HomeMy WebLinkAboutBIL 320 Draft 03 2002-2004 COUNTY OF HAWAII _ m,~ STATE OF HAWAII
BILL NO. 320
Draft 3
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAI` I COUNTY CODE 1983 { 1995
EDITION), AS AMENDED, REAL PROPERTY TAXES, RELATING TO HOME EXEMPTIONS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`h
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; {2) to clarify and improve the definition of real property
owned and occupied as a principal home; (3) to establish two windows to file a home exemption claim
that would cut the potential waiting period from a maximum of 18 months to 1 year; and (4) to allow a
portion of a principal home to contain a commercial agricultural use or home occupation.
SECTION 2. Chapter 19, Article 10, Section 19-68(a), Hawaii County Code 1983 (1995
Edition), as amended, is amended to read as follows:
"Section 19-65. Claims for certain exemptions.
(a) ~ None of the exemptions from taxation granted in sections [~4-fib,] 19-76 to 19-78 and 19-89.2
shall be allowed in any case, unless the claimant shall have filed with the department of finance,
on or before December 31 preceding the tax yeaz for which such exemption is claimed, a claim
for exemption in such form as shall be prescribed by the department.
The exemption from taxation granted for disabilities in sections 19-73 to 19-75 shall be allowed
from the next tax payment date, provided that the claimant shall have filed a claim for the
disability exemption along with a copy of the physicians certificate of disability with the
department on or before June 30 for the first half payment or December 31 for the second half
payment on such form as shall be prescribed by the department.
(31 The exemption from taxatio~~anted for principal home in section 19-71 shall be allowed from
the next tax payment date, provided that the claimant shall have filed a claim for the home
exemption on or before December 31 for the first half payment or June 30 for the second half
payment on such form as shall beprescribed by the department"
SECTION 3. Chapter 19, article 1Q, 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 [ ]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 that:
(A) [That no] No such exemption shall be allowed to any corporation, co-partnership,
or company;
(B) [That the] The exemption shall not be allowed on more than one home for any
one taxpayer and that such taxpayer shall certify under penalty of periurv that he
or she has no other home exemption in any other iurisdiction;
(C) [That where the] The taxpayer has acquired his or her home by a recorded deed [anada-ei~
(D) [That a] 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; [ate]
(E) [That a] A person living on premises, a portion of which is used for commercial
purposes Pxcept as provided in (b) or which is legally permitted as a home
occu~tion in accordance with the Zonine Code, 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; and
(F) [That in] 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 ro ert building or structure for the purpose of [drying-se€fee
~ ~go;; any aericultural use permitted pursuant to chapter 205-2(dl 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 ni 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 [tpleset] home exemptions:
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[~4~iple-te-He~3sed
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Age of Taxpayer Exemption Amount
60 years of age or over but
not 70 years of age or over [2:8] 80 000
70 years of age or over [~5] 10$ 0,000
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 [~lttple-et]
home exemption set forth above when at least one of the spouses qualifies each year for the
applicable [tneltiple~et] home exemption.
(e) For purposes of this section, the term "real proyertv 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 pronertv to be considered a "nrincioal home."
The taxpayer has no other home exemption or principal home in any other jurisdiction;
Intent of the owner to create or maintain a ~rincioal home within the County
Owner's actual physical occupancy of the principal home within the County.
"Intent of the owner to create or maintain a principal home" may be evidenced bv, but not be
limited to an~of the followinc indicia:
Occupancy of the home in the County for more than 200 calendar days of a calendar
year;
B~ Reeistering_to vote in the County:
Beine stationed in the County under militar~rders of the United States and must claim
residency only in Hawaii; or
Possession of any of the followin¢ with a reported address within the County of I lawai' is
Q Valid Hawaii drivers license.
ii Hawaii state identification card.
iii Filed resident income tax return of the State of Hawaii.
iv Resident aliens possessin¢ 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
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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 evidence of the claimant's intent to
reside outside of the Countv shall be deemed erounds for denyine a claim for exemption or
disallowine an existing exemption.
~ Real ~ropertv gualifvine under subsection (a) shall be entitled to an additional exemption of 20%
of the assessed value of the property not to exceed $80 000."
SECTION 4. Chapter 19, Article 10, Section 19-72, Hawaii County Code 1983 (1995
Edition), as amended, is amended to read as follows:
"Section 19-72. Home, lease, lessees defined.
For the purpose of section 19-71 the word "home" includes:
(1) The entire homestead when it is occupied by the taxpayer as such;
(2) A residential building on land held by the lessee or his or her successor in interest under a lease
for a term often years or more for residential purposes and owned and used as a residence by the
lessee or his or her successor in interest, where the lease and any extension, renewal, assignment,
or agreement to assign the lease, have been duly entered into and recorded [prior to January 1
preceding the tax year for which the exemption is claimed,] by the respective date setforth in
subsection 19-68(a)(3), and whereby the lessee agrees to pay all taxes during the term of the
lease;
(3) An apartment which is a living unit (held under a proprietary lease by the tenant thereof) in a
multi-unit residential building on land held by a cooperative apartment corporation (of which the
proprietary lessee of such living unit is a stockholder) under a lease for a term often years or
more for residential purposes and which apartment is used as a residence by the lessee-
stockholder, where the lease and any extension or renewal have been duly entered into and
recorded [prior to January 1 preceding the tax year for which the exemption is claimed,] by the
respective date setforth in subsection 19-68(al(3), and whereby the lessee-stockholder agrees to
pay all taxes during the term of the lease;
(4) An apartment in a multi-unit apartment building which is occupied by the owner of the entire
apartment building as the owner's residence;
(5) That portion of a residential duplex and that portion of land appurtenant to the duplex which are
occupied by the owner of the duplex and land as the owner's residence;
(6) An apartment which is a living unit (held under a lease by the tenant thereof) in a multi-unit
residential building used for retirement purposes under a lease for a term to last during the
lifetime of the lessee and his or her surviving spouse and which apartment is used as a residence
by the lessee and his or her surviving spouse, and where the apartment unit reverts back to the
lessor upon the death of the lessee and his or her surviving spouse, and where the lease has been
duly entered into and recorded [prior to January 1 preceding the tax year for which the exemption
is claimed,] by the respective date setforth in subsection 19-68(a)(31, and whereby the lessee
a},n-ees to pay all taxes during the term of the lease.
As used in section 19-71, in the first pazagraph of section 19-48 and in section 19-68, the word
"lease" shall be deemed to include a sublease, and the word "lessee" shall be deemed to include a
sublessee."
SECTION 5. Material to be repealed is bracketed. New material is underscored. In printing this
ordinance, the brackets, bracketed material and underscoring need not be included.
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SECTION 6. 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 aze declared to be severable.
SECTION 7. This ordinance shall take effect upon its approval.
IN RODE
OUN II, MEMBER, COUNTY OF HAWAII
Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE: Comm. 753.3
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