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Home My WebLink AboutBIL 294 Draft 01 2012-2014OFFICE INFORMATION ONLY Meeting: Council --October 15,2014 Action: Filed at first reading due to I aye (Wille), 7 noes, and I absent (Poindexter). Re: Bill 41W Con m. 1047 (2012.2014 tern); FC -199 (not adopted) a9'i COUNTY OF HAWAII rtr os N�+r STATE OF HAWAII f pf'Nr BILL NO. 294 ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 10, SECTION 19-71 OF THE HAWAII COUNTY CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO EXEMPTIONS FROM REAL PROPERTY TAX. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. The purpose of this ordinance is to increase the property tax exemption for real property owned and occupied as a principal home by increasing the principal home exemption from $40,000 to $60,000. In order to provide sufficient time for the real property tax division to make the appropriate adjustments to implement these increases in the amount of the home exemptions available and to provide ample time for public education of these changes and other changes going into effect simultaneously, this amendment will not take effect until December 31, 2015. SECTION 2. Chapter 19, article 10, section 19-71 of the Hawaii County Code 1983 (2005 Edition, as amended), is amended to read as follows: "Section 19-71. Homes. (a) Real property owned and occupied as a principal home shall be exempt to the following extent from property taxes: (1) Totally exempt where the value of the property is not in excess of [$40;980;] $60,000; (2) Where the value of the property is in excess of ,] $60,000, the exemption shall be the amount of [$40;000:] $60,000. Provided that: (A) No such exemption shall be allowed to any corporation, co -partnership, or company; (B) The exemption shall not be allowed on more than one home for any one taxpayer and that such taxpayer shall certify under penalty of perjury that such taxpayer has no other home exemption in any other jurisdiction; (C) The taxpayer has acquired said home by a recorded deed; (D) A husband and wife shall not be permitted exemption of separate homes owned by each of them, unless they are living separate and apart, in which case they shall be entitled to one exemption, to be apportioned equally between each of their respective homes; (E) A person living on premises, a portion of which is used for commercial purposes, except as provided in subsection (b) or which is legally permitted as a home occupation in accordance with the zoning code, shall not be entitled to an exemption with respect to such portion, but shall be entitled to an exemption with respect to the portion thereof used exclusively as a home; (F) A person living on the premises, a portion of which is used as residential housing rental for a term of not less than six months and legally permitted by all codes, shall be entitled to an exemption, except as provided in subsection (b); and (G) In the case of a lease of Hawaiian homestead lands, where either a husband or wife is of non -Hawaiian descent, either spouse shall be entitled to the home exemption in the same manner as if either spouse was considered the owner thereof, provided proof of marriage is submitted to the director of finance. (b) The use of a portion of any real property, building or structure for the purpose of any agricultural use permitted pursuant to section 205-2(d) or 205-4.5, Hawaii Revised Statutes, shall not affect the exemptions provided for by this section. (c) Where two or more individuals by life estate and remainder, jointly, by the entirety, or in common own or lease land on which their homes are located, each home, if otherwise qualified for the exemption granted by this section, shall receive the exemption. If a portion of land held by life estate and remainder, jointly, by the entirety, or in common by two or more individuals is not qualified to receive an exemption, such disqualification shall not affect the eligibility for an exemption or exemptions of the remaining portion. (d) A taxpayer who is sixty years of age or over and who qualifies under subsection (a) shall be entitled to one of the following home exemptions: Age of Taxpayer Exemption Amount 60 years of age or over but not 70 years of age or over 70 years of age or over $80,000 $100,000 For the purpose of this subsection, a husband and wife who own property by life estate and remainder, jointly, by the entirety, or in common, on which a home exemption under the provisions of subsection (a) has been granted shall be entitled to the applicable home exemption set forth above when at least one of the spouses qualifies each year for the applicable home exemption. N (e) For purposes of this section, the term "real property owned and occupied as a principal home" is defined as the place where an individual has a true, fixed, permanent home and principal establishment, and to which place the individual has, whenever absent, the intention of returning. It is the place in which an individual has voluntarily fixed habitation, not for mere special, temporary, or vacation purpose, but with the intention of making a permanent home. (1) Three elements are necessary for real property to be considered a "principal home." (A) The taxpayer has no other home exemption or principal home in any other jurisdiction; (B) Intent of the owner to create or maintain a principal home within the County; and (C) Owner's actual physical occupancy of the principal home within the County. (2) "Intent of the owner to create or maintain a principal home" may be evidenced by, but not be limited to, any of the following indicia: (A) Occupancy of the home in the County for more than two hundred calendar days of a calendar year; (B) Registering to vote in the County; (C) Being stationed in the County under military orders of the United States and must claim residency only in Hawaii; or (D) Possession of any of the following with a reported address within the County of Hawaii: (i) Valid Hawaii [dr-ivefs] driver's license. (ii) Hawaii state identification card. (iii) Filed resident income tax return of the State of Hawaii. (iv) Resident aliens possessing a valid resident alien card ("green card") must claim residency only in Hawaii. The director of finance may require documentation of the above or additional indicia of intent to reside in the County from a property owner applying for an exemption or from an owner as evidence of continued qualification for an exemption. Failure to respond to the director's request, or in the event the director receives satisfactory evidence that a claimant occupies a permanent home outside the County and there is documented evidence of the claimant's intent to reside outside of the County, shall be deemed grounds for denying a claim for exemption or disallowing an existing exemption. (f) Real property qualifying under subsection (a) shall be entitled to an additional exemption of twenty percent of the assessed value of the property not to exceed an additional $80,000." SECTION 3. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed and stricken material and underscoring need not be included. 3 SECTION 4. Severability. 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 December 31, 2015. , Hawai`i Date of Introduction: Date of 1 st Reading: Date of 2nd Reading: Effective Date: REFERENCE Comm. 1047 INTRODUCED BY: i COUNCIL MEM ER, COUNTY OF HAWAII El