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HomeMy WebLinkAboutORD 1990-090 1988-1992COUNTY OF HAWAII STATE OF HAWAII BILL NO. 292 (Draft 2) ORDINANCE NO. 9O 90 AN ORDINANCE TO EXTEND THE PERIOD FOR REMISSION OF TAXES ALLOWABLE UNDER SECTION 19-36 FOR A PERIOD OF ONE YEAR. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. Section 19-36, Hawaii County Code, allows for the remission of real property taxes where a natural disaster results in the damage or destruction of real property. The director is authorized to remit taxes due on such property only for the tax year in which the disaster occurred. However, since real property taxes are based on assessments that take place on January 1 prior to the tax year which runs July 1 of one year to June 30 of the next year, an absurd result takes place where property is destroyed after January 1 by a natural disaster. In the case of the current Kalapana lava flow victims, the director can remit taxes for this current tax year in which the natural disaster took place, but that year ends on June 30, 1990. Thereafter, these taxpayers will receive a bill for 1990-1991 for their lava covered land. This bill will be based on an assessment made as of January 1, 1990, prior to the lava destruction. In order to avoid such a scenario, the remission should account for the following year also, where these properties are still suffering from the direct physical effects of the lava flow. This ordinance would allow the director to extend the period for remission of taxes for these taxpayers who have been directly affected by the Kalapana lava flow of 1990 for the tax year 1990-1991. It is anticipated that all affected properties will have been reassessed after that time. This ordinance will also remain in effect to alleviate this problem in any future cases where this dilemma may occur. SECTION 2. Section 19-36 is amended by adding subsection (5): "The director shall have the authority to extend the period for the remission of taxes for property that was wholly or partially damaged or destroyed for the percentage of the property which was affected by such disaster, for a period not to exceed one year after the tax year in which the disaster took place." SECTION 3. New material is underscored. In printing this ordinance, the underscoring need not be included. SECTION 4. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are declared to be severable. -2- SECTION 5. This bill shall take effect upon its approval. INTRODUCED BY: ~~? ~~- ~ti~ -- - \ COUNCIL MEMBER, COUNTY OF HAWAII Hilo, Hawaii Date of Introduction: June 20, 1990 Date of 1st Reading: June 20, 1990 Date of 2nd Reading: July 5, 1990 Effective Date: July 16, 1990 -3-