HomeMy WebLinkAboutORD 1980-613 1976-1980,....
BILL NO. 646
(AMENDED)
COUNTY OF HAWAII ~- STATE OF HAWAII
ORDINANCE NO.
A BILL FOR AN ORDINANCE RELATING TO REAL PROPERTY TAXES, INCLUDING
PENALTIES FOR VIOLATIONS.
REAL PROPERTY TAX ORDINANCE
Page
SECTION 1.
SECTION 2.
SECTION 3.
SECTION 4.
SECTION 5.
SECTION 6.
SECTION 7.
SECTION 8.
SECTION 9.
SECTION 10.
SECTION 11.
SECTION 12.
SECTION 13.
SECT TON 14.
SECTION 15.
SECTION 16.
SECTION 17.
SECTION 18.
SECTION 19.
Purpose .................................... 1
ADMINISTRATION
Definitions ..
.............................. 1
Duties and responsibilities of the
director (new subsection (8) added)........ 2
Oaths ...................................... 7
Hearings and subpoenas ........... 7
..........
Timely mailing treated as timely filing
and paying ................................. 8
Tax collection; general duties, powers
of director ................................ 10
District court judges; jurisdiction over
misdemeanors and actions for tax
collections ................................ 10
Director; collection ............ 11
...........
Legal representative .............. 11
.........
Abstracts of registered. conveyances, copies
of corporation exhibits, etc., furnished
to director ................................ 11
Returns, made when; form; open to public,
failure to file ............................ 12
Returns to be signed ....................... lg
Returns by fiduciaries ........... 14
..........
Returns of corporations and
co-partnerships ............................ 15
Notices, how given ......................... 15
Federal or other tax officials permitted
to inspect returns; reciprocal provisions.. 15
Records open to public ..................... 16
Evidence, tax records as ................... 16
REAL PROPERTY TAX ORDINANCE
Page
SECTION 20. Due data on Saturday, Sunday or holiday.... 16
SECTION 21. Changes, etc., in assessment lists......... 17
SECTION 22. Adjustments and refunds .................... 17
SECTION 23. Partial payment of taxes ................... 21
SECTION 24. Reserved ................................... 21
SECTION 25. Abetting, etc., misdemeanor ................ 21
SECTION 26. Neglect of duty; etc., misdemeanor......... 21
SECTION 27. Penalty for misdemeanors ................... 21
NOTICE OF ASSESSMENTS AND LISTS
SECTION 28. Notice of assessments; addresses of persons
entitled to notice ......................... 22
SECTION 29. Assessment lists ........................... 23
SECTION 30. Informalities not to invalidate
assessments, mistakes in names or
notices, etc ............................... ?.4
TAX BILLS, PAYMENTS AND PENALTIES
SECTION 31. Tax rolls, tax bills ....................... 24
SECTION 32. Taxes; due when; installment payments;
billing and delinquent dates ............... 25
SECTION 33. Penalty for delinquency .................... 26
SECTION 34. Assessment of unreturned or omitted
property; review; penalty .................. 2~
SECTION 35. Reassessments .............................. 27
REAL PROPERTY TAX ORDINANCE
Page
REr![I S S I ONS
SECfiION 36. Remission or tars on acquisition by
government ................................. 28
SECTION 37. Remission of taxes in cases of certain
disasters .................................. 30
LIENS, FORECLOSURE
SECTION 38. flax liens; co~owners' rights; foreclosure;
limitation ................................. 31
SECfiION 39. Tax liens; foreclosure without suit,
notice ..................................... 34
SECTION 40. Same; registered land ...................... 35
SECTION 4l. Same; notice, form of ...................... 35
SECTION 42. Same; postponement of sale, etc............ 3~
SECTION 43. Same; tax deed; redemption ................. 36
SECTION 44. Same; costs ................................ 37
SECTION 45. flax deed as evidence ....................... 37
SECTION 46. Disposition of surplus moneys .............. 38
RA°IE ; LEVY
SECTION 47. Property defined ........................... 40
SECTION 48. flax base and rate .......................... 40
SECTION 49. flax year; time as of which levy and
assessment made ............................ 40
SECTION 50. Assessment of property; to whom in genera]. dl
SECTION 51. Imposition of real property taxes on
reclassification ........................... n2
SECTION 52. Assessment of property of corporation or
... ...
copartnerships..... .. ............... n3
REAE PROPERTY TAX ORDINANCE
Page
SECTION 53. Fiduciaries, liability ..................... 43
SECTION 54. Assessment of property of_ unknown owners... 4n
TAX MAPS; VALUATIONS
SECTION 55. Maps ....................................... 44
SECTION 56. Valuation; considerations in fixing........ 45
SECTION 57. Water tanks ................................ 5.3
SECTION 58. Dedicated lands ............................ 53
SECTION 59. Golf course assessment ..................... 58
SECTION 60. Conditions precedent to special assessment
of land as golf course ..................... 59
SECTION 61. Certain lands dedicated for residential
use ........................................ 61
WASTELAND DEVELOPMENT
SECTION 62. Definitions ................................ 63
SECTION 63. Eligibility ................................ 6n.
SECTION 64. Application ................................ Hn
SECTION 65. Classification ............................. 6~
SECTION 66. Development and maintenance of wasteland
development property ....................... 65
SECTION 67. Special tax assessment ..................... 65
SECTION 68. Declassification ........................... 66
SECTION 69. Appeals .................................... G6
NONTAXABLE PROPERTY; ASSESSMENT
SECTION 70. Nontaxable property ........................ 6F
REAE PROPERTY TAX ORDINANCE
Page
REGISTRAR OF CONVEYANCES, DIRECTOR
OF REGULATORY AGENCIES; DATA FROM
SECTION 71. Abstracts of registered conveyances,
copies of corporation exhibits, etc.,
furnished department ....................... 67
EXEMPTIONS
SECTION 72. Claims for certain exemptions .............. 67
SECTION 73. Rules and regulations ...................... 70
SECTION 74. Assignment of partial exemptions........... 70
SECTION 75. Homes ...................................... 71
SECTION 76. Home, lease, lessees defined ............... 73
SECTION 77. Homes of totally disabled veterans......... 76
SECTION 78. Persons affected with leprosy .............. 77
SECTION 79. Exemption, persons with impaired sight or
hearing and persons totally disabled....... 78
SECTION 80. Nonprofit medical, hospital indemnity
associations; tax exemption ................ 79
SECTION 81. Charitable, etc., purposes ................. 79
SECTION 82. Property used in manufacture of pulp and
paper ...................................... 84
SECTION 83. Crop shelters .............................. 84
SECTION 84. Exemption, dedicated lands in urban
districts .................................. 84
SECTION 85. Exemptions for air pollution control
facility ................................... 87
SECTION 8h. Alternate energy improvements, exemption... 88
SECTION 87. Fixtures used in manufacturing or producing
tangible personal products ................. 89
REAL PROP:SRTY TAX ORDINANCE
Page
SECTION 88. Public property, etc ....................... 90
SECTION 89. Lessees of exempt real property............ 9~'~
SECTION 90. Property of the United States leased under
the National Housing Act ................... 97
SECTION 91. Exemption for low and moderate-income
housing .................................... 97
SECTION 92. Claim for exemption ........................ 9f?
SECTION 93. Other exemptions ........................... nq
DETERMINATION OF RATES
SECTION 94. Real property tax; determination of rates., 99
APPEALS
SECTION 95. Appeals .................................... 103
SECTION 96. Appeals by persons under contractual
obligations ................................ 103
SECTION 97. Grounds of appeal, real property taxes..... 104
SECTION 98. Second appeal .............................. 104
SECTIOL3 99. Small claims (old draft rewritten)......... 1~5
SECTION 100. Appointment, removal, compensation......... 1~5
SECTION 101. Board of review; duties, powers, procedure _l05
before .....................................
SECTION 102. Tax appeal court ........................... lOQ
SECTION 103. Appeal to hoard of review .................. X09
SECTION 104. Costs; deposit for an appeal ............... 110
SECTION 105. Costs, taxation ............................ 110
SECTION 106, Taxes paid pending appeal .................. 110
SECTION 107. Amending of assessment list to conform to
decision ................................... 111
BILL NO. 646
AMJENDED )
COUNTY OF HAWAII m STATE OF HAWAII
ORDINANCE NO.
A BILL: FOR AN ORDINANCE; RELATING TO REAL PROPERTY `T'AXES , INCLtJDING
PENPeLTIES FOR VIOLATIONS.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The purpose of this ordinance is to implement the
authority granted to the County of Hawaii to assess, impose and
collect real property tax based on an amendment of the State
Constitution which was adopted on November 7, 1978, by the
electorate. This ordinance will provide for the administration,
assessment and collection of real property tax, including
exemptions therefrom, dedication of land and appeals.
ADMINISTRATION
SECTION 2. Definitions. Wherever used in this ordinance:
"County" shall mean the County of Hawaii.
"Director" shall mean the Director of Finance of the County
of Hawaii or his authorized subordinate.
"Property" or "real property" shall mean and include all land
and appurtenances thereof and the buildings, structures, fences,
and improv€~ments erected on or affixed to the same, and any
fixture which is erected on or affixed to such land, building
structures, fences, and improvements, including all machinery and
other msechanical or other allied equipment and the foundations
thereof, whose use thereof is necessary to the utility of such
land, buildings, structures, fences, and improvements, of whose
removal therefrom cannot be accomplished without substantial
damage to such land, buildings, structures, fences, and improve
meats, excluding, however, any growing crops.
SECTION 3. Duties and responsibilities of the director.
The director shall have the following duties and powers, in add.i@
tion to any others prescribed or granted by this ordinance.
(1) Assessment: fie assess, pursuant to law, all real
property situated within the geographic boundary of
the County of Hawaii for taxation of real property and
to make any other assessment by law required to be made
by the director;
(2) Collections: To be responsible for the collection
of all taxes imposed by this ordinance and for such
other duties as are provided by law;
(3) Construction of revenue laws: To construe the provi~
sions of this ordinance, the administration of which
is within the scope of the director's duties, when
ever requested by. any officer or employee of the
County, or by any taxpayer;
(4) Enforcement of penalties: To see that penalties
are enforced when prescribed by this ordinance (the
administration of which is within the scope of the
director's duties) for disobedience or evading of its
provisions, and to see that complaint is made against
persons violating any provisions of this ordinance;
in the execution of these powers and duties, the.
director may call upon the corporation counsel or
prosecuting attorney, whose duties it shall be to
assist in the institution and conduct of all proceed
ings or prosecutions for penalties and forfeitures,
Ala
liabilities and punishments for violation of the
provisions of this ordinance in respect to the assess®
went and taxation of real property;
(5) dorms: To prescribe forms to be used in or in
connection with the provisions of this ordinance
including forms to be used in the making of returns
by taxpayers or in any other proceedings connected
with the provisions of this ordinance and to change
the same from time to time as deemed necessary;
(6) ~~aps: The director shall provide for the County of
Hawaii, maps drawn to appropriate scale, showing all
parcels, blocks, lots, or other divisions of land
based upon ownership, and their areas or dimensions,
numbered or otherwise designated in a systematic
manner for convenience of identification, valuation,
and assessment. The maps, as far as possible, shall
show the names of owners of each division of land,
and shall be revised from time to time as ownerships
change and as further divisions of parcels occur.
The director shall also maintain, as and when such
information is available, maps showing present use,
coning, and physical use capabilities of land located
:ti~ithin the County of Hawaii for the guidance of
assessors and the information of various tax review
tribunals and the general public.
The director shall charge fees for the use and other
disposition of tracings of these maps, including
copies or prints made therefrom, by private persons
~.3
or firms as provided for by ordinance.
(7) Inspection, examination of records and property:
the director shall have the authority to inspect and
examine the records and property of all public
officers without charge, and to examine the books and
papers of account of any person for the purpose of
enabling the director to obtain all information that
could in any manner aid him in discharging his duties
under this ordinance.
(8) Inspection, examination of real property: ~o
inspect and examine the real property of any person
for the purpose of enabling the director to attain
all information that could in any manner aid him in
discharging his duties under this ordinance.
(9) Recommendations for legislation: ~o recommend to
the Mayor such amendments, changes or modifications
of the provisions of this ordinance or any applicable
State statutes as may seem proper or necessary to
remedy injustice or irregularity or to facilitate
the assessment of property under this ordinance.
(10) Report to Mayor: ~o report to the Mayor annually,
and at such other times and in such manner as the
~bayor may require, concerning the acts and doings
and the administration of his department, and such
other matters of information concerning real property
taxation as may be deemed of general interest; the
Mayor shall transmit copies of such reports to the
Council within thirty days of receipt.
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(11) Rules and regulations: To promulgate such rules and
regulations as he may deem proper and to effectuate
the purposes for which his department is constituted
and to regulate matters of procedure by or before
him pursuant to the provisions of HRS Chapter 91.
(12) Compromises: With the approval of the corporation
counsel to compromise any claim arising under this
ordinance not exceeding $500, and if a claim
exceeds $500, the director shall obtain the approval
of the County Council, the administration of which
is within the scope of his duties; and in any such
cases there shall be placed on file and in his
department's office a statement of (A) the amount
of tax assessed, or proposed to be assessed, (~) the
amount of penalties and interest imposed or proposed
to be assessed, (C) the amount of penalties and
interest imposed or which could have been imposed by
law with respect to the item (A), as computed by him,
(D) the total amount of liability as determined by
the terms of the compromise, and the actual payments
made thereon with the dates thereof and (E) the
reasons for the compromise.
(13) Retroactivity of rulings: To prescribe the extent,
if any, to which any ruling, regulation, or con
struction of the provisions of this ordinance shall
be applied without retroactive effect.
(14) Remission of delinquency penalties and interest:
Except in cases of fraud or wilful violation of the
provisions of this ordinance or wilful refusal to
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make a return setting forth the information required
key this ordinance (but inclusion in a return of a
claim of nonliability for the tax shall not be
deemed a refusal to make a return), he may remit any
amount of penalties or interest added, under this
ordinance, to any tax that is delinquent for not
more than ninety days, in a case of excusable failure
to file a return or pay a tax within the time required
by this ordinance, or in a case of uncollectibility
of the whole amount due; and in any such case there
shall be placed on file in his office a statement
showing the names of the person receiving such
remission, the principal amount of the teax, and the
year or period involved.
(15) Closing agreements: fio enter into an agreement in
v3riting with any taxpayer or other person relating
to the liability of such taxpayer or other person,
und€>r this ordinance, the administration of which is
,within the scope of his duties, in respect of any
taxable period, or in respect of one or more separate
items affecting the liability for any taxable period;
such agreement, signed by or on behalf of the taxpayer
or other person concerned, and by or on behalf of
the County, shall be final and conclusive, and except
upon a showing of fraud or malfeasance, or mis~-
representation of a material fact, (A) the matters
agreed upon shall not be reopened, and the agreeA
ment shall not be modified, by any officer or employee
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of the County, and (B) in any suit, action or proceed@
ing, such agreement, or any determination, assessment,
collection, payment, refund or credit made in accor~
dance therewith, shall not be annulled, modified, set
aside or disregarded.
(16) Other powers and duties: In addition to the powers
and duties contained in this section, the powers and
duties contained in this ordinance for levying, assess-
ing, collecting, receiving, and enforcing payments of
the tax imposed hereunder, and otherwise relating
thereto, shall be severally and respectively con
ferred, granted, practiced, and exercised for levying,
assessing, collecting, and receiving and enforcing
payment of the taxes imposed under the authority
of this ordinance.
SECTION 4. Oaths. The director may administer all oaths
or affirmations required to be taken or be administered under
this ordinance.
SECTION 5. Hears and subpoenas. The director may
conduct any inquiry, investigation, or hearing, relating to any
assessment, or the amount of any tax, or the collection of any
delinquent tax, including any inquiry or investigation into the
financial resources of any delinquent taxpayer or the collect
ibility of any delinquent tax. The director may administer
oaths and take testimony under oath relating to the matter of
inquiry or investigation, and subpoena witnesses and require
~~~
the production of books, papers, documents, and records
pertinent to such inquiry. If any person disobeys such process,
or, having appeared in obedience thereto, refuses to answer
pertinent questions put to him by the director or to produce
any books, papers, documents or records, pursuant thereto, the
director may apply to the Third Circuit Court setting forth such
disobedience to process or refusal to answer, and such court or
judge shah. cite such person to appear before such court or judge
to answer such questions or to produce such books, papers,
documents, or records, and upon his refusal to do so commit such
person to jail until he testifies but not for a longer period than
sixty days. Notwithstanding the serving of the term of commit®
went by any person, the director may proceed in all respects as
if the witness had not previously been called upon to testify.
Witnesses (other than the taxpayer or his or its officers,
directors, agents and employees) shall be allowed their fees
and mileage: as in cases in the circuit courts to be paid on
vouchers of the County, from any moneys available for expenses
of the director.
