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HomeMy WebLinkAboutBIL 083 Draft 02 1998-2000 COUNTY OF HAWAII STATE OF HAWAII BILL NO. 83 (Draft 2) ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE 1983 (1995 EDITION), RELATING TO DEFERRED OR ROLLBACK TAX ON THE OWNER OF AGRICULTURAL LANDS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII. SECTION 1. Purpose. The present Code language requires the imposition of deferred taxes when land is subdivided into 5 acres or less whether such lands are dedicated pursuant to Section 19-55 or not. The existing Code essentially penalizes a property owner who has fulfilled all requirements of dedication and only wishes to subdivide the land further. The purpose of this measure is (1) to exempt deferred or rollback taxes on agricultural dedicated lands when lots of 5 acres or less are created and when the conditions of dedication are continued, and (2) to ensure that rollback taxes upon breach of dedication would be up to ] 0 years for breach of a ] 0-year dedication up to 20 years under a 20-year dedication. SECTION 2. Chapter 19, Article 7, Section 19-53(f)(2) of the Hawaii County Code 1983 (1995 Edition) is amended as follows: "(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 (f) 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 deferred or rollback tax shall not apply ifs 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]; or (b) the owner has dedicated the land as provided in Section 19-55 before subdivision of the land into parcels of five acres or less and fulfills all of the requirements of the dedication. In the event of change in land use classifications 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. 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 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 (f) of this section provided the retroactive period shall not exceed ten years. Where the owner has subdivided the land into parcels of give 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 (f) of this subsection but for not more than ten years. Any other provisions to the contrary notwithstanding, the deferred or rollback tax shall apply only if a change in land use classitcation 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 rollback 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 government agency or instrumentality. The deferred or rollback 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 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 sixty days of such conversion, subject to a ten percent penalty. If the owner has dedicated the land as provided in section 19-55 before subdivision into parcels of five acres or less, and any owner of said subdivided parcels later breaches a condition of the dedication before its completion, the breaching owner shall be sub ect to rollback taxes on the subject parcel under section 19-55 and this section, retroactive from the end of the tax ear in which the breach occurs. For the rollback taxes for the period before subdivision the owner shall be assessed a portion of the total taxes on the unsubdivided parcel prorated to reflect the ratio of the owner's subdivided lot area to the entire unsubdivided parcel area. (B) Where the owner changes the land use classification, the defer-ed 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 (f) 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. In any case in which rollback taxes are imposed after successful completion of an agricultural dedication period, the rollback taxes shall be retroactive onl to the end of the completed dedication period, and shall not be retroactive for anv time covered by a successful] completed agricultural dedication period. In cases involving a breach of a ] 0- ear dedication or a rollback period of l0 or fewer years for breach of a 20- ear dedication the rollback taxes under this section shall be for a maximum total of 10 years, including both the breached dedication rollback period and any period ofnon-dedicated agricultural use assessment sub ect to rollback. Rollback taxes for any breach of dedication rollback tax affecting more than ] 0 ears under a 20- year dedication shall be as provided under section 19-55(f), not to exceed 20 ears including both the breached dedication rollback and any period ofnon-dedicated agricultural use assessment subject to rollback." 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. 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 applications of the ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are declared to be severable. SECTION 5. This ordinance shall take effect upon its approval. INTRODUCED BY: V COUNCIL MEM UN OF HAWAII Hilo, Hawaii Date of Introduction: Date of ls` Reading: Date 2"`~ Reading: Effective Date: REFERENCE: Comm. 290.001