HomeMy WebLinkAboutORD 2004-067 2002-2004 COUNTY OF HAWAII STATE OF HAWAII
BILL NO. 2G1
(Draft )
ORDINANCE NO. 04 67
AN ORDINANCE AMENDING CHAPTER 19, OF THE HAWAII COUNTY CODE 1983
(1995 EDITION), BY AMENDING ARTICLE 7, SECTION 19-53 RELAI7NG TO REAL
PROPERTY VALUATIONS; CONSIDERATIONS [N 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 Code 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 property to be
determined and annually assessed by the market data and cost approaches to value
using appropriate systematic methods suitable for mass valuation of properties for
taxation purposes, so selected and applied to obtain, as far as possible, uniform and
equalized assessments throughout the County. In making such determination and
assessment, the director shall separately value and assess, within each class
established in accordance with subsection (e) of this section:
(1) Buildings.
(A) In determining the value of buildings, consideration shall be given to any
additions, alterations, remodeling, modifications or other new construction,
improvement or repair work undertaken upon or made to existing buildings as the
same may result in higher assessable valuation of said buildings.
(2) All other real property, exclusive of buildings.
(b) So far as practicable, records shall be compiled and kept which shall show the
methods established by or under the authority of the director, for the determination of
values.
(c) Whenever land has been divided into lots or parcels as provided by law, each such lot
or parcel shall be separately assessed.
(d) When a condominium property regune is declared for a property, each unit shall be
classified upon consideration of its actual use into one of the general classes in the
same mamier as land.
(e) Classification of land:
(1) Execpt 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) Improved residential,
(Q) Unimproved residential,
(C) Apartment,
(D) Hotel and resort,
(E) Commercial,
(F) Industrial,
(G) Agricultural or native forests,
(H) Conservation, and
(I) Homeowner.
(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, 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 use, except that
parcels which are used exclusively 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 valued according to its agricultural use
pursuant to subsection 19-53(~(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-producing
purposes.
(iv) Real property which is used for residential rental purposes, whether
for short-term or long-term lease.
(v) Real property which is used for any purpose other than the owner's
principal residence.
It is specifically understood that the limitations contained in clauses (i) and
(ii) above shall not preclude a portion of such properties so valued or
dedicated from being classified as "Homeowner" if all other conditions for
such classifiication are met.
(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.
(4) "Improved residential" shall mean land which is classified as residential by the
department of finance upon consideration of its highest and best use, and is property
which fulfills the provisions of at least one of the following subparagraphs:
(A) Land which has been subdivided prior to any assessment year as 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 being in conformity
with all of the subdivision requirements of the County, or
(B) Land which is in actual single- or two-family residence use at a density of at least
a single- or atwo-family residential building per acre, or
(C) Land which is sufficiently developed with necessary land improvements to support
a use density of at least a single- or two-family residential building per acre.
(5) "Unimproved residential" shall mean all residential class lands not classi Ged as
"improved residential" or "homeowner."
(f) (1) In determining the value of lands which are classified and used for agriculture, whether
such lands are dedicated pursuant to section 19-55 or not, consideration shall be given
to rent, productivity, nature of actual agricultural use, the advantage or disadvantage of
factors such as location, accessibility, transportation facilities, size, shape, topography,
quality of soil, water privileges, availability of water and its cost, easements and
appurtenances, and to the opinions of persons who may be considered to have special
knowledge of land values. Lands classified as tree farm property pursuant to chapter
186, Hawaii 12evised Statutes, shall be considered for classification and valuation as
agricultural.
