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HomeMy WebLinkAboutORD 1994-060 1992-1994COUNTY OF HAWAII STATE OF HAWAII BILL NO. _237`_ ORDINANCE NO. 94 60 AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 5, OF THE HAWAII COUNTY CODE 1983, RELATING TO REAL PROPERTY TAXATION BY AMENDING THE TIME LIMIT WITHIN WHICH A TAXPAYER MAY CLAIM SURPLUS FUNDS FROM A TAX SALE. HE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. When the real property taxes are not paid on a parcel of land, the director of finance may foreclose on the property and sell it at public auction pursuant to Hawaii County Code chapter 19, article 5. Surplus funds of the sale are those funds left over after all appropriate expenses and claims have been paid. At the present time, any surplus funds may be paid to the taxpayer if he files his claim within one year of the the date of sale. As has been noted in the past, however, section 13-18 of the County Charter sets a two-year statute of limitation for filing claims against the County of Hawaii. This bill will amend section 19-45 to give taxpayers a two-year time period within which to claim surplus funds. This would make that section consistent with the Charter. SECTION 2. Chapter 19, article 5, section 19-45 of the Hawaii County Code is amended to read as follows: Section 19-45. Disposition of surplus moneys. The director shall pay from the surplus all taxes, including interest and penalties, of whatsoever nature and howsoever accruing, as provided in section 19-37 and further he may pay from the surplus the cost of a search of any records where such search is deemed advisable by him to ascertain the person or persons entitled to the surplus; provided, nothing herein contained shall be construed to require the director to make or cause any such search to be made. All proceeds remaining after payment of the costs and expenses of the enforcement and foreclosure of the tag lien, including a title search, and the amount of subsisting real property taxes, shall be distributed to lienholders of record in the order of their priority who have filed claims for the surplus with the director within one year from the date of sale. Any lien, claim or encumbrance against the property remaining unsatisfied after the distribution of the surplus moneys shall be extinguished and unenforceable against the property and the pruchaser to whom the property is conveyed by the director. If, in order to ascertain the person or persons entitled to the surplus, the director deems it advisable to conduct a search of any records, he may pay from the surplus the cost of such search; provided, nothing herein contained -2- shall be construed to require the director to make or cause any search to be made. Any lienholder failing to file a claim for the surplus wihin one year from the date of the sale shall have no right to the surplus. The director shall pay from any surplus remaining after distribution to record lienholders who have filed claims, all taxes, including interest and penalties, of whatsoever nature and howsoever accruing due at the time of the foreclosure sale from the taxpayer against whose property such tax lien is so enforced or foreclosed. If after payment of all taxes surplus funds remain, the director shall pay the surplus to the taxpayer against whose property the tax lien was foreclosed, provided that the taxpayer has filed a claim for the surplus with the director within [one] two Years from the date of sale. Any surplus remaining after payment to all those entitled as herein set forth shall be deposited into the County general fund. If the director is in doubt as to the person or persons entitled to the balance of the fund, he may refuse to distribute the surplus and any claimant may sue the director in the third circuit court. The director may require the claimants to interplead, in which event he shall state the names of all cliamants and shall cause them to be made parties to the action. If there are persons entitled to the fund who have not filed a claim, or if in the director's opinion there may be other persons entitled to the fund who are unknown, the director may apply for an order or orders joining these persons. -3- Any orders of the court or summons in the matter may be served as provided by law or the rules of court, and all persons having any interest in the moneys who are known, including the guardians of such of them as are under legal age or under any other legal disability (and if any one or more of them is under legal age or under other legal disability and without a guardian, the court shall appoint a guardian ad litem to represent them therein) shall have notice of the action by personal service upon them. All persons having any interest in the moneys whose names are unknown or who if known do not reside within the State or for any reason cannot be served with process within the State shall have notice of the action as provided by sections 634-23 to 634-29, HRS, except that any publication of summons shall be in at least one newspaper of general circulation published in the State and having a general circulation in the County, and the form of notice to be published shall provide a brief description of the property which was sold. All expenses incurred by the director shall be met out of the surplus moneys realized from the sale. 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. -4- 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 applicatons of the ordinance which can be given effect without the invalid provision or application, and to this end, the provision of this ordinance are declared to be severable. SECTION 5. This ordinance shall take effect upon its approval. INTRODUCED BY: COUNTY OF HAWAII Hilo, Hawaii Date of Introduction: April 27, 1994 Date of 1st Reading: April 27, 1994 Date of 2nd Reading: June 1, 1994 Effective Date: June 8, 1994 FG/2289I A~`i`~'i3'?rE© as to F'~RA~i and I,E~/aL3TY CORPORATION COUNSEL COUNTY OF HAWAII o~ --- ~1_~-~~-----------~------ -5- OFFICE OF THE COUNTY CLERK i. County of Hawaii Hilo ,Hawaii , ,__ _ ~ I • '~- 9'i Jl'i : 3 F. `t Il ,, Introduced By: James Arakaki Date Introduced: ~~ r i T 2 7, 1 9 9 4 First Reading: ~n r i l 2 7, 1 9 9 4 Published: Ma v l, 1 9 9 4 REMARKS: May 11, 1994 - Deferred Second Reading: June 1, 1994 To Mayor: June 6, 1994 Returned: .7une 8. 1994 Effective: .Tune 8. 1994 Published: .Tune lb. 1994 RF.MARK.C; 'ROLL CALT, r70TE AYES NOES ABS EX ARAKAKI BONK-ABRAMSON CHILDS DE LIMA DOMINGO HALE RATH ROSEH[LL SCHUTIB ROLL CALL VOTE AYES NOES ABS EX ARAKAKI X BONK-ABRAMSON X CHILDS DE LIMA X DOMINGO X HALE BATH X ROSEHILL SCHi7T7'E X 9 0 0 I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council and published as indicated above. kPFROVED as to 'ri}RM a LE QLiTY ORr'O.'.nTON COUNSEL COUNTY OF HA~NAII '"L-aN !_ 2994 Date this ~ day 19~ CO HAWAII COU CII OU Bill No.: 2 31 Reference: Co~I n 957/FC-202 Ord. No.: ~!~ Fj(J