HomeMy WebLinkAboutCOM 0469.006 1996-1998
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L)ON~.LD IKEDA ~ COIVST:atiCf R KIRK
init'v Clerk ~ _ ~slah.. 1': -
1l~ OF NF'V~/
OFFICE' OF THc COUNTY CLERK
bounty of Hawau
Hneoaii County Building
25 Aupuni Strert
Elilo, Hawaii 96720
September I1, 1997
~ RECEIVED
TO: Bobby Jean Leithead-Todd ,f
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Councilmember ~ Couny t:oundl( r c
FR: Bazbaza Hashimoto
Legislative Assistant
RE: Bed and Breakfast Establishments
This is in response to your request for information regazding the assessment of bed and breakfast
establishments.
Effective December 3, 1996, Real Property Tax Administrator Gazy Kiyota issued the attached
"Assessment Policy for Bed and Breakfast, Vacation Rental, and Other Transient Operations
Copies of this policy were transmitted to the Planning Department and is available to the public
upon request.
1. When a homeowner is granted a special permit or a use permit to operate a bed and
breakfast facility, the property is classified as Resort for tax purposes only and is based
on the actual use. The property does not qualify for the homeowner class at the $4.45 tax
rate. Since the property would be taxed at the $8.50 or $10.00 rate, the owner may see
an increase in real property taxes.
2. That portion of the home used as the primazy residence of the owner will be eligible for
the homeowner's exemption, per Section 19-71, and the azea normally used by transients
does not qualify for the home exemption. For example, if it is determined that half of a
dwelling assessed at $200,000 is used as a bed and breakfast and the other half is used as
the owneds residence, the owner would be allowed the home exemption on up to
$100,000 of the building value.
Whenever a Real Property Tax Division appraiser encounters a bed and breakfast establishment
that has no permit, the property is assessed the Resort rate and the owner is referred to the
Planning Depaztment to obtain a permit.
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The Planning Department zoning inspector is then sent to the establishment to check the
violation(s).
For your information and compazison purposes, I have provided random samples of real property
assessments for bed and breakfast establishments from vazious parts of the island.
Approved:
Legislative Auditor
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I Upon diuuvery and conlinnation of its actual use, Kcal Property involved in
Irtnsicnt upcrrliuns shall be classiliai as Resort (Pitt 700) 'I'bis classilicaliun will
be lilt lax purposes only, and is based un the actual use. If necessary, the creation
ul'a nnrlli-pill parcel should take place.
2. "I'hc ai rt designated as in trutsicnl use shall be the area noted in the application to
the Planning Department, or the aica as dclcnuined by the assessor. In the case of
dctcrminaliun by the assessor, only the area normally used by transients should be
soled.
3 In the case ul joint use as the primary residence of its owner, a 1 loma>wner's
Exemption claim will be allowed only on the percentage of the real property used
solely by the owner. Any joint use area shall nut be included in the exemptible area.
4. In nu case shall the I lunteuwner's Class (Pill 900) be allowed for these parcels.
5 Iror purposes of this policy, the dclinitiun of (ransicnl use shall follow the
guidelines of the State of I lawaii, DcpatOnent of "taxation, i.e. a rental term of Iess
than six (V) nwnths.
Appi vcd~ _ /
Gaty/~Ki uta~ Dale
Real I'rupcrty Tax Adminislrtlor
1996 & 1997 REAL PROPERTY TAX BREAKDOWN OF SEVERAL
HAWAII COUNTY PROPERTIES WITH BED & BREAKFAST PERMITS
L TMK: 3-1-9-18:01 (typical Puna)
1996 Pitt 5 (Agriculture)
valuation exemption net taxable tax rate taxes
bldg $190,400 $40,000 $150,400 $ 8.50 $1,278.40
?~n 50.100 50.100 10.00 501.00
total $240,500 $40,000 $200,500 $1,779.40
1997 Pitt 7 (Hotel/Resort)
bldg $192,500 $40,000 $152,500 $ 8.50 $1,296.25
1~ad 50.100 5 .00
total $242,600 $40,000 $202,600 $1,797.25
+ 17.85
2. TMK: 3-7-6-11:11 (typical Kona - 2 homes)
1996 Pitt 5 (Agriculture)
valuation exemption net taxable tax rate taxes
bldg $174,600 $80,000 $ 94,600 $ 8.50 $ 804.10
1~?d 119.400 119.400 10.00 1.194.00
total $294,000 $80,000 $214,000 $1,998.10
1997 Pitt 7 (Hotel/Resort)
bldg $173,500 $80.000 $ 93,500 $ 8.50 $ 794.75
l~ 1 4 119.400 10.00 x,,194.00
total $292,900 $80,000 $212,900 $1,988.75
9.35
3. TMK: 3-4-5-16:55 (Hamakua)
1996 Pitt 8 (Unimproved Residential)
valuation exemption net taxable tax rate taxes
bldg $138,000 $40,000 $ 98,000 $ 8.50 $ 833.00
.l;~d 96.800 96.800 10.00 968.00
total $234,800 $40,000 $194,800 $1,801.00
1997 Pitt 7 (Hotel/Resort)
bldg $153,100 $40,000 $113,100 $ 8.50 $ 961.35
95.300 95.300 10.00 953.00
total $248,400 $40,000 $208,400 $1,914.35
113.35
4. TMK: 3-1-8-86:01 (Puna -from Homeowner class to Hotel/Resort)
1996 Pitt 5 (Agriculture- homeowner class)
v u exemption net taxable tax rate taxes
bldg $284,400 $80,000 $204,400 $4.45 $ 909.58
1~ 30.000 ~3
..444 ~ 133.SQ
total $314,400 $80,000 $234,400 $1,043.08
1997 Pitt 7 (Hotel/Resort)
bldg $306,600 $80,000 $226,600 $ 8.50 $1,926.10
land 30.000 30.000 10.00 300.00
total $336,600 $80,000 $256,600 $2,226.10
+$1,183.02 -
5. TMK: 3-2-5-24:35 (Hilo -Residential to Hotel/Resort)
1996 Pitt 1 (Residential)
valuation exemption net taxable tax rate taxes
bldg $170,700 $80,000 $ 90,700 $8.50 $ 770.95
I~ J
o2.~4 x_44.444 s4 8_.