S~CfiION 6. Timel mailin treated as timel film and
a in
(a) General Rule. Any report, claim, tax return, state
meat, or other document required or authorised to be
filed with or any payment made to the County which
ise
(1) Transmitted through the United States mail, shall
be deenned filed and received by the County on
the date shown by the post office cancellation
mg~,
mark stamped upon the envelope or other appro~
priate wrapper containing it.
(2) Mailed but not received by the County or where
received and the cancellation mark is illegible,
erroneous, or omitted, shall be deemed filed
and received on the date it was mailed if the
sender establishes by competent evidence that
the report, claim, tax return, statement,
remittance, or other document was deposited in
the United States mail on or before the date
due for filing; and in cases of the nonreceipt
of a report, tax return, statement, remittance,
or other document required by law to be filed,
the sender files with the County a duplicate
within thirty days after written notification
is given to the sender by the County of its
nonreceipt of the report, tax return, statement,
remittance, or other document.
(b) Registered mail, certified mail, certificate of
mailing. If any report, claim, tax return, statement,
remittance, or other document is sent by United
States registered mail, certified mail, or certificate
of mailing, a record authenticated by the United States
Postal Service of the registration, certification, or
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certificate shall be considered competent evidence
that the report, claim, tax return, statement,
remittance, or other document was delivered to the
director of Department of Finance, and the date of
registration, certification, or certificate shall be
deemed the postmarked date.
SECTION 7. Tax collection; general duties, powers of
director. The director shall collect all taxes under this
ordinance according to the assessments and shall be liable and
responsible for the full amount of the taxes assessed, unless
he shall under oath account for the noncollection of the same.
The corporation counsel shall assist the director in the
collection of all taxes under this ordinance.
SECTION 8. District court judges; jurisdiction over
misdemeanors and actions for tax collections. Except as other
wise provided in this ordinance, the District Court judges for
the Third Circuit Court for the State of Hawaii, as authorized
in HRS 23112, shall have jurisdiction to try misdemeanors
arising under this ordinance and all complaints for the viola-
tion of this ordinance and to impose any of the penalties
therein prescribed and shall also have the jurisdiction to hear
and determine all civil actions and proceedings for the. collec~
tion and enforcement of collection and payment of all taxes
assessed thereunder, and all actions or judgments obtained in
tax actions and proceedings, notwithstanding the amount claimed.
m10~
SECTION 9. Director; collection. The director shall be
responsible for the collection and general administration of all
delinquent texas. Ho shall duly and accurately account for all
delinquent tars collected.
SECTION 10. Legal representative. The corporation counsel
or the prosecuting attorney shall assign one of his deputies
as attorney and legal advisor and representative of the director.
The corporation counsel or the prosecuting attorney may proceed
to enforce payment of delinquent taxes by any means provided by
law. Any legal proceeding may be instituted in the name of the
director or his deputy.
SECTION 11. Abstracts of registered conve~anaes, codes
of cor oration exhibits, etc., furnished to director. The
director may request abstract of titles. For the purpose of
assisting the director in arriving at a correct valuation of the
property =aaithin each district, the registrar of conveyances, or
any other agency so requested by the department, shall furnish
to the department, monthly, quarterly, or as otherwise as
required by the department, an abstract of the conveyances of,
or other documents affecting title to, or assessment of, real
property in each district, which have been entered for record at
the bureau of conveyances, executed, or filed, as the case may
be, during the period covered by such abstract. The director
of regulatory agencies shall each year furnish the department as
requested, copies of the annual corporation exhibits of any or
all corporations owning real property in any district or any
information contained in such exhibits.
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SECTION 12. Returns, made when; form; open to public
failure to file. Whenever the director finds that the filing of
returns under this section is advisable for the making of assess
meats and so orders, the director shall give, to the taxpayers
during the month of December, of the year such order is made,
public notice (by publication thereof, in English, at least
three times on different days during the month, in a newspaper of
general circulation in the County of Hawaii, published in the
English language) requiring such taxpayers to file with the
director, on or before January 15 of the succeeding year, returns
in the manner and form required by this section. After such
publication of notice, every person owning, or having possession,
custody or control of, real property whether entitled to exemption
or not, shall during the month of January, file upon forms
prescribed by the director and in the manner required by such
forms, a return signed as provided in Section 13 setting forth
the description and location of all real property belonging to
such person or of which he had possession, custody or control on
January 1, and setting forth the taxpayer's opinion of the fair
market value thereof as of January 1. It shall be sufficient to
describe his real property by setting forth the location and a
brief description in sufficient detail to identify the real property.
Whenever the director shall determine that there are not
sufficient evidences of value to form the basis of a sound
appraisal, for assessment purposes, of the value of the real
property or real properties or portions thereof, of any taxpayer
it may, upon notice of not Tess than thirty days, require the
taxpayer to file a return as described in the foregoing paragraph,
m126
All returns made under this section shall be open to
inspection by the public, and shall be admissible in evidence
against the person making the return, in any state court in any
action wherein the value of the real property, or portion thereof,
covered by the return may be in dispute.
Returns made under this section shall be taken into con
sideration by the director in making appraisals for assessment
purposes; the opinion of any taxpayer as to fair market value
shall not be binding upon the director but no taxpayer shall be
deemed to be aggrieved by any assessment made to his property
which is based upon the opinion of value set forth in his return
unless he shows lack of uniformity or inequality as set forth
in Section 97. The opinion of value shall constitute a rebuttable
presumption that the fair market value of the real property on
the defy of the return was not greater than the value stated in
such return in any subsequent proceeding brought to condemn the
property or any part thereof for public purposes.
Failure to file a return required under this section, shall
render the taxpayer liable for payment of an added tax as follows:
In case of failure to file any tax return required to be filed on
a day described therefor (determined with regard to any extension
of time for filing), unless it is shown that the failure is due
to reasonable cause and not due to neglect, there shall be added
to the amount required to be shown as tax on the return, five
percent of the amount of the tax if the failure is for not more
than one month, with an additional five percent for each addi-
tional month or fraction thereof during which the failure con®
times, not exceeding twenty-five percent in the aggregate. For
the purposes of this section, the amount of tax required to be
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shown on the return shall be reduced by the amount of any part
of a tax ~thich was paid on or before the date prescribed for
payment of the tax and by the amount of any credit against the
tax which may be claimed upon the return.
SECfiION 13. Returns to be signed. Every return required to
be made for real property taxation purposes shall be signed by
the person required to make the return or by some duly authorized
person in the taxpayers' behalf.
fihe director may require that, if any person or persons
actually prepare or sign a return for another person, such form.
of statement of such facts and of authority to sign such return
as may be prescribed by the director shall be signed by the
person so preparing or signing the roturn, and the director may
by regulation define the classes of persons to whom this provision
shall apply.
No oath shall be required upon any real property tax return.
SECTION 14. Returns b~ fiduciaries. Every executor,
administrator, trustee, guardian, or other fiduciary shall make
a return of the real property represented by him in such capacity
in the County of Hawaii in which returns shall be required to be
made pursuant to the provisions of this ordinance.
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S~CfiION 15. Returns of corporation and co-partnerships. The
returns, statements or answers required by this ordinance shall,
in the case of a corporation, be made by any officer thereof, or,
in a case of a co-partnership, by any member thereof.
SECTION 16. Notices, how liven. Unless otherwise provided,
every notice, the giving of which by the director is required
or authorized, shall be deemed to have been given on the date
when the notice was mailed properly addressed to the addressee
at his last known address or place of business.
SECTION l7. Federal or other tax officials permitted to
inspect returns; reci~rocal~rovisions. Notwithstanding the
provisions of any law making it unlawful for any person, officer,
or employee of the County to make known information imparted by
any tax return or permit any tax return to be seen or examined
by any person, it shall be lawful to permit a duly accredited
tax official of the United States or of any state or territory
or the Multistate Tax Commission to inspect any tax return of
any taxpayer, or to furnish to such official, commission, or the
authorized representative thereof an abstract of the return or
supply him with information concerning any item contained in
the return or disclosed by the report of any investigation of
the return or of the subject matter of the return for tax
purposes only. The Multistate Tax Commission may make such
information available to a duly accredited tax official of the
United States or to a duly accredited tax official of any state
-15-
or territory, or the authorized representative thereof, for tax
purposes only.
SECfiION 18. Records open to~ublic. All maps and records
compiled, made, obtained or received by the director or any of
his subordinates, shall be public records, and in case of the death,
removal or resignation of any such officers, shall immediately
pass to the care and custody of their respective successors. The
inforniation and all maps and records connected with the assess
ment and collection of taxes under this ordinance shall, during
business hours, be open to the inspection of the public.
SNCfiION 19. evidence, tax records as. In respect of any
tax imposed or assessed under this ordinance, the administration
of which is within the scope of the director's duties and except
as otherwise specifically provided in the law imposing the tax,
the notices of assessments, records of assessments, and lists or
other records of payments and amounts unpaid prepared by or under
the authority of the director, or copies thereof, shall be prima
facie proof of the assessment of the property or person assessed,
the amount due and unpaid, and the delinquency in payment and
that all requirements of law in relation thereto have been
complied with.
S~CfiION 20. Due date on Saturday, Sunday or holiday. When
the due date for any remittance or document required by any ordi~
Hance imposing a tax falls on a Saturday, Sunday or legal holiday,
the remittance or document shall not be due until the next
R16e
succeeding day which is nob a Saturday, Sunday or legal holiday.
SECTION 21. Changes, etc., in assessment lists. Except as
specifically provided in this ordinance, no changes in, additions
to or deductions frorei, the real property tax assessments on the
assessment lists prepared as provided in Section 29 shall be
made except to add thereto property or assessments which may
have been omitted therefrom, or to deduct therefrom adjustments
on account of duplicate assessments and clerical errors, such as
transposition in figures, typographical errors and errors in
calculation.
S~C~ION 22. Adjustments and refunds.
(a) bhis subsection shall apply to taxes assessed and
collected under bhis ordinance.
(1) In the event of adjustments on account of
duplicate assessments and clerical errors, such
as transposition in figures, typographical errors
and errors in calculations, the adjustments may
be entered upon the records although the full
amount appearing on the records prior to such
adjustment has been paid.
(2) There may be refunded in the manner provided in
subsection (b) of this section any amount
collected in excess of the amount appearing on
the records as adjusted, or any amount
constituting a duplication of payment in whole
or in part.
~17m
(3) Whenever any real property is deemed by the
director to be exempt from taxation under
Section 91, if there shall have been paid prior
to the effective date of the exemption an_y real.
property taxes applicable to the period following
the effective date of the exemption, there shall
be refunded to the nonprofit or limited distribu~
Lion mortgagor owning the property in the manner
provided in subsection (b) all amounts represent
ing the real property taxes which have been paid
on account of the property and attributable to
the period .following the effective date of the
@Xemptlon.
(4) No such adjustment shall be entered on the records
nor refund made except within two years after the
end of the tax year in which the amount to be
refunded was due and payable, unless a written
application for the adjustment or refund has been
filed within such period.
(b) This subsection shall apply to all real property taxes.
(1) All refunds shall be paid only upon a form to be
known as a "refund voucher" prepared by the
director. The refund vouchers shall set forth all
the details of each transaction and shall be
approved by the director. The director shall
issue his warrant for the payment of any such.
refund out of the tax reserve fund hereinafter
created; provided, that if the person entitled
~-18-
to the refund is delinquent in the payment of
any tax, the director, after notice to the
delinquent taxpayer, shall withhold the amount
of the delinquent taxes, together with penalties
and interest thereon, from the amount of the
refund and pay the same to the director.
(2) There is hereby established a tax return revolving
fund. All refunds of taxes collected under this
ordinance shall be made out of the tax return
revolving fund. The director may, from time to
time, deposit taxes collected under this ordinance
to the credit of the tax return revolving fund so
that there may be maintained at all times a fund
not exceeding $SD,000.
(c) This subsection shall apply to a refund for an over
payment of a tax.
(1) If the amount already paid exceeds the amount
determined to be the correct amount of the tax
due, and the taxpayer requests a refund of the
overpayment, the amount of overpayment together
with interest, if any, shall be refunded in the
manner provided in subsection (b) above. The
interest shall be allowed and paid at a rate of
~19~
two thirds of one percent for sash calendar
month or fraction hereof, beginning with the
first month after the due date of the return
and continuing until the date that the director
approves the refund voucher. If the director
approves the refund voucher within ninety days
from the due date or the date the return is
received, whichever is later, no interest
on the overpayment will be allowed or paid.
however, if the director exceeds the time allowed
herein, interest will be computed from the due
date of the return until the date that the
director sends the refund warrant to the taxpayer.
(2) If any overpayment of taxes results or arises
from (A) the taxpayer filing an amended return,
or from (~) a determination made by the director
and such overpayment is not shown on the original
return as filed by the taxpayer, interest on the
overpayment shall be allowed and paid from the
first month after the due date of the original
return to the date that the director signs the
refund voucher. If the director does not send
the refund warrant to the taxpayer within
forty five days after his approval, interest will
continue until the date that the director sends
the refund warrant to the taxpayer.
A20~
SECTION 23. Partial payment of taxes. Whenever a taxpayer
makes a partial payment of a particular assessment of taxes, the
amount received by the director shall first be credited to
interest, then to penalties, and then to principal.
SECTION 24. Reserved.
SECTION 25. Abetting, etc., misdemeanor. All persons wil-
fully aiding, abetting or assisting in any manner whatsoever any
person to commit any act constituted a misdemeanor by this
ordinance, shall be deemed guilty of a misdemeanor.
SECTION 26. Neglect of duty,- etc., misdemeanor. Any officer
or employee of the Department of Finance, any person duly
authorized by the director, or any police officer, on whom
duties are imposed under this ordinance, who wilfully fails or
refuses or neglects to perform faithfully any duty or duties of
him required by this ordinance, shall be deemed guilty of a
misdemeanor.
SECTION 27. Penalt for misdemeanors. Any person convicted
of any misdemeanor under this ordinance, for which no punishment
~21~
is otherwise prescribed, shall be fined not more than $500, or
(if a natural person) imprisoned for not more than one year or
both.
NOTICE OE ASSESSMENTS AND LISTS
SECTION 28. Notice of assessments; addresses of persons
entitled to notice. On or before March 15 preceding the tax year,
the director shall give notice of the assessment for the tax year
against each known owner, by personal delivery to the owner of or
by mailing to him on or before such date postage prepaid and
addressed to him at his last known place of residence or address
a written notice identifying the property involved by the tax
key and the general class established in accordance with Sec
tion 56 (d) and setting forth separately the valuation placed
upon buildings, and the valuation placed upon all other real
property, exclusive of buildings, determined pursuant to Sec
Lion 56(a), the exemption, if any, allowed or denied, as the case
may be, and the amount of the exemption applied to the buildings
and the amount applied to all other real property, exclusive of
buildings, and the net taxable value of the buildings and the
net taxable value of all other real property, exclusive of the
buildings.
In addition to the foregoing, the director shall in each
year give notice of the assessments for the year by public
notice (by publication thereof at least three times on different
days during the month of March of such year in a newspaper of
general circulation, published in the English language) of a time
when (which shall be_ not less than a period of ten days prior to
~22~
March 31 preceding the tax year) and of a place where the records
of taxable properties maintained for the district may be inspected
by any person for the purpose of enabling him to ascertain what
assessments have been made against him or his property and to
confer with the director so that any errors may be corrected
before the filing of the assessment list.
SECTION 29. Assessment lists. On or before April 19
preceding the tax year the director shall have prepared from the
records of taxable properties a list in duplicate of all assess!
menu made, which list shall be signed and sworn to by the person
preparing it. The assessment list shall identify the. property
assessed by its tax key and shall set forth the general class of
the property established in accordance with Section 56(d), the
valuation of buildings and the valuation of all other real property,
exclusive of buildings, the amount of exemption allowed on buildm
ings and the amount of exemption allowed on all other real
property, exclusive of the buildings, and the net taxable value
of the buildings and the net taxable value of all other real
property, exclusive of the buildings. The assessment list shall
be the lists in accordance with which taxes shall be collected,
subject only to change made by any court or other tribunal having
jurisdiction, where appeals from assessments have been duly
taken and prosecuted to final determination, and subject to
Section 20. There shall be noted upon such lists all appeals
taken for the year and the amount involved in each case. The
original of the assessment lists shall be retained by the person
preparing it, and one copy shall be held by the County Clerk.
The lists may be made up of a separate sheet or card for each
property.
®23-
SECTION 30. Informalities not to invalidate assessments,
mistakes in names or notices, etc. No assessment or act relating
to the assessment or collection of taxes under this ordinance
shall be illegal or invalidate such assessment, levy, or
collection on account of mere informality, nor because the same
was not completed within the time required by law, nor, if the
notice by publication provided for by Section 28 has been given,
on account of a mistake in the name of the owner or supposed
owner of the property assessed, or failure to name the owner, or
failure to give the notice of assessment by personal delivery or
mail provided for by Section 28.
