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HomeMy WebLinkAboutORD 1990-138 1988-1992COUNTY OF HAWAII STATE OF HAWAII BILL NO. ORDINANCE NO. 90 138 326 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 amend Chapter 19 of the Hawaii County Code relating to real property taxes with the following: (a) Provide for more clarity in the manner by which exemptions are to be claimed. (b) Establish a penalty for filing fraudulent claims and statements, evading the payment of taxes or deceiving the department of finance. (c) Increase the amount of the minimal tax to be applied to Nontaxable Property. (d) Establish a definition for "principal home." (e) Increase the amount of the home exemption. (f) Expand the home exemption to the Non-Hawaiian spouse in the case of Hawaiian Homes leased lands. SF,CTION 2. Section 19-30, Article 3, Chapter 19, Hawaii County Code, Relating to Tax Rolls; Tax Bills, is amended to read: LA/HAT THIS WILL VERIFY THAT TWO-THIRDS OF THE MEMBERSHIP OF THE HAWAII COUNTY COUNCIL VOTED TO OVERRIDE THE MAYOR'S VE N BILL NO. 326. ~/S~ COUNCIL CHAIR2•~N "Section 19-30. Tax rolls; tax bills. The director shall prepare tax rolls from the assessment lists provided for by section 19-28, showing thereon, in each case, names and addresses of the assessed and amount of taxes which shall not be less than [~7] X25 as provided for in section 19-~0. The director shall mail, postage prepaid, or deliver, each year on or before the billing dates as provided for by section 19-31, to all known persons assessed for real property taxes for such year, respectively, or to their agents, tax bills demanding payment of taxes due from each such person respectively, but no person shall he 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 address or place of residence. Whenever any bill covers taxes for any real property owned, as joint tenants or as tenants in common or otherwise, by more than one person, the bill may be sent to any one co-owner and upon written request shall be sent to each known co-owner but shall, in any event, demand the full amount of the taxes due upon such real property." SECTION 3. Section 19-F7, Article 9, Chapter 19, Hawaii County Code, Relating to Nontaxable Property, is hereby amended to read: "Section 19-57. Nontaxable Property. For purposes of accountability, the director of finance shall assess at the nominal sum of ~[71 1 each parcel of real property which is completely exempt from taxation." -2- SECTION 4. Section 19-68, Article 10, Chapter 19, Hawaii County Code, Relating to Claims for certain exemptions, is hereby amended to read: "Section 19-68. Claims for certain exemptions. (a) None of the exemptions from taxation granted in sections 1.9-7]., 19-73 to 19-78 and 19-89.2 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. In order to execute such exemption, the claimant must have the exemption application notarized before submittal to the department of finance. (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 19-78, expires; or (4) The claimant makes the report required by subsection (d). -3- (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, 19-73 to 19-78 or 19-89.2 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 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. -4- 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 ordinance. 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 ordinance. (e) In addition to any penalty set forth in Article 10 individual who files a fraudulent claim for exemption or attests to anV false statement, with the intent to defraud or to evade the payment of taxes or any part thereof, or who in any manner intentionally deceives or attempts to deceive the department of finance, shall be fined $1,000. This fine shall attach as a paramount lien against the property for which the claim for exemption is filed. ((e)] (f) 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 -5- 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 he made a lien as provided for by this chapter by recording a certificate setting forth the amount of tax involved, penalties, and interest. [(f)] (g) In any case of recordation of a certificate the amount of the civil penalty under subsection (d), or for the amount of tax, penalties, and interest assessed or added under subsection [(e)J (f ), 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 5. Section 19-71. Article 10, Chapter 19, Hawaii County Code, Relating to Homes, is amended to read: "Section 19-71. 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 a property is not in excess of [$20,000] $40,000; (2) Where the value of the property is in excess of [$20,000] $40,000, the exemption shall be the amount of ($20,000] $40,000. -6- Provided: (A) That no such exemption shall be allowed to any corporation, co-partnership, or company; (B) 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 (E) That 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 co an exemption with respect to the portion thereof used exclusively as a home. (F) That in the case of a lease of Hawaiian Homestead lands, where either a husband or wife is of non-Hawaiian decent, either spouse shall be entitled to the home exemption in the same manner as if either spouse was considered the owner thereof. -7- (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) Where 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 Age of Taxpayer Exemption Amount 60 years of age or over but not 70 years of age or over 2.0 70 years of age or over 2.5 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 -8- 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. (e) For purposes of this section, the term "principal home" is defined as the place where an individual has a true, fixed, permanent home and principal establishment, and to which place the individual has, whenever absent, the intention of returning. It is the place in which an individual has voluntarily fixed their habitation, not for mere special, temporary, or vacation purpose, but with the intention of making a permanent home." SECTION 6. Section 19-90, Article 11, Chapter 19, Hawaii County Code, Relating to Real Property Tax; Determination of rates, is amended to read: "Section 19-90. Real property tax; determination of rates. (a) Unless a different meaning is clearly indicated by the context, as used in this section: (1) "Net 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 19-46 which the director of finance certifies as the tax base as provided by this chapter, less exemptions as provided by this chapter and, in all cases where appeals from the director's assessment are then unsettled, less fifty percent of the value ir. dispute. _o_ (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 19-53(d) of this chapter. A resolution setting the tax rates shall be adopted on or before June 20 preceding the tax year for which property tax revenues are 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 circulation. The date of the public hearing shall not be less than ten days after the advertisement is first published and shall set forth the tax rates to be considered by the council. (2) After the public hearing provided for in paragraph (1), the council shall readvertise and reconvene within three weeks to adopt a resolution fixing the tax rates for the tax year for which property tax revenues are to be raised. The advertisement shall state the new rates to be fixed and the date, time and place of the meeting scheduled for fixing such rates. The 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 from the public hearing required by paraaraph (1), the council shall again advertise and meet as required by paragraph (1). -10- (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 readvertise 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) The 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. (3) The 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 rate which shall be expressed in terms of tax per $1,000 of net taxable buildings computed to the nearest cent. (4) The 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 terms o_` tax per $1,000 of net taxable lands computed to the nearest cent. -11- (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 chapter. (e) The director of finance shall on or before May 1 preceding the tax year furnish the council with a calculation certified by him as being as nearly accurate as may be, of the net taxable real property within the County, separately stated for each class established in accordance with section 19-53(d) of this chapter 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 other provisions of subsections (b) and (e) and all provisions 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 chapter a minimum real property tax of $(7] 25 per year." SECTION 7. In the event that any portion of this ordinance is declared invalid, such invalidity shall not affect the other parts of this ordinance. -12- SECTION 8. Material to be repealed is bracketed, New material is underscored. In printing this ordinance, the brackets, bracketed material, and underscoring need not be included. SECTIOC7 9. This ordinance shall take effect upon its approval. ODUCED BY: r ~~ Hilo, Hawaii Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: September 19, 1990 September 19, 1990 October 17, 1990 November 8, 1990 -13-