HomeMy WebLinkAboutCOM 0261.002 2012-2014 Margaret Wille Phone No. Hilo: (808)961-8027
Council Member cP�'�; y`+.,'.., Phone No Waimea: (808) 887-2043
District 9-North and South Kohala "„.����'°.* ', Fax No.: (808)887-2072
*i6."%"-'.0I*` E-Mail: mwille @co.hawaii.hi.us
HAWAII COUNTY COUNCIL
County of Hawai`i
Hawai`i County Building Holomua Center West Hawai`i Civic Center Bldg.A
25 Aupuni Street 64-1067 Mamalahoa Highway,Suite C-5 74-5044 Ane Keohcgle 1(wy.
Hilo, Hawai`i 96720 Waimea, Hawai`i 96743 Kailua-Kona,Hawweai,96 D1c
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TO: J Yoshimoto, Council Chair -o
and Members of the Hawaii County Council ;,
N 7-U
FROM: ,Wille, Council Member t.
DATE: September 18, 2014
SUBJECT: Proposed Amendments to Bill No. 71; Relating to Real Property Taxes, Liens,
Foreclosures, and Notice
Please find attached proposed amendments to Bill No. 71. The proposed amendments are
illustrated below by Ramseyer format with respect to the contents of Bill No. 71 (material to be
deleted is bracketed and stricken, material to be added is underscored). A draft copy of Bill No.
71, Draft 2, is attached with the amendments incorporated therein.
1. Bill No. 71 is amended by amending Section 1 to read as follows:
"SECTION 1. Purpose. The purpose of this ordinance is to reduce the number of years
required to foreclose on a property for delinquent real property taxes from three to two years, thus
allowing the County to sell the foreclosed property at public auction to recoup unpaid taxes, penalties,
and various administrative costs in a timelier manner. This reduction in the holding period also
decreases the period the property is left vacant thereby lessening the potential loss of value due to
deterioration in its condition. Additionally, this ordinance relocates notice requirements previously
placed in Section 19-38 into the appropriate Section 19-40, to ensure that all notice requirements are
provided in a single location.”
Comm. N 'k)I• Z.+
Serving the Interests of the People of Our Island Ref. To:
Hawai`i County Is An Equal Opportunity Provider And Employer Ref. Date $EP 3 fl 2010
September 18, 2014
Page 2 of 2
2. Bill No. 71 is amended by amending Section 19-38 (as contained in Section 2 of Bill No. 71)
to read as follows:
"Section 19-38. Tax liens; foreclosure without suit.
(a) All real property on which any lien, or part thereof, for taxes levied pursuant to this
Code has existed for at least two years [sue] may be sold by way of foreclosure
without suit by the director or as otherwise specified in this Code.
(b) Such delinquent real property shall be sold by the director or the director's
designated representative at public auction to the highest bidder, for cash, to satisfy
the lien, together with all interest, penalties, costs, and expenses due or incurred on
account of the taxes, lien, and sale.
(c) The surplus funds from the tax foreclosure sale, if any, shall be rendered to the
person(s) legally entitled to the surplus funds resulting from the sale.
(d) The sale shall be held at any public place proper for sales on execution of the
foreclosure."
MW/dh
Att.
AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 5 OF THE HAWAII COUNTY
CODE 1983 (2005 EDITION,AS AMENDED), RELATING TO REAL PROPERTY TAXES,
LIENS, FORECLOSURES, AND NOTICE.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. Purpose. The purpose of this ordinance is to reduce the number of years required
to foreclose on a property for delinquent real property taxes from three to two years, thus allowing the
County to sell the foreclosed property at public auction to recoup unpaid taxes, penalties, and various
administrative costs in a timelier manner. This reduction in the holding period also decreases the period
the property is left vacant thereby lessening the potential loss of value due to deterioration in its
condition. Additionally, this ordinance relocates notice requirements previously placed in Section 19-38
into the appropriate Section 19-40, to ensure that all notice requirements are provided in a single
location.
SECTION 2. Chapter 19, article 5, section 19-38 of the Hawai`i County Code 1983
(2005 edition, as amended), is amended to read as follows:
"Section 19-38. Tax liens; foreclosure without suit [fie].