TAX BILLS, PAYMENTS AND PENALTIES
SECTION 31. Tax rolls; tax bills. The director shall prepare
tax rolls from the assessment lists provided for by Section 29,
showing thereon, in each case, names and addresses of the assessed
and amount of taxes which shall be not less than $7 as provided
for in Section 94.
The director shall mail, postage prepaid, or deliver, each
year on or before the billing dates as provided for by Section 32,
to all known persons assessed for real property taxes for such
year, respectively, tax bills demanding payment of taxes due from
each of them respectively, but no person shall be excused from
the payment of any tax or delinquent penalties thereon by reason
of failure on his part to receive, or failure on the part of the
director so to mail or deliver such bill. The bill, if mailed,
shall be addressed to the person concerned at his last known
~24w
address or place of residence.. Whenever any bill covers tars
for any real property owned, as joint tenants or as tenants an
common or otherwise, by more than one. person, the bill shall be
sent to each known co~-owner but shall dennand the full amount
of the taxes due upon such real property.
SEC`T'ION 32. `axes; due when; installment payments; billing
and d~line~uent dates. All real property taxes shall be clue and
payable orx and after July 1 of each tax year and the payment
thereof shall be determined in the following manner:
All known persons assessed for real property taxes
shall be billed not later than the balling date designated
in the schedule listed herein; subject however, to the
li~riita.tions heretofore provided in Section 31. Each tax-
payer shall pay the real property taxes duo from ham for
the year in which the taxes arm assessed, in two equal
installments on or before: the dates designated in the
follozh~ing schedule:
Fiscal Year Schedule
(Filling Date) (lst Payment) (2nd Payment)
July 20 August 20 February 20
All such taxes due on the first payment date of such year
from each taxpayer, which remain unpaid after the date, shall
thereupon becom@ delinquent, and the balance of such taxes due
on the second payment date of such year from each taxpayer, which
remain unpaid after the date., shall thereupon become delinquent.
~. 2
SECTION 33. Penalty for delin~uenc~. There shall be added
5
to the amount of all delinquent taxes, a penalty of up to ten per
cent of such delinquent taxes as determined by the director, which
penalty shall be and become a part of the tax and be collected as
a part thereof.
All delinquent taxes and penalties shall bear interest at the
rate of two_thirds of one percent for each month or fraction
thereof until paid, beginning with the first calendar month follow
ing the calendar month designated for payment in Section 32. The
interest shall be and become a part of the tax and be collected as
a part hereof.
No taxpayer shall be exempt from delinquent penalties by
reason of having made an appeal on his assessment, but the tax
paid, covered by an appeal duly taken, shall be held in a trust
account as provided in Section 105.
SECTION 34. Assessment of unreturned or omitted ~ro~er~;
review; penalty. If, when returns are required under this ordinance,
any person refuses or neglects to make such returns, or declines
to authenticate the accuracy thereof as provided in Section 12, or
omits any property from a return, the director shall make the
assessment according to the best information available and shall
add to the assessment or tax lists for the year or years during
which it was not taxed, the. property unreturned or omitted, bike
wise, if for any other reason any real property has been omitted
from the assessment lists for any year or years, the director
shall add to the lists the omitted property. Notice of the action
shall be given the owner, if known, within ten days after the
assessment or addition, by mailing the same addressed to him at
~26!
last known place of residence. Any owner desiring a review of
the assessment or the addition may appeal to the panel by filing
with the director a written notice thereof in the manner prescribed
in Section 102 at any time within thirty days after the date of
mailing such notice, or may appeal to the tax appeal court by
filing written notice of appeal with, and paying the necessary
costs to, such court within the period and in the manner prescribed
in Section 101.
A penalty of ten percent shall be added by the director to
the amount of any assessment made by him pursuant to this section,
which penalty shall be and become a part of the assessment so made;
but no such penalty shall be imposed where the failure to assess or
tax the property was not due to the refusal or neglect of the owner
to return the property or authenticate the accuracy of his return.
Ror the purpose of determining the date of delinquency of
taxes pursuant to assessments under this section, such taxes shall
be deemed delinquent if not paid within thirty days after the date
of mailing of notice of assessment, or if assessed for the current
assessment year, within thirty days after the date of mailing the
notice or on or before the next installment payment date, if any,
for such taxes, whichever is later.
SECTION 35. Reassessments. Any property assessed to a
person or persons who did not have the record title upon January 1
preceding the tax year in which the assessment was made, may be,
and in any case where the attempted assessment of property is void
or so defective as to create no real property tax lien on the
property and the taxes have not been fully collected, the property
-27~
shall be assessed as omitted property in the manner provided in
Section 34.
REMISSIONS
SEC~`ION 36. Remission of taxes on ac uisition by government.
Whenever any real property is acquired for public purposes by the
United States, the State or the County, and whenever any government
lease or other tenancy shall terminate, the director is authorized
to remit the taxes due thereon for the balance of the taxation
period or year from and after the date of acquisition of the
property, or the termination of the government lease or other
tenancy, as the case may be.
In case the State or the County takes possession of real
property which is the subject of eminent domain proceedings com-
menced for the acquisition of the fee simple estate in such land
by the State or the County, taxes are authorized to be remitted as
provided in HRS Sections 101-35 to 39, subject to HRS Sec
Lion lOlm39 (l) .
In case the owner of real property grants to the State or the
County a right of entry with respect to such real property and the
State or the County enters into possession under the authority of
the right of entry with intention to acquire the fee simple
estate therein and to devote the real property to public use, the
State or the County shall certify to the director the date upon
which it took possession, and upon receipt of the certificate
the director is authorized to remit the real property tax on the
parcel of land or portion of a parcel of land so coming into the
possession of the State or the County for the balance of the
taxation period which is subsequent to the date of possession.
-~28--
In case the United States takes possession of real property
which is the subject of eminent domain proceedings commenced for
the acquisition of the fee simple estate in such land, taxes are
authorized to be remitted for the balance of the taxation period
or year after such taking, as provided in this paragraph. ~°he
remission shall be allowed conditionally upon the presentation to
the director, of a written notice and agreement, signed by the
person, or one or more of the persons, owning the land, stating
the date of such taking of possession by the United States, and
agreeing that out of the first funds received by such owner or
owners frown such condemnation there shall be paid sufficient moneys
to discharge the lien for any real property taxes existing upon
the land prorated up to and including the date of such taking
possession of the property; provided that the notice nay be
accompanied by payment of the prorated amount of taxes in lieu of
such agreement. HRS Section 10139 is hereby made applicable to
such-land and the owner or owners thereof and to the conditional.
remission authorized by this paragraph. Tt is further provided
that in the event the prorated taxes up to the time of such taking
possession shall not be paid by the owner or by one or more of the
owners of the land within ten days after receipt by such owner
or owners of the compensation for the condemnation, or ~~~ithin
such additional bane as shall be allowed by the director, then
the conditional remission of taxes shall be void, and such owner
or owners shall be liable for all taxes, penalties, and .interest
which would have accrued had no such conditional remission been
allowed.
-29~
SEGTIC~ 37. Remission of tars in cases of certain disasters.
In any case of the damage or destruction of real property as the
result of a tidal wave, earthquake, or volcanic eruption, or as
the result of flood waters overflowing the banks or walls of a river
or strum, the director is authorized to remit tars duo on such
property, to the extent and in the manner hereinafter set forth:
(1) fihe director shall determine whether the property
.gas wholly destroyed, or was partially destroyed or
damaged, and in the latter event shall determine what
percentage of the value of the whole property was
destroyed or otherwise lost by reason of the disaster.
(2) If the property was wholly destroyed, the amount
remitted shall be such portion of the total tax on
the property for the tax year in which such
destruction occurred as shall constitute the portion
of the tax year remaining after such destruction.
(3) If the property was partially destroyed or was
damaged, the percentage of the value destroyed or
otherwise lost, determined as provided in parap
graph (1), shall be applied to the total tax on the
property, and of the amount of tax so determined
there shall be remitted such portion as shall
constitute the portion of the tax year remaining
after such partial destruction or damage.
(4) Application for a remission of taxes pursuant to
this section shall be filed with the director on
or before June 30 of the tax year involved, or
•w=ithin sixty days after the occurrence of the
~30~
disaster, whichever is the later. Any mount of
tars authorized to be remitted by this suction,
which has been paid, shall be refunded upon proper
application therefor out of real property tax
collections.
LIENS, FORNCLOSUR~
SRCTION 38. fax liens; co~owners' rights; foreclosure;
limitation.
Rvery tax due upon real property, as defined by Sec-
tion 2, shall be a paramount lien upon the property assessed,
which lien shall attach as of July l in each tax year and shall
continues for six years. If proceedings-for the enforcement or
foreclosure of the lien are brought within the applicable period
hereinabove designated, the lien shall continue until the termi~
nation of said proceedings or the completion of such sale.
In case of cotenancy, if one cotenant pays, within the period
of the aforesaid government lion, all of the real property taxes,
interest, penalties, and other additions to the tax, due and
delinquent at the time of payment, he shall have, pro Canto, a
lien on the interest of any noncontributing cotenant upon recording
in the bureau of conveyances, within ninety days after the payment
so made by the cotenant, a sworn notice setting forth the amount
claimed, a brief description of the land affected by tax key or
other:~~ise, sufficient to identify it, the tax year or years, and
the name of the cotenant upon whose interest such lien is asserted.
When a notice of such tax lion is recorded by a cotenant, the
registrar shall forthwith cause the same to be indexed in the
~31~
general indexes of the
affected is registered
contain a reference to
such land and shall be
assistant registrar of
capacity as assistant
notation of the filing
of title so specified.
bureau of conveyances. In case the land
in the land court, the notice shall also
the number of the certificate of title of
filed and registered in the office of the
the land court, and the registrar, in his
registrar of the land court, shall make a
thereof on each land court certificate
The cotenant's lien shall have the same priority as the lien
or hens of the government for the taxes paid by him, and may be
enforced by an action in the nature of suit in equity. The lien
shalt continue for three years after recording or registering, or
until termination of the proceedings for enforcement thereof if
such proceedings are begun, and notice of the pendency thereof is
recorded or filed and registered as provided by law, within the
period.
The director or his subordinate, in case of a government lien,
and the creditor cotenant, in a case of a cotenant's lien, shall,
at the expense of the debtor, upon payment of the amount of the
lien, execute and deliver to the debtor a sworn satisfaction
thereof, including a reference to the name of the person assessed
or cotenant affected as shown in the original notice, the date of
filing of the original notice, a description of the land involved,
and the number of the certificate of title of such land if regis~
tared in the land court, which, when recorded in the bureau of
conveyances or filed and registered in the office of the assistant
registrar of the land court, s-hall, in the case of a cotenant's
lien, which contains the reference to the book and page of the
~32~
original lien, be entered in the general indexes of the bureau of
conveyances, and if a notation of the original notice was made on
any land court certificate of title the filing of such satisfac-~
tion shall also be noted oY'i the certificate.
Thais section as to cotenancy shall apply, as well, in any
case of ownership by more than one assessable person.
Upon enforcement or foreclosure by the government in any
manner :whatsoever, of any such real property tax lien, all taxes
of whatsoever nature and howsoever accruing due at the time of
the foreclosure sale from the taxpayer against whose property
such tax lien is so enforced or foreclosed shall be satisfied as
far as possible out of the proceeds of the sale remaining after
payment of (1) the costs and expenses of the enforcement and fore
closure including a title search, if any, (2) the amount of
subsisting real property tax liens, and (3) the amount of any
recorded liens against the property, in the order of their praority.
The liens may be enforced by action of the director in thy;
circuit court of the Third Circuit, and the proceedings had before.
the circuit court shall, be conducted in the same manner and form
as ordinary foreclosure proceedings as provided for a,n HRH
Chapter 634. If the owners or claimants of the property against
wha.ch a lien is sought to be foreclosed arc at the time out of the
County or cannot be served within the County, or if the owners
arc unknown, and the fact shah, be made to appear by affidavit
to the satisfaction of the court, and it shall in Like manner
appear prima facie that a cause of action exists- against such
owners or claimants or against the property described in the
complaint, or that such owners or cla~.mants are necessary or
proper par tics to the action, the director may request the
~33-
court that service be made in the manner provided by HRS Sec
Lions 63423 to ~29.
In any such case, it shall not be necessary to obtain judgment
and have execution issued and returned unsatisfied, before pro
ceeding to foreclose the lien for taxes in the manner herein
provided.
SECTION 39. Tax liens; foreclosure without suit, notice.
All real property on which a lien for taxes exists may be sold by
way of foreclosure without suit by the director, and in case any
lien, or any part thereof, has existed thereon for three years,
shall be sold by the director at public auction to the highest
bidder, for cash, to satisfy the lien, together with all interest,
penalties, costs, and expenses due or incurred on account of the
tax, lien, and sale, the surplus, if any, to be rendered to the
person thereto entitled. The sale shall be held at any public
place proper for sales on execution, after notice published at
least once a week for at least four successive weeks immediately
prior thereto in any newspaper with a general circulation of. at
least 60,000 published in the State and any newspaper of general
circulation published and distributed in the county. If the
address of the owner is known or can be ascertained by due
diligence, including an abstract of title or title search, the
director shall send to each owner notice of the proposed sale
by registered mail, with request for return receipt. If the
address of the owner is unknown, the director shall send a
notice to the owner at his last known address as shown on the records
of the department of Finance. The notice shall be deposited in the
~34m
mall at least forty five days prior to the date sot for the sale.
Ths notice shall also be posted for a like period in at least
three conspicuous public places within the County and if the land
is improved, one of the three posting shall be on the land.
SECTION 40. Same; rc~ist~red land. If the land has been
registered in the land court, the director shall also send by
registered mail a notice for the proposed sale to any person
holding a af~ortgaga or other lien registered in the office of the
assistant registrar of the land court. The notice shall be sent
to any such person at his last address as shown by the records
In the office of the registrar, and shall be deposited in the mail
at least forty five days prior to the date sot for the sale.
SECTION 41. Same; notice for of. The notice of sale shall
contain the names of the persons assessed, the names of the present
owners {so far as shown by the records of the director and the
records, if any, in the office of the assistant registrar of the
land court) the character and amount of the tax, and the tax year
or years, with interest, penalties, costs, expenses, and charges
accrued or to accrue to the date appointed for the sale, a brief
description of the property to be sold, and the time and place
of sale, and shall warn the persons assessed, and all persons
having or claiming to haves any mortgage or other lien thereon
or any legal or equitable right, title, or other interest in
the property, that unless the tax, with all interest, penalties,
costs, expe~~ses, and charges accrued to the date of payment, is
paid before the time of sale appointed, the property advertised
~35~
for sale will be sold as advertised. The director may include
in one advertisement of notice of sale notice of foreclosure
upon more than one parcel of real property, whether or not owned
by the same person and whether or not the liens are for the same
tax year or years.
SECTION 42. Same; postponement of sale, etc. If at the time
appointed for the sale, the director shall deem it expedient and
for the interest of all persons concerned therein to postpone the
sale of any property or properties for want of purchasers, or for
other sufficient cause, he may postpone it from time to time, until
the sale shall be completed, giving notice of every such adjournment
by a public declaration thereof at the time and place last
appointed for the sale; provided, that the sale of any property
may be abandoned at the time first appointed or any adjourned date,
if no proper bid is received sufficient to satisfy the lien,
together with all interest, penalties, costs, expenses. and charges.
SECTION 43. Same; tax deed.; redemption. The director or
his subordinate shall, on payment of the purchase price, make,
execute, and deliver all proper conveyances necessary in the
premises and the delivery of the conveyances shall vest in the
purchaser the title to the property s-old; provided, that the deed
to the premises shall be recorded within sixty days after the
sale; provided, further, that the taxpayer may redeem the property
sold by payment to the purchaser at the sale, within one year from
the date thereof, or if the deed shall not have been recorded within
sixty days after the sale, then within one year from the date of
recording of the deed, of the amount paid by the purchaser, together
@36®
with all costs and expenses which the purchaser was required to pay,
including the fee for recording the deed, and in addition thereto,
interest on such amount at the rate of twelve percent a year, but
in a case of redemption more than one year after the date of sale
by reason of extension of the redemption period on account of late
recording of the tax deed, interest shall not be added for the
extended redemption period.
