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HomeMy WebLinkAboutBIL 083 Draft 03 1998-2000 COUNTY OF HAWAII STATE OF HAWAII BILL NO. 83 (Draft 3) ORDINANCE NO. AN ORDINANCF, AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE 1983 (1995 EDITION), RELATING TO DEFERRED OR ROLL BACK TAX ON THE OWNER OF AGRICULTURAL LANDS. BF. IT ORDAINED BY THE COiJNCIL OF THE COUNTY OF HAWAII. SECTION I . Purpose. The present Code language requires the imposition of deferred or roll back taxes 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 land into parcels of five 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 then wishes to subdivide the land further or put it to a higher use. The purpose of this measure is (1) to exempt deferred or roll back taxes on agricultural dedicated lands when the authorized government agency changes the land use classification to urban or rural districts or when lots of less than 5 acres are created and the conditions of dedication are continued or have been completed, and (2) to ensure that deferred or roll back taxes upon breach of dedication would be up to 10 years fora ] 0-year dedication and up to 20 years fora 20-year dedication. SECTION 2. Chapter 19, Article 7, Sections 19-53(f)(2) and (3) of the Hawaii County Code 1983 (1995 Edition) are 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 (t) of this section in the event of a change in land use classification by the authorized [State] government agency to urban or rural districts or upon the subdivision of the land into parcels of less than five acres [or less], provided that the deferred or roll back 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. 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 (f) 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] has dedicated the land as provided in Section 19-55 before the change in land use classification to urban or rural districts or subdivision of the land into parcels of less than five acres and fulfills all of the requirements of the dedication. The deferred or roll back tax shall commence from the date the conversion to urban or rural districts or into parcels less than five acres 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 roll back tax shall apply [only if a change in land use classification has been made as a result of a petition by any] to a change in land use classification only if such change was made as a result of a petition by a property owner or lessee and shall apply only upon lands owned by the owner or lessee who has petitioned for the change in 2 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 afrer 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 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 rate applicable for the respective years. All differences in the amount of taxes that were maid and those that would have been due from assessment in the higher use shall be payable with a ten percent penalty from the respective dates that these payments would have been due. The additional taxes and penalties due and owing shall be a paramount lien upon the property as provided for by this chapter. (A) Where the owner changes the land use classification or subdivides the land into parcels of less than five acres [or less], the deferred or roll back 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 the change in the land use classification or subdivision into pazcels of less than five acres, and any owner of the dedicated land or subdivided parcels later breaches a condition of the dedication before its completion, deferred or roll back taxes shall be imposed on the subject parcel under section 19-55 and this section, retroactive from the end of the tax year in which the breach occurs. [(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 3 notwithstanding, the land shall continue to be assessed in its agricultural use as provided in subsection (fj 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.] (B) In anv case in which deferred or roll back taxes are imposed after successful completion of an agricultural dedication period, the defen•ed or roll back taxes shall be retroactive only to the end of the completed dedication period, and shall not be imposed for anv time covered by a successfull~pleted agricultural dedication period. In cases involving a breach of a 10-year dedication, or a roll back period of 10 or fewer years for breach of a 20-year dedication, the roll back taxes under this section shall be for a maximum total of I O including both the breached dedication roll back period and andperiod ofnon-dedicated ~ricultural use assessment subject to roll back. Roll back taxes for any breach of dedication affecting more than 10 years under a 20-year dedication shall be as provided under section 19-55(f), not to exceed 20 (3) Where lands located within agricultural districts are put to agricultural uses, the tax on that portion of such lands not usable or suitable for any agricultural use[, whether dedicated pursuant to section 19-55 or not, the tax upon such unusable or unsuitable lands shall be deferred and shall be payable upon [conversion] the imposition of deferred or roll back taxes as provided under this section." 4 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: Ww.~ COUNCIL MEM Y OF HAWAII Hilo, Hawaii Date of Introduction: Date of ls` Reading: Date 2nd Reading: Effective Date: kEFEktiVCte ~anm. ~90.,nna 5