HomeMy WebLinkAboutFinance Director Rules (rev July 2025)i
DEPARTMENT OF FINANCE COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
INDEX
Rule 1 Rules of Practice and Procedure.
Rule 2 Rules Governing Standardization Committee.
Rule 3 Rules and Regulations Relating to Standards for Grants of Public Funds to Nonprofit Organizations.
Rule 4 Rules and Regulations Relating to Purchase of Materials, Supplies, Equipment
and Services.
Rule 5 Rules and Regulations Providing Value Engineering Incentive in Public Works Contracts.
Rule 6 Reserved.
Rule 7 Reserved.
Rule 8 Reserved.
Rule 9 Reserved.
Rule 10 Reserved.
Rule 11 Rules and Regulations Relating to the Administration of the Highway Safety Act,
Chapter 286, Part VI, Motor Vehicle Driver Licensing, Hawai‘i Revised Statutes.
Rule 12 Rules and Regulations Relating to the Administration of the Motor Vehicle Safety Responsibility Act, Chapter 287, Hawai‘i Revised Statutes.
Rule 13 Rules and Regulations For Staggering Motor Vehicle Registrations.
Rule 14 Rules and Regulations Relating to Motor Vehicle Dealer Plates and Temporary
Motor Vehicle Plates.
Rule 15 Rules Governing Issuance of Special Number Plates Pursuant to Section 249-9.1, Hawai‘i Revised Statutes.
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Rule 16 Rules and Regulations Relating to the Issuance of Specialty License Plates
Pursuant to Section 249-9.2, HRS.
Rule 17 Rules and Regulations Relating to Taxicabs. Rule 18 Rules and Regulations Relating to Permanent Registration of Fleet Vehicles.
Rule 19 Rules and Regulations Relating to Used Motor Vehicle Parts and Accessories. Rule 20 Reserved.
Rule 21 Rules and Regulations Relating to the Licensing of Guide, Signal or Service
Dogs. Rule 22 Reserved.
Rule 23 Reserved.
Rule 24 Reserved. Rule 25 Reserved.
Rule 26 Reserved. Rule 27 Reserved.
Rule 28 Reserved.
Rule 29 Reserved. Rule 30 Reserved.
Rule 31 Reserved. Rule 31A Rules and Regulations Relating to Long-Term Commercial Agricultural Use Dedication Under Chapter 19, Article 8, Section 19-60, Hawaiʻi County Code
1983 (2016 Edition, as amended)
Rule 32B Rules and Regulations Relating to Short-Term Commercial Agricultural Use Dedication Under Chapter 19, Article 8, Section 19-61, Hawaiʻi County Code 1983 (2016 Edition, as amended)
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Rule 32 Rules and Regulations Relating to Dedication of Lands in Urban Districts For Landscaping, Open Spaces, Public Recreation and Other Similar Uses Under
Chapter 19, Article 10, Section 19-80, Hawaiʻi County Code 1983 (2016 Edition,
as amended). Rule 33 Reserved.
Rule 34 Rules and Regulations Relating to the Nondedicated Agricultural Use Assessment
Under Chapter 19, Article 7, Section 19-57, Hawai‘i County Code 1983 (2016 Edition, as amended). Rule 35 Rules and Regulations of the Director of Finance Relating to Exemption From
Increased Valuation Due to Certain Improvements to Building Under Chapter 19,
Hawai‘i County Code. Rule 36 Rules and Regulations Relating to Exemption of Historic Residential Real Property Dedicated For Preservation Under Article 10, Chapter 19,
Section 19-89.1, Hawai‘i County Code 1983 (2005 Edition, as amended).
Rule 37 Rules and Regulations Relating to Real Property Tax Exemption For Low and Moderate Income Housing Developed, Owned, and Operated by Nonprofit or Limited Distribution Mortgagor or Certain Owners Under Chapter 19, Hawai‘i
County Code.
Rule 38 Rules and Regulations Relating to Classification of Land as Wasteland Development Property Under Chapter 19, Hawai‘i County Code.
Rule 39 Reserved.
Rule 40 Reserved. Rule 41 Reserved.