SECTION 44. Same; costs. The director by rules or regulation
may prescribe a schedule of costs, expenses, and charges and the
manner in which they shall be apportioned between the various
properties offered for sale and the time at which each cost,
expense, or charge shall be deemed to accrue; and such costs,
expenses, and charges shall be added to and become a part of the
lien on the property for the last year involved in the sale or
proposed sale, the tax for which is delinquent. Such costs,
expenses, and charges may include provision for the making of and
the securing of certificates of searches of any records to furnish
information to be used in or in connection with the notice of sale
or tax deed, or in any case where the director shall deem such
advisable; provided that the director shall not be required to
make such searches or to cause them to be made except as provided
by Section 40 with respect to mortgages or other liens registered
in the office of the assistant registrar of the land court.
SECTION 45. Tax deed as evidence. The tax doed referred
to in Section 43 is prima facie evidence that:
~37®
(~) fihe property described by the decd was duly assessed
or taxes in the years stated in the decd and to the.
persons therein named;
(2) The property described by the decd was subject on
the date of the sale to a lien or >nicns for real property
taxes, penalties, and interest in the. amount stated in
the decd, for the tax years therein stated, and that the
taxes, penalties, and ~,ntcrest were due and unpaid on
the date of sale;
(3) Costs, expenses, and charges due. or incurred on account
of the taxes, liens, and sale had accrued at the date
of the sale in the amount stated in the deed;
(4} fihe person who executed the dce.d was- the proper officer;
(5} At a proper time and place the property was sold at
public auction as prescribed by law, and by the proper
officer;
t6) fihe sale was made upon full compliance with Sec-
bons 39 to 44 and alb, laws relating thereto, and
after g~.ving notice as required by law;
(7) fihe grantee named in the decd was the person entitled
to receive the conveyance.
S~CfiION 46. Disposition of surplus moneys. fihe director
shall, pay from the surplus all taxes, including interest and
penalties, of whatsoever nature and howsoever accruing, as provided
in Section 38, and further he may pay from the surplus the cost
of a search of any records where such search is decaned advisable
by him to ascertain the person or persons- entitled to the surplus;
prova.dcd, nothing herein contained shall be construed to require
~38®
the director to make or cause any such search to be made. If
the director is in doubt as to the person or persons entitled to
the balance of the fund, he may refuse to distribute the surplus
and any claimant may sue the director in the Third Circuit Court.
The director may require the claimants to interplead, in which
event he shall state the names of all claimants known to him, and
shall cause them to be made parties to the action. If in his
opinion there may be other claimants who are unknown, the director
may apply for an order or orders joining all persons unknown
having or claiming to have any legal or equitable right, title,
or .interest in the moneys or any part thereof or any lien or
other clai~~ with respect thereto.
Any orders of the court or summons in the matter may be
served as provided by law or the rules of court, and all persons
having any interest in the moneys who are known, including the
guardians of such of them as are under legal age or under any
other legal disability (and if any one or more of them is under
legal age or under other legal disability and without a guardian,
the court shall appoint a guardian ad litem to represent them
therein) shall. have notice of the action by personal service upon
theYri. All persons having any interest in the moneys whose names
are unknown or who if known do not reside within the State or for
any reason cannot be served with process within the S-tats shall
have notice of the action as provided by HRS Sections 63423 to ~29,
except that any publication of suxcimons shall be in at least one
newspaper of general circulation published in the State and having
a general circulation in the County, and the form of notice to
be published shall provide as brief description of the property
which ,ras sold.
~-39-
All expanses incurred by the director shall be met out of the
surplus moneys realized from the sale.
RATE; LEVY
SECTION 47. Property defined. "Property" or "real property"
means and includes all land and appurtenances thereof and the
buildings, structures, fences, and improvements erected on or
affixed to the same, and any fixture which is erected on or
affixed to such land, buildings, structures, fences, and improve-
ments, including all machinery and other mechanical or other
allied equipment and the foundations thereof, whose use thereof
is necessary to the utility of such land, buildings, structures,
fences and improvements, or whose removal therefrom cannot be
accomplished without substantial damage to such land, buildings,
structures, fences and improvements, excluding, however, any
growing crops.
SECTION 48. Tax base and rate. P~xcept as exempted or
otherwise taxed, all real property shall be subject each year
to a tax upon sixty percent of its fair market value determined
in the manner provided by ordinance, at such rate as shall be
determined in the manner provided in Section 94. No taxpayer
shall be deemed aggrieved by an assessment, nor shall an
assessment be lowered, except as the result of a decision on an
appeal as provided by law.
SECTION 49. Tax year; time as of which levy and assessment
made. For real property tax purposes, "tax year" shall mean the
-40--
fiscal year beginning July 1 of each calendar year and ending
June 30 of the following calendar year. Real property shall be
assessed, and taxes shall be levied thereon, as of January 1
preceding each tax year upon the basis of valuations determined
in the manner and at the time provided in this ordinance.
SECTION 50. Assessment of property; to whom in general.
Real property shall be assessed in its entirety to the owner
thereof; provided that where improved residential land has been
leased for a term of fifteen years or more, the real property
shall be assessed in its entirety to the lessee or his successor
in interest holding the land. for such term under such lease and
the lessee or successor in interest shall be deemed the owner
of the real property in its entirety for the purpose of this
ordinance; provided, however, that the lease and any extension,
renewal, assignment, or agreement to assign the lease (1) shall
have been duly entered into and recorded in the bureau of corm
veyances or filed in the office of the assistant registrar of
the land court prior to January 1 preceding the tax year for
which the assessment is made, and (2) shall provide that the
lessee shall pay all taxes levied on the property during the
term of the lease.
"Improved residential land" as used herein means land
improved with a single family dwelling on it.
For the purposes of this ordinance, life tenants, personal
representatives, trustees, guardians, or other fiduciaries may
be, and persons holding government property under an agreement
for the conveyance of the same to such persons shall be considered
as owners during the time any real property is held or controlled
s41~
by them as such. Lessees holding under any government lease shall
be considered as owners during the time any real property is held
or controlled by them as such, as more fully provided in Section 88;
and further, notwithstanding any provisions to the contrary in
this ordinance, any tenant occupying government land, whether
such occupancy be on a permit, license, month to month tenancy,
or otherwise, shall be considered as owner where such occupancy
has continued for a period of one year or more, as more fully
provided in Section 88. Persons holding any real property under
an agreement to purchase the same, shall be considered as owners
during the time the real property is held or controlled by them
as such; provided the agreement to purchase (1) shall have been
recorded in the bureau of conveyances, and (2) shall provide that
the purchasers shall pay the real property taxes levied on the
property. Persons holding any real property under a lease for a
term to last during the lifetime of the lessee, shall be considered
as owners during the time the real property is held or controlled
by them as such; provided that the lease (1) shall have been duly
entered into and recorded in the bureau of conveyances or filed
in the office of the assistant registrar of the land court prior
to January l preceding the tax year for which the assessment is
made, and (2) shall provide that the lessee shall pay all taxes
levied on the property during the term of the lease.
SECTION 51. Imposition of real ~ro~ert~ taxes on
reclassification. A portion of real property taxes shall be
imposed upon and paid by the owner or owners thereof when:
(1) The property of the owner has been leased for a
term of fifteen years or more; and
p42-
(2) The classification of the property has been changed
to a classification of a higher use during the life
of the lease; and
(3) The classification to a higher use has occurred without
the lessee, who occupies the property, petitioning for
such higher classification.
Taxes which are imposed upon the owners of property
under this section shah be paid by the owner of such property
without being transferred to the lessee who occupies the
property and such tax shall be the difference between the
assessed valuation of the property after the classification
change times the applicable tax rate less the assessed valuation
of the property as it existed prior to the classification change
times the applicable tax rate.
SECTION 52. Assessment of ro ert of cor orations or
copartnerships. Property of a corporation or co-partnership
shall be assessed to it under its corporate or firm name.
SECTION 53. Fiduciaries, liability. Every personal
representative, trustee, guardian, or other fiduciary shall be
answerably as such for the performance of all such acts, matters,
or things as are required to be done by this ordinance in respect
to the assessment of the real property he represents in his
fiduciary capacity, and he shall be liable as such fiduciary for
the payment of taxes thereon up to the amount of the available
property held by him in such capacity, but he shall not be
personally liable. He may retain, out of the money or other
~43a
property which he may hold or which may come to him in his
fiduciary capacity, so much as may be necessary to pay the taxes
or to recoup himself for the payment thereof, or he may recover
the amount thereof paid by him from the beneficiary to whom the
property shah. have been distributed.
SECTION 54. Assessment of property of unknown owners. The
'taxable property of persons unknown, or some of whom are unknown,
shall be assessed to "unknown owners", or to named persons and
"unknown owners", as the case may be. The ieaxable property of
persons not having record title thereto on January 1, preceding
the tax year for which the assessment is made, may be assessed
to "unknok%Ti owners", or to named persons and "unknown owners",
as the case may be. Such property may be levied upon for unpaid
taxes.
TAX MAPS; VALUATIONS
SECTION 55. Mates. The Department of E°inance shall provide
maps draw~i to appropriate scale, showing all. parcels, blocks,
lots, or other divisions of land based upon ownership, and their
areas or di:raensions, numbered or otherwise designated in a
systematic manner for convenience of identification, valuation,
and ass~ssmsent. The maps, as far as possible, shall, show the
names of owners of each division of land, and shall be revised
from time to time as ownerships change and as further divisions
of parcels occur. The department shall also maintain, as and
when such information is available, maps showing present use,
~44-~
zoning, and physical
of assessors and the
general public.
fihe director of
other disposition of
prints made therefro,
for by ordinance.
use capabilities of land for the guidance
information of tax review tribunals and the
Finance may charge fees for the use and
tracings of these maps, including copies or
m, by private persons or firms as provided
SECTION 56. Valuation; considerations in fixing.
(a) The Director of Finance shall cause the fair market
value of all taxable real property to be determined and
annually assessed as provided by law; provided, that
the va~,uc of land classified and used for agriculture,
whether such lands are dedicated pursuant to Section 58
or not, shall, for real property tax purposes, be the
value of such land for agricultural use without regard
to any value that such .land might have for other purposes
or uses, or to neighboring land uses, as determined as
provided in subsection (f)(2) of this section. In making
such determination and assessment, the director shall
separately value and assess, within each class estab-
lished in accordance with subsection (d) of this section:
(1) buildings, and
(2) all other real property, exclusive of buildings.
(b) All property shall be valued by appropriate systematic
methods so selected and applied as to obtain, as far as
possible, uniform and eequalized assessments throughout
the County.
®45-
(c) 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.
(d) (1) band shall be classified, upon consideration of its
highest and best use, into the following general
classes:
(A) Single~°family residential,
(~) `Iwo or more family residential,
(C) Apartment,
(D} Hotel and resort,
(E) Commercial,
(~') Industrial,
(G) Agricultural, and
(H) Conservation.
(2) In assigning land to one of the general classes
the Director of Finance shall. give major consideram
Lion to the districting established by land use
commission pursuant to Chapter 205, Hawaii Revised
Statutes, the districting established by the County
in its general plan and coning ordinance, use classi~
fications established in the general plan of the
State, and such other factors which influence highest
and best use.
(e) ~°he director shall select and require the use of
~r~athen~atical tables or formulas based upon a suitable
unit of quantity and designed to determine equitably the
effect, upon the value, of street or highway frontages,
depth from the street or highway, shape, street corners,
~-46-~
and other physical elements the effect of which upon
value the director finds feasible to determine by means
of tables or formulas. These tables or formulas shall
be used for all areas where this can be done appropriately,
and in any event as provided in the next paragraph.
t~henever land has been divided into lots or parcels
which are used or suitable for use for residential,
commercial, or other urban or village purposes, each
such lot or parcel shall be separately assessed, and
the aforesaid mathematical tables or formulas shall be
used unless this is precluded by the shape of the lots
or parcels.
(f) (1) In determining the value of land, other than land
classified and used for agriculture, consideration
shall be given to selling prices and income (includ~
ing, where available, such data relating to the
property being assessed and similar data for com~
parable properties), productivity, and nature of
use (actual and potential), the advantage or dis~
advantage 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,
zoning, dedication of lands as provided for in
Section 58, and further to the opinions of persons
who may be considered to have special knowledge of
land values, and all other influences, whether
similar to those listed or not, which fairly
and reasonably bear upon the question of value.
~47~
(2) In determining the value of lands which are
classified and used for agriculture, whether such
lands arc dedicated pursuant to Section 58 or not,
consideration shall bs given to rent, productivity,
nature of actual agricultural use, the advantage or
disadvantage of factors such as location, accessim
bility, 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
may be considered to have special knowledge of land
values.
(3) A deferred or roll back tax shall be imposed on the
owner of agricultural lands assessed according to
its agricultural use as provided in subsection (a)
of this section in the event of a change in sand
use classification by the authorized stets agency
to urban or rural districts or upon the subdivision
of the land into parcels of five acres or less, pro
vided that the tax shall not apply if the owner
dedicates his land as provided in Section 58 within
three years from the data of the change in land use
classification and fulfills all of the requirements
of the dedication. The deferred tax shall be due
and payable at the end of the third year following
the change in land use classification provided that
the sand shall continue to bs used for agriculture
during this period. The total amount of deferred
texas shall be computed commencing at the end of the
~48~
third year following the change in classification
where the land has continuously been used for agri~
culture, provided however that where the land has
bean put to a higher urban or rural use prior to
the expiration of the three year period the amount
of deferred taxes shall be computed commencing at
the end of the year in which the land has been put
to such higher urban or rural use, and shall be
retroactive to the date the assessment was made
pursuant to subsection (a) of this section provided
the retroactive period shall not exceed ten years.
Where the owner has subdivided his land into parcels
of five acres or less, the deferred tax shall com~
manes from the date the conversion was made retro®
active to the date the assessment was miade pursuant
to subsection (a) of this subsection but for not
more than ten years. Any other provisions to the
contrary notwithstanding, the deferred or roll back
tax shall apply only if a change in land use classi~
fication has been made as a result of a petition by
any 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 roll back tax shall not apply to lands
owned by any owner or lessee who has not petitioned
for the change in classification provided the owner
or lessee shall continue to use the land in its
agricultural use for a period of three years after
the change in land use classification is made, or
-49~
where the change in classification is initiated by
any governmental agency or instrumentality. The
deferred or roll back 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 tax rate applicable for the respective years.
(A) Where the owner subdivides his land into
parcels of five acres or less, the deferred
tax shall be due and payable within sixty
days of such conversion, subject to a ten
percent per annum penalty.
(~) Where the owner changes the land use classifi~
cation, the deferred tax shall be due and
payable within three years of such conversion
except that where the land has been put to its
higher urban or rural use, the tax shall be due
and payable at the end of the year in which the
land has been put to such higher use, subject
to a ten percent per annum penalty.
Any other provisions to the contrary notwithstanding,
the land shall continue to be assessed in its agri~
cultural use as provided in subsection {a) of this
section until the land is put to its higher urban
or rural use for a period of three years following
the change in classification whichever is shorter,
provided that for purposes of determining the amount
of deferred taxes to be assessed to the owner or
lessee, the retroactive period shall include the
®50~
period during which the land is continued to be
assessed in its agricultural use following the
change in classification. Any tax due and owing
shall attach to the land as a paramount lien in
favor of the County as provided for by ordinance.
(4) Where lands located within agricultural districts
are put to agricultural uses, that portion of such
lands not usable or suitable for any agricultural
use, whether dedicated pursuant to Section 58 or
not, the tax upon such unusable or unsuitable land
shall be deferred and shall be payable upon conver~
sion as provided under this section.
(g) buildings shall be valued each year upon the basis of
the cost of replacement less depreciation, if any. Age,
condition and utility or obsolescence shall be considered.
the director shall determine and require the use of
average basic replacement cost factors.
In determining the value of buildings, consideration shall
be given to any additions, alterations, remodeling, modi~
fications or other new construction, improvement or
repair work undertaken upon or made to existing buildings
as the same may result in a higher assessable valuation
of said buildings, provided however that any increase in
value resulting from any additions, alterations, modifi~
cations or other new construction, improvement or repair
work to buildings undertaken or made by the owner occupant
thereof pursuant to the requirements of any urban r~devel~
opment, rehabilitation or conservation project under the
~51~
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:
(1) In the case of additions, alterations, modifications
or other new construction, improvement or repair
work to a building that arc undertaken pursuant to
any urban redevelopment, rehabilitation or conser~
vation project as hereinabove mentioned, the state®
ment shall be certified by the Mayor or any
governmental official designated by him and approved
by the Council, that the additions, alterations,
modifications, or other new construction, improve
went or repair work to the buildings were made
and satisfactorily comply with the particular
urban redevelopment, rehabilitation or conservation
act provision, or
(2) In the case of maintenance or repairs to a residen~
tial building undertaken pursuant to any health,
safety, sanitation or other governmental code pro
vision, the statement shall be certified by the
Mayor or any governmental official designated by
him and approved by the Council, that
~52~
(A) the building was inspected by the~i and found
to be substandard when the owner®occupant made
his claim, and
(~) the maintenance of repairs to the buildings
were made and satisfactorily comply with
the particular code provision.
