HomeMy WebLinkAboutCOM 1045.005 2012-2014 J�tvgs M'w'� Phone: 808 323-4277
BRENDA J. FORD - •: '' �� Phone: (808)
Fax: (808) 329- 4786
Council Member
October 24, 2014
Page 2 of 3
(i) In the case of an owner who has not earned sufficient income to
require the filing of a Hawai`i state income tax return, the owner
may seek a conditional waiver of this requirement from the
director by certifying that the only reason the waiver is sought is
insufficient income to require the filing of a Hawai`i state income
tax return, and by providing evidence to the satisfaction of the
director that the owner is a full time resident; or
(ii) In the case of an owner who relocated to the County of Hawai`i
and has not yet had the opportunity to file a Hawai`i state income
tax return, but intends to file a Hawai`i state income tax return at
the next tax return filing deadline, that owner may seek from the
director a conditional waiver of this requirement by certifying that
the owner shall file a Hawai`i state income tax return within the
next twelve months. In the event the owner does not file a Hawai`i
state income tax return within the twelve month period, the owner
shall be charged the amount of tax that was exempted and shall not
be eligible to apply for the exemption under this section for one
year.
(2) Maintaining a principal residence may be evidenced by one or more of the
following:
(A) Occupancy of the home in the County for more than two hundred
calendar days of the calendar year for which the exemption is sought;
(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 Hawaii.
(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 evidence of residence 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 fully to the director's
request, or in the event the director receives satisfactory evidence that a
claimant occupies a permanent home outside the County or there is
documented evidence the claimant resides outside of the County[;] for more
than one hundred sixty-five calendar days, shall be deemed grounds for
denying a claim for exemption or disallowing an existing exemption."
October 24, 2014
Page 3 of 3
A draft copy of Bill No. 292, Draft 3, 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 Hawaii 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 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$40,000;
(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."
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(A) The [taxpayer] owner has no other home exemption or principal home
in any other jurisdiction;
(B) [Intent of the owner to create or maintain a] The owner maintains the
principal home residence within the County; [and]
(C) [Owner's] The owner's actual physical occupancy of the principal
home within the County [v]; and
(D) The owner has filed a Hawaii state income tax return as a full time
resident for each fiscal year that the exemption is sought, or:
(i) In the case of an owner who has not earned sufficient income to
require the filing of a Hawaii state income tax return, the owner
may seek a conditional waiver of this requirement from the
director by certifying that the only reason the waiver is sought is
insufficient income to require the filing of a Hawai`i state income
tax return, and by providing evidence to the satisfaction of the
director that the owner is a full time resident; or
(ii) In the case of an owner who relocated to the County of Hawai`i
and has not yet had the opportunity to file a Hawaii state income
tax return, but intends to file a Hawai`i state income tax return at
the next tax return filing deadline, that owner may seek from the
director a conditional waiver of this requirement by certifying that
the owner shall file a Hawaii state income tax return within the
next twelve months. In the event the owner does not file a Hawai`i
state income tax return within the twelve month period, the owner
shall be charged the amount of tax that was exempted and shall not
be eligible to apply for the exemption under this section for one
year.
(2) [" - - - . -- . . - - .•- .•- . •- •
.. . --"] Maintaining
a principal residence may be evidenced by [, but not be limited to, any] one or
more of the following [indicia]:
(A) Occupancy of the home in the County for more than two hundred
calendar days of [a] the calend ar year[;] for which the exemption is
sought;
(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 Hawaii [mss] driver's license.
(ii) Hawaii state identification card.
(iii) [-• . - •. - •- - . - . - . -- _ . - . - . .•
(-ice)]Resident aliens possessing a valid resident alien card ("green
card") must claim residency only in Hawaii.
(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.
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(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] evidence of residence 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 fully
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]
or there is documented evidence [: -- .•- ' •- - - : --reside] the
claimant resides outside of the County[;] for more than one hundred sixty-
five calendar 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.
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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