Rule 42 Reserved. Rule 43 Reserved.
Rule 44 Reserved.
Rule 45 Reserved. Rule 46 Reserved.
Rule 47 Reserved. Rule 48 Reserved.
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Rule 49 Reserved.
Rule 50 Reserved. Rule 51 Reserved.
Rule 52 Reserved.
Rule 53 Reserved. Rule 54 Reserved.
Rule 55 Reserved. Rule 56 Reserved.
Rule 57 Reserved.
Rule 58 Reserved. Rule 59 Reserved.
Rule 60 Rules and Regulations Relating to the Levy, Assessment, and Collection of County Transient Accommodations Tax Under Chapter 2, Article 48, Hawaiʻi County Code 1983 (2016 Edition, as amended).
DEPARTMENT OF FINANCE COUNTY OF HAWAI'I STATE OF HAWAI'I
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE RULE 4
RULES AND REGULATIONS RELATING TO
PURCHASE OF MATERIALS, SUPPLIES, EQUIPMENT AND SERVICES
Rule 4. 1 Definitions.
For the purpose of this rule, the following terms, phrases, words and their derivations shall
have the meaning given herein. When not inconsistent with the context, words used in the present
tense include the future, the masculine shall be deemed to embrace and include the feminine and the
singular shall be deemed to embrace and include the plural. The word" shall" is always mandatory
and not merely directory.
a) "Contractual services" shall mean and include items such as utility services, traveling
expenses, cleaning services, rental and leases, repairs or maintenance of equipment or other
County-owned assets, insurance, and services rendered by independent contractors and
professional and other personal services.
b) "Equipment" shall include tangible property of a more or less permanent nature, other than
land, buildings, or other improvements to real property, which is useful in carrying on
operations.
c) "Supplies" shall include all supplies and materials such as stationery and office supplies,
automotive and machinery parts, construction materials, recreation supplies, books, toilet
and cleaning supplies, and horticultural supplies.
d) "Using agency" is any department, agency, commission, board or unit of the County using
materials, supplies and equipment and procuring contractual services, except the
Department of Water Supply.
Rule 4. 2 Scope of Authority; Powers and Duties.
The Director of Finance, with the assistance of the Purchasing Agent, shall have the power and
duty to:
a) Purchase or contract for all supplies, equipment and contractual services needed by any using
agency which derives its support wholly or in part from the County, in accordance with these
rules and regulations, any purchasing procedures adopted for internal management and
operation of the Purchasing Division of the Department of Finance and any applicable laws.
The Director of Finance may delegate any or all functions relating to procurement, bidding
procedures, contract award and/or contract administration to any using agency.
b) Seek to procure for the County the highest quality in materials, supplies,
equipment and contractual services at the least expense, consistent with the
needs of the using agency.
c) Promote and encourage competition in purchases and sales. d) Establish procedures and prepare and issue circulars and instructions for the efficient
operation of the purchasing process.
e) Keep informed of current developments in the field of purchasing, prices, market
conditions and new products, and secure for the County the benefits of research done in
the field of purchasing by other jurisdictions, national technical societies, trade
associations having national recognition, and by private businesses and organizations.
f) Prescribe and revise such forms and procedures as reasonably necessary for informing
interested parties of upcoming bids, proposals and other information.
g) Take optimum advantage of quantity discounts through" bulk" purchases and
intergovernmental cooperative buying.
h) Declare vendors who default on their bids and/ or contracts or participate in any
fraudulent, illegal or unethical business practices, irresponsible bidders, and debar them
from receiving any business from the County for a minimum period of one year and a
maximum period of three years, in accordance with Hawaii Revised Statutes. Any such
vendor shall be given notice by registered mail and shall be given an opportunity to
present any argument against such action at a public hearing; failure to respond to such
written notice within five calendar days shall be considered evidence of' no- contest" to
the debarment action.
i) Classify with the assistance of using agencies and the Standardization Committee, all
suitable materials, supplies and equipment commonly used by the various agencies, and
prepare and adopt standards and specifications for such materials, supplies and
equipment.
Rule 4. 3 Emergency Purchases.
