HomeMy WebLinkAboutORD 1990-157 1988-1992COUNTY OF HAWAII STATE OF HAWAII
BI~~ N0. 364
ORDINANCE NO.
~0 157
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 change
the effective date for establishing the homeowner classification.
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 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,
(H) Conservation and
(I) Homeowner.
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(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 according
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.
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(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 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".
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(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 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.
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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 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
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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 the land into
parcels of five acres or less, the deferred tax shall be due and
payable within 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 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
ordinance.
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(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 taa 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.ll 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
mentioned, the statement shall be certified by the mayor or any
governmental official designated by [him] the mayor and approved by
the council,
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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] the
manor and approved by the council, that
(A) The building was inspected by them and found to
be substandard when the owner-occupant made [his] the 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.
SECTION 5. This ordinance shall take effect on December 31,
[1990] 1991.
INTRODUCED BY:
MEMBER, COUNTY OF HAWAII
Hilo, Hawaii
Date of Introduction: Novembe 21, 1990
Date of 1st Reading: November 21, 1990
Date of 2nd Reading: December 5, 1990
Effective Date: December 31, 1991
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