HomeMy WebLinkAboutCOM 1045.001 2012-2014 •BRENDA J. FORD �1°'s• Phone: (808) 323-4277
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Council Member All`: „
District 6 - Portion of North = Fax: (808) 329- 4786
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Kona, South Kona, Ka`u, & ''•;di.40.- E-Mail: bford @co.hawaii.hi.us
Greater Volcano Area
HAWAII COUNTY COUNCIL
County of Hawaii
West Hawaii Civic Center
74-5044 Ane Keohokalole Hwy. c)
Kailua-Kona, Hawaii 96740 ; n
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DATE: October 13, 2014
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TO: J Yoshimoto, Chairperson, o. -}}
and Members of the Hawai`i County Council
FROM:
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renda J. Ford, Council Member
SUBJECT: Proposed Amendments to Bill No. 292; AN ORDINANCE AMENDING
CHAPTER 19, ARTICLE 10, SECTION 19-71 OF THE HAWAII COUNTY
CODE 1983 (2005 EDITION, AS AMENDED), RELATING TO ELIGIBILITY
TO CLAIM PROPERTY AS A PRINCIPAL HOME.
Please see below proposed amendments to Bill No. 292. The amendments are illustrated below via
Ramseyer format with respect to the contents of Bill No. 292 (material to be deleted is bracketed and
stricken, material to be added is underscored, both bolded for emphasis).
Section 19-71 is amended by amending subsection(e) to read as follows:
"(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) Four 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) [fief] Action by the owner to maintain the principal home residence
within the County;
(C) Owner's actual physical occupancy of the principal home within the County
and
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Ref.To: � _
Serving the Interests of the People of Our Island Ref. Date T 15 2014
Hawai`i County Is An Equal Opportunity Provider And Employer
October 13, 2014
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(D) The owner has filed a Hawai`i state income tax return as a full year resident
with a reported address within the County for each fiscal year that the
exemption is sought.
(2) "[Intent-al Action by the owner to maintain [u] the principal home" may be
evidenced by, but not be limited to, any of the following [ind-ieia:] indicators:
(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 Hawai'i; or
(D) Possession of any of the following with a reported address within the
County of Hawai`i:
(i) Valid Hawai`i driver's license.
(ii) Hawai`i state identification card.
(iii) Resident aliens possessing a valid resident alien card ("green
card") must claim residency only in Hawai`i.
(iv) Completed and signed copy of the owner's Hawaii County
voter registration application,with only the last four digits of
the owner's social security number visible.
(v) U.S. Internal Revenue Service tax return with only the last four
digits of the social security number visible.
The director of finance may require documentation of the above or
additional [indicia of intent to residc] indicators of residency 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 [• •• • • • • • . • . • •. • .
the County,] claimant residing outside of the County for more than one
hundred sixty-five days, shall be deemed grounds for denying a claim for
exemption or disallowing an existing exemption."
A draft copy of Bill No. 292, Draft 2, is attached with these amendments incorporated.
Thank you.
BJF/dkr/la
Att.
AN ORDINANCE AMENDING CHAPTER 19, ARTICLE 10, SECTION 19-71 OF THE
HAWAII COUNTY CODE 1983 (2005 EDITION,AS AMENDED), RELATING TO
ELIGIBILITY TO CLAIM PROPERTY AS A PRINCIPAL HOME.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII:
SECTION 1. The purpose of this ordinance is to ensure that the person seeking the tax
exemption is a full time resident of the County of Hawai`i. This ordinance requires that the
person applying for a tax exemption from the real property tax rate on a person's "principal
home" have filed a Hawai`i state income tax return as a year round resident. In order to afford a
reasonable period to transition to the new eligibility criteria for a home exemption and to allow
for outreach to educate the public, this amendment will not take effect until December 31, 2015.
SECTION 2. Chapter 19, article 10, section 19-71 of the Hawai`i 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$40,000;
(2) Where the value of the property is in excess of$40,000, the exemption shall
be the amount of$40,000.
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, Hawai`i
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 $80,000
70 years of age or over $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.
(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] Four 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;
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(B) [men eff Action by the owner to [create or] maintain [a] the principal home
residence within the County; [and]
(C) Owner's actual physical occupancy of the principal home within the County
[.]; and
(D) The owner has filed a Hawai`i state income tax return as a full year resident
with a reported address within the County for each fiscal year that the
exemption is sought.
(2) "[I ] Action by the owner to maintain [a] the principal home" may be
evidenced by, but not be limited to, any of the following [indicia:] indicators:
(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 Hawai`i; or
(D) Possession of any of the following with a reported address within the
County of Hawai`i:
(i) Valid Hawai`i [drivers] driver's license.
(ii) Hawai`i state identification card.
(iii) [Filed resident income tax return of the State of Hawai`i.
(iv)]Resident aliens possessing a valid resident alien card ("green
card") must claim residency only in Hawai`i.
(iv) Completed and signed copy of the owner's Hawai`i County voter
registration application, with only the last four digits of the owner's
social security number visible.
(v) U.S. Internal Revenue Service tax return with only the last four digits
of the social security number visible.
The director of finance may require documentation of the above or
additional [indicia of intent to reside] indicators of residency 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,] claimant residing outside of the County for more
than one hundred sixty-five days, 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.
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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.
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