HomeMy WebLinkAboutORD 1991-109 1988-1992COUNTY OF HAWAZI,~~~~~~TATE OF HAWAII
BILL NO. 483
ORDINANCE NO. 91 109
A BILL FOR AN ORDINANCE TO AMEND ARTICLE 7, SECTION 19-58.1,
CHAPTER 19, AS AMENDED, OF THE HAWAII COUNTY CODE OF 1983,
RELATING TO THE ASSESSMENT AND DEDICATION OF RESIDENTIAL
PROPERTIES TO NON-SPECULATIVE RESIDENTIAL USE FOR REAL PROPERTY
TAXATION, BY EXTENDING THE DEADLINE FOR PETITION FOR
NON-SPECULATIVE RESIDENTIAL USE.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Purpose. The purpose of this ordinance is to
extend the 1991 deadline for filing a petition to dedicate one's
property to non-speculative use and be assessed according to the
non-speculative residential use provisions set forth in
Article 7, Chapter 19, §§19-58.1 and 19-58.2. The present
deadline is September 1 of any calendar year. This ordinance
would move the deadline for 1991 to November 1, thereby giving a
property owner until November 1, 1991 to petition for
non-speculative residential use status for the 1992 tax year. In
any year after 1991, an owner would have to file his petition
before September 1 of the calendar year in order to qualify for
the following tax year.
SECTION 2. Article 7, Chapter 19, Section 19-58.1 is
amended to read as follows:
"Section 19-58.1. Certain Lands Dedicated to
Non-Speculative Residential Use.
(a) The term "owner" as 'used in this section shall mean the
fee owner or the lessee of real property with an unexpired lease
term of not less than ten years from the date of the petition.
(b) Any owner of property who qualifies under section 19-71
and 19-72 for home exemption may dedicate said property to
Non-Speculative Residential Use and have that parcel assessed in
the manner provided by section 19-58.2, except that a husband and
wife, although living separate and apart, shall be entitled to
dedicate only one parcel to the non-speculative residential use.
(c) Any owner who desbres to dedicate property to
Non-Speculative Residential Use and to have the property assessed
in the manner established by section 19-58.2, shall so petition
the director. Upon receipt of any such petition, the director
shall make a finding of fact as to whether or not the property
described in the petition is qualified for a home exemption
pursuant to the terms and conditions of sections 19-71 and
19-72. If the finding is favorable to the owner, the director
shall approve the petition and declare the property to be
dedicated to Non-Speculative Residential Use. In order to place
prospective buyers on notice of the dedicated status and the
retroactive tax liability, the petitioner shall within 60 days of
the notice of approval of the petition record the notice of
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dedication in accordance with the procedures established by the
bureau of conveyances. The petitioner shall furnish the director
with a copy of the recorded notice. Nonrecordation of the
notice, within the prescribed period, shall be grounds for
disallowance of the dedication.
(d) Each petition for dedication shall be for ten-year
periods. The owner shall reapply for renewal of
by filing an application with the director on or
September 1 of the tenth year. Upon approval by
succeeding dedications, the assessed valuation s
be assessed in accordance with the provisions of
Non-Speculative Residential Use dedication.
(e) The dedication may be cancelled by the
the dedication
before
the director of
tall continue to
the
owner at the end
of any ten-year period without penalty and retroactive taxes.
The owner shall provide the director with written notice of the
cancellation on or before September 1 of the tenth tax year of
the dedication period.
(f) The director's approval of the petition to dedicate
shall constitute a forfeiture on the part of the owner of any
right to use the property in any manner that would cause it to
become ineligible for the home exemption as defined and
determined by sections 19-71 and 19-72 for a period of ten
continuous years.
(g) if, during any period of dedication, any breach of the
dedication requirements should occur, the special Non-Speculative
Residential Use assessment privilege shall be cancelled .and
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retroactive taxes and penalties shall be imposed. Breach of the
dedication shall include the sale, transfer, change in land use
classification of the property upon a petition by the owner,
subdivision of the property into condominium units or separate
parcels, or failure to maintain the home exemption status of the
property. Retroactive taxes and penalties due and owing as a
result of the cancellation shall be a paramount lien on the
property.
(1) Provided, that the Non-Speculative Residential Use
dedication shall not be cancelled if the dedicated property is:
(A) Transferred to the owner's heirs by testacy
or intestacy,
(B) Jointly owned by spouses and upon the death
of one spouse ownership is transferred to the surviving spouse,
(C) Transferred to a spouse or former spouse in
connection with a property settlement agreement or decree of
dissolution of a marriage or legal separation,
(D) Transferred to a trustee for the beneficial
use of a spouse, or the surviving spouse of a deceased
transferor, or by a trustee of such a trust to the spouse of the
trustor,
(E) And the heirs, surviving spouse, divorced
spouse, or trustee, within 60 days after receiving title to the
property, petitions the director, in writing, to continue the
dedication and the property continues to qualify for the home
exemption as defined in sections 19-71 and 19-72.
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(2) Provided further that, except as provided herein,
penalties and retroactive taxes shall not be assessed when:
(A) A person receives title to property dedicated
to Non-Speculative Residential Use by way of testacy or intestacy
and does not petition the director to continue the dedication as
provided in section 19-58.1(q)(1)(A).
(B) The dedicated property is jointly owned by
spouses and upon the death of one spouse, ownership is
transferred to the surviving spouse, and the surviving spouse
does not petition the director to continue the dedication as
provided in section 19-58.1(g)(1)(B).
(C) The property is wholly or partially destroyed
or damaged as a result of fire, seismic or tidal wave, volcanic
eruption, earthquake, flood wraters and wind or rain storm.
The owner shall, if he desires to cancel the dedication
for the reasons enumerated above, notify the director of such
cancellation by written notice to the director within 60 days of
the change. All cancellations shall become effective July 1 of
the following tax year, but the property will be assessed in
accordance with its appropriate classification as of the
assessment dated January 1.
(h) The director shall prescribe the form of the petition.
The petition shall be filed with the director by [September 1 of
any calendar year] November 1, 1991 and shall be approved or
disapproved by December 31, [of that year] 1991, in order to
gualifv for the following tax year In anv year after 1991 the
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petition shall be filed with the director by September 1 of any
calendar year and shall be approved or disapproved by December 31
of that vear.
(i) Upon approval, the dedication shall become effective
July 1 of the following taa year,. but the assessed value will be
determined on the assessment date January 1. The owner may
appeal any disapproved petition or cancellation of dedication as
in the case of an appeal from an assessment."
SECTION 3. 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 4. In the event that any portion of this ordinance
is declared invalid, such invalidity shall not affect the other
parts of this ordinance
SECTION 5. This ordinance shall take effect upon its
passage.
BY:
COUNCIL MEMBER, COUNTY OF HAWAII
Hilo, Hawaii
Date of Introduction: September 18, 1991
Date of 1st Reading: September 18, 1991
Date of land Reading: October 16, 1991
Effective Date: October 24, 1991
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