(2) A deferred or rollback tax shall be imposed on the owner of agricultural lands assessed
according to its agricultural use as provided in subsection (f) of this section in the event
of a change in land use classification by the authorized government agency 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 owner has dedicated the
land as provided in section 19-55 before the change in land use classification to urban
or rural districts or subdivision of the land into parcels of less than five acres, and
fulfills all of the requirements of the dedication. The deferred or rollback tax shall
commence from the date the conversion to urban or rural districts or into parcels less
than five acres was made retroactive to the date the assessment was made pursuant to
subsection (f) of this section but for not more than ten years. Any other provisions to the
contrary notwithstanding, the deferred or rollback tax shall apply to a change in land
use classification only if such change was made as a result of a petition by a property
owner or lessee and shall apply only upon lands owned by the owner or lessee who has
petitioned for the change in classification. The deferred or rollback tax shall not apply
to lands owned by any owner or lessee who has not petitioned for the change in
classification or where the change in classification or zoning is initiated by any
government agency or instrumentality. The deferred or rollback tax shall be based on
the difference in assessed value between the highest and best use and the agricultural
use of the land, at the rate applicable for the respective years. All differences in the
amow~t of taxes that were paid and those that would have been due from assessment in
the higher use shall be payable with a ten percent penalty from the respective dates that
these payments would have been due. "l'he additional taxes and penalties due and owing
shall be a paramount lien upon the property as provided for by this chapter.
(A) Where the owner changes the land use classification or subdivides the land into
parcels of less than five acres, the deferred or rollback tax shall be due and payable
within sixty days of such conversion, subject to a ten percent penalty. If the owner
has dedicated the land as provided in section ] 9-55 before the change in the land
use classification or subdivision into parcels of less than five acres, and any owner
of the dedicated land or subdivided parcels later breaches a condition of the
dedication before its completion, deferred or rollback taxes shall be imposed on
the subject parcel under section 19-55 and this section, retroactive from the end of
the tax year in which the breach occurs.
(B) In any case in which deferred or rollback taxes are imposed after successful
completion of an agricultural dedicatiou 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 successfiilly completed agricultural dedication
period. In cases involving a breach of a teu-year dedication, or a rollback period of
ten or fewer years for breach of atwenty-year dedication, the rollback taxes under
this section shall be for a maximum total often years, including both the breached
dedication rollback period and any period of nondedicated agricultural use
assessment subject to rollback. Rollback taxes for any breach of dedication
affecting more than ten years under atwenty-year dedication shall be as provided
under section 19-55(f), not to exceed twenty years.
(3) Where lands located within agricultural districts are put to agricultural uses, the tax on
that portion of such lands not usable or suitable for any agricultural use shall be
deferred and shall be payable upon the imposition of deferred or rollback taxes as
provided under this section.
(4) A portion or portions of a parcel of land that is being assessed as pasture, whether it is
dedicated under the provisions of section 19-55 or not, maybe taken out of production
for a specified time period, not to exceed ten years, as part of a good forestry plan in
order to restore a degraded native forest such that it meets the requirements of the native
forest category as stated in section 191959. Such a plan indicating the acreage
and area, as well as the specific forest restoration work to be done, shall be filed with
the director of finance by September 1 and approved by the director by December l5. If
the plan is approved, the land shall continue to be given the same pasture assessment.
(A) The owner shall provide to the director of finance yearly evidence 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 is likely to succeed
within the designated time period. The owner shall continue to fulfill all other
requirements of the agricultural assessment, including providing yearly proof that
any portion of the parcel not being restored to a native forest, but still being
assessed for an agricultural use, continues to be used and maintained substantially
and continuously in the approved agricultural use.
(B) If, at the end of the time period designated by the plan, the land meets the
requirements of the native forest category as described in ^f.r.:^]
section 19-59, then it shall be classified as a native forest. If, at the end of the time
period designated in the plan, the land does not meet the requirements of the native
forest category, the land maybe 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 remain dedicated as
pasture or native forest and shall continue to be subject to all rollback taxes and
penalties applicable to dedications.
