HomeMy WebLinkAboutBIL 023 Draft 01 2008-2010COUNTY OF HAWAII
STATE OF HAWAII
BILL NO. zs
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 11, SECTION 19-90, AND
ARTICLE 10, SECTIONS 19-75 AND 19-89.5, HAWAII COUNTY CODE (2005
EDITION, AS AMENDED), RELATING TO THE DETERMINATION OF REAL
PROPERTY TAX RATES.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Findings and purpose. The council finds that the current process by which
it sets the real property tax rate for each class of property is cumbersome and inefficient. The
purpose of this ordinance is to amend chapter 19, article 11, section 19-90, Determination of
Rates, Hawaii County Code, so that this critical process is more efficient for, and clear to, the
public, Mayor's administration, Hawaii County Council, and office of the county clerk. The
enactment of this ordinance requires the amendment of chapter 19, article 10, sections 19-75 and
19-89.5 so that citations to the current section 19-90(g) remain intact. Those amendments are
provided in this ordinance after the amendment to section 19-90.
SECTION 2. Chapter 19, article 11, section 19-90 of the Hawaii County Code 1983
(2005 Edition, as amended), relating to real property tax and the determination of rates is
amended to read as follows:
"Section 19-90. Real property tax; determination of rates.
(a) Unless a different meaning is clearly indicated by the context, as used in this
section:
(1) "Net taxable lands" means all other real property exclusive of buildings.
(2) "Net taxable real property" or "net taxable buildings" or "net taxable
lands" means, as indicated by the context, the percentage of the market
value of property determined under section 19-46 which the director of
finance certifies as the tax base as provided by this chapter, less
exemptions as provided by this chapter and, in all cases where appeals
from the director's assessment are then unsettled, less fifty percent of the
value in dispute.
(b) The council may increase or decrease the tax rate for buildings and for all other
real property, exclusive of buildings for net taxable land and net taxable buildings
of each class of property established in accordance with section 19-53(e) of this
chapter. A resolution setting the tax rates shall be adopted on or before June 20
preceding the tax year for which property tax revenues are to be raised according
to the following procedures:
(1) The council shall advertise its intention to increase or decrease tax rates
and the date, time, and place of a public hearing in [a--newspaper] two
newspapers of general circulation. The [dnt~-of-thy] public hearing notice
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the council.
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The resolution to set the real propertv tax rates shall disclose the
approximate amount of revenue to be raised for net taxable lands and net
taxable buildings within each class of property, the approximate
percentage of revenue from net taxable lands and net taxable buildings
within each class of propertv, and shall set the real propertv tax rate to be
assessed, expressed in terms of tax per $1,000 of net taxable lands and net
taxable buildings within each class of propertv computed to the neazest
cent.
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and{).] After the adoption of the resolution setting the real propertv tax
rates, the council shall publish the adopted tax rates in two newspapers of
general circulation.
(4) If no action is taken by the council to increase or decrease the tax rates,
then the tax rates as previously set shall be applicable to the subsequent
tax year.
[(~}](~If the tax rates for the tax year are increased or decreased the council shall notify
the director of finance of the increased or decreased rates, and the director shall
employ such rates in the levying of property taxes as provided by this chapter.
[(e)](d)The director of finance shall on or before May 1 preceding the tax year furnish the
council with a calculation certified by the director as being as nearly accurate as
may be, of the net taxable real property within the County, separately stated for
each class established in accordance with section 19-53(e) of this chapter for net
taxable lands and for net taxable buildings plus such additional data relating to the
property tax base as may be necessary.
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[(g)](~Notwithstanding any provision to the contrary, there shall be levied upon each
individual parcel of real property taxable under this chapter, a minimum real
property tax of $100 per year, except under the following conditions:
(1) If the property owner receives a home exemption or totally disabled
veteran exemption resulting in the minimum tax, and the assessed value of
improvements is less than or equal to $75,000, then, the minimum tax for
this property shall be as follows:
(i) Property with improvements assessed at $50,001 to $75,000 the
minimum tax shall be $75.