Emergency purchases shall only be made if such purchases are required because of an
urgent and immediate need created by equipment or machinery breakdown, acts of public
enemies, strikes, natural disasters, civil disturbances, freight embargoes, fires, extraordinary
weather, or by other unforeseeable causes or circumstances over which the agencies have no
control. Emergency purchases shall be made for the purpose of protecting the health, safety
and/or welfare of the people, or for protecting property, materials, supplies, equipment, and for
maintaining services immediately needed. Such competition as is practicable shall be obtained,
provided that required goods, services or construction may be procured in time to meet the
emergency.
Emergency purchase procedure for materials, supplies, equipment and services shall be as
follows:
a) If the cost is less than $5,000 and the item is immediately available, the operating
agency may, after seeking such competition as may be practicable, make the purchase
and attach a completed emergency purchase form when processing payment.
b) If the cost is over $5,000 but less than statutory limits for advertised bids or proposals,
after seeking such competition as may be practicable, a completed emergency purchase
form must be provided and prior approval of the Purchasing Division must be obtained
before purchase is made.
c) If the cost exceeds statutory limits for advertised bids or proposals, after seeking such
competition as may be practicable, a completed emergency purchase form must be
provided in detail and the prior approval of the Director of Finance must be obtained.
d) If an emergency should occur at a time when the office of the Purchasing Division is
closed, the using agency may, after seeking such competition as may be practicable, obtain
the materials, supplies, equipment or services directly from the most practical source and
immediately thereafter submit a completed emergency purchase form and a written
explanation of the emergency.
Rule 4. 4 Petty Cash Funds.
Petty cash funds are fixed sums of money provided to a using agency for the purpose of
making change or paying small obligations for which the issuance of a purchase order would be too
expensive and time-consuming.
a) The establishment of all petty cash funds shall be approved by the Director of Finance.
b) The amount of cash to be disbursed for small purchases and the procedures for use and
control of petty cash funds shall be established by the Director of Finance through memoranda and may be amended from time to time.
c) The fund shall not be used for piecemeal purchases with the aggregate purchases exceeding the monetary limits established by the Director of Finance. The fund shall also not be used
as a temporary borrowing medium or to cash checks.
d) With the approval of the Director of Finance or Purchasing Agent, petty cash may be used to
take advantage of discounts offered with prompt payment.
e) Use of petty cash funds shall be in accordance with County purchasing policies and procedures.
Rule 4. 5 Price Term Agreements.
Price term agreements eliminate the need for new procurement actions with each request for
delivery or performance. In addition, price term agreements aggregate purchases allowing for greater
competitive pricing to be obtained.
Price Term Agreements may be issued by the Purchasing Division for purchase of materials,
supplies and services when:
a) Materials, supplies and services are frequently needed in small quantities over an annual period; and
b) Source and/ or price have been determined through purchasing procedures in conformance
with procurement laws and rules.
Price term agreements must be issued to vendors with an estimated dollar limit and for a
specific annual period of time, although there is no legal requirement to purchase from the vendor at
any amount.
Rule 4. 6 Payment by Invoice.
Payment by invoice may be authorized for use by the Director of Finance for processing
certain purchases such as those for purchases under dollar limits established herein, per diem,
mileage, meals, conference and program registrations, books and periodicals, items purchased under price-term agreements, payments to government agencies, court-ordered payments, and others made in the best interest of the County in accordance with the rules established herein..
The Director of Finance may also authorize, in writing, specific individuals or specific
agencies to use credit cards and the like for the purchase of specific types of items as may be
efficient and practical, provided the purchases are made in accordance with established purchasing procedures and that an accurate accounting of such purchases shall be maintained at all times.