SDC~ION 57. Water tanks. Any provision to the contrary
notc~ithstanding, any tank or other storage receptacle required
by any government agency to be constructed or installed on any
taxable real property before water for home and farm use is
supplied, and any other water tank, owned and used by a real
property taxpayer for storing water solely for his own domestic
use, shall be exempted in determining and assessing the value of
such taxable real property.
SDC~ION 58. Dedicated lands.
(a) A special land reserve is established to enable the owner
of any parcel of land within an agricultural district,
a rural district, a conservation district, or any urban
district to dedicate his land for a specific ranching
or other agricultural use and to have his land assessed
at its value in such use provided, that if the land is
located within an urban district,
(1) a l~s~~e of the land with a term of ten or more
years remaining from the date of the petition
shall also be deemed an owner of the land within
these provisos;
T53-
(2) the land dedicated must be used for the cultivation
of crops such as sugar cane, pineapple, truck crops,
orchard crops, ornamental crops, or the like;
(3) the land dedicated must have been substantially
and continuously used for the cultivation of crops
such as sugar cane, pineapple, truck crops, orchard
crops, ornamental crops, or the like for the five
year period iYnrnediately preceding the dedication
request; provided further, that land situated within
an agricultural district may be dedicated for a
period of twenty years and shall be taxed at fifty
percent of its assessed value in such use.
{b) If any owner desires to use his land for a specific
ranching or other agricultural use and to have his land
taxed at its assessed value in this use or fifty percent
of its assessed value as the case may be, he shall so
petition the Director of Finance and declare in his
petition that his land can best be used for the purpose
for which ha requests permission to dedicate his land
and that if his petition is approved he will use his
land for this purpose.
Upon receipt of any such petition, the director shall
make a finding of fact as to whether the land in the
petition area is reasonably well suited for the intended
use. ~hc finding shall include and be based upon the
productivity ratings of the land in those uses for which
it is best suited, a study of the ownership, size of
m5~~
operating unit, and present use of surrounding similar
lands and other criteria as may be appropriate.
the director shall also make a finding of fact as to
whether the intended use is in conflict with the overall
development plan of the State.
If both findings are favorable to the owner, the director
shall approve the petition and declare that the owner's
land is dedicated land; provided, that for lands in urban
districts, the director shall make further findings
respecting the economic feasibility of the intended use
of the land. Tf all three findings are favorable, the
director shall approve the petition and declare the land
to be dedicated. A change in the dedicated use may be
made by petition as provided in this subsection.
(c) fihe approval by the director of the petition to dedicate
shall constitute a forfeiture on the part of the owner
of any right to change the use of his land to a use
other than agriculture for a minimum period of ten years
or twenty years as the case may be, automatically
renewable indefinitely, subject to cancellation as
follows:
(1) In the case of a ten-year dedication, the owner may
after the ninth year and years thereafter, give
notice of cancellation by filing with the director,
a written notice of cancellation, on or before
April 9, to be effective as of January 1 of the
following tax year;
~55-
(2) In the case of a twenty-year dedication, the owner
may during the nineteenth year and years thereafter
give notice of cancellation as provided by this
subsection;
(3) In the case of a change in a major land use classi~-
fication nob as a result of a petition by any
property owner or lessee such that the owner's land
is placed within an urban district, the dedication
may be cancelled within sixty days of the change by
the owner. Upon any conveyance or any change in
ownership during the period of dedication, the land
shall continue to be subject to the t~rYlCis and condi~
bons of the dedication unless a release has been
issued by the director.
(d) Failure of the owner to observe the restrictions on the
use of his land shall cancel the dedication and special
tax assessment privilege retroactive to the date of the
dedication, but in any event, shall not exceed the term
of the original dedication, and 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 a year penalty from the
respective dates that these payments would have been
due. The additional texas and penalties, due and owing
as a result of a breach of the dedication, shall be a
paramount lien upon the property as provided for by
ordinance. ~railure to observe the restrictions on the
use means failure for a period of twelve consecutive
months to use the Land in bhat ~rianner requested in the
-56-
petition or the Quart act of changing the use for any
period provided that a change in land use classification
upon petition by the owner of such dedicated lands shall
not be deemed to constitute an overt act of changing the
use of the land. Any other provisions to the contrary
notwithstanding, when a portion of the dedicated land
is subsequently applied to a use other than the use set
forth in the original petition, only such portion as is
withdrawn frorei the dedicated use and applied to a use
other than ranching or other agricultural use shall be
taxed as provided by this subsection.
(~) fihe director shall prescribe the form of the petition.
the petition shall be filed with the Director of Finance
by September 1 of any calendar year and shall be
approved or disapproved by December 15. ~f approved,
the assessment based upon the use requested in the
dedication shall be effective on January 1 of the next
calendar year.
(f) the owner may appeal any disapproved petition as in the
ease of an appeal from an assessment.
(g) the term "owner" as used in this section includes
lessees of real property whose lease term extends at
least ten years from the date of the petition in the case
of a ten®year dedication or lessees of real property
whose lease term extends at least twenty years from the
date of the petition in the case of a twenty year
dedication.
(h) A special land reserve is established to enable the
owner of any parcel of land within an urban district
s57~
to dedicate his land for a specific livestock use such
as feed lots, calf raising and like operations in dairy,
beef, swine, poultry and aquaculture, but excluding
grazing or pasturing, and to have his land assessed at
its value in such use; provided, that
(1) a lessee of the land with a term of ten or more
years remaining from the date of the petition shall
also be deemed an owner of the land within these
provisos;
(2) the land dedicated must be used for livestock uses
such as feed lots, calf raising and like operations
in dairy, beef, swine, poultry and aquaculture but
excluding grazing or pasturing;
(3) the land dedicated must have been substantially and
continuously used in the livestock uses enumerated
in (2) hereinabove;
(4) and such livestock use must be compatible with the
surrounding uses.
S~GTION 59. Golf course assessment. Property operated and
used as a golf course shall be assessed for property tax purposes
on the following basis:
The value to be assessed by the director shall be on the
basis of its actual use as a golf course rather than on the
valuation based on the highest and best use of the land.
In determining the value of actual use, the factors to be
considered shall include, among others, rental income, cost of
development, sales price and the effect of the value of the golf
course on the value of the surrounding lands.
m58®
SFCfiION 60. Conditions recedent to s ecial assessment of
land as golf course. In order to qualify in having land assessed
in valuation as a golf course the owner of any parcel of land
desiring or presently using his land for a golf course shall as a
condition precedent qualify as follows:
(l) Dedication of land.
(A) The owner of any parcel of land for a golf
course shall petition the Director of Finance
and declare in his petition that he will dedi~
cats his parcel of land for a golf course.
(B) The approval by the Director of Finance of the
petition to dedicate the land shall constitute
a forfeiture on the part of the owner of any
right to change the use of the land for a
minimum period of ten years, automatically
renewable indefinitely, subject to cancellation
by either the owner or the Director of Finance
upon five years' notice at any time.
(C) The failure of the owner to observe the
restrictions on the use of his land to that
of a golf course shall cancel the special tax
assessment privilege retroactive to the date
of the dedication but not more than ten years
prior to the tax year in which the exemption
is disallowed; and 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 six percent
a year penalty from the respective dates that
m59m
these payments would have been due. Failure to
observe the restrictions on the use means
failure for a period of over twelve consecutive
months to use the land in that manner requested
in the petition as a golf course by the overt
act of changing the use for any period.
Nothing in this paragraph shall preclude the
County from pursuing any other remedy to enforce
the covenant on the use of the land as a golf
course.
(D) The Director of Finance shall prescribe the form
of the petition. The petition shall be filed
by September 1 of any calendar year and shall
be approved or disapproved by December 15 of
such year. If approved, the assessment based
upon the use requested in the dedication shall
be effective on January 1 of the next calendar
year.
(F) The owner may appeal any disapproved petition
as in the case of an appeal from an assessment.
(F) The term "owner" as used in this section
includes lessees of real property whose Tease
terYY'i extends at least ten years effective from
the date of the petition.
(G) `The amount of additional taxes due and owing
where the owner has failed to observe the
restriction on the use shall attach to the
property as a paramount lien in favor of the
County as provided for by ordinance.
s60~
(2) Covenant not to engage in discrimination. The
owner shall covenant in his petition with the
Director of Finance that he will not discriminate
against any individual in the use of the golf
course facilities because of the individual's race,
sex, religion, color or ancestry.
SECTION 61. Certain lands dedicated for residential use.
(a) Thy term "owner" as used in this section means a perso~i
*~=ho is 'the fee simple owner of real property, or who is
the lasses of real property whose lease term extends at
least ten years from the date of the petition.
(b) A special land reserve. is established to enable the
owner of any parcel of land within a hotel, apartment,
resort, commercial, or industrial district to dedicate
his land for residential use and to have his land
assessed at its value in residential use; provided that
(1) the land dedicated shall be limited to a parcel
used only for single family dwelling residential
use;
(2) the owner of the land dedicated shall use it as his
home; and
(3) not more than one parcel of land shall be dedicated
for residential use by any owner.
(c) If any owner desires to use his land for residential
use and to have his land assessed at its value in this
use, he shall so petition the Director of Finance and
declare in his petition that if his petition is approved,
~-61®
he will use his land for single family dwelling residen~
tial use only and that his land so dedicated will be
used as his home.
Upon receipt of any such petition, the Director of
Finance shall make a finding of fact as to whether the
land described in the petition is being used by the
owner for single family dwelling residential use only
and as his home. If the finding is favorable to the
owner, the Director of Finance shall approve the petition
and declare the land to be dedicated.
(d) The approval of the petition by the Director of Finance
to dedicate shall constitute a forfeiture on the part of
the owner of any right to change the use of his land for
a minimum period of ten years, automatically renewable
thereafter for additional periods of ten years subject to
cancellation by either the owner or the Director of
Finance.
(e) Failure of the owner to observe the restrictions on the
use of his land or the sale of the property shall cancel
the special tax assessment privilege retroactive to the
date of the dedication, or the latest renewal ten~year
period, and all differences in the amount of taxes that
were paid and those that would have been due from assess
meat in the higher use shall be payable with a ten
percent per year penalty from the respective dates
that these payments would have been due. Failure to
observe the restrictions on the use means failure for
a period of over twelve consecutive months to use the
~62®
land in the manner requested in the petition or the
overt act of changing the use for any period, or the
sale of the real property. Nothing in this subseetion
shall preclude the County fro~ri pursuing any other remedy
to enforce the covenant on the use of the land.
1`he additional taxes and penalties, due and owing as a
result of failure to use or any other breach of the
dedication shall be a paramount lien upon the property as
provided for by ordinance.
(f) the Director of Finance shall prescribe the form of the
petition. The petition shall be filed with the. Director
of Finance by September 1 of any calendar year and shall
be approved or disapproved by December 15. If approved,
the assessment based upon the use requested in the dedi°~
cation shall be effective on January l of the next
calendar year.
(g) T'he owner may appeal any disapproved petition as in the
case of an appeal from an assessment.
WAS°I'I~~AND DF~I,OPM~N1
SECTION 62. Definitions. When used in Sections 62 to 69:
(1) "Department" means the Department of Finance;
(2) "Director" means the Director of the Department of
Finance;
(3) "Wasteland" means land which is classified as such by
the Director of the Department of Finance; and
(4) fihe term "owner" shall include any parson leasing the
real property of another under a lease having a stated
term of not less than thirty years.
~63®
SECTION 63. Fli~ibilit~. Any property of not less than
twenty five acres in area is eligible for classification as waste
land development property if it meets the classification require
ments of wasteland property as established by the Director of
Finance. No real property under a lease having an unexpired term
of less than thirty years shall be eligible for classification as
wasteland development property.
SECTION 64. A~lication. The owner of any property may
apply to the Director of Finance for classification of his land
as wasteland development property. fihe application shall include
a description of the property, the manner in which the property
will be developed, and such additional information as may be
required by the director. The application shall state that all
persons having any interest in or holding any encumbrance upon
the property have joined in making the application and that all
of theme will comply with the laws and regulations relating to
the use, building requirements, and development of real property.
SECTION 65. Classification. ~~ithin four months after the
filing of the application with the Director of Finance, the
director shall make a finding of fact as to the eligibility of
such land for classification as wasteland development property,
whether it can be developed in the manner specified by the owner,
whether the development will add to the development of the
economy of the State, and whether the development will broaden
the tax base of the State. The determination shall be based upon
all available information on soils, climate, land use trends,
watershed values, present use of surrounding similar lands, and
other criteria as may be appropriate.
s64~
Upon the finding by the director that the property is eligible
for classification as wasteland development property, that it can
be developed in the manner specified by the owner, that the devel~
opment will add to the economy of the State, and that it will
broaden the tax base of the State, the property shall be classified
as wasteland development property. If the director finds it other
wise for any one of the above criteria, the application shall be
disapproved.
The applicant may appeal any disapproved application as in
the case of an appeal from an assessment.
Land classified as wasteland development property shall be
administered by the Department of Finance and the department
may from time to time make rules and rQgulations for their
administration pursuant to Chapter 93, Hawaii Revised Statutes.
SECTION 66. Development and maintenance of wasteland
development property. Within one year following the approval of
the application, the owner shall develop that portion of his land
as specified in his application and as approved by the Director
of Finance. Additional areas shall be developed each year as
prescribed by the director.
SECTION 67. Special tax assessment. Any property classified
as wasteland development property by the Director of Finance
shall be, for a period of five years, assessed for real property
tax purposes at its value as wasteland. The five-year period
shall commence from January 1 of the calendar year following the
approval of the application.
-65-
SFCfiION 68. Declassification. fihirty days after notification
to the owner by the Department of Finance for noncompliance of any
law, ordinance, rule, or regulation, the Director of Finance may
declassify any land classified as wasteland development property.
fibs department shall notify the owner of the declassification and
in that event, the director shall cancel the special tax assessment
provided i~ Section 67 retroactive to the date that the property
qualified for special tax assessment and the difference between
the real property taxes that would have become due and payable but
for such classification for all the years the land was classified
as wasteland development property and the real property taxes
paid by the owner during such period shall become immediately due
and payable together with a five percent a year penalty from the
respective dates that such additional tax would otherwise have
been due.
SECTION 69. A~~eals. Any person aggrieved by the additional
assessment for any year may appeal from such assessment in the
manner provided in the case of real property tax appeals.
NONTA~A~bF PROPERTY; ASSESSMENT
S~CfiION 70. Nontaxable property. For purposes of account
ability, the Director of Finance shall assess at the nominal sum
of $7.00 each parcel of real property which is completely
exempt from taxation.
®66~
REGISTRAR OF CONVEYANCES, DIRECTOR
OF REGULATORY AGENCIES; DATA FROM
SECTION 71. Abstracts of registered conveyances, copies of
corporation exhibits, etc., furnished department. For the purpose
of assisting the Department of Finance in arriving at a correct
valuation of the property within each district, the registrar of
conveyanceG, or any other agency so requested by the department,
shall be requested to furnish to the department, monthly, quarterly,
or otherwise as required by the department, an abstract of the
conveyances of, or other documents affecting title to, or assess-
ment of, real property in each district, which have been entered
for record at the bureau of conveyances, executed, or filed, as
the case may be, during the period covered by such abstract. The
director of regulatory agencies shall each year be requested to
furnish to the department copies of the annual corporation exhibits
of any or all corporations owning real property in any district or
any information contained in such exhibits.
EXEM~'TIONS
SECTION 72. Claims for certain exemptions.
(a) None of the exemptions from taxation granted in Sec-
tions 75 and 77 to 82 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.
s67-~
(b) A claim for exemption once allowed shall have continuing
effect until:
(1) The exemption is disallowed;
(2) The assessor voids the claim after first giving
notice (either to the claimant or to all claimants
in the manner provided for by ordinance}, that the
claim or claims on file will be voided on a certain
date, not less than thirty days after such notice;
(3) The five®year period for exemption, as allowed in
Section 82, expires; or
(4) The claimant makes the report required by
subsection (d).
(c) A claimant may file a claim for exemption even though
there is on file and in effect a claim covering the
same premises, or a claim previously filed and disallowed
or otherwise voided. However, no such clai~i shall be
filed if it is identical with one already on file and
having continuing effect. The report required by
subsection (d) may be accompanied by or combined with
a new claim.
(d) Any person who has been allowed an exemption under
Section 75 or 77 to 82 has a duty to report to the
assessor within thirty days after he ceases to qualify
for such an exemption for one of, but not limited to,
the following reasons:
(1) He ceases to be the owner, lessee, or purchaser of
the exempt premise;
(2) A change in the facts previously reported has
occurred concerning the occupation, use, or renting
-68~
of the premises, buildings or other improvements
thereon; or
(3) Some other change in status has occurred which
affects his exemption.
