HomeMy WebLinkAboutBIL 320 Draft 02 2002-2004 COUNTY OF HAWAII STATE OF HAWAII
BILL NO. 320
Draft 2
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE 1983
(1995 EDITION), AS AMENDED, REAL PROPERTY TAXES, RELATING TO HOME
EXEMPTIONS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The purpose of this measure is (1) to amend section 19-71, home
exemptions, by creating an additional exemption of 20% of the pre-exemption assessed value to
a maximum of $80,000 for those eligible for homeowners exemption and (2) to clarify and
improve the definition of real property owned and occupied as a principal home.
SECTION 2. Chapter 19, article 10, section 19-71, Hawaii County Code 1983 (1995
Edition), as amended, is amended to read as follows:
"Section 19-71. Homes.
(a) Real property owned and occupied as a principal home as of the date of assessment shall
be exempt to the following extent from property taxes:
(1) Totally exempt where the value of the property is not in excess of $40,000;
(2) Where the value of the property is in excess of $40,000, the exemption shall be
the amount of 40,000.
Provided:
(A) That no such exemption shall be allowed to any corporation,
co-partnership, or company;
(B) That the exemption shall not be allowed on more than one home for any
one taxpayer;
(c) [
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{{B}} That a husband and wife shall not be permitted exemption of separate
homes owned by each of them, unless they are living separate and apart, in
which case they shall be entitled to one exemption, to be apportioned
equally between each of their respective homes; [alb]
~ That a person living on premises, a portion of which is used for
commercial purposes except as provided in (b), shall not be entitled to an
exemption with respect to such portion, but shall be entitled to an
exemption with respect to the portion thereof used exclusively as a home;
~ That in the case of a lease of Hawaiian homestead lands, where either a
husband or wife is ofnon-Hawaiian descent, either spouse shall be entitled
to the home exemption in the same manner as if either spouse was
considered the owner thereof, provided proof of marriage is submitted to
the director of finance.
(b) The use of a portion of any real property, building or structure for the purpose of [fig
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any al>_ricultural use permitted pursuant to
chapter 205-2(d) or 205-4.5, Hawaii Revised Statutes, shall not affect the exemptions
provided for by this section.
(c) Where two or more individuals by life estate and remainder, jointly, by the entirety, or in
common own or lease land on which their homes are located, each home, if otherwise
qualified for the exemption granted by this section, shall receive the exemption. If a
portion of land held by life estate and remainder, jointly, by the entirety, or in common
by two or more individuals is not qualified to receive an exemption, such disqualification
shall not affect the eligibility for an exemption or exemptions of the remaining portion.
(d) A taxpayer who is sixty years of age or over and who qualifies under subsection (a) shall
be entitled to one of the following [rrmlti~les-el] home exemptions:
[
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Age of Taxpayer Exemption Amount
60 years of age or over but
not 70 years of age or over [~0] $80,000
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70 years of age or over [23] 100 000
For the purpose of this subsection, a husband and wife who own property by life
estate and remainder, jointly, by the entirety, or in common, on which a home exemption
under the provisions of subsection (a) has been granted shall be entitled to the applicable
[multiple-el] home exemption set forth above when at least one of the spouses qualifies
each year for the applicable [~kiple-s€J home exemption.
(e) For purposes of this section, the term "real property owned and occupied as a principal
home" is defined as the place where an individual has a true, fixed, permanent home and
principal establishment, and to which place the individual has, whenever absent, the
intention of returning. It is the place in which an individual has voluntarily fixed
habitation, not for mere special, temporary, or vacation purpose, but with the intention of
making a permanent home.
Three elements are necessary for real property to be considered a "principal home."
Owner's abandonment of all other previous principal homes.
Intent of the owner to create or maintain a principal home within the County.
(C Owner's actual physical occupancy of the principal home within the Countv.
"Intent of the owner to create or maintain a principal home" maybe evidenced bv, but not
be limited to, anv of the following indicia:
Occupancy of the home in the Countv for more than 270 calendar days of a
calendar year;
Registering to vote in the Countv;
f C] Being stationed in the Countv under military orders of the United States; or
Possession of anv of the following with a reported address within the Countv of
Hawaii:
(i~ Valid Hawaii drivers license.
ii Hawaii state identification card.
iii Income tax return as a resident of the State of Hawaii.
iv Resident aliens possessing a valid resident alien card ("green card") must
claim residency only in Hawaii.
The director of finance may require documentation of the above or additional
indicia of intent to reside in the County from a property owner applying for an exemption
or from an owner as evidence of continued qualification for an exemption. Failure to
respond to the director's request or in the event the director receives satisfactory evidence
that a claimant occupies a permanent home outside the County and there is documented
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evidence of the claimant's intent to reside outside of the County, shall be deemed orgr unds
for denving a claim for exemption or disallowing an existing exemption.
1~ Real propertv gualifyine under subsection (a) shall be entitled to an additional exemption
of 20% of the assessed value of the propertv not to exceed $80,000."
SECTION 3. Material to be repealed is bracketed. New material is underscored. In
printing this ordinance, the brackets, bracketed material and underscoring need not be included.
SECTION 4. 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 5. This ordinance shall take effect upon its approval.
INTRODUCED BY:
COUNCIL MEMBE ,COUNTY OF HAWAII
Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE: Comm. 753.2
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