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HomeMy WebLinkAboutORD 1997-153 1996-1998COUNTY OF HAWAII `TATE OF HAWAII BILL NO. 156 _ MRAFT 2 ) ORDINANCE NO. 97 153 AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE 1983 (1995 EDITION) RELATING TO REAL PROPERTY TAXATION. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII. Section 1. Section 19-27, Article 7, Chapter 19 of the Hawaii County Code 1983 is hereby amended as follows: "Section 19-27. Notice of assessments; addresses of persons entitled to notice. On or before March 15 preceding the tax year, the director shall give notice of the assessment for the tax year against each known owner, by personal delivery to the owner of or by mailing to him on or before such date postage prepaid and addressed to him at his last known place of residence or address a written notice identifying the property involved by the tax key and the general class established in accordance with section 19-53(e) and setting forth separately the valuation placed upon buildings, and the valuation placed upon all other real property, exclusive of buildings, determined pursuant to section 19-53((e)], the exemption, if any, allowed or denied, as the case may be, and the amount of the exemption applied to the buildings and the amount applied to all other real property, exclusive of buildings, and the net taxable value of the buildings and the net taxable value of all other real property, exclusive of the buildings. In addition to the foregoing, the director shall in each year give notice of the assessments for the year by public notice (by publication thereof at least three times on different days during the month of March of such year in a newspaper of general circulation, published in the English language) of a time when (which shall not be less than a period of ten days prior to March 31 preceding the tax year)and of a place where the records of taxable properties maintained for the district may be inspected by any person for the purpose of enabling him to ascertain what assessments have been made against him or his property and to confer with the director so that any errors may be corrected before the filing of the assessment list." Section 2. Section 19-53, Article 7, Chapter 19 of the Hawaii County Code 1983 is amended as follows: "Section 19-53. Valuation; considerations in fixing. (a) The director of finance shall cause the market value of all taxable real property to be determined and annually assessed by the market data and cost approaches to value using appropriate systematic methods suitable for mass valuation of properties for taxation purposes, so selected and applied to obtain, as far as possible, uniform and equalized assessments throughout the County. In making such determination and assessment, the director shall separately value and assess, within each class established in accordance with subsection (e) of this section: (1) Buildings (A) In determining the value of buildings, consideration shall be given to any additions, alterations, remodeling, modifications or other new construction, improvement or repair work undertaken upon or made to existing buildings as the same may result in higher assessable valuation of said buildings. (2) All other real property, exclusive of buildings. (b) So far as practicable, records shall be compiled and kept which shall show the methods established by or under the authority of the director for the determination of values. (c) Whenever land has been divided into lots or parcels as provided by law, each such lot or parcel shall be separately assessed. (d) When a Condominium Property Regime is declared for a property, each unit shall be classified upon consideration of its actual use into one of the general classes in the same manner as land. (e) Classification of land: (1) Except as otherwise provided in subsection (e)(2) of this section, land shall be classified, upon consideration of its highest and best use, into the following general classes: (A) Improved residential, (B) Unimproved residential, (C) Apartment, (D) Hotel and Resort, (E) Commercial, (F) Industrial, (G) Agricultural or Native Forests, (H) Conservation, and (I) Homeowner. (2) In assigning land to one of the general classes the director of finance shall give major consideration to the districting established by the land use commission pursuant to chapter 205, Hawaii Revised Statutes, the districting established by the County in its general plan and zoning ordinance, use classifications established in the general plan of the State, and such other factors which influence highest and best use, except that parcels which are used exclusively as the owner's principal residence shall be classified as "Homeowner" without regard to the highest and best use, provided that the director has granted to the owner a home exemption in accordance with sections 19-71 to 19-72. (A) The homeowner class is exclusively reserved for properties which are used as the owner's principal residence. Uses which shall not qualify as "Homeowner" include: (i) Real property which is valued according to its agricultural or native forest use pursuant to subsection 19-53(f)(1), or (h), (ii) Real property which is dedicated to an agricultural use or native forest use category pursuant to section 19-55, or section 19-58.4 (Native Forest Dedication), (iii) Real property which is used for commercial or income producing purposes, (iv) Real property which is used for residential rental purposes, whether for short or long term