Such report shall have the effect of voiding the clai~i
for exemption previously filed, as provided in sub
section (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 ordinance,
the fiduciary shah make the report required by this
subsection within thirty days after his assumption of
has 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 or the amount of the
taxes on the property computed without the claim for
exemption as of January l of the year in which the report
was due, whichever is lesser. The penalty shall be
recovered as provided for by ordinance. In addition to
this penalty, the taxes due on the property plus any
additional penalties and interest thereon shad be
collected as property taxes and shall be a lien on the
property as provided for by ordinance.
~69~.
(e) If the assessor is of the view that, for any tax year,
the exemption should not be allowed, in whole or in part,
he may at any time within five years of January 1 of that
year disallow the exemption for that year, in whole or in
part, and may add to the assessment list for that year
the amount of value involved, in the manner provided
for by ordinance for the assessment of omitted property;
provided, that if an assessment or addition under this
subsection is made after April 9 preceding the tax year,
the taxes on the amount of value involved in the assess@
meet or addition so made shall be made a lien as provided
for by ordinance by recording a certificate setting forth
the amount of tax involved, penalties, and interest.
(f) In any case of recordation of a certificate for the
amount of the civil penalty under subsection (d), or for
the amount of tax, penalties, and interest assessed or
added under subsection (e), a person shall be deemed to
have an interest arising before the recordation of the
certificate only if and to the extent that he acquired
his interest in good faith and for a valuable considerate
tion without notice of a violation of the requirements
of subsection (d) having occurred.
SECTION 73. Rules and regulations. The Director of finance
may promulgate rules and regulations as may be necessary to
administer Sections 74 to 88.
SECfiION 74. Assignment of partial exemptions. Unless other
wise specifically provided, allowable exemptions shall be applied
~70A
first to the value of the buildings on the land and the remainder
of the unused exemption, if any, to the value of the land.
SECTION 75. Homes.
(a) Real property owned and occupied only as his or their
principal home as of the date of assessment by an
individual or individuals, shall be exempt only to the
following extent from property taxes:
(1) Totally exempt where the value of the property is
not in excess of $12,000;
(2) Where the value of the property is in excess of
$12,000, the exemption shall be the amount of
$12,000.
Provided:
(A) That no such exemption shall be allowed to any
corporation, co®partnership, or company;
(H) That the exemption shall not be allowed on more
than one home for any one taxpayer;
(C) That where the taxpayer has acquired his home
by a deed made on or after July 1, 1951, the
deed shall have been recorded on or before
December 31 immediately preceding the year for
which the exemption is claimed;
(D) That a husband and wife shall not be permitted
exemption of separate homes owned by each of
them, unless they are living separate and apart,
in which case they shall be entitled to one
exemption, to be apportioned between each of
their respective homes in proportion to the
value thereof; and
~71~
(E) That a person living on premises, a portion of
which is used for commercial purposes, shall
not be entitled to an exemption with respect
to such portion, but shall be entitled to an
exemption with respect to the portion thereof
used exclusively as a home.
(b) The use of a portion of any building or structure for
the purpose of drying coffee and the use of a portion of
real property, including structures, in connection with
the planting and growing for commercial purposes, or the
packing and processing for such purposes, of flowers,
plants, or foliage, shall not affect the exemptions
provided for by this section.
(c) :~ti~here two or more individuals jointly, by the entirety,
or in common own or lease land on which their homes are
located, each home, if otherwise qualified for the
exemption granted by this section, shall receive the
exemption. If a portion of land held jointly, by the
entirety, or in common by two or more individuals is not
qualified to receive an exemption, such disqualification
shall not affect the eligibility for an exemption or
exemptions of the remaining portion.
(d) A taxpayer who is sixty years of age or over and who
qualifies under subsection (a) shall be entitled to one
of the following multiples of home exemption:
Multiple to be Used
in Computing Home
of Taxpa~rer Exemption .mount
60 years of age or over
but not 70 years of
age or over 2.0
70 years of age or over 2.5
s72-~
For the purpose of this subsection, a husband and wife
who own property jointly, by the entirety, or in common,
on which a home exemption under the provisions of
subsection (a) has been granted shall be entitled to
the applicable multiple of home exemption set forth
above when at least one of the spouses qualifies each
year for the applicable multiple of home exemption.
SECTION 76. Home, lease, lessees defined. For the purpose
of Section 75, the word "home" includes:
(1) the entire homestead when it is occupied by the taxpayer
as such;
(2) A residential building on land held by the lessee or his
successor in interest under a lease for a term of five
years or more for residential purposes and owned and
used as a residence by the lessee or his successor in
interest, where the lease and any extension, renewal,
assignment, or agreement to assign the lease, have been
duly entered into and recorded prior to January 1
preceding the tax year for which the exemption is
claimed, and whereby the lessee agrees to pay all taxes
during the term of the lease;
(3) An apartment which is a living unit (held under a
proprietary lease by the tenant thereof) in a multi-unit
residential building on land held by a cooperative
apartment corporation (of which the proprietary lessee
of such living unit is a stockholder) under a lease
for a term of five years or more for residential
purposes and which apartment is used as a residence
by the lessee-stockholder, where the lease and any
-73-
extension or renewal have been duly entered into
and recorded prior to January 1 preceding the tax
year for which the exemption is claimed, and whereby
the lessee-stockholder agrees to pay all taxes during
the term of the lease provided that:
(A) The exemption shall not be allowed in respect
to any cooperative apartment unit where the
owner of the cooperative apartment unit claims
exemption on a home or other cooperative apart
ment unit; and
(B) The owner or owners of a cooperative apartment
building or premises shall not be permitted
exemptions where a husband and wife owner of a
cooperative apartment unit own separate coopm
erative apartment units or separate homes
owned by each of them, unless they arc living
separate and apart, in which case the owner
of the cooperative apartment or premises shall
be entitled to one~half of one exemption;
(4) An apartment in a multi®unit apartment building which
is occupied by the owner of the entire apartment build
ing as his residence, provided that:
(A) The exemption shall not be allowed in respect
to any apartment owner who claims any other
home exemption; and
(~) A husband or wife owner of the aforementioned
type of apartment shall not be allowed a full
exemption where the husband and wife are living
separate and apart and each is maintaining an
-74-
apartment or home entitled to an exemption, in
which case they shall be entitled to one
exemption to be apportioned between each of their
respective homes in proportion to the value thereof;
(5) That portion of a residential duplex and that portion
of land appurtenant to the duplex which are occupied by
the owner of the duplex and land as his residence,
provided that:
(A) The exemption shall not be allowed in respect
to any duplex owner who claims any other home
exemption;
(B) The portion of the appurtenant land shall not be
exempt unless owned in fee by the duplex owner;
and
(C) A husband or wife owner of the duplex shall not
be allowed a full exemption where the husband
and wife are living separate and apart and each
is maintaining a duplex or home entitled to an
exemption, in which case they shall be entitled
to one exemption to be apportioned between each
of their respective homes in proportion to the
value thereof;
(6) Premises bald under an agreement to purchase the
same for a home, where the agreement has been duly
entered Into and recorded prior to January 1 pre
ceding the tax year for which the exemption is claimed,
whereby the purchaser agrees to pay all taxes while
purchasing the premises.
~75~
(7) An apartment which is a living unit (held under a
lease by the tenant thereof) in a multi®unit residen@
tial building used for retirement purposes undo a
lease for a term to last during the lifetime of the
lessee and his or her surviving spouse and which
apartment is used as a residence by the lessee and
his or her surviving spouse, and where the apartment
unit reverts back to the lessor upon the death of
the lessee and his or her surviving spouse, and
where the lessee has been duly entered into and
recorded prior to January 1 preceding the tax year
for which the exemption is claimed, and whereby
the lessee egress to pay all taxes during the term
of the lease.
the subletting of the taxpayer of not more than one room to
a tenant shall not affect the exemption provided for by Section 75.
As used in Section 75, in the first paragraph of Section 50
and in Section 72, the word "lease" shall be deemed to include a
sublease, and the word "lessee" shall be deemed to include a sub!
lessee.
SEC~IQN 77. Homes of totally disabled veterans. Real property
owned and occupied as a home by any person who is totally disabled
due to injuries received while on duty with the armed forces of
the United States, or owned by any such person together with his
or her spouse and occupied by either or both spouses as a home, or
owned and occupied by a widow or widower of such totally disabled
veteran who shall remain unmarried and who shall continue to own
and occupy the premises as a home, is hereby exempted from all
property taxes, other than special assessments, provided:
~76®
(1) That such total disability was incurred whip on duty
as a member of the armed forces of the United States,
and that the Department of Finance may require proof of
total disability;
(2) That the home exemption shall be granted only as long
as the veteran claiming exemption remains totally
disabled;
(3) That the exemption shall not be allowed on more than
one house for any one person;
(4) That a person living on premises, a portion of which
is used for commercial purposes, shall not be entitled
to an exemption with respect to such portion, but shall
be entitled to an exemption with respect to the portion
used exclusively as a home; provided, that this exemp~
tion shall not apply to any structure, including the
land thereunder, which is used for commiercial purposes.
For the purposes of this section, the word "home" includes
the entire homestead when it is occupied by a qualified totally
disabled veteran as a home; houses where the disabled veteran
owner sublets not more than one room to a tenant; and premises
held under an agreement to purchase the same for a home, where
the agreement has been duly entered into and recorded prior to
January 1 preceding the tax year for which exemption is claimed,
whereby the purchaser agrees to pay all taxes while purchasing
the premises.
SECTION 78. Persons affected with leprosy. Any person
who has been declared by authority of law to be a person affected
with leprosy in the communicable stage and is admitted to a
®77-
hospital for isolation treatment, shall, so long as he is so
hospitalized, and thereafter for so long as such person has been
so declared to be therefrom temporarily released, shall, so long
as he remains or continues under temporary release, be exempted
from real property taxes on all real property owned by him on the
date when he was declared to be a person so affected with leprosy,
up to, but not exceeding, a taxable value of $15,000.
SECTION 79. Exemption, persons with impaired sight or
hearing and persons totally disabled.
(a) Any person who is blind or deaf, as defined in Sec®
Lion 235®1, Hawaii Revised Statutes, shall, so long as
his sight or hearing is so impaired, be exempt from
real property taxes on all real property owned by
him up to, but not exceeding a taxable value of $15,000.
The impairment of sight or hearing shall be certified to
by the state department of health or by any state or
county medical officer duly authorized by the state
department of health for this purpose.
(b) Any person who is totally disabled, as defined in
Section 2351, Hawaii Revised Statutes, shall, as long
as he is totally disabled, be exempt from real property
taxes on all real property owned by him up to, but not
exceeding a taxable value of $15,000. The disability
shall be certified to by the state department of health
or by any state or county medical officer duly authorized
by the state department of health for this purpose.
~78®
SECTION 80. Nonprofit medical, hospital indemnity associations;
tax exam tion. Every association or society organized and operating
under HRS Chapter 433 solely as a nonprofit medical indemnity or
hospital sirvice association or society or both shall be, from the
time of such organization, exempt from real property taxes on all
real property owned by it.
SECTION 81. Charitable, etc., purposes.
(a) There shall be exempt from real property taxes real
property designated in subsection (b) or (c) and meeting
the requirements stated therein, actually and (except
as otherwise specifically provided) exclusively used
for nonprofit purposes. If an exemption is claimed
under one of these subsections (b) and (c), an exemption
for the same property may not also be claimed under the
other of these subsections.
(b) This subsection applies to property owned in fee simple,
leased, or rented for a period of one year or more, by
the person using the property for the exempt purposes,
hereinafter referred to as the person claiming the exemp~
Lion. If the property for which exemption is claimed
is leased or rented, the lease or rental agreement shall
be in force and recorded in the bureau of conveyances.
Exemption is allowed by this subsection to the following
property:
(1) Property used for school purposes including:
(A) Kindergartens, grade schools, junior high
schools, and high schools, which carry on a
program of instruction meeting the requirements
~79~
of the compulsory school attendance law,
Section 298®9, Hawaii Revised Statutes, or
which are for preschool children who have
attained or will attain the age of five years
on or before December 31 of the school year,
provided that any claim for exemption based
on any of the foregoing uses shall be accomm
parried by a certificate issued by or under
the authority of the department of education
stating that the foregoing requirements are
met;
(H) Junior colleges or colleges carrying on a
general program of instruction of college level.
The property exempt from taxation under this
paragraph is limited to buildings for educational
purposes (including dormitories), housing owned
by the school or college and used as residence
for personnel employed at the school or college,
campus and athletic grounds, and realty used for
vocational purposes incident to the school or
college.
(2) Property used for hospital and nursing home purposes,
including housing for personnel employed at the hos~
pital; in order to qualify under this paragraph the
person claiming the exemption shall present with the
claim a certificate issued by or under the authority
of the state department of health that the property
for which the exemption is claimed consists in, or
A80Q
is a part of, hospital or nursing home facilities
which are properly constituted under the law and
maintained to serve, and which do serve the public.
(3) Property used for church purposes including inci~
dental activities, parsonages, and church grounds,
the property exempt from taxation being limited to
realty exclusive of burying grounds (exemption for
which may be claimed under paragraph (4)).
(4) Property used as cemeteries (excluding, however,
property used for cremation purposes) maintained by
a religious society, or by a corporation, association
or trust organized for such purpose.
(5) Property dedicated to public use by the owner, which
dedication has been accepted by the State or County,
reduced to writing, and recorded in the bureau of
conveyances; and property which has been set aside
for public use and actually used therefor for a
period not less than five years.
(6) Property owned by any nonprofit corporation, admis~
sion to membership of which is restricted by the
corporate charter to members of a labor union;
property owned by any government employees' asso~
ciation or organization, one of the primary purposes
of which is to improve employment conditions of its
members; property owned by any trust, the benefi~
ciaries of which are restricted to members of a
labor union; property owned by any association
or league of federal credit unions chartered by
the United States, the sole purpose of which is
~81~
to promote the developmcnt of federal credit unions
in the State. Notwithstanding any provision in this
section to the contrary, the exemption shall apply
to property or any portion thereof which is leased,
rented, or otherwise let to another, if such leasing,
renting, or letting is to a nonprofit association,
organization, or corporation.
(c) This subsection shall apply to property owned in fee
simple or leased or rented for a period of one year or
more, the lease or rental agreement being in forcc and
recorded in the bureau of conveyances at the time the
exemption is claimed, by either:
(1) A corporation, society, association, or trust having
a charter or other enabling act or governing instru~
ment which contains a provision or has been construed
by a court of competent jurisdiction as providing
that in the event of dissolution or termination of
the corporation, society, association, or trust, or
other cessation of use of the property for the exempt
purpose, the real property shall be applied for
another charitable purpose or shall be dedicated to
the public, or
(2) A corporation chartered by the United States under
Title 36, United States Code, as a patriotic society.
exemption is allowed by this subsection for property
used for charitable purposes which are of a community,
character building, social service, or educational
nature, including museums, libraries, art academics,
and senior citizen housing facilities qualifying for
p826
a loan under the laws of the United States as autho@
rized by Section 202 of the Housing Act of 1959 as
amended by the Housing Act of 1961, the Senior
Citizens Housing Act of 1962, the Housing Act of 1964,
and the Housing and Urban Development Act of 1965.
(d)
(e)
If any portion of the property which might otherwise
be exempted under this section is used for commercial or
other purposes not within the conditions necessary for
exemption (including any use the primary purpose of which
is to produce income even though such income is to be
used for or in furtherance of the exempt purposes) that
portion of the premises shall not be exempt but the
remaining portion of the premises shall not be deprived
of the exemption if the remaining portion is used
exclusively for purposes within the conditions necessary
for exemption. In the event of an exemption of a
portion of a building, the tax shall be assessed upon
so much of the value of the building (including the
land thereunder and the appurtenant premises) as the
proportion of the floor space of the nonexempt portion
bears to the total floor space of the building.
The term "for nonprofit purposes", as used in this section
requires that no monetary gain or economic benefit inure
to the person claiming the exemption, or any private
shareholder, member, or trust beneficiary. "Monetary gain"
includes without limitation any gain in the form of money
or money's worth. "Hconomic benefit" includes without
limitation any benefit to a person in the course of his
business, trade, occupation, or employment.
~83~
SECTION 82. Property used in manufacture of pulp and paper.
All property in the State, both real and personal, actually and
solely used or to be used, whether by the owner or lessee thereof,
in connection with the manufacture of pulp and paper from bagasse
fibre, shall be exempt from property taxes for a period of five
years from the first day of January following commencement of
construction of a plant or plants on the property for such
purpose.