5.~~
total $271,100 $80,000 $191,100 $1,624.35
1997 Pitt 7 (Hotel/Resort)
bldg $172,600 $80,000 $ 92,600 $ 8.50 $ 787.10
J.44
44.4 _L44
444 1~Q4 1
494
total $273,000 $80,000 193,000 $1,791.10
166.75
6. TMK: 3-9-5-24:76 (Kau -typical from Homeowners to Hotel/Resort)
1996 Pitt 3 (Commercial)
valuation exemption net taxable tax rate takes
bldg $ 46,300 $46,300 $4.45
land 55.300 33.700 $21.600 4.45 $ 96.12
total $101,600 $80,000 $21,600 $ 96.12
1997 Pitt 7 (HoteUResort)
bldg $43,400 $40,362 $ 3,038 $8.50 $ 25.82
land 55.300 39.638 15.662 10.00 156.62
total $98,700 $80,000 $18,700 $182.44
+$96.12
The following examples are not the typical scenarios:
7. TMK: 3-2-5-47:20 (This property has a Special Permit, but is not in use. Property
remains in Homeowner class)
1996 Pitt 5 (Agriculture)
v lua i exemption net taxable tax r e taxes
bldg $109,200 $80,000 $ 29,200 $4.45 $129.94
land 65.000 65.000 4.45 289.25
total $174,200 $80,000 $94,200 $419.19
1997 Pitt 7 (Hotel/Resort)
bldg $109,100 $80,000 $29,100 $4.45 $129.50
land 65.000 65.000 4.45 289.25
total $174,100 $80,000 $94,100 $418.75
8. TMK: 3-2-1-18:01 (Piper McKern property -property assessment value went up in
1997)
1996 Pitt 1 (Improved Residential)
valuation exemption net taxable tax rate taxes
bldg $55,400 $40,000 $15,400 $4.45 $ 68.53
land 69.600 69.600 4.45 .72
total $125,000 $40,000 $85,000 $378.25
1997 Pitt 7 (Hotel/Resort)
bldg $ 61,600 $40,000 $ 21,600 $ 8.50 $ 183.60
land 105.200 105.200 10.00 1.052.00
total $166,800 $40,000 $126,800 $1,235.00
856.75
9. TMK: 3-9-2-86:14 (property sold a/s; no homeowner exemption filed)
1996 Pitt 5 (Agriculture)
valuation exemption net taxable tax rate taxes
bldg $124,900 $124,900 $ 8.50 $1,061.65
land 17.100 17.100 10.00 171.00
total $142,000 $142,000 $1,232.65
1997 Pitt 7 (HotelBesort)
bldg $126,100 $126,100 $ 8.50 $1,071.85
land 18.400 18.400 10.00 184.00
total $144,500 $144,500 $1,255.85
23.20
•
10. TMK: 3-1-5-56:128 (Richman property -Homeowner class disallowed in 1996 due to
Special Permit # 730 for bed and breakfast)
1996 Pitt 5 (Agriculture)
valuation exemption net taxable tax rate taxes
original:
bldg $109,900 $40,000 $69,900 $4.45 $311.06
land 25.000 25.000 4_45 111.25
total $134,900 $40,000 $94,900 $422.31
amended:
bldg $109,900 $40,000 $69.900 $ 8.50 $594.15
land 25.000 25.000 10.00 250.00
total $134,900 $40,000 $94,900 $844.15
1997 Pitt 7 (Hotel/Resort)
bldg $111,200 $40,000 $71,200 $ 8.50 $605.20
land 15.000 15.000 10.00 150.00
total $126,200 $40,000 $86,200 $755.20
88.95
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