(g) In determining the value of buildings, consideration shall be given to any additions,
alterations, remodeling, modifications or other new construction, improvement or
repair work undertaken upon or made to existing buildings as the same may result in
higher assessable valuation of said buildings; provided, however, that they increase in
value resulting from any additions, alterations, modifications or other new
construction, improvements or repair work to buildings undertaken or made by the
owner-occupant thereof pursuant to the requirements of any urban redevelopment,
rehabilitation or conservation project under the provisions of part II of chapter 53,
Hawaii Revised [~aFHes] Statutes, shall not increase the assessable valuation of any
It is further provided that the owner-occupant shall file with the director of
finance, in the manner and place which the director may designate, a statement of the
details of the improvements certified in the following manner:
(1) h1 the case of additions, alterations, modifications or other new construction,
improvements or repair work to a building that are undertalcen pursuant to any urban
redevelopment, rehabilitation or conservation project as bereinabove mentioned, the
statement shall be certified by the mayor or any government official designated by the
mayor and approved by the council, that the additions, alterations, modifications, or
other new construction, improvement or repair work to the buildings were made and
satisfactorily comply with the particular urban redevelopment, rehabilitation or
conservation act provision, or
(2) In the case of maintenance or repairs to a residential building undertaken pursuant to
any health, safety, sanitation or other governmental code provision, the statement shall
be certified by the mayor or any governmental official designated by the mayor and
approved by the conned, that:
(A) The building was inspected by them and found to be substandard when the owner-
occupant made the claim, and
(B) The maintenance or repairs to the buildings were made and satisfactorily comply
with the particular code provision.
SF,CT[ON 2. Material to be repealed is bracketed. New material is underscored. In
printing this ordinance, the brackets, bracketed material and widerscoring need not be included.
SECTION 3. If any provision of this ordinance, or the application thereof to any person
or circumstance, is held invalid, such invalidity shall 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 declared to be severable.
SECTION 4. This ordinance shall take effect upon its approval and shall be made
applicable to the tax year beginning July 1, 2004.
INTRODUCED BY:
COUNCIL MEMBER, C~UNTY OF HAWAII
Hilo, Hawaii
Date of Introduction: May 19, 2004
Date of 1 sr Reading: May 19, 2004
Date 2°~ Reading: June 2, 2004
Effective Date: June 14, 2004
Rf.'i': $'t~ic
3 : .,~a,r~a. 5 9 ~ .1
OFFICE OF THE, COUNTY CLERK
County of Hawaii - : ,
Hilo ,Hawaii -
Introduced By: Aaron S . Y. Chung (`(~i li,i ROLL CALL Y,O'fE
Date Introduced: May 19, 2004 AYES NOES ABS EX
First Reading: May 19, 2009 _ Arakaki X
Published: May 30, 2009 Chung X
Elarionoff X
REMARKS: Holschuh X
Jacobson X
i Reynolds X
Safarik X
Tulang X
Tyler X
9 0 0 0
Second Reading: June _2, 2009
To Mayor: June 9, 2009 ROLL CALL VOTE
Returned: June _ 15, 2004 _ AYES NOES ABS EX
Effective: 7unP la_, 2004 Arakaki X
Published: June 20, 2004 Chung X
Elarionoff X
KF.MARKS' Holschuh X
_ _ Jacobson X
Reynolds X
Safarik X
_ Tulang X
Tyler X
8 0 1 0
I DO HEREBY CERT/FY that the foregoing BILL was adopted by the County Council published as indicated
above. /
APPROVED AS TO
FORM AND LEGALITY: '
C UNCLL CHAIRMAN
DEP CORPORATION COUNSEL _
CO TY OF HAWAII ~ ~
COUNTY CLERK
Date _
BiI1No.: 261 (Draft 2) _ _
prove /Disapproved this _ 14~ _ day Reference: C-595.1/FC-v2y52
of Jwn , 20 0~ Ord: 0~
YC)R,
Cla/~' O ~ WAII
l/mra,', Cmu,ty rs an Equal Oppnrh,n,(y Provider and Employer