The URL can be used to link to this page

Home My WebLink AboutORD 2004-122 2002-2004 COUNTY OF HAWAII ,~~.,~.-.n=,~: ~ STATE OF HAWAII BILL NO. 176 Draft 3 ORDINANCE NO. 12,x. AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE 1983 (1995 EDITION), REAL PROPERTY TAXES, RELATING TO NONSPECULATIVE RESIDENTIAL USE ASSESSMENT. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. The purpose of this measure is to amend section 19-58.1, certain lands dedicated to nonspeculative residential use. SECTION 2. Chapter 19, article 7, section 19-58.1, of the Hawaii County Code 1983 (1995 edition), is amended to read as follows: Section 19-58.1. Certain lands dedicated to nonspeculative residential use. (a) The term "owner" as used in this section shall mean the fee owner or the lessee of real property with an unexpired lease term of not less than [ten] five years from the effective date of the dedication. (b) Any owner of property who qualifies under sections 19-71 and 19-72 for home exemption and uses the property exclusively for residential use may dedicate said property in its entirety to nonspeculative residential use and have that parcel assessed in the manner provided by section 19-58.2, except that a husband and wife, although living sepazate and apart, shall be entitled to dedicate only one parcel to the nonspeculative residential use. Exclusive residential use as used in this section shall not permit the owner to conduct any commercial activities on the property, except as otherwise permitted in sections 19-71(al and (b). Those owners who have dedicated their property to agricultural use or receive the benefit of the agricultural use or native forest dedication shall not be eligible for this nonspeculative residential use dedication. (c) Any owner who desires to dedicate property to nonspeculative residential use and to have the property assessed in the manner established by section 19-58.2, shall so petition the director. Upon receipt of any such petition, the director shall make a finding of fact as to whether or not the property described in the petition is qualified for a home exemption pursuant to the terms and conditions of sections 19-71 and 19-72. If the finding is favorable to the owner, the director shall approve the petition and declare the property to be dedicated to nonspeculative residential use. In order to place prospective buyers on notice of the dedicated status and the retroactive tax liability, the petitioner shall within sixty days of the notice of approval of the petition record the notice of dedication in accordance with the procedures established by the bureau of conveyances. The petitioner shall furnish the director with a copy of the recorded notice. Nonrecordation of the notice, within the prescribed period, shall be grounds for disallowance of the dedication. (d) Each petition for dedication shall be for [ten-year] five- or ten-veaz periods. At least one hundred eighty days prior to the cancellation, the deparhnent of finance shall notify the owners by mail of such cancellation. The owner shall reapply for renewal of the dedication by filing an application with the director on or before September 1 of the [tenth] fifth or tenth year. The renewal petition shall, in all respects, be processed similarly to an original petition. Upon approval by the director of succeeding dedications, the assessed valuation shall continue to be assessed in accordance with the provisions of the nonspeculative residential use dedication. (e) Tn the case of a renewal which immediately follows an expiring term, the assessment base for the new five- or ten-veaz dedication term shall be the dedicated value on the expiration date plus fifty percent of the amount of increase between the dedicated value and the mazket valuation as of January 1, [following] nrecedine the termination of the dedication term. (t) If, during any period of dedication, any breach of the dedication requirements should occur, the special nonspeculative residential use assessment privilege shall be canceled and retroactive taxes shall be imposed. Breach of the dedication shall include the failure to maintain the home exemption status of the property, violating the exclusive residential use provision, dedicating the property to agricultural use or receiving the benefit of the agricultural use assessment, subdivision of the property into separate parcels, or the declaration of a condominium property regime, or the sale of the dedicated property or any portion thereof sold by way of a conveyance which is subject to conveyance tax under the terms of chapter 247, Hawaii Revised Statutes. Retroactive taxes due and owing as a result of the breach shall be a paramount lien on the property. (1) Provided, that the nonspeculative