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HomeMy WebLinkAboutORD 1990-136 1988-1992COUNTY OF HAWAII STATE OF HAWAII BILL NO. 327 ORDINANCE NO. 3d 136 A BILL FOR AN ORDINANCE TO AMEND CHAPTER 19 OF THE HAWAII COUNTY CODE RELATING TO REAL PROPERTY TAXES. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. The purpose of this ordinance is to establish a separate classification for property owned and occupied by its owner as the owner's principal residence regardless of its highest and best use. SECTION 2. Section 19-53, Article 7, Chapter 19 of the Hawaii County Code, Relating to Valuation; considerations in fixing is hereby amended to read: "Section 19-53. 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 by the market data and cost approaches to value using appropriate systematic methods suitable for mass valuation of properties for taxation purposes, so selected and applied to obtain, as far as possible, uniform and equalized assessments throughout the county; provided, that the value of land classified and used for agriculture, whether, such lands are dedicated pursuant to section 19-55 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)(1) of this section. In making such determination and assessment, the director shall separately value and assess, within each class established 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 equalized assessments throughout the [C]county. (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) Except as otherwise provided in subsection (d)(2) of this section, land shall be classified, upon consideration of its highest and best use, into the following general classes: (A) Improved residential, (B) Unimproved residential, (C) Apartment, (D) Hotel and resort, (E) Commercial, (F) Industrial, (G) Agricultural, [and] (H) Conservation [.], and (I) Homeowner. -2- (2) In assigning land to one of the general classes the director of finance shall give major consideration to the districting established by the land use commission pursuant to Chapter 205, Hawaii Revised Statutes, the districting established by the County in its general plan and zoning ordinance, use classifications established in the general plan of the State, and such other factors which influence highest and best use, except that parcels which are used exclusively as the owner's principal residence shall be classified as "Homeowner" without regard to the highest and best use, provided that the director has granted to the owner a home exemption in accordance with sections 19-71 to 19-72. (A) The homeowner class is exclusively reserved for properties which are used as the owner's principal residence. Uses which shall not qualify as "Homeowner" include: 1) Real property which is valued accordi to its agricultural use pursuant to subsection 19-53 (f)(1), (2) Real property which is dedicated to an agricultural use pursuant to section 19-55, (3) Real property which is used for commercial or income producing purposes, (4) Real property which is used for residential rental purposes,whether for short or long-term lease (5) Real property which is used for any other purposes except the owner's principal residence. -3- (3) When property is subdivided into condominium units, each unit shall be classified upon consideration of its actual use into one of the general classes in the same manner as land except that units which have been allowed a home exemption for the tax year shall be classified (improved residential] homeowner. (4) "Improved residential" shall mean land which is classified as residential by the department of finance upon consideration of its highest and best use, and is property which fulfills the provisions of at least one of the following sub-paragraphs: (A) Land which has been subdivided prior to any assessment year as a lot for single or two-family residential use in conformity with the then existing county zoning ordinances, and has been approved for sale or approved as being in conformity with all of the subdivision requirements of the county, or (B) Land which is in actual single or two-family residential use at a density of at least a single or a two-family residential building per acre, or (C) Land which is sufficiently developed with necessary land improvements to support a use density of at least a single or two-family residential building per acre. (5) "Unimproved residential" shall mean all residential class lands not classified as "improved residential" or "homeowner". -4- (e) Whenever land has been divided into lots or parcels as provided by law, each such lot or parcel shall be separately assessed. (f) (1) In determining the value of lands which are classified and used for agriculture, whether such lands are dedicated pursuant to section 19-55 or not, consideration shall be given to rent, productivity, nature of actual agricultural use, the advantage or disadvantage 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, and to the opinions of persons who may be considered to have special knowledge of land values. (2) 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 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] the 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. -5- 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] the 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 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 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 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 where the change in classification or zoning is initiated by any governmental -6- 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] the land into parcels of five acres or less, the deferred tax shall be due and payable within [sixty] 60 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 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 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 follo~ving 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 ordinance. -7- (3) 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 19-55 or not, the tax upon such unusable or unsuitable land shall be deferred and shall be payable upon conversion as provided under this section. (g) In determining the value of buildings, consideration shall be given to any additions, alterations, remodeling, modifications 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 redevelopment, rehabilitation or conservation project under the provisions of Part 11 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 are undertaken pursuant to any urban redevelopment, rehabilitation or conservation project as hereinabove -S- mentioned, the statement 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, improvement 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 residential building undertaken pursuant to any health, safety, sanitation or other governmental code provision, the statement shall be certified by the mayor or any governmental official designated by him and approved by the council, that (A) The building was inspected by them and found to be substandard when the owner-occupant made his claim, and (B) The maintenance of repairs to the buildings were made and satisfactorily comply with the particular code provision." SECTION 3. Material to be deleted 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 the ordinance is declared invalid, such invalidity shall not affect the other parts of this ordinance. -9- SECTION 5. This ordinance shall take effect on December 31, 1990. IN RODUCED BY: ~~ :f . ~t,~--~-- • ~ ~ _. ~~ S I "1G 14. ~ f COUNCIL MEMBERS, C Y OE HAWAII Hilo, Hawaii Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: September 19, 1990 September 19, 1990 October 17, 1990 December 31, 1990 -10-