SECTION 83. Croceshelters. Any other law to the contrary
notwithstanding, any permanent structure constructed or installed
on any taxable real property consisting of frames or supports and
covered by rigid plastic, fiberglass, or other rigid and semi
rigid transparent or translucent material, and including wooden
laths, used primarily for the protection of crops shall be
exempted in determining and assessing the value of such taxable
real property for ten years or for a period of tan years from
the first day of January following commencement of construction
or installation of the structure on the property for such purpose;
provided that any temporary structure so constructed or installed
and covered by flexible plastic or other flexible transparent or
translucent material, used for such purpose, shall be so exempted
not subject to the ten®year limitation; provided, further, that
such exemption shall continue only so long as the structure is
maintained in good condition. Only structures used for commercial
agricultural or horticultural purposes shall be included in the
exemption.
SECTION 84. exemption, dedicated lands in urban districts.
(a) Portions of taxable real property which err dedicated
and approved by the Director of Finance as provided for
®84~
by this section shall be exempted in determining and
assessing the value of such taxable real property.
(b) Any owner of taxable real property in an urban district
desiring to dedicate a portion or portions thereof for
landscaping, open spaces, public recreation, and other
similar uses shall petition the Director of finance
stating the exact area of the land to be dedicated and
that the land is not within the setback and open space
requirements of applicable zoning and building code
laws and ordinances, and that the land shall be used,
improved, and maintained in accordance with and for
the sole purpose for which it was dedicated, except
that land within a historic district may be so dedicated
without regard to the setback and open space requirements
of applicable zoning and building code laws and ordinances.
The director shall make a finding as to whether the use
to which such land will be dedicated has a benefit to the
public at least equal to the value of the real property
taxes for such land. Such finding shall be measured by
the cost of improvements, the continuing maintenance
thereof, and such other factors as the director may deem
pertinent. If the director finds that the public benefit
is at least equal to the value of real property taxes
for such land, he shall approve the petition and declare
such land to be dedicated land.
(c) The approval of the petition by the director shall con
stitute a forfeiture on the part of the owner of any
right to change the use of his land for a minimum period
of ten years, automatically renewable indefinitely,
®85®
subject to cancellation by either the owner or the
director upon five years' notice at any time after the
end of the fifth year.
(d) failure of the owner to observe the restrictions on the
use, improvement, and maintenance of his land shall
cancel the special tax exemption privilege retroactive
to the date of the original dedication, and all differ
ences in the amount of taxes that were paid and those
that would have been due from the assessment of the tax
exempted portion of his land shall be payable together
with interest of five percent a year from the respective
dates that these payments would have been due. failure
to observe the restrictions on the use means failure for
a period of over twelve consecutive months to use, improve,
and maintain the land in the manner requested in the
petition or any overt act changing the use for any period.
Nothing in this paragraph shall preclude the county frori
pursuing any other remedy to enforce the covenant on the
use of the land.
(e) 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 by December 15 of such year. If approved,
the exemption based upon the use requested in the dedim
cation shall be effective January 1, of the next calendar
year.
(f) The owner may appeal any disapproved petition as in the
case of an appeal from an assessment.
(g) The director shall make and adopt necessary rules and
regulations including such rules and regulations governing
g86e
minimum areas which may be dedicated for the improvement
and maintenance of such areas.
(h) "Landscaping" means lands which arc improved by landscape
architecture, cultivated plantings, or gardening.
"Open spaces" means lands which arc open to the public
for pedestrian use and momentary repose, relaxation, and
contemplation.
"Public recreation" refers to lands which may be used by
the public as parks, playgrounds, historical sites, camp
grounds, wild life refuge, scenic sites, and other
similar uses.
"Owner" includes lessees of real property whose lease
term extends at least ten years frore~ the date of the
petition.
SECTION 85. Hxemptions for ai~ollution control facility.
The value of all property in the county (not including a building
and its structural components, other than a building which is
exclusively a treatment facility) actually and solely used or
to be used as an air pollution control facility as the terrei is
defined in Chapter 237, Hawaii Revised Statutes, shall be
exempted from the measure of the taxes imposed by this ordinance;
provided, however, the property exemption shall be applicable only
with respect to a certified facility which is property (1) the con
struction, reconstruction or erection of which is completed by
the taxpayer after June 30, 1969, or (2) acquired by the taxpayer
after June 30, 1969, if the original use of the property commences
with the taxpayer after June 30, 1969; provided, further, the
facility is placed in service by the taxpayer before July 1, 1975.
-87~
Application for the exemption provided herein shall first
be made with the stag director of health who shall, if satisfied
that the facility meets the pollution emission criteria established
by the state department of health, certify to that fact. Upon
receipt of the certification from the department of health, the
Director of Finance shall exempt the facility from the tax imposed
by this ordinance. Anew certificate shall be obtained from the
director of health and filed with the Director of Finance every
two years certifying that the pollution control facility complies
with the pollutant emission criteria established by the department
of health. The Director of Finance shall furnish all forms required
by this section.
The Director of Finance shall promulgate rules and regulations
necessary to administer this section.
SECTION 86. Alternate energy improvements, exemption.
(a) The value of all property in the county (not including a
building or its structural components, except where alterm
Hate energy improvements are incorporated into the
building, and then only that part of the building neces~
nary to such improvement) actually used for an alternate
energy improvement shall be exempted from the measure of
the taxes imposed by this ordinance; provided the property
exemption shall be applicable only with respect to alter
Hate energy improvements which are installed and placed in
service after June 30, 1976, but before December 31, 1981.
Application for the exemption provided by this section
shall be made with the Director of Finance.
The Director of Finance may require the taxpayer to
furnish reasonable information in order that he may
9gg~
ascertain the validity of the claim for deduction made
under this section and may adopt rules and regulations
to implement this section.
(b) As used in this section "alternate energy improvement"
means any construction or addition, alteration, modifica®
tion, improvement, or repair work undertaken upon or made
to any building which results in:
(1) The production of energy from a source, or uses a
process which does not use fossil fuels or nuclear
fuels. Such energy source may include, but shall
not be limited to, solid wastes, wind, geothermal,
solar, or ocean waves, tides, or currents. Such
energy process may include, but shall not be limited
to, bio®conversion, hydro_electric power, thermal
conversion, or osmosis; provided that nuclear fission
shall be excluded from the provisions of this section;
or
(2) An increase level of efficiency in the utilization
of energy produced by fossil fuels or in the utili~
zation of secondary forms of energy dependent upon
fossil fuels for its generation.
SECTION 87. Fixtures used in manufacturing or ~roducin
tangible personal products. There shall be exempted and excluded
from the measure of the taxes imposed by this ordinance, all
fixtures which are categorized as machinery and other mechanical
or other allied equipment which are primarily and substantially
used in manufacturing or producing tangible personal products.
~89g
S~CTZON 88. Public ~erty, etc. fihe following real
property shall be exempt from taxation.
(1) Real property belonging to the United Stags, to the
State, or to the County; provided, that real property
belonging to the United States shall be taxed upon the
use or occupancy thereof as provided in Section 89, and
there shall be a tax upon the property itself if and
when the Congress of the United States so permits, to the
extent so permitted and in accordance with any conditions
or provisions prescribed in such act of Congress; provided,
further, that real property belonging to the State or the
County, or belonging to the United States and in the
possession, use, and control of the State, shall be taxed
on the fee simple value thereof, and private persons
shall pay the taxes thereon and shall be deemed the
"owners" thereof for the purposes of this ordinance,
in the following cases:
(A) Property held on January 1 preceding the tax year
under an agreement for its conveyance by the governs
went to private persons shall be deemed fully taxable,
the same as if the conveyance had been made;
(~) Property held on January 1 preceding the tax year
under a government least shall be entered in the
assessment lists and such tax rolls for that year
as fully taxable for the entire tax year, but
adjustments of the taxes so assessed may be made
as provided for by ordinance so that such tenants
are required to pay only so much of the taxes as is
proportionate to the portion of the tax year during
which the real property is held or controlled by
them;
~90~
(C) Property held under a government lease commencing,
after January 1 preceding the tax year or under an
agreement for its conveyance or a conveyance by
the government, made after January 1 preceding
the tax year, shall be assessed as omitted property
as provided for by ordinance, but the taxes thereon
shall be prorated so as to require the payment of
only so much of the taxes as is proportionate to
the remainder of the tax year.
(D) Property where the occupancy by the tenant for
commercial purposes has continued for a period of
one year or more, whether the occupancy has been
on a permit, license, month~to-month tenancy, or
otherwise, shall be fully taxable to the tenant
after the first year of occupancy, and the property
shall be assessed in the manner provided in sub
divisions (B) and (C) of this paragraph for the
assessment of properties held under a government
lease; provided that the property occupied by the
tenant solely for residential purposes on a month
to~month tenancy shall be excluded from this
paragraph.
(E) In any case of occupancy of a building or structure
by two or more tenants, or by the government and a
tenant, under a lease for a term of one year or
more, the tax shall be assessed to the tenant upon
so much of the value of the entire real property
as the floor space occupied by the tenant proportionP
ately bears to the total floor space of the structure
or building.
~gl®
For the purposes of subdivisions (B) and (C) of this
subsection: "bases" means any lease for a term of one
year or more or which is renewable for such period
as to constitute s total term of one year or more. A
lease having a stated term shall, if it otherwise comes
within the meaning of the term "lease," be deemed a
lease notwithstanding any right of revocation, cancella~
Lion, or termination reserved therein or provided for
thereby. Whenever a lease is such that the highest and
best use cannot be made of the property by the lessee,
the measure of the tax imposed on such property pursuant
to subdivisions (~) and (C) shall be its fee simple
value upon consideration of the highest and best use
which can be made of the property by the lessee.
Provided, further, that real property belonging to
the United States, even though not in the possession,
use, and control of the State, shall be taxed on the
fee simple value thereof, and private persons shall pay
the taxes thereon and shall be deemed the "owners"
thereof for the purposes of this ordinance, in the
following cases:
(i} Property held on January 1 preceding the tax
year under an agreement for the conveyance of
the same by the government to private persons
shall be deemed fully taxable, the same as
if the conveyance had been-made, but the
assessment thereof shall not impair and
shall be so made as to not impair, any right,
title, lien, or interest of the United States.
~92-
(ii) Property held under an agreement for the
conveyance of the same or a conveyance of the
same by the government, made after January 1
preceding the tax year, shall be assessed as
omitted property as provided by ordinance, but
the taxes thereon shall be prorated so as to
require the payment of only so much of such
taxes as is proportionate to the remainder
of the tax year, and in the case of, property
held under an agreement for the conveyance of
the same but not yet conveyed, the assessment
thereof shall not impair, and shall be so
made as to not impair, any right, title, lien,
or interest of the United States.
(2) Real property under lease to the State or the County
under which lease the lessee is required to pay the
taxes upon such property;
(3) Subject to Section 101@39(B), Hawaii Revised Statutes,
any real property in the possession of the State or
County which is the subject of eminent domain proceedings
commenced for the acquisition of the fee simple estate
in such land by the State or County; provided the fact
of such possession has been certified to the director
as provided by Seedon 10136 or 10138, Hawaii Revised
Statutes, or is certified not later than December 31
preceding the tax year for which such exemption is claimed;
(4) Real property with respect to which the owner has
granted to the State or County a right of entry and upon
which the Stag or County has entered and talon possession
~93~
under the authority of the right of entry with intention
to acquire the fee simple estate therein and to devote
the real property to public use; provided the State
or County shall have, prior to December 31 preceding
the tax year for which the exemption is claimed, certified
to the director the date upon which it took possession;
(5) Any portion of real property within the area upon which
construction of buildings is restricted or prohibited
and which is actually rendered useless and of no value
to the owners thereof by virtue of any ordinance estab~
lishing setback lines thereon; provided, that in order
to secure the exemption the person claiming it shall
annually file between December 15 and December 31
preceding the applicable tax year a sworn written state
went with the director describing the real property in
detail and setting forth the facts upon which exemption
is claimed, together with a written agreement that in
consideration of the exemption from taxes he will not
make use of the land in any way whatsoever during the
ensuing year. Any person who has secured such exemption
who violates the terms of the agreement shall be fined
twice the amount of the tax which would be assessed upon
the land but for such exemption;
(6) Real property exempted by any laws of the United States
which exemption is not subject to repeal by the Council;
(7) Any other real property exempt by law.
SECTION 89. Lessees of exempt real property.
(a) When any real property which for any reason is exempt
from taxation is leased to and used or occupied by a
a94p
private person in connection with any business conducted
for profit, such use or occupancy shall be assessed
and taxed in the same amount and to the same extent as
though the lessee were the owner of the property and
as provided in subsection (b), provided, that:
(1) The foregoing shall not apply to the following:
(A) Federal property for which payments are made
in lieu of taxes in amounts equivalent to taxes
which might otherwise be lawfully assessed;
(~) Any property or portion thereof taxed under any
other provision of this ordinance to the extent
and for the period so taxed.
(2) The term "lease" shall mean any lease for a term of
one year or more, or which is renewable for such
period as to constitute a total term of one year or
more. A lease having a stated term shall, if it
otherwise comes within the meaning of the term
"lease", be deemed a lease notwithstanding any
right of revocation, cancellation, or termination
reserved therein or provided for thereby.
(3) The assessment of the use or occupancy shall be made
in accordance with the highest and best use permitted
under the terms and conditions of the lease.
(b) The tax shall be assessed to and collected from such
lessee as nearly as possible in the same-manner and time
as the tax assessed to owners- of real property, except
that the tax shall not become a lien against the property.
In case the use or occupancy is in effect on January 1
preceding the tax year, the lessee shall be assessed for
®95~
the entire year but adjustments of the tax so assessed
shall be made in the event of the termination of the use
or occupancy during the year so that the lessee is
required to pay only so much of the tax as is proportionate
to the portion of the tax year during which the use or
occupancy is in effect, and the director is hereby
authorized to remit the tax due for the balance of the
tax year. In case the use or occupancy commences after
January 1 preceding the tax year, the lessee shall be
assessed for only so much of the tax as is proportionate
to the period that the use or occupancy bears to the tax
year.
the assessment of the use or occupancy of real property
made under this section shall not be included in the
aggregate value of taxable realty for the purposes of
Section 94 but the Council, at the time that it is fur®
niched with information as to the value of taxable real
property, shall also be furnished with information as to
the assessments made under this section, similarly deter
mined but separately stated.
If a use or occupancy is in effect on January 1 preceding
the tax year, the assessment shall be made and listed for
that year and the notice of assessment shall be given to
the taxpayer in the manner and at the time prescribed by
ordinance; and when so given, the taxpayer, if he deems
himself aggrieved, may appeal as provided for by ordi@
Hance; if a use or ocoupancy commences after January 1
preceding the tax year or if for any reason an assessment
®96®
is omitted for any tax year, the assessment shall be
made and listed and notice thereof shall be given in the
manner and at the time prescribed by ordinance, and an
appeal from an assessment so made may be taken as provided
by ordinance.
SECTION 90. Property of the United States leased under the
National Housin Act. Real property belonging to the United
States leased pursuant to Title VIII of the National Housing Act,
as amended or supplemented from time to time:
(1) Shall not be taxed under this ordinance upon the lessee's
interest or any other interest therein, except as provided
in paragraph (2).
(2) Shall be taxed under this ordinance to the extent of
and measured by the value of the lessee's interest in
any portion of the real property (including land and
appurtenances thereof and the buildings and other
improvements erected on or affixed on the same) used
for, or in connection with, or consisting in, shops,
restaurants, cleaning establishments, taxi stands,
insurance offices, or other business or commercial
facilities. The tax shall be assessed to and collected
from the lessee. The assessment of such property shall
not impair, and shall be so made as to not impair, any
right, title, lien, or interest of the United States.
SECTION 91. Exemption for low and moderate income housing.
(a) For the purposes of this section, "nonprofit or limited
distribution mortgagor" means a mortgagor who qualifies
~97®
for and obtains mortgage insurance under Sections 202,
221(d)(3), or 236 of the National Housing Act as a non
profit or limited distribution mortgagor.
(b) Real property used for a housing project which is owned
and operated by a nonprofit or limited distribution
mortgagor or which is owned and operated by a person,
corporation or association regulated by federal or state
laws or by a political subdivision of the State or agency
thereof as to rents, charges, profits, dividends, develop
meet costs and methods of operation, shall be exempt from
property taxes.
(c) Hxemptions claimed under Section 5338, Hawaii Revised
Statutes, shall disqualify the same property from
receiving an exemption under this section.
(d) the Director of Finance shall promulgate rules and
regulations necessary to administer this section.
SECTION 92. Claim for exemption.
(a) Notwithstanding any provision in this ordinance to the
contrary, any real property exempt from property taxes
under Section 91 shall be exempt from property taxes
front the date the property is qualified for the exemp~
tion; provided that a claim for exemption is filed with
the director within sixty days of the qualification. As
used herein, the date of the qualification shall be the
date when the mortgage made by a nonprofit or limited
distribution mortgagor and insured under Sections 202,
221(d)(3) or 236 of the National Housing Act is filed far
recording with the registrar of the bureau of conveyances
_gge
or the assistant registrar of the land court of the State,
whichever is applicable.
