HomeMy WebLinkAboutBIL 261 Draft 02 2002-2004 COUN'I`~ O~ ~IA~A~` S~`A'I']E OF I~ AI`I
BILL O. 2 G 1
(Draft 2 )
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 19, OF THE HAWAII COUNTY CO E 1983
(1995 EDITION), BY AMENDING ARTICLE 7, SECTION 19-53 RELATING TO REAL
PROPERTY VALUATIONS; CONSIDERATIONS IN FIXING.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Chapter 19, Article 7, Section 19-53, of the Hawaii County C de 1983
(1995 Edition) is amended to read as follows:
Section 19-53.Valuation; considerations in fixing.
(a) The director of finance shall cause the market value of all taxable real pr perty to be
determined and annually assessed by the market data and cost approache to value
using appropriate systematic methods suitable for mass valuation of prop rties for
taxation purposes, so selected and applied to obtain, as far as possible, un form and
equalized assessments throughout the County. In making such determina 'on and
assessment, the director shall separately value and assess, within each cla s
established in accordance with subsection (e) of this section:
(1) Buildings.
(A) In determining the value of buildings, consideration shall be gi en to any
additions, alterations, remodeling, modifications or other new onstruction,
improvement or repair work undertaken upon or made to existi g buildings as the
same may result in higher assessable valuation of said building .
(2) All other real property, exclusive of buildings.
(b) So far as practicable, records shall be compiled and kept which shall sho the
methods established by or under the authority of the director, for the dete urination of
values.
(c) Whenever land has been divided into lots or parcels as provided by law, ach such lot
or parcel shall be separately assessed.
(d) When a condominium property regime is declared for a property, each u it shall be
classified upon consideration of its actual use into one of the general clas es in the
same manner as land.
(e) Classification of land:
(1) Except as otherwise provided in subsection (e)(2) of this section, lai d shall be
classified, upon consideration of its highest and best use, into the fo lowing general
classes:
(A) Improved residential,
(B) Unimproved residential,
(C) Apartment,
(D) Hotel and resort,
(E) Commercial,
(F) Industrial,
(G) Agricultural or native forests,
(H) Conservation, and
Q) Homeowner.
(2) In assigning land to one of the general classes the director of financ shall give major
consideration to the districting established by the land use commissi n pursuant to
chapter 205, Hawaii 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 us ,except that
parcels which are used exclusively as the owner's principal resident shall be classified
as "Homeowner" without regard to the highest and best use, provide that the director
has granted to the owner a home exemption in accordance with secfons 19-71 to 19-72.
(A) The homeowner class is exclusively reserved for properties wl 'ch are used as the
owner's principal residence. Uses which shall not qualify as " meowner"
include:
(i) Real property which is valued according to its agricultura use
pursuant to subsection 19-53(t)(1)~e~].
(ii) Real property which is dedicated to an agricultural use or native forest
use.
(iii) Real property which is used for commercial or income-pr ducing
purposes.
(iv) Real property which is used for residential rental purpose ,whether
for short-term or long-term lease.
(v) Real property which is used for any purpose other than th owner's
principal residence.
It is s ecificall understood that the limitations contained in cl uses i and
ii above shall not reclude a ortion of such ro erties so val ed or
dedicated from bein ~ classified as "Iomeowner" if all other c editions for
such classification are met.
(3) Whenever there is an overlap or contradiction in districting or use cl ssification
between the County and the State, zoned districts by the County sha l take precedence.
(4) "Improved residential" shall mcan land which is dassitied as reside tial by the
department of finance upon considcration of its highest and best use and is property
which fulfills the provisions of at least one of the following subpara =raphs:
(A) Land which has been subdivided prior to any assessment year s a lot for single- or
two-family residential use in conformity with the then existing County zoning
ordinances, and has been approved for sale or approved as bei~ g i? conformity
with all of the subdivision requirements of the County, or
(B) Lund which is in actual single- or two-family residence use at density of at least
a single- or atwo-family residential building per acre, or
(C) Land which is sufficiently developed with necessary land impr vements to support
a use density of at least a single- or two-family residential buil ing per acre.
