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Home My WebLink AboutBIL 085 Draft 02 1984-1988l COUNTY OF HAWAII TATE OF HAWAII Bill No. 85 (Draft 2) ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE, AS AMENDED, BY ADDING A NEW ARTICLE RELATING TO DEFERRED TAXES. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. Accelerating increases in real property valuations have increased the tax burden which has caused certain hardships to homeowners who have no speculative motive nor any intention to sell their residences in the near future. The Council finds that these homeowners should not be unduly burdened by higher real property taxes resulting, in part, from land sales and development activities in their surrounding neighborhood. The purpose of this ordinance is to enable those homeowners who qualify for home exemptions under Sections 19-71 and 19-72 of this chapter to defer a portion of their real property tax payments. SECTION 2. Chapter 19, Hawaii County Code, as amended, is hereby amended by adding a new article to be appropriately numbered and to read as follows: 'Article Tax Deferment For Homeowners. Section 19 -Application. (a) A homeowner may apply to the Director of Finance to defer a portion of his real property taxes in accordance with Section 19- of this article relating to Tax Deferment Amount provided the homeowner is eligible for a home exemption under Section 19-71 and 19-72. In the case of property leased from the Department of Hawaiian Home Lands, such property shall not be eligible for tax deferral until the end of the seven-year tax-exempt period allowed pursuant to Section 19-89 of this chapter. The application shall be filed with the Director on or before December 31 preceding the tax year for which tax deferment is being sought. (b) Upon receipt of any such application, the Director shall make a finding of fact as to whether or not the property described in the application is qualified for a home exemption pursuant to the terms and conditions of Sections 19-71 and 19-72. The Director shall file a notice of tax deferment with the Bureau of Conveyances. Upon approval of the application, tax deferment shall become effective July 1 of the following tax year. The owner may appeal any disapproved application as in the case of an appeal from an assessment. (c) Once approved, application for deferment shall be renewed annually with the Director by the homeowner. Renewal notices shall be filed no later than December 31 of each tax year. Failure on the part of the homeowner to renew the claim for deferral shall cancel the tax deferment. The Director shall file a notice of the renewal with the Bureau of Conveyances. Section 19- Tax Deferment Amount. (a) The tax deferment amount shall be the amount of taxes due in excess of the amount paid in the tax base year. The base year shall be the first year for which deferment of taxes has been approved. The base year's assessment shall include the value of the land and improvements. (b) In the event the real property tax liability drops below the base tax payment, the homeowner shall pay the lesser of the two amounts. The base tax amount however, shall remain the same. (c) In the event a homeowner qualifies for additional exemptions during the deferral period, a new base tax payment shall be determined by reducing the initial base tax payment by the proportionate dollar amount of the exemption. Section 19- Tax Deferment Interest. The deferred real property taxes shall bear interest at an interest rate of twelve percent per annum, compounded annually. Section 19- Deferred Taxes; Cancellation; Due When. (a) Tax deferment shall be cancelled and deferred taxes and interest become due and payable if the property is sold, transferred, subdivided, or fails to qualify for the home exemption as defined by Section 19-71 and 19-72, provided, however, that tax deferment shall continue if: (1) The property is transferred to the owner's heir(s) and within sixty (60) days after receiving title to the property the heir(s) petitions the Director, in writing, to continue the tax deferment, and the property continues to qualify for the home exemption as defined by Sections 19-71 and 19-72; or -2- (2) The property is owned jointly by spouses and upon the death of one spouse, ownership is transferred to the surviving spouse and the surviving spouse, within sixty (60) days after receiving title to the land, petitions the Director, in writing, to continue the tax deferment, and the property continues to qualify for the home exemption as defined by Sections 19-71 and 19-72. (b) A 25% penalty shall be imposed on the deferred taxes and interest if tax deferment is cancelled. (c) The deferred taxes, interest, and penalty shall be a paramount lien on the property. Section 19- Rules and Regulations. The Director of Finance may promulgate rules and regulations as may be necessary to administer this article.' SECTION 3. In the event any portion of this ordinance is declared invalid, such invalidity shall not affect other parts of this ordinance. SECTION 4. This ordinance shall take effect upon approval. Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Effective Date: INTRODMED BY: /COUNC BER, COUNTY OF HAWAII i December 4, 1985 December 4, 1985 -3- OFFICE OF THE COUNTY CLERK HAWAII COUNTY BUILDING COUNTY Of HAWAII HILO, HAWAII 96740 Decerlber 4, 1985 Refer: Bill 85/FC-104 To: Mr. Stephen i:. Yarl.ashiro, Chairrian HSAC meal Propert- Tan Cou-ni ittee Re: Aiienc?rient to Chapter 1.9, I elatir, to Deferred Taxes The following is the action of the Hawaii County Council adopted at its meeting held t°clay Approve and adopt Conlm.ittee on Finance Report Igo. 104. COUNTY CLERK nc : ?'ayor Finance Director l\.eal Property Tan Adninistrator Legislative Auditor BILL NO. 85 - 1985 (Draft 2) AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE, AS AMENDED, BY ADDING A NEW ARTICLE RELATING TO DEFERRED TAXES. Date Introduced: December 4, 1985 Copies of the foregoing Ordinance, in full, are on file in the Office of the County Clerk for use and examination by the public. I hereby certify that the foregoing Ordinance passed first reading at the meeting of the County Council on December 4, 1985, by the following aye and no vote: AYES: Councilmembers Dahlberg, De Luz, Domingo, Jitchaku, Kokubun, Lai, Schutte, and Chairman Yamashiro - 8. NOES: None. ABSENT & EXCUSED: Councilmember Herkes - 1. COUNTY CL K COUNTY OF HAWAII BillNo. 85.1985 (Drafti2) AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODlk, AS AMENDED, BY ADDNG A NEW ARTICLE RELATING TO DEFERREDTAXES. Date Introduced: December 4,1985 Copies of the foregoing Bill, in full, are on file in the Office of the County Clerk for use and exam- ination by the public. I hereby certify that the foregoing Bill passed first reading at the meeting of the County Council on December 4, 1985, by the following aye and no vote. AYES: Councilmembers Dahlberg, De Luz, Domingo, Jitchaku, Kokubun, Lai, Schutte, and Chairman Yamashiro-8. NOES: None. ABSENT AND EXCUSED: Councilmember Herkes-1. R.B.LEGASPI COUNTYCLERK COUNTY OF HAWAII (881—Hawaii Tribune -Herald: Dec. 10, 1985)