lease, (v) Real property which is used for any purpose other than the owner's principal residence. (3) Whenever there is an overlap or contradiction in districting or use classification between the County and the State, zoned districts by the County shall take precedence. (4) "improved residential" shall mean land which is classified as residential by the department of finance upon consideration of its highest and best use, and is property which fulfills the provisions of at least one of the following subparagraphs: (A) Land which has been subdivided prior to any assessment year as a lot for single -or two-family residential use in conformity with the then existing County zoning ordinances, and has been approved for sale or approved as being in conformity with all the subdivision requirements of the County, or (B) Land which is in actual single -or two-family residence use at a density of at least a single -or two-family residential building per acre, or (C) Land which is sufficiently developed with necessary land improvements to support a use density of at least a single -or two-family residential building per acre. (5) "Unimproved residential" shall mean all residential class lands not classified as "improved residential" or "homeowner." ([elf) (1) In determining the value of lands which are classified and used for agriculture, whether such lands are dedicated pursuant to section 19-55 or not, consideration shall be given to rent, productivity, nature of actual agricultural use, the advantage or disadvantage of factors such as location, accessibility, transportation facilities, size, shape, topography, quality of soil, water privileges, availability of water and its cost, easements and appurtenances, and to the opinions of persons who may be considered to have special knowledge of land values. Lands classified as tree farm property pursuant to chapter 186, Hawaii Revised Statutes, shall be considered for classification and valuation as agricultural. (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 ([elf) of this section 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 the land into parcels of five acres or less, provided that the 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 ([elf) 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 deferred tax shall commence from the date the conversion was made retroactive to the date the assessment was made pursuant to subsection ([elf) 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 property owner or lessee and shall apply only upon lands owned by the owner or lessee who has petitioned for the change in classification. The deferred or roll back tag 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 after 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. (A) Where the owner subdivides the land into parcels of five acres or less, the deferred tax shall be due and payable within sixty days of such conversion, subject to a ten percent penalty. (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 notwithstanding, the land shall continue to be assessed in its agricultural use as provided in subsection ([elf) 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. (3) Where lands located within agricultural districts are put to agricultural uses, 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 land shall be deferred and shall be payable upon conversion as provided under this section. (4) A portion or portions of a parcel of land that is being assessed as pasture, whether it is dedicated under the provisions of section 19-55 or not, may be taken out of production for a specified time period, not to exceed 10 years, as part of a good forestry plan in order to restore a degraded native forest such that it meets the requirements of the native forest category as stated in section 19-53(h). Such a plan indicating the acreage and area, as well as the specific forest restoration work to be done, shall be filed with the director of finance by September 1 and approved by the director by December 15. If the plan is approved, the land shall continue to be given the same pasture assessment. (A) The owner shall provide to the director of finance yearly evidence that the forest restoration plan is being implemented, as well as a signed and notarized affidavit by a recognized forestry professional that the restoration plan is likely to succeed within the designated time period. The owner shall continue to fulfill all other requirements of the agricultural assessment, including providing yearly proof that any portion of the parcel not being restored to a native forest, but still being assessed for an agricultural use, continues to be used and maintained substantially and continuously in the approved agricultural use. (B) If, at the end of the time period designated by the plan, the land meets the requirements of the native forest category as described in (h) of this section, then it shall be classified as a native forest. If, at the end of the time period designated in the plan, the land does not meet the requirements of the native forest category, the land may be returned to its designated agricultural use as pasture or it shall be assessed and taxed at market value. (C) If the land is dedicated according to section 19-55, it shall remain dedicated as pasture or native forest and shall continue to be subject to all rollback taxes and penalties applicable to dedications. ([flg) In determining the value of buildings, consideration shall be given to any additions, alterations, remodeling, modifications