(b) After the initial year of the qualification, the claim
for exemption shall be filed in the manner provided by
applicable law or rule or regulation.
(c) In the event property taxes have been paid to the County
in advance for real property subsequently becoming
qualified for the exemption, the Director of Finance shall
refund to the nonprofit or limited distribution mortgagor
owning the property that portion of the taxes attributable
to and paid for the period after the qualification.
SECTION 93. Other exemptions. Exemptions to real property
taxes as set forth in Chapter 53, Chapter 154, Chapter 183,
Chapter 186, Chapter 234, Chapter 239 and Chapter 514, Hawaii
Revised Statutes, and in Section 208 of the Hawaiian Homes
Commission Act, and which were enacted prior to November 7, 1978,
shall remain in effect and be recognized by this County in its
administration of the real property tax system, provided, that
all references to the director of taxation or the department of
taxation shall now be deemed to refer to the designated represene
tative of the mayor who shall also be subject to approval by the
County Council.
DETERMINATION OF RATPS
SECTION 94. Real Property Tax; Determination of Rates.
(a) Unless a different meaning is clearly indicated by
the context, as used in this section:
~99=
(1) "Nat 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 fair market value
of property determined under Section 48, which the
Director of Finance certifies as the tax base as
provided by ordinance less exemptions as provided
by ordinance 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 56 (d) of this ordinance. A resolution setting
the tax rates shall be adopted on or before June 20
preceding the tax year for which property tax revenues arc
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 of general circu~
lation. The date of the public hearing shall be not
less than ten days after the advertisement is first
published and s-hall set forth the tax rates to be
considered by the Council.
(2) After the public hearing provided for in paragraph (1),
the Council shall readv~*rtise and reconvene within
three weeks to adopt a resolution fixing the tax
~-100m
rates for the tax year for which property tax
revenues are to be raised. fihe advertisement shall
state the new rates to be fixed and the date, time
and place of the meeting scheduled for fixing such
rates. ~'he date, time, and place of the meeting
shall also be announced at the public hearing required
by paragraph (1). If the resolution fixing the tax
rates is not adopted within three weeks fromr the
public hearing required by paragraph (1), the Council
shall again advertise and meet as required by
paragraph (1) .
(3) If after adopting an increase or decrease in the
tax rates as provided by paragraphs (1) and (2),
the Council determines that it requires a further
increase or decrease in tax rates or fails to act
in any specified period, the Council shall readverm
tise and follow the requirements of paragraphs (1)
and ( 2) .
(c) The Council shall set the tax rates for each class of
property using the following method:
(1} Net taxable lands and net taxable buildings within
each class of property shall be assigned a percentage
of the total revenue to be derived from real property.
(2) 7Che percentage of revenue to be raised from net
taxable lands and net taxable buildings within each
class shall be multiplied by the total revenue to be
raised from real property in order to determine the
amount of revenue to be derived.
~101~
(3) fihe amount of revenue to be raised from net taxable
buildings within each class shall be divided by the
net taxable value of buildings in that class to
determine the tax cafe which shall be expressed in
terms of tax per $1,000 of net taxable buildings
computed to the nearest cent.
(4) fihe amount of revenue to be raised from net taxable
lands within each class shall be divided by the net
taxable value of lands in that class to determine the
tax rate which shall be expressed in Corms of tax per
$1,000 of net taxable lands computed to the nearest
cent.
(d) 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 ordinance.
(e) fihe Director of Finance shall on or before May 1
preceding the tax year furnish the Council with a calcu~
lation certified by him as being as nearly accurate as may
be, of the net taxable real property within the County,
separately stated for each category established in accor~
dance with section 56 (d) by this ordinance for net
taxable lands and for net taxable buildings plus such
additional data relating to the property tax base as may
be necessary.
(f) Insofar as the validity of any tax rate is concerned,
the provisions of subsections (b) and (e) of this section
as to dates, shall be deemed directory; provided that all
~102~
other provisions of subsections (b) and (e) and all provi~
sions of subsections (c) and (d) shall be deemed mandatory.
(g) Notwithstanding any provision to the contrary, there shall
be levied upon each individual parcel of real property
taxable under this ordinance a minimum real property tax
of $7.00 a year.
APPEALS
SECTION 95. A~~eals. Any taxpayer, who may deem himself
aggrieved by an assessment made by the director or by the director's
refusal to allow any exemption, may appeal from the assessment or
from such refusal to the Board of Review or the tax appeal court
pursuant to HRS Section 232 16 on or before April 9 preceding the
tax year, as provided in this ordinance. Where such an appeal is
based upon the ground that the assessed value of the real property
for tax purposes is excessive, the valuation claimed by the tax@
payer in the appeal shall be admissible in evidence, in any subse~
quent condemnation action involving the property, as an admission
that the fair market value of the real property as of the date of
assessment is no more than the value arrived at when the assessed
value from which the taxpayer appealed is adjusted to one hundred
percent fair market value; provided, that such evidence shall not
in any way affect the right of the taxpayer to any severance
damages to which he may be entitled.
SECTION 96. Appeals by persons under contractual obligations.
Whenever any person is under a contractual obligation to pay a tax
~103~
assessed against another, the person shall have the same rights of
appeal to the Eoard of Review and the tax appeal court and the
supreme court, in his own name, as if the tax were assessed against
him. The person against whom the tax is assessed shall also have
a right to appear and be heard on any such application or appeal.
SECTION 97. Grounds of appeal, real property taxes. In the
case of a real property tax appeal, no taxpayer shall be deemed
aggrieved by an assessment, nor shall an assessment be lowered or
an exemption allowed, unless there is shown (1) assessment of the
property exceeds by more than twenty percent the ratio of assess
went to market value used by the director as the real property tax
base, or (2) lack of uniformity or inequality, brought about by
illegality of the methods used or error in the application of the
methods to the property involved, or (3) denial of an exemption to
which the taxpayer is entitled and for which he has qualified, or
(4) illegality, on any ground arising under the Constitution or laws
of the United States or the laws of the State or the ordinances of
the County in addition to the ground of illegality of the methods
used, mentioned in clause (2).
SECTION 98. Second a eel. In every case in which a taxpayer
appeals a real property tax assessment to the Soard of Review or
to a tax appeal court and there is pending an appeal of the assess
meat, the taxpayer shall not be required to file a notice of the
second appeal; provided the first appeal has not been decided
prior to April 9 preceding the tax year of the second appeal; and
m104~
provided further the director gives notice that the tax assess
meat has not been changed from the assessment which is the subject
of the appeal.
SECTION 99.
Small claims.
Any protesting taxpayer who would
incur a total tax liability, not including penalties and interest,
of less than $1,000 by reason of the protested assessment on payment
in question, may elect to employ the Small Claims Procedures of
the Tax Appeal Court as set out in HRS Section 2325.
SECTION 100. Appointment, removal, compensation. There is
created a Board of Review for the County of Hawaii which shall
consist of five members who shall be citizens of the State and
residents of the County, shall have resided at the time of appoint
ment for at least three years in the State, and shall be appointed
by the Mayor and confirmed by the County Council as provided by
Charter. A chairman shall be elected annually by members from the
membership. The vice chairman shall serve as the chairman of the
board during the temporary absence from the County, illness, or
disqualification of the chairman. Any vacancy in the board shall
be filled for the unexpired term as provided for in the Charter.
Bach member may receive and be paid out of the treasury compensa~
tion for his services for each day's actual attendance and his
actual traveling expenses. No officer or employee of the County
shall be eligible for appointment to any such board.
SECTION 101. Board of review; duties, powers, procedure
before.
(a) The Hoard of Review for the County of Hawaii shall
hear all disputes between the director and any
~105~
taxpayer in all cases in which appeals have been
duly taken and the fact that a notice of appeal has
been duly filed by a taxpayer shall be conclusive
evidence of the existence of a dispute; provided that
this provision shall not be construed to permit a
taxpayer to dispute an assessment to the extent that
it is in accordance with his return unless he shows
lack of uniformity or inequality as set forth in
Section 97.
(b) The board shall hold public meetings at some central
location in the County commencing not later than
April 9 of each year and shall hear, as speedily as
possible, all appeals presented for each year. The
board shall have the power and authority to decide
all questions of fact and all questions of law,
excepting questions involving the Constitution or
laws of the United States, necessary to the deter
urination of the objections raised by the taxpayer
or the County in the notice of appeal; provided,
that the board shall not have power to determine or
declare an assessment illegal or void. Without
prejudice to the generality of the foregoing, each
board shall have power to allow or disallow exemptions
pursuant to law whether or not previously allowed or
disallowed by the director and to increase or lower any
assessment.
(c) The board shall base its decision on the evidence
before it, and, as provided in Section l9, the
assessment made by the director shall be deemed
~106-
prima facie correct. Assessments for the same
year upon other similar property situated in the
County shall be received in evidence upon the hearp
ing. In increasing or lowering any real property
assessment, the board shall be governed by this
ordinance. the board shall file with the director
its decision in writing on each appeal decided by it,
and a certified copy thereof shall be furnished by
the director forthwith to the taxpayer concerned by
delivery thereof to him, or by mailing the copy
addressed to his last known place of residence or
business.
(d) Upon completion of its review of the property tax
appeals for the current year, the board shall compile
and submit to the Mayor and the Council, and shall
file with the director for the use of the public, a
copy of a report covering such features of its work
as, in the opinion of the board, will be useful in
attaining the objectives set forth in this ordinance.
In this report the board shall additionally note
instances in which, in the opinion of the board,
the director, in the application of the methods
selected by him, erred as to a particular property or
particular properties not brought before the board
by any appeal, whether the error is deemed to have
been by way of underassessment or overassessment.
Before commencing this phase of its work the board
shall publish, during the first week of September
a notice specifying a period of at least ten days
~107~
within which complaints may be filed by any taxpayer.
each complaint shall be in writing, shall identify
the particular property involved, shall state the
valuation claimed by the taxpayer and the grounds of
objection to the assessment, and shall be filed with
the director who shall transmit the same to the board.
Not earlier than one week after the close of the period
allowed for filing complaints, the board shall hear the
same, after first giving reasonable notice of the hearing
to all interested taxpayers and the director. dike notice
and hearing shall be given in order for the board to
include in its report any other property not brought
before it by an appeal. The board may proceed by districts
designated by their tax map designation, and may from
time to time publish the notice above provided for as
the work proceeds by districts.
(e) The director, in the making of assessments for the
succeeding year, shall give due consideration to the
report of the board made pursuant to subsection (d}.
(f) The board and each member thereof in addition to all
other powers shall also have the power to subpoena
~.vitnesses, administer oaths, examine books and records,
and hear and take evidence in relation to any subject
pending before the board. It may request the tax
appeal court, to order the attendance of witnesses and
the giving of testimony by them, and the production
of books, records and papers at the hearings of the
board.
®108
SECTION 102. Tax appeal court. An appeal to the flax Appeal
Court may be filed by a taxpayer or the director as provided in
HRS Section 232®8 to 232®14 and Section 232x16 to 232@18.
Appeals to the State Supreme Court shall conform to HRS
Section 232 to 232w21.
SECTION 103. Appeal to board of review. The notice of appeal
of a real property assessment must be lodged with the director on or
before the date fixed by law for the taking of the appeal. An
appeal to the board of review shall be deemed to have been taken
in time if the notice thereof shall have been deposited in the
mail, postage prepaid, properly addressed to the director, on or
before such date.
The notice of appeal must be in writing and any such notice,
however informal it may be, identifying the assessment involved
in the appeal, stating the valuation claimed by the taxpayer
and the grounds of objection to the assessment shall be sufficient.
Upon the necessary information being furnished by the taxpayer
to the director, the director shall prepare the notice of appeal
upon request of the taxpayer or County and any notice so prepared
by the director shall be deemed sufficient as to its form.
The appeal shall be considered and treated for all purposes
as a general appeal and shall bring up for determination all
questions of fact and all questions of law, excepting questions
involving the Constitution or laws of the United States, necessary
for the determination of the objections raised by the taxpayer in
the notice of appeal. Any objection involving the Constitution or
laws of the United States may be included by the taxpayer in the
notice of appeal and in such case the objections may be heard and
determined by the tax appeal court on appeal from a decision of
~109-
the board of review; but this provision shall not be construed to
confer upon the board of review the power to hear or determine such
objections. Any notice of appeal may be amended at any time prior
to the board's decision; provided the amendment does not substan@
Bally change the dispute or lower the valuation claimed.
SECTION 104. Costs; deposit for an appeal. The costs to be
deposited by the taxpayer on appeal to the Hoard of Review shall
be $3.00 for each real property tax appeal.
The cost to be deposited by the taxpayer on any appeal to the
tax appeal court or the State Supreme Court shall be as provided in
HRS Sectiori 232®22 and 232®23.
SECTION 105. Costs, taxation. In the event of an appeal by
a taxpayer to the Hoard of Review, if the appeal is compromised, or
sustained as to fifty percent or more of the valuation in dispute,
the costs deposited shall be returned to the appellant. Otherwise,
the Entire amount of costs deposited shall be retained by the
County.
SECTION 106. Taxes aid pending appeal. The tax paid upon
the amount of any assessment, actually in dispute and in excess of
that admitted by the taxpayer, and covered by an appeal to the tax
appeal court duly taken, shall, pending the final determination
of the appeal, be paid by the director into the "litigated claims
account." If the final determination is in whole or in part in
favor of the appealing taxpayer, the director shall repay to him
out of the account, or if investment of the account should result
in a deficit therein, out of the general fund of the County, the
amount of the tax paid upon the amount held by the court to have
~110~
been excessive or nontaxable, together with interest at the rate
of eight percent a year from the date of each payment into the
litigated claims account, the interest to be paid from the general
fund of the County. The balance, if any, of the payment made by
the appealing taxpayer, or the whole of the payment, in case the
decision is wholly in favor of the assessor, shall, upon the final
determination become a realization of the general fund.
In a case of an appeal to a board of review, the tax paid upon
the amount of the assessment actually in dispute and in excess of
that admitted by the taxpayer, shall during the pendency of the
appeal and until and unless an appeal is taken to the tax appeal
court, be held by the director in a special deposit. In the event
of final determination of the appeal in the Board of Review, the
director shall repay to the appealing taxpayer out of the deposit
the amount of the tax paid upon the amount held by the board to
have been excessive or nontaxable, if any, the balance, if any,
or the whole of the deposit, in case the decision is wholly in
favor of the director to become a realization of the general fund.
SECTION 107. Amendment of assessment list to conform to
decision. The director shall alter or amend the assessment and
the assessment list in conformity with the decision of judgment
of the last board or court to which an appeal may have been taken.
SECTION 108. Upon enactment of this ordinance incorporating
Ordinance 493, adopted November 14, 1979, and Ordinance 515,
adopted January 3, 1980, Ordinances 493 and 515 are hereby
repealed.
~111~
SECTION 109. In the event that any portion of this ordinance
is declared invalid, such invalidity shall not affect the other
parts of 'phis ordinance.
SECTION 110. This ordinance shall take effect on July 1, 1981.
INTRODUCED BY:
.~
C ,> CIL i~EMBE COU~IT3~ U~ Bay-'~~`~?AII
HILO, HAWAII
DATE OF INTRODUCTION: June 25, 1980
DATE OF' AL)O~'TION: July 23, 1980
EFFECTIVE DATE: July 1, 1981
THIS WILL VERIFY THAT TWO-THIRDS
OF THE MEMBERSHIP OF THE HAWAII COUNCIL
VOTED TO OVERRIDE THE MAYOR'S VETO ON
BILL NO. 646,.
®112-°
Hilo, Hawaii
Date: ,Tun P ?_ 5_ 1 9 R (l
FIit:ST a€Ral71Nds
AYES NOES AJE
Dahinerg
X
Domingo X
Fujii X
Garcia X
Kawahara X
Lal X
Sameshima X
Tajiri X
Chr. Yamashiro X
9 0 0
Pubii~ation i?ate:
JU L 1 190
Hilo, Hawaii
Date: .Tn l v 2 3. 7 9 fi 0
SECOIdQ & FIPdAI ~EADIt+lG
AYES
NOES i
A f E
Dahlberg
X
[~omingo
X
Fujii X
Garcia X
Kawahara X
Lai X
Sarneshima ~ X
Tajiri X
Chr. Yamashiro X
9 0 0
Publication Date: ~~ ~ ~~
d"/e do hereby certify that the foregoing BILL was adopted by the County Council and published
as indicated above.
<,:
..........
...................
I _.°..3+i' Coun it Chair a
--
_ ~.1~_ ~ - ~~~~.':'-nom g''~ ~' , ~ _._.~
County Clerii
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CWR°18
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