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HomeMy WebLinkAboutORD 1984-021 1984-1988BILL N0. 912 (Drat 3) COUNTY OF HAWAII - STATE OF HAWAII ORDINANCE N0. ~ ~~ AN ORDINANCE AMENDING SECTION 19-53 AND SECTION 19-55, ARTICLE 7, CHAPTER 19, OF THE HAWAII COUNTY CODE OF 1983, AS AMENDED, RELATING TO DEFERRED OR ROLL BACK TAXES AND DEDICATIONS FOR REAL PROPERTY TAXATION. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Paragraph 3, Subsection (f), Section 19-53, Article 7, Chapter 19, as amended, is hereby amended to read as follows: "(3) A deferred or roll back tax shall be imposed on the owner of agricultural lands assessed according to their agricultural use as provided in subsection (a) of this section in the event of a change in land use classification by the authorized state agency to urban or rural districts or upon the subdivision of the land into parcels of five acres or less, provided that the tax shall not apply if the owner dedicates his land as provided in Section 19-55 within three years from the date 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 land shall continue to be used for agriculture during this period. The total amount of deferred taxes shall be computed commencing at the end of the third year following the change in classification where the land has continuously been used for agriculture, provided, however, that where the land has been 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 commence from the date the conversion was made retroactive to the date the assessment was made pursuant to section (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 classification has been made as a,result of a petition by any property owner or lessee and shall apply only upon lands owned by the nwnvr nr ~PCCE?P whn hac natiYinnarl fnr tha rhan4a in 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 where the change in classification or zoning 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. (B) Where the owner changes the land use classification, the deferred tax shall be due and payable within three years of such conversion except that where the land has been pput 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 agricultural 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 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 this chapter." SECTION 2. Section 19-55, Article 7, Chapter 19, as amended, to read as follows: "Sec. 19-55. 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 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 provisions; (2) the land dedicated must be used for the cultivation of rrn ne cnrh ac cnvar Tana ninaannla trnrL (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 immediately 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 he 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. The 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 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. If 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) If the owner desires to change from one specific ranching or other agricultural use to another ranching or other ricultural use he shall so petition the director of Hance and declare in his petition t (1) his land can best be used for a ranchin or other a ricu tural ur ose of er t an t at or which he originally requested permission; an (2) he will use his land for that new ur ose if his petition is approve . (d) U on recei t of a etition as su sections b 'and c the vided above in rector shall make a finding shall include and be based upon the productivit ratin s of the land in those uses for which it is best suite a stu o the ownershi size o o eratin unit t e present use o surroun ing simi ar lan s an 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 eve opment p an o t e tate. I of in ings are favorable to the owner, the director shall a rove the petition an ec are t at t e owner s an is a icated 1antl; rovitletl, that Tor lantls in urban districts, the irector s a ma a urt er in in s res ectin t e economic ease i ity o t e inten a use o t e and. If a three ~in~cin s are avorab e the director shall improve t e petition an ec are t e an to e dedicated. In order to lace prospective uyers on notice o t e rorl~accl-~i~lit t o etitioner shall wit in t in a s o notice o a rova recor the e ication in actor ante wit t o proce ures o t e Bureau of Conveyances. [c](e) The 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] December 31, to be effective as of [January 1] July 1 of the following tax year; (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 classification not 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 terms and conditions of the dedication unless a release has been issued by the director. An other rovision to the contrar notwithstandin an a rove than a in use as rovi ed in subsection c and d shall not alter the original e ication period. [(d)](f) 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 taxes 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 this chapter. (1) Failure to observe the restrictions on the use means failure for a period of twelve consecutive months to use the land in that manner requested in the petition or the overt 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, or the etition b the owner for a change in use as proyi a in su section c and the owner's su sequent change in use o such de ic-d ated~an s, sha 1 not e eemed to constitute [an overt act of changing the use of the land] a failure of the owner to observe the restrictions on the use. (2) If an owner is ermitted to chan a his use as rovided in subsection c and (d he shall be allowed up to thirty-six 36 months from the date of the approval of his petition to convert to the new ranchin or a ricultural use. If the owner ails to make the conversion within the s eci ied time limit he will e su 'ect to t e taxes an penalties provided a ove. For purposes of assessment of taxes and enalties, the conversion erio shall be considere in ad ition to t e s eci ied dedication erio exce t, however, in the case o lease an s w ose term ex fires riot to or in con unction wit t e en o the edication eriod, the conversion erio shall be consi ered as a part o the e ication perio The petitioner shall submit ro ress re orts o his e orts in convertin from one a ricu tura use to anot er a ricu tural use to the Director o Finance the anniversary date o t e petition approval an yearly, thereafter, as long as such conversion per~io remains. 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 from the dedicated use and applied to a use other than ranching or other agricultural use shall be taxed as provided by this subsection. [e] ~ The 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. If approved, the assessment based upon the use requested in the dedication shall be effective on January 1, of the next calendar year. [f] (h) The owner may appeal any disapproved petition as in the case of an appeal from an assessment. [g] (i) 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. The term "agricultural use" as used in this section shall include aquaculture. [h] (k) A special land reserve is established to enable the owner of any parcel of land within an urban district 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 provisions; (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." SECTION 3. Material to be repealed is bracketed, new material is underscored. In printing this ordinance, the brackets, bracketed material, and underscoring need not be included. SECTION 4. In the event that any portion of this ordinance is declared invalid, such invalidity shall not affect the other parts SECTION 5. The provisions of this amendment shall be retroactive to January 1, 1982. SECTION 6. This ordinance shall take effect upon the adoption of this Language by three counties. Hilo, Hawaii Date of Introduction: Date of 1st Reading: Date of 2nd Reading Effective Date: March 21, 1984 March 21, 1984 April 4, 1984 August 6, 1984