(5) "Unimproved residential" shall mean all residential class lands not c assi{ied as
"improved residential" or "homeowner."
(f) (1) In determining the value of lauds which are classified and used for ~ griculture, whether
such lands are dedicated pursuant to section 19-55 or not, considera ion shall be given
to rent, productivity, nature of actual agricultural use, the advantage or disadvantage of
factors such as location, accessibility, transportation facilities, size, ~hape, topography,
quality of soil, water privileges, availability of water and its cost, ea ~ements and
appurtenances, and to the opinions of persons who may be consider d to have special
knowledge of land values. Lands classified as tree farm property pu suant to chapter
186, Hawaii Revised Statutes, shall be considered for classification and valuation as
agricultural.
(2) A deferred or rollback tax shall be imposed on the owner of agricult rat lands assessed
according to its agricultural use as provided in subsection (I) of this ection in the event
of a change in land use classification by the authorized government gency to urban or
rural districts or upon the subdivision of the land into parcels of less than five acres,
provided that the deferred or rollback tax shall not apply if the ow? r has dedicated the
land as provided in section 19-55 before the change in land use etas itication to urban
or rural districts or subdivision of the land into parcels of less than t ve acres. and
fulfills all of the requirements of the dedication. The deferred or roll ack tax shall
commence from the date the conversion to urban or rural districts o into parcels less
than five acres was made retroactive to the date the assessment was jade pursuant to
subsection (f) of this section but for not more than ten years. Any of rer provisions to the
contrary notwithstanding, the deferred or rollback tax shall apply to change in land
use classification only if such change was made as a result of a petit ou by a property
owner or lessee tmd shall apply only upon lands owned by the owne or lessee who has
petitioned for the change in classification. The deferred or rollback x shall not apply
to lands owned by any owner or lessee who has not petitioned for th change in
classification or where the change in classification or zoning is initi• ted by any
government agency or instrumentality. The deferred or rollback tax hall be based on
the difference in assessed value between the highest and best use an the agricultural
use of the land, at the rate applicable for the respective years. All di ferenccs in the
amount of taxes that were paid and those that would have been due rom assessment in
the higher use shall be payable with a ten percent penalty from the r spective dates that
these payments would have been due. The additional taxes and pen lties due and owing
shall be a paramount lien upon the property as provided for by this hapter.
(A) Where the owner changes the land use classification or subdivi es the land into
parcels of less than five acres, the deferred or rollback tax steal be due and payable
within sixty days of such conversion, subject to a ten percent p natty. If the owner
has dedicated the land as provided iu section 19-55 before the hange in the land
use classification or subdivision into parcels of less than five a ~res, and any owner
of the dedicated land or subdivided parcels later breaches a co ditiou of the
dedication before its completion, deferred or rollback taxes shy 11 be imposed on
the subject parcel under section 19-55 and this section, retroac ive from the end of
the tax year in which the breach occurs.
(B) In any case in which deferred or rollback taxes are imposed aft r successful
completion of an agricultural dedication period, the deferred o rollback taxes shall
be retroactive only to the end of the completed dedication peri d, and shall not be
imposed for any time covered by a successfully completed agr cultural dedication
period. In cases involving a breach of a ten-year dedication, o a rollback period of
ten or fewer years for breach of a twenty-year dedication, the ollback taxes under
this section shall be for a maximum total often years, includi both the breached
dedication rollback period and any period of nondedicated agr cultural use
assessment subject to rollback. Rollback taxes for any breach f dedication
affecting more than ten years under atwenty-year dedication hall be as provided
under section 19-55(f), not to exceed twenty years.
(3) Where lands located within agricultural districts are put to agricult al uses, the tax on
that portion of such lands not usable or suitable for any agricultural use shall be
deterred and shall be payable upon the imposition of deferred or ro lback taxes as
provided under this section.