(ii) Property with improvements assessed at $25,001 to $50,000 the
minimum tax shall be $50.
(iii) Property with improvements assessed up to $25,000 the minimum
tax shall be $25.
(2) If the property is assessed at a market value of less than or equal to $500,
it shall be taxed at a minimum tax of $25."
SECTION 3. Chapter 19, article 10, section 19-75 of the Hawaii County Code 1983
(2005 Edition, as amended), relating to exemptions for those who are blind, deaf, and/or totally
disabled is amended to read as follows:
"Section 19-75. Exemption, persons who are blind, deaf, and/or totally disabled.
(a) Definitions as used in this chapter:
(1) "Blind" means a person whose central visual acuity does not exceed
20/200 in the better eye with correcting lenses, or whose visual acuity is
greater than 20/200 but is accompanied by a limitation in the field of
vision such that the widest diameter of the visual field subtends an angle
no greater than twenty degrees, as certified under this section.
(2) "Deaf' means a person whose average loss in the speech frequencies (five
hundred to two thousand Hertz) in the better eaz is ninety-two decibels, or
such other level as may be updated by American National Standards
Institute (A.N.S.L), or worse, as certified under this section.
(3) "Totally disabled" means a person who is totally disabled, either
physically or mentally, and who, except for such total disability, would be
able to engage in substantial gainful business or occupation, as certified
under this section.
(b) Any person who is certified as blind, deaf, and/or totally disabled as defined in
this section shall be exempt from real property taxes on all real property owned by
the person up to, but not exceeding a taxable value of $50,000. Except that no
exemption shall apply to any minimum tax payable under section [' °~] 19-
90~e) of this chapter.
(c) The disability shall be certified by (1) a physician licensed under chapter 453 or
460, or both, (2) a qualified out-of--state physician who is currently licensed to
practice in the state in which the physician resides, or (3) a commissioned medical
officer in the United States military or public health service, engaged in the
discharge of one's official duty. Certification for a person who is blind or deaf
may also be made by a licensed optometrist or licensed audiologist as the case
may be. Certification shall be on forms prescribed by the department of finance.
For disabled veterans, the proof of disability submitted for section 19-73(1) from
the Veterans Administration, may be substituted for the required certification.
Official documentation from the Social Security Administration may also be
substituted for the required certification.
(d) Any person who is certified as being temporarily blind, deaf, and/or totally
disabled shall submit an annual certification or recertification, as required by this
section. No exemption shall be allowed unless the required certification or
recertification is submitted.
(e) Any person who qualifies for an exemption under this section shall be allowed to
apply for only one of the exemptions established in this section.
(f) In the case of a lease of Hawaiian homestead land, where either a husband or wife
is of non-Hawaiian descent, either spouse shall be entitled to the blind, deaf, or
totally disabled 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.
(g) In the event that a person qualifies for the home exemption as provided in section
19-71 and the blind, deaf, or totally disabled exemption as provided in this
section, the exemptions shall be granted to the claimant in the following order: the
home exemption shall be granted first, then followed by the applicable blind,
deaf, or totally disabled exemption on the property claimed as the owner's
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principal residence. Thereafter, the exemption provided by this section shall be
applied to any other property designated by the claimant."
SECTION 4. Chapter 19, article 10, section 19-89.5 of the Hawaii County Code 1983
(2005 Edition, as amended), relating to kuleana land exemption is amended to read as follows:
"Section 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 21st 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
[~9-90(g}] 19-90 e 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."
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. Severability. 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.
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SECTION 7. This ordinance shall take effect upon its approval.
INTRODUCED BY:
COUNCIL MEMBER, C~OjJN~Y ~' HAWAI`I
Hawaii
Date of Introduction:
Date of ls` Reading:
Date of 2°d Reading:
Effective Date:
REFERENGE~ Canm. 10 j