Rule 4. 7 Competitive Purchases. All competitive purchases shall conform to Hawaii Revised Statutes and Hawaii Administrative Rules, provided that:
a) Purchases in an amount less than $2,500, including shipping charges or taxes, may be made
by using agencies pursuant to memoranda issued by the Director of Finance. Competitive
quotes are strongly recommended, but are not required to be submitted to the Purchasing
Division, provided that the purchase is a prudent use of public funds. An invoice may be submitted for the processing of payment for purchases less than $2,500.
b) Purchases of $2,500 or more shall be made by the Purchasing Division, except for those
items specifically delegated to certain using agencies or those items specifically exempt by law or rule. Agencies shall submit a requisition to the Purchasing Division together with
complete specifications for the requested goods or services. In instances where time is of
the essence, the Purchasing Division may permit agencies to solicit quotes for purchases less
than statutory limits for advertised bids or proposals, with the Purchasing Division
approving the final purchase.
Rule 4. 8 Noncompetitive Purchases.
Noncompetitive purchases shall conform to Hawaii Revised Statutes and Hawaii
Administrative Rules, provided that unless otherwise exempt by rule or law:
a) Purchases of $2,500 and up to $5,000, shall be approved in advance by the
Purchasing Division.
b) Purchases over $5,000, but less than statutory limits for advertised bids or proposals,
shall be approved in advance by the Director of Finance.
c) Purchases for amounts exceeding statutory limits for advertised bids or proposals shall be made only in conformance with all requirements of Hawaii Revised Statutes, including
posting on the County's web site for the required period of time, and, if exceeding $100,000,
including cost and pricing data.
d) Grants to nonprofit agencies, charitable institutions or community groups, not to exceed
$25,000, may be authorized by the Director of Finance for worthy projects or programs
which enhance the community or provide needed services or assistance to residents or
visitors, upon written request of a funding agency. A written contract shall be entered into
between the nonprofit agency, charitable institution, or community group and the appropriate County expending agency prior to funds being released.
Rule 4. 9 Approval and Signing of Purchase Orders.
a) Purchase orders shall be approved and signed by the Director of Finance, Purchasing Agent or any employee authorized by the Director of Finance.
b) Purchase orders may be signed electronically, including the use of scanned or
facsimile signatures.
c) Electronic transactions without physical documents may be employed, provided that
proper controls, including electronic verification, are instituted.
Rule 4. 10 Negotiated Sales of Property. The Director of Finance may dispose by negotiated sale any County property found unusable
for public purposes and valued below $250, without public auction. The Director of Finance may authorize the transfer of any County property found unusable or in excess of needs to any recognized
charitable or nonprofit organization if, in the Director's opinion, there will be a public benefit to such
a transfer. Such transfers shall be made in accordance with written procedures established by the
Director of Finance and such procedures and a record of any such transfers shall be kept available
for public inspection.
Rule 4. 11 Protest Procedures.
All protests involving procurement actions shall strictly follow Hawaii Revised Statutes
Section 103D-701, and Administrative Rules, Chapter 126, provided that:
a) The term" should have known" shall mean the date that the information in question was
available as a public record, regardless of whether any specific notification was mailed or
otherwise conveyed to the aggrieved party.
b) Protests involving issues regarding bid specifications, special provisions, proposal documents and the like must be filed no later than five calendar days before the deadline for receipt of proposals or opening of bids.
c) Protests involving issues relating to eligibility of bidders, award of contract to any bidder
alleged to be non-responsible or non-responsive or any good or service claimed to be not in
compliance with specification must be filed within five calendar days of the opening of bids,
or in the case of RFP' s, the announcement of award.
d) Protests must be filed only with the Director of Finance, in duplicate, and either hand
delivered (with a receipt obtained) or mailed certified, return receipt requested, in
conformance with Section 3-126-3 of Hawaii Administrative Rules. Any protests not
exactly conforming to the above will not be considered.
Rule 4. 12 Contracts.
Generally, formal contracts will be drafted and executed for all purchases exceeding $50,000.
Lesser amounts may be authorized using purchase orders, unless the scope of services or other terms
and conditions are better described within a formal contract.
Purchase orders exceeding $50,000 may be issued to authorize purchase of emergency
services, sole source procurements, any purchases exempt from procurement law or rule, purchases
made using cooperative purchasing agreements available through the State Procurement Office, any
inter- governmental agreement, settlement agreement, court judgment or to enable an amendment to an existing contract or price agreement.