or other new construction, improvement or repair work undertaken upon or made to existing buildings as the same may result in higher assessable valuation of said buildings; provided, however, that they increase in value resulting from any additions, alterations, modifications or other new construction, improvements or repair work to buildings undertaken or made by the owner -occupant thereof pursuant to the requirements of any urban redevelopment, rehabilitation or conservation project under the provisions of part II of chapter 53, Hawaii Revised Statues, shall not increase the assessable valuation of any building for a period of seven years from the date of certification as hereinafter provided. It is further provided that the owner -occupant shall file with the director of finance, in the manner and place which the director may designate, a statement of the details of the improvements certified in the following manner. (1) In the case of additions, alterations, modifications or other new construction, improvements or repair work to a building that are undertaken pursuant to any urban redevelopment, rehabilitation or conservation project as hereinabove mentioned, the statement shall be certified by the mayor or any government official designated by the mayor and approved by the council, that the additions, alterations, modifications, or other new construction, improvement or repair work to the buildings were made satisfactorily comply with the particular urban redevelopment, rehabilitation or conservation act provision, or (2) In the case of maintenance or repairs to a residential building undertaken pursuant to any health, safety, sanitation or other governmental code provision, the statement shall be certified by the mayor or any governmental official designated by the mayor and approved by the council, that (A) The building was inspected by them and found to be substandard when the owner -occupant made the claim, and (B) The maintenance or repairs to the buildings were made and satisfactorily comply with the particular code provision. ([g]h) "Native forests" means lands which have 60 percent or greater native species forest cover. Native species are defined as those indigenous to the Hawaiian islands. Indigenous in this context shall mean plants that became established or evolved in the Hawaiian islands without the aid of human beings. The forest cover requirement may be met by native species in either the tree layer or the understory layer, or a combination of the two; provided a minimum 25 percent of the forest cover shall be tree cover. (1) The director of finance shall determine whether or not land qualifies as a native forest by using current natural resource or vegetation maps or other acceptable evidence. Other acceptable evidence includes, but is not limited to: (A) A written affidavit by a recognized professional in the field of natural resources, or (B) A finding by a county, state or federal agency or department with the relevant expertise in the field of natural resources. (2) The following shall also apply to land classified native forest: (A) If the cover of native forest species falls below 60 percent, the native forest classification shall be rescinded. (B) Land taxed as native forest shall be maintained according to sound land management practices such that soil erosion is minimized, foreign species are controlled, and the watershed is protected. (C) The native forest assessment is available only for parcels which are covered with at least five intact and contiguous acres of native forest. (3) In determining the value of lands which are classified native forest, the director shall assign the value of the lowest agricultural use category that the land could qualify for if it were to be put into agricultural use." 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. This ordinance shall take effect upon approval. Introduced By: COUNCIL MBER, Hilo, Hawaii Date of Introduction: November 19, 1997 Date of lst Reading: November 19, 1997 Date of 2nd Reading: December 3, 1997 Effective Date: December 11, 1997 REFERENCE, Comm. 172.09 C UNTY OF HAWAII Introduced By: Date Introduced: First Reading: Published: REMARKS: Second Reading: To Mayor: Returned: Effective: Published: REMARKS: OFFICE OF THE COUNTY CLERK Countv of Hawaii Hawaii r -,— Aaron S.Y. Chun November 19, 1997 November 19, 1997 Nov�n—Uer 28, 1997 December 3, 1997 December 8, 1997 December 12, 1997 December 11, 1997 December 19, 1997 (DRAIr'. 2) t, - i , t1 ROLL CALL VOTE AYES NOES ABS EX Arakaki -X X i Chung X Leithead-Todd X i Leithead-Todd X x Reynolds Ray X - Santangelo x Reynolds X X Tyler Santangelo X Yagong X Smith X 9 0 0 0 Tyler X Yagong x 9 0 0 0 I DO HEREBY CF12TI,�x tljut. thAS 'Igoing BILL was adopted by the County Council and published as indicated above. '" rC .r.: -,ATI" COUNSEL COUNTY OF FirAWAIT Date -�lJp `�1 Ln T ApprovedlDrsappft"rri this /1 day of &"v.71 19 `7 MAYOR, COUNT' OF HA'•b A11 COUNTY CLERK Bill No.: 156 (Draft__) Reference: C-172.08/FC-157 Ord. No.: 97 153 ROLL CALL VOTE AYES NOES ABS EX Arakaki X Chung Leithead-Todd X i Ray x Reynolds X Santangelo x Smith X Tyler X Yagong X 9 0 0 0 I DO HEREBY CF12TI,�x tljut. thAS 'Igoing BILL was adopted by the County Council and published as indicated above. '" rC .r.: -,ATI" COUNSEL COUNTY OF FirAWAIT Date -�lJp `�1 Ln T ApprovedlDrsappft"rri this /1 day of &"v.71 19 `7 MAYOR, COUNT' OF HA'•b A11 COUNTY CLERK Bill No.: 156 (Draft__) Reference: C-172.08/FC-157 Ord. No.: 97 153