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HomeMy WebLinkAboutCOM 0851.006 2006-2008 K. Angel Pilago ~w o. Phone No.: (808) 327-3642 Council Vice Chair ~C Fax No.: (808) 329-4786 Council Member, District8 lug E-Mail: kapilago@eo.hawaii.hi.us HAWAII COUNTY COUNCIL County ofHawai'i Kailua Trade Center 75-5706 Hanama Place, Suite 109 Kailua-Kona, Hawai `i 96740 t7 On C7 z C c rV Fri DATE: December 26, 2007 TO: Pete Hoffmann, Council Chair 3 and Council Members FROM: K. Angel Pilago, Council Member co RE: Proposed Amendment to Bill 207, Draft 2 (Relating to an Ordinance to Establish a Tax Exemption for Properties Designated as Kuleana Land). Attached is a proposed amendment to Bill 207, Draft 2. The proposed amendment addresses matters raised during the December 18, 2007 Finance Committee meeting. The proposed amendment clarifies that the tax exemption applies only to lands designated as "kuleana land" and not to larger parcels of land within which a "kuleana" may be located. This proposed amendment also deletes subparagraph (d) of section 19-89.5, since "kuleana land" does not exist on lands that are owned by the Department of Hawaiian Home Lands. This amendment includes the following changes to Bill 207, Draft 2: (Amendments have been ramseyered and set out in bold font for illustrative purposes.) 1. In SECTION 1 of the bill, the Purpose section is amended to read as follows: "SECTION 1. Purpose. The purpose of this ordinance is to establish a tax exemption for properties designated as kuleana land. The ordinance would establish a real property tax exemption for those portions of real property zoned as residential or agricultural an portion of Whieh is] and designated as kuleana land, if the property is owned in whole or in part by a lineal descendant of the person(s) that received the original title to the kuleana land. The ordinance also makes conforming amendments." Comm. No. U ST sP Ref. To: (TLc viGi Ref. Date DEC C 6 2W Hawaii County Is An Equal Opportunity Provider And Employer Pete Hoffmann Chair, and Council Members December 26, 2007 Page 2 2. In SECTION 2 of the bill, new section 19-89.5 is amended by changing subsections 19-89.5(b) and (d) to read as follows: "Sec. 19-89.5 Kuleana land exemption. (a) For the purposes of this section, "kuleana land" means those lands granted to native tenants pursuant to L. 1850, p. 202, entitled "An Act Confirming Certain Resolutions of the King and Privy Council, Passed on the 21 s` Day of December, A.D. 1849, Granting to the Common People Allodial Titles for Their Own Lands and House Lots, and Certain Other Privileges," as amended by L. 1851, p.98, entitled "an Act to Amend An Act Granting to the Common People Allodial Titles for Their Own Lands and House Lots, and Certain Other Privileges" and as further amended by subsequent legislation. (b) Real property zoned as residential or agricultural, and [any pef4iion of wh ] designated as kuleana land, shall pay the minimum real property tax set forth in subsection 19-90(g) as long as the real property is owned in whole or in part by a lineal descendant of the person(s) that received the original title to the kuleana land. (c) An application for this exemption shall be filed with the director on forms prescribed by the director. The application shall include documents verifying ownership of the portion of the parcel and that the condition set forth in subsection (b) has been satisfied. Verification of the condition set forth in subsection (b) shall be satisfied by either genealogy verification by the Office of Hawaiian Affairs or by court order stating that the applicant is a lineal descendant of the person(s) that received the original title to the kuleana land. The applicant/landowner shall be responsible for all costs. [(d) Notwithstanding the pr-ovisions of subseetion (b)e kuleana lands Whieh ar-e U-nivaiian hFim-P lands shall not pay the minimum FeW pFoper-", tax if thty nli f , for the exemption set forth in Semi.. 19 89 l" A version of Bill 207, Draft 2 that incorporates the proposed amendments noted above, is attached. In this attached version, proposed changes to the existing language of the Code are ramseyered. KAP/mpd Att. BILL NO. ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 10, HAWAII COUNTY CODE (2005 EDITION, AS AMENDED), ESTABLISHING A REAL PROPERTY TAX EXEMPTION FOR KULEANA LAND. