held invalid,the invalidity does not affect other provisions or
applications of this ordinance that can be given effect without the invalid provision or
application, and to this end the provisions of this ordinance are severable.
SECTION 6. This ordinance shall take effect on the effective date of Ordinance No.
25-50, as amended, and SECTION 3 hereof shall be repealed on June 30,2028.
INTRODUCED BY:
ATHER KIM ALL
Council Member
,Hawai`i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE Comm. 960
IlI0111I IIIIIOI II�I9
3 LRB 25-235 D1