residential use dedication shall not be breached if the dedicated property meets the criteria as listed below: The following also includes provisions that are not subject to the conveyance tax under the terms of chapter 247, Hawaii Revised Statutes, and are included for further clarification. (A) Transferred to the owner's heirs by testacy or intestacy, (B) Jointly owned by spouses and upon the death of one spouse ownership is transferred to the surviving spouse, Z (C) Transferred to a spouse or former spouse in connection with a property settlement agreement or decree of dissolution of a marriage or legal sepazation, (D) Transferred to a trustee for the beneficial use of a spouse, or the surviving spouse of a deceased transferor, or by a trustee of such a trust to the spouse of the trustor, (E) Subject to a title change between spouses and said change does not result in a loss of the home exemption status, (F) And the heirs, surviving spouse, divorced spouse, or trustee, within sixty days after receiving title to the property, petitions the director, in writing, to continue the dedication and the property continues to qualify for the home exemption as defined in sections 19-71 and 19-72, (G) The dedication shall not be cancelled if the lessee purchases the leased fee interest from the lessor. (2) Provided further that, except as provided herein, retroactive taxes shall not be assessed when: (A) A person receives title to property dedicated to nonspeculative residential use by ways of testacy or intestacy and does not petition the director to continue the dedication as provided in section 19-58.1(f)(1)(A). (B) The dedicated property is jointly owned by spouses and upon the death of one spouse, ownership is transferred to the surviving spouse, and the surviving spouse does not petition the director to continue the dedication as provided in section 19-58.1(f)(1)(B). (C) The property is wholly or partially destroyed or damaged as a result of fire, seismic or tidal wave, volcanic eruption, earthquake, flood waters and wind or rain storm. The owner may cancel the dedication for the reasons enumerated in paragraph (2)(C) by submitting written notice of the cancellation within sixty days of the damage or destruction. Cancellations shall become effective July 1 of the next tax yeaz, and the property shall be assessed in accordance with section 19-53(a). (g) The director shall prescribe the form of the petition. The petition shall be filed with the director by September 1 of any calendar year and shall be approved or disapproved December 15 of that year. (h) Upon approval, the dedication shall become effective July 1 of the following tax year. In determining the assessed value, the mazket value shall be determined as required in section 19-53(a). The owner may appeal any disapproved petition or cancellation of dedication as in the case of an appeal from an assessment. Those narcels which are presently under a ten yeaz dedication period will continue their existing dedications unless a new annlication for the five- or ten-year dedication is made 3 pursuant to this section and received by the director by September 1 of the vear following enactment. 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. [f 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. INT C D BY: ~ ~~R~ COUNCIL MEMB R, COUNTY F HAWAII Hilo, Hawaii Date of Introduction: September 15, 2004 Date of 1st Reading: October 20 , 2004 Date of 2nd Reading: November 10, 2004 Effective Date: November 19, 2004 t<tfERENCEt Comm. 394.8 4 OFFICE OP THE COUN'CY CLERK County of Hawaii ; Hilo ,Hawadi;l i.U.! Lc' tlI ~a. (Draft 3) Introduced By: Aaron S.'f. Chung ROLLCALL,VOTE Date Introduced: September 15, 2009 AYES NOES ABS EX first Reading: October 20, 2004 Arakaki X Published: October 31, 2004 Chung X Elarionoff X 2d:A-1.-IR1:S: Holschuh X September 15, 2004 - Deferred Jacobson X October 9, 2009 - Deferred Reynolds X _ - Safurik X Tulang X - i Tyler X 6 1 2 U r-----~ Sccond Keadine: November 10, 2004 "ho Mnyor: November 16, 2004 ROLL CALL VOTC Rcnn~ned. Nov_e_mber 22, _ 2004 AYES NOES ABS EX I.Ifcctive: _ November 19, 2004 Arakaki X Published: November 28~_ 2004 _ Chung X F,larionoff X KP:;L/-INKS': Holschuh X - - Jacobson X - - - Reynolds X Safarik X _ Tulang X Tyler X ~ 0 2 U l DU HI:RF_6Y ('ERTIFY" [hut the.fi~regoin~r Bl7,L was adopted by the C'ozrnly CnUnci[ puhlfshed as indicated ubure. APPROVED AS TO ~ FORM AND LEGALITY: OUNCIL CHAIRMUN DEPUT CORPORATION COUNSEL - COUNTY OF HAWAII cr `~YJUNTY CLERK Date ` R c BiIINo.: 176 (Draft 3) ~ Wr C-394.8/FC-299 -lppizn e•cL Dis~ipprurec[(h~s la dur Reference: of, J ~v~IPI.M 20 OBI' Ord: ' w ~n~~ !~~^t^^ Ary",4 )"OIZ, C' XINTF OF HAWAII fla~~m) ('ounl~' is an Equa[ Opparlumry Yromder and P;mylnf=rr