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII SECTION 1. Purpose. The purpose of this ordinance is to establish a tax exemption for properties designated as kuleana land. The ordinance would establish a real property tax exemption for those portions of real property zoned as residential or agricultural and designated as kuleana land, if the property is owned in whole or in part by a lineal descendant of the person(s) that received the original title to the kuleana land. The ordinance also makes conforming amendments. SECTION 2. Chapter 19, Article 10, Hawaii County Code (2005 Edition, as amended), "Exemptions," is amended by adding a new section to be appropriately designated and read as follows: "Sec. 19-89.5 Kuleana land exemption. (a) For the purposes of this section, "kuleana land" means those lands granted to native tenants pursuant to L. 1850, p. 202, entitled "An Act Confirming Certain Resolutions of the King and Privy Council, Passed on the 21" Day of December, A.D. 1849, Granting to the Common People Allodial Titles for Their Own Lands and House Lots, and Certain Other Privileges," as amended by L. 1851, p.98, entitled "an Act to Amend An Act Granting to the Common People Allodial Titles for Their Own Lands and House Lots, and Certain Other Privileges" and as further amended by subsequent legislation. (b) Those portions of real property zoned as residential or agricultural, and designated as kuleana land, shall pay the minimum real property tax set forth in subsection 19-90(g) as long as the real property is owned in whole or in part by a lineal descendant of the person(s) that received the original title to the kuleana land. (c) An application for this exemption shall be filed with the director on forms prescribed by the director. The application shall include documents verifying ownership of the portion of the parcel and that the condition set forth in subsection (b) has been satisfied. Verification of the condition set forth in subsection (b) shall be satisfied by either genealogy verification by the Office of Hawaiian Affairs or by court order stating that the applicant is a lineal descendant of the person(s) that received the original title to the kuleana land. 'The applicant/landowner shall be responsible for all costs. " 1 SECTION 3. Section 19-68, Hawaii County Code (2005 Edition, as amended), is amended by amending subsection (a) to read as follows: "(a) (1) None of the exemptions from taxation granted in sections 19-76 to 19-78, [arid] 19-89.2 and 89.5 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 year for which such exemption is claimed, a claim for exemption in such form as shall be prescribed by the department. (2) The exemption from taxation granted for disabilities in sections 19-73 to 19- 75 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 physician's 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. (3) The exemption from taxation granted 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 be prescribed by the department." SECTION 4. Section 19-68, Hawaii County Code (2005 Edition, as amended), is amended by amending subsection (d) to read as follows: "(d) Any person who has been allowed an exemption under sections 19-71, 19-73 to 19-78, [of] 19-89.2 or 89.5 has a duty to report to the assessor within thirty days after that person ceases to qualify for such an exemption for one of, but not limited to, the following reasons: (1) That person ceases to be the owner, lessee, or purchaser of the exempt premises; (2) A change in the facts previously reported has occurred concerning the occupation, use, or renting of the premises, buildings or other improvements thereon; or (3) Some other change in status has occurred which affects the exemption. Such report shall have the effect of voiding the claim for exemption previously filed, as provided in subsection (b)(4). The report shall be sufficient if it identifies the property involved, states the change in facts or status, and requests that the claim for exemption previously filed be voided. In the event the property comes into the hands of a fiduciary who is answerable as provided for by this chapter, the fiduciary shall make the report required by this subsection within thirty days after the fiduciary's assumption of fiduciary duties or within the time otherwise required, whichever is later. Any person who has a duty of making a report as required by this subsection, who within the time required fails to make a report, shall be liable for a civil penalty. The amount of the penalty shall be $100. The penalty shall be 2 recovered as provided for by ordinance. In addition to this penalty, the taxes due on the property plus any additional penalties and interest thereon shall be collected as property taxes and shall be a lien on the property as provided for by ordinance." SECTION 5. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed material, and underscoring need not be included. 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 are declared to be severable. SECTION 7. This ordinance shall take effect upon its approval and shall apply to the tax year beginning July 1, 2009 and the tax years thereafter. INTRODUCED BY: Hawaii Date of Introduction: Date of I" Reading: Date of 2"d Reading: Effective Date: 3