[All real property on which a lien for taxes exists may be sold by way of
foreclosure without suit by the director, and in case any lien, or any part thereof, has
highest bidder, for cash, to satisfy the lien, together with all interest, penalties, costs, and
expenses due or incurred on account of the tax, lien, and sale, the surplus, if any, to be
rendered to the person thereto entitled. The sale shall be held at any public place proper
for sales on execution, after notice published at least once a week for at least four
successive weeks immediately prior thereto in any newspaper with a general circulation
of at least sixty thousand published in the State and any newspaper of general circulation
published and distributed in the County. If the address of the owner is known or can be
ascertained by due diligence, including an abstract of title or title search, the director shall
send to each owner notice of the proposed sale by registered mail, with request for return
finance. The notice shall be deposited in the mail at least forty five days prior to the date
set for the sale. The notice shall also be posted for a like period in at least three
conspicuous public places within the county and if the land is improved, one of the three
postings shall be on the land.]
(a) All real property on which any lien, or part thereof, for taxes levied pursuant to this
Code has existed for at least two years may be sold by way of foreclosure without
suit by the director or as otherwise specified in this Code.
(b) Such delinquent real property shall be sold by the director or the director's
designated representative at public auction to the highest bidder, for cash, to satisfy
the lien, together with all interest, penalties, costs, and expenses due or incurred on
account of the taxes, lien, and sale.
(c) The surplus funds from the tax foreclosure sale, if any, shall be rendered to the
person(s) legally entitled to the surplus funds resulting from the sale.
(d) The sale shall be held at any public place proper for sales on execution of the
foreclosure."
SECTION 3. Chapter 19, article 5, section 19-40 of the Hawai`i County Code 1983 (2005
edition, as amended), is amended to read as follows:
"Section 19-40. [ tieeTfer--of.] Notice; sale of foreclosed property without
suit.
[The notice of sale shall contain the names of the persons assessed, the names of
the present owners (so far as shown by the records of the director and the records, if any,
•• - . • . _ -the land cent) the character and amount of the
tax, and the tax year or years, with interest, penalties, costs, expenses, and charges
accrued or to accrue to the date appointed for the sale, a brief description of the property
to be sold, and the time and place of sale, and shall warn the persons assessed, and all
persons having or claiming to have any mortgage or other lien thereon or any legal or
equitable right, title, or other interest in the property, that unless the tax, with all interest,
penalties, costs, expenses, and charges accrued to the date of payment, is paid before the
time of sale appointed, the property advertised for sale will be sold as advertised. The
director may include in one advertisement of notice of sale notice of foreclosure upon
more than one parcel of real property, whether or not owned by the same person and
whether or not the liens are for the same tax year or years.]
(a) The notice of tax foreclosure without suit and tax sale shall contain:
(1) The names of the persons assessed;
(2) The names of the present owners as shown by the records of the director
and the records if any of the assistant registrar of the land court;
(3) The character and amount of tax and year or years taxes are delinquent,
with interest, penalties, costs, expenses, and charges accrued or to be
accrued to the appointed date of sale;
al A brief description of the property;
(5) The time and place of the sale; and
(6) A warning to the persons assessed, and all persons having or claiming to
have any mortgage or other lien thereon on that property or any legal or
equitable right, title, or other interest in the property, that unless the tax,
together with all interest, penalties, costs, expenses, and charges accrued to
the date of payment, is paid before the appointed time of sale, the property
advertised for sale will be sold as advertised.
(b) The procedure for noticing a tax foreclosure without suit and sale shall be as
follows:
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(1) Notice shall be published at least once a week for at least four successive
weeks immediately prior to the sale in any newspaper with a general
circulation of at least sixty thousand published in the State and any two
newspapers of general circulation published and distributed in the County;
(2) If the address of the owner is known or can be ascertained by due diligence,
including an abstract of title or title search, the director shall send to each
owner notice of the proposed sale by registered mail, with request for return
receipt. If the address of the owner is unknown, the director shall send a
notice to the owner at the owner's last known address as shown on the
records of the department of finance;
(3) The notice shall be deposited in the mail at least forty-five days prior to the
date set for the sale; and
(4) The notice shall also be posted for a like period in at least three conspicuous
public places within the County and if the land is improved, one of the three
postings shall be on the land.
(c) The director may include in one advertisement of notice of sale the notice of
foreclosure upon more than one parcel of real property, whether or not owned by
the same person and whether or not the liens are for the same tax year or years."
SECTION 4. 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.
SECTION 5. 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 6. This ordinance shall take effect upon its approval.
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