(4) A portion or portions of a parcel of land that is being assessed asp ture, whether it is
dedicated under the provisions of section 19-55 or not, maybe take out of production
for a specified time period, not to exceed ten years, as part of a goo forestry plan in
order to restore a degraded native forest such that it meets the requi ements of the native
forest category as stated in section nom] 1959. Such a plan i dicating the acreage
and area, as well as the specific forest restoration work to be done, hall be filed with
the director of finance by September l and approved by the directo by December 15. If
the plan is approved, the land shall continue to be given the same p sture assessment.
(A) The owner shall provide to the director of finance yearly evid nce that the forest
restoration plan is being implemented, as well as a signed and notarized affidavit
by a recognized forestry professional that the restoration plan s likely to succeed
within the designated time period. The owner shall continue t fulfill all other
requirements of the agricultural assessment, including providi g yearly proof that
any portion of the parcel not being restored to a native forest, ut still being
assessed for an agricultural use, continues to be used and mai tamed substantially
and continuously in the approved agricultural use.
(B) If, at the end of the time period designated by the plan, the Ian meets the
requirements of the native forest category as described in [ ]
section 191959, then it shall be classified as a native forest. If, the end of the time
period designated in the plan, the land does not meet the requi ements of the native
forest category, the land may be returned to its designated agricultural use as
pasture or it shall be assessed and taxed at market value.
(C) If the land is dedicated according to section 19-55, it shall re ain dedicated as
pasture or native forest and shall continue to be subject to all r llback taxes and
penalties applicable to dedications.
(g) In determining the value of buildings, consideration shall be given to an additions,
alterations, remodeling, modifications or other new construction, improv ment or
repair work undertaken upon or made to existing buildings as the same ay result in
higher assessable valuation of said buildings; provided, however, that th y increase in
value resulting from any additions, alterations, modifications or other ne
construction, improvements or repair work to buildings undertaken or m de by the
owner-occupant thereof pursuant to the requirements of any urban redev lopment,
rehabilitation or conservation project under the provisions of part H of c apter 53,
Hawaii Revised [Statc+es] Statutes, shall not increase the assessable val ation of any
It is further provided that the owner-occupant shall file with the direc or of
finance, in the manner and place which the director may designate, a stat meat of the
details of the improvements certified in the following manner:
(1) [n the case of additions, alterations, modifications or other new con truction,
improvements or repair work to a building that are undertaken purst ant to any urban
redevelopment, rehabilitation or conservation project as hereinabov mentioned, the
statement shall be certitied by the mayor or Amy government official designated by the
mayor and approved by the council, that the additions, alterations, n odifications, or
other new construction, improvement or repair work to the building were made and
satisfactorily comply with the particular urban redevelopment, reha ilitation or
conservation act provision, or
(2) [n the case of maintenance or repairs to a residential building undert ken pursuant to
any health, safety, sanitation or other governmental code provision, he statement shall
be certified by d1e mayor or any governmental official designated b the mayor and
approved by the council, that:
(A) The building was inspected by them and found to be substanda d when the owner-
occupant made the claim, and
(B) The maintenance or repairs to the buildings were made and sat siactorily comply
with the particular code provision.
SECTION 2. Material to be repealed is bracketed. New material is undersc red. In
printing this ordinance, the brackets, bracketed material and underscoring need not b included.
SECTION 3. if any provision of this ordinance, or the application thereof t any person
or circumstance, is held invalid, such invalidity shall not affect other provisions or a plications
of the ordinance which can be given effect without the invalid provision or applicati n, and to
this end, the provisions of this ordinance ne declared to be severable.
SECTION 4. This ordinance shall talc effect upon its approval and shall be made
applicable to the tax year beginning July 1, 2004.
[NTRODUCI~D [3Y:
COUNCIL MEMBER, C LINTY OP AWAI`1
Hilo, Hawaii
Date of Introduction:
Date of 1 Reading:
Date 2°d Reading:
Effective Date:
RE"rERENCF: Comm. 595.1