The General Terms and Conditions for Goods and Services, dated May 10, 2023, or General
Requirements and Covenants for Public Works Projects, dated July 1972, or subsequent revisions to same shall be attached to all contracts for the purchase of goods, services or construction as may be
applicable. These documents may be revised from time to time as the need may arise, without public
notice or hearing.
Rule 4. 13 Severability. If any provision of these rules or the applicability thereof should be held invalid for any
reason, such invalidity shall not affect other provisions or applications which can be given effect
without the invalid provisions or applications and to this end these rules are declared to be severable.
Rule 4. 14 Effective Date.
These rules and regulations shall take effect ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAI'I STATE OF HAWAI'I RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 9
RESERVED
DEPARTMENT OF FINANCE
COUNTY OF HAWAI'I STATE OF HAWAI'I RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 10
RESERVED
DEPARTMENT OF FINANCE COUNTY OF HAWAI‘I STATE OF HAWAI‘I RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE RULE 11 RULES AND REGULATIONS RELATING TO THE ADMINISTRATION
OF THE HIGHWAY SAFETY ACT, CHAPTER 286, PART VI,
MOTOR VEHICLE DRIVER LICENSING, HAWAI‘I REVISED STATUTES Rule 11.1 Scope of Rules.
These rules and regulations govern the requirements and procedures for the issuance of a learner's instruction permit and driver's license. Rule 11.2 Definitions.
As used in these rules, unless the context clearly requires otherwise: (a) “Administrator” shall mean the Director of Finance of the County of Hawai‘i, or the Administrator's authorized representative or subordinates.
(b) “Driver” shall mean every person who drives or is in actual physical control of a motor vehicle upon a highway or who is exercising control over or steering a vehicle being towed or pushed by a motor vehicle.
(c) “Driver's License” means any license to operate a motor vehicle issued under the laws of this state.
(d) “Examiner of Drivers” means the person or persons appointed under Section 286-101, Hawai‘i Revised Statutes.
(e) “Motor Vehicle” means every vehicle, that is self-propelled, and every vehicle which is propelled by electric power but which is not operated upon rails, but excludes a moped.
(f) “Out-of-state, U.S. territorial or Canadian driver’s license” shall mean those drivers' license issued by any other state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, American Samoa, Guam, a province of the Dominion of
Canada, or the Commonwealth of the Northern Mariana Islands, as listed in Section 286-108 (c), Hawai‘i Revised Statutes.
(g) “Party” shall mean each person named or admitted as a party or properly seeking and
entitled as a right to be admitted as a party in any hearing under these rules.
(h) “Person” includes individuals, partnerships, corporations, associations or public or private organizations of any character other than agencies as defined in Section 91-1 (1), Hawai‘i Revised Statutes.
(i) “Rule” shall mean any statement of the Examiner of Drivers constituting a rule under Chapter 91, Hawai‘i Revised Statutes.
(j) “Highway” means the entire width between the boundary lines of every way publicly maintained when any part thereof is open to the use of the public for purposes of
vehicular travel. Rule 11.3 Acceptable Signatories for Filing Instruction Permits for Minors; Documents Required.
(a) If parents share custody, both parents must sign (parents married, separated or divorced with joint custody). (b) Divorced parent with certified court custody papers may sign; or, if divorce decree does
not indicate who has legal custody, parent with physical custody may sign with a sworn affidavit. (c) If parents were never legally married, one parent may sign with a sworn affidavit.
(d) If parents are living, not legally divorced or separated, and whereabouts of one parent is unknown, parent with physical custody may sign with a sworn affidavit. (e) If one parent deceased, surviving parent may sign with deceased parent’s death
certificate.
(f) Legal guardian(s) may sign with certified court documents. (g) Foster parents(s) may sign with certified court documents. A minor applicant in foster
care shall present verification of foster care on Department of Human Services letterhead
signed by the Director or his designee pursuant to Hawai‘i Revised Statutes Section 286-112 (a) (3). (h) Next of kin may sign if both parents are deceased. Must provide death certificate for both
parents.
(i) Responsible adult(s) may sign if both parents are deceased. Responsible adult(s) must be willing to assume financial responsibility of the minor and must provide death certificate for both parents.
