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HomeMy WebLinkAboutBIL 175 Draft 05 2002-2004 iY. COUNTY OF HAWAII ' STATE OF HAWAII BILL NO. 175 Draft 5 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE 1983 (1995 EDITION), REAL PROPERTY TAXES, RELATING TO VALUATION. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. The purpose of this measure is to amend section 19-53, Valuations; considerations in fixing. SECTION 2. 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 mazket 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 regime 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 manner as land. (e) Classificationofland: (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) Improved residential, (B) 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 genera] 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(f)(1). (ii) Real property which is dedicated to an agricultural use or native forest use. 2 (iii) Real property which is used for commercial or income-producing purposes except as exempted under sections 19-71(a) or (b). (iv) Rea] 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 classification 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 yeaz 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 asingle- 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 asingle- ortwo-family residential building per acre. (5) "Unimproved residential" shall mean al] residential class lands not classified as "improved residential" or "homeowner." (f) (l) In determining the value of lands which aze 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 maybe considered to have special knowledge of agricultural land values and uses. Lands 3 classified as tree farm property pursuant 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 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 yeazs. 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 goverunent 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 amount 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. The 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 pazcels 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 19-55 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 dedication 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 successfully completed agricultural dedication period. In cases involving 4 a breach of a ten-yeaz dedication, or a rollback period often or fewer years for breach of a twenty-yeaz dedication, the rollback taxes under this section shall be for a maximum total of ten 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 yeazs 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 aze 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, may be 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 19-59. 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 15. 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 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 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 remain dedicated as pasture or native forest and shall continue to be subject to all rollback taxes and penalties applicable to dedications. 5 (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 Statutes, shall not increase the assessable valuation of any building for a period of seven years from the date of certification as hereinafter provided. 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: (l) In the case of additions, alterations, modifications or other new construction, improvements or repair work to a building that are undertaken pursuant to any urban redevelopment, rehabilitation or conservation project as hereinabove 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 particulaz 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 council, 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. Limitation on homeowner assessment. For properties in the homeowner class as of Januazv 1, 2004 and not dedicated to non-speculative residential use the assessed value of the propertv shall not increase more than three percent (3%) per tax year tax until the parcel is sold or anv portion thereof sold by wav of conveyance which is subiect to conveyance tax under terms of chapter 247 Hawaii Revised Statutes, at which time the propertv will be assessed at mazket value In addition to the 3% limit of this subsection anv improvements undertaken on the propertv within the tax veaz shall be assessed at market value All pazcels entering this class after January 1.2004 shall have the 6 assessed value as of January i of the following vear and be subiect to the above provisions. Those properties dedicated to non-speculative residential use as of January 1, 2004 may continue the dedication without imposition of retroactive taxes upon filino and approval of petition for such termination with the director of finance by September 1 of the yeaz followine enactment of this section. Upon tenmination of the dedication these properties shall be assessed at the mazket value and subiect to section 19-53(h)(1). Thoseproperties dedicated to non-speculative residential use as of January 1 2004 may continue the dedication and upon termination of the dedication period the parcel shall be assessed at the market value and the vear following the termination be subiect to section 19-53(h)(1) unless the dedication is renewed as provided in section 19-58.1. 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 declazed to be severable. SECTION 5. This ordinance shall take effect upon its approval. INTR CED BY: (~/R~ COUNCIL MEMB ,COUNTY HAWAII Hilo, Hawaii Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: REFER~NCE: Comm. 395.6 7