HomeMy WebLinkAboutBIL 085 Draft 01 1984-1988COUNTY OF HAW IOF HAWAII
dT'r�or ca?if�' r Dill N0. 05
3''y.'S 4K5
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. 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. 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.
Section 19 -_Tax Deferment Amount. 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.
Section 19- Tax Deferment Interest. The deferred real
property taxes shall bear interest at an interest rate of eight
percent per annum, compounded annually.
Section 19- Deferred Taxes; Cancellation; Due When. (a)
Tax deferment scall 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) 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:
-2-
INTRODUCED BY:
�O-UNCINCE149ER, COUNTY OF HAWAII