Loading...
HomeMy WebLinkAboutORD 1987-116 1984-1988COUNTY OF HAWAII r._~~;~STATE OF HAWAII ~,n, a Bill No. los (Draft 2) ORDINANCE NO. 87 116 A BILL FOR AN ORDINANCE AMENDING CHAPTER 19, ARTICLE lO,HAWAII COUNTY CODE, AS AMENDED, RELATING TO REAL PROPERTY TAXES, EXEMPTIONS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purr ose. The purpose of this ordinance is to include state ana federal credit unions as organizations exempt from real property taxes. The exemption would be allowed only for credit union properties used for credit union activity. This action recognizes that credit unions are nonprofit, cooperative organizations which have a restricted field of membership. In addition, credit unions provide members the opportunity to improve their economic and social condition. This ordinance also expands the exemption for leagues of credit unions to those which service state, as well as, federal credit unions. SECTION 2. Chapter 19, Article 10, Section 19-68, Hawaii County Code, as amended, relating to claims for certain exemptions, is amended to read as follows: Section 19-68. Claims for certain exemptions. (a) None of the exemptions from taxation granted in sections 19-71, [and] 19-73 to 19-78 and 19- shall be allowed in any case, unless the claimant shal aT~ve f'iTed 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. (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 this chapter), 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 19-78, expires; or THIS WILL VERIFY THAT TWO-THIRDS OF THE MEP4BERSHIP OF THE HAWP.II COUNTY COUNCIL VOTED TO OVERRIDE THE PIAYOR'S VETO ON B LL OS DRAF 2. COUNCIL AIRP~IAN (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 claim 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 sections 19-71, [or] 19-73 to 19-78 or 19- has a duty to report to the assessor within thirty days a te~eases 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 premises; (2) A change in the facts previously reported has occurred concerning the occupation, use, or renting of the premises, buildings or other improvements thereon; or (3) Some other change in status has occurred which affects his exemption. Such report shall have the effect of voiding the claim for exemption previously filed, as provided in subsection (b) (4). The report shall be sufficient if it identifies the property involved, states the change in facts or status, and requests that the claim for exemption previously filed be voided. In the event the property comes into the hands of a fiduciary who is answerable as provided for by this chapter, the fiduciary shall make the report required by this subsection within thirty days after his assumption of his 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 1 of the year in which the report was due, whichever is lesser. The penalty shall be recovered as provided for by this chapter. In addition to this penalty, the taxes due on the property plus any additional penalties and interest thereon shall be collected as property taxes and shall be a lien on the property as provided for by this chapter. -2- (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 this chapter 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 assessment or addition so made shall be made a lien as provided for by this chapter 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 consideration without notice of a violation of the requirements of subsection (d) having occurred. SECTION 3. Chapter 19, Article 10, Section 19-77, Hawaii County Code, as amended, relating to Real Property Tax Exemptions for Charitable Purposes, is hereby amended to read as follows: "Section 19-77. 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), [and] 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 exemption. 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 of the compulsory school attendance law, -3- 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 accompanied by a certificate issued by or under the authority of the department of education stating that the foregoing requirements are met; (B) 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 hospital; 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 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 incidental 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, admission to membership of which is restricted by the corporate charter to members of a labor union; property owned by any government employees' association or organization, one of the primary purposes of which is to improve employment conditions of its members; property owned by any trust, the beneficiaries of which are restricted to members of a labor union; property owned -4- by any association or league of [federal] credit unions chartered by the nite testes or the State, the sole purpose of which is to promote the development o e eral] credit unions in the state. Notwithstanding any provision in this section to the contrary, the exemption shall apply to property [of] 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 force 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 instrument 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 £or 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 academies, and senior citizen housing facilities qualifying for a loan under the laws of the United States as authorized 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) 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. -5- (e) 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 ~rivate shareholder, member, or trust beneficiary. "Monetary gain' includes without limitation any gain in the form of money or money's worth. "Economic benefit" includes without limitation any benefit to a person in the course of his business, trade, occupation, or employment. SECTION 4. Chapter 19, Article 10, Hawaii County Code, as amended, relating to real property tax exemptions, is amended by adding a new section to be appropriately numbered and to read as follows: "Section 19- (a) Real propert period of one year or more w is is actua y an exc s a e exempt rpm red w ici-C-' h exemption is ctaim~e Credit Union Exemption. owned in fee simple or leased for a y a tederal or state credit union ively used o~ r credit union ur oses operty taxes. t e property or s easl~ec , tie ease agreement s~Ll be ureau o onvevances at tip e time t~ exem tion is claimed. es used in tnis section, reaeral credit union means a cre it union organize un er t e e era re it neon ct o , U.S.L. C apter , as amen e , an state c~'it union" means a cre it union organized under ti-Ie f~awaii r0-edit neon ct, apter , as amen e . (b) If any portion of the property which might otherwise be exem ted-un er t is section is use or commercia or of er ur oses not wit in t e con itions necessary or exem tion inc u ing any use t e primary purpose o w is is to pro uce income even t pug suc income is to a use or or in~urtFierance empt purposes t t- efi remains o t e exempt exclusively for exemption. n ui ing, t e t t e ui in i premises a~ portion ears t rposes witnin t event o an ex s a e assess 0 0 remaining por e~3'itions emption o a e upon so mu tTiereun3eianan e por space space o t e emises s a not e es s a not e t on s use necessary ror ortion o a ohm t i~lue of nonex SECTION 5. Severability. If any provisions of this ordinance, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. -6- SECTION 6. 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 7. This ordinance shall take effect upon adoption of this language by three counties. INTRODUCED BY: I~KUNCI MEMB UNT OF HA T~AII Hilo, Hawaii Date of Introduction: November 25, 1985 Date of 1st Reading: December 4, 1985 Date of 2nd Reading: November 19, 1986 Effective Date: November 23, 1987 -7-