(j) Legally emancipated minor may sign for himself/herself with court documents showing
grant of emancipation. (k) Adult spouse of minor applicant may sign with proof of age and marriage certificate.
The Examiner of Drivers shall determine the acceptability of all documents submitted
and may require additional supporting documents as deemed necessary. Rule 11.4 Written and Performance Examination Scores.
(a) The written and performance examinations are issued to determine whether an applicant has a reasonably complete understanding of the rules of the road, ordinary safe driving practices and the laws relating to licensing of drivers and vehicles.
(b) All scores shall be valid for thirty days after passing such exams for the following
requirements: (1) Financial responsibility requirements.
(2) Eye-medical certification.
(3) Other required documents as deemed necessary by the Examiner of Drivers including, but not limited to, notarized signature(s) of parent(s), documents showing name change for parent and any other supporting government document
required for proof.
Rule 11.5 Payments for All Transactions.
(a) All payments to the County Director of Finance shall be made within two working days
(i.e. forty-eight hours). If payment is not received and transaction processed within two working days, all test scores and performance tests or licenses shall be voided. Any applicant who has not paid the prescribed fee shall be treated as a new applicant. (b) Payments returned due to “Insufficient Funds,” or other reason, must be settled within ten
working days. If payment is not received and transaction processed within ten working days, all test scores and performance tests or licenses shall be voided. (c) Any applicant who has not paid the prescribed fee shall be treated as a new applicant.
Rule 11.6 Road Test Procedures for Mopeds, Motorcycles, Motor Scooters, and
Three-Wheeled Vehicles. (a) Applicants who desire to obtain a State of Hawai‘i driver's license for the purpose of operating a moped, motor scooter, motorcycle or three-wheeled vehicle are required to:
(1) Possess a valid instruction permit. (2) Provide proof of liability insurance coverage by insurance card showing the name, make, year, factor or serial number of the vehicle, policy number, names of
insured, and the effective dates of coverage including the expiration date as
provided in Section 431:10C-104, Hawai‘i Revised Statutes. Photocopied liability insurance identification cards are not acceptable. (3) Provide a current Hawai‘i certificate of registration and current safety inspection
certificate. Photocopied certificates are not acceptable.
(4) Provide a helmet with safety shield or with safety glasses. (5) Provide a rental contract for rented motorcycles or motor scooters with the
applicant's name listed and the rental company's liability insurance card.
Photocopied liability insurance cards are not acceptable. (6) Wear covered shoes (no slippers or bare feet). (7) Wear a long-sleeved jacket or shirt.
(8) Wear full-length trousers (no shorts). (b) Every operator applying for a Type 1 or 2 performance examination shall be required to successfully complete an off-street skill test administered in accordance with the
Motorcycle Safety Foundation (MSF) Rider Skill Test – Motorcycles & 3-Wheel
Motorcycles as stated in Hawai’i Administrative Rules 19-122-13, or, if eighteen years of age or older, may submit a valid motorcycle skills test certification for waiver, DOT Form 4-810 (HWY- V 11/97) within ninety days of the completion date printed on the certificate.
(c) Applicants utilizing a three-wheeled vehicle shall successfully complete an off-street skill test administered in accordance with the Motorcycle Safety Foundation (MSF) Rider Skill Test – Motorcycles & 3-Wheel Motorcycles as stated in Hawai’i Administrative Rules 19-122-13. Upon successful completion, applicants shall be issued a driver's
license with restriction to three-wheeled vehicle only.
(d) Applicants utilizing an automatic Type 1 or 2 vehicle shall be issued a license with restriction to automatic Type 1 or 2 vehicle only.
Rule 11.7 Motorcycle Road Test Cancellation.
Both the off-street skill test and on-street road test may be cancelled by the Examiner of Drivers due to inclement weather, unforeseen emergencies, and as deemed necessary WITHOUT NOTICE to the general public. Permits of applicants who appeared for a road test may be
renewed for motorcycle, motor scooter or mopeds WITHOUT a road test providing the
permittee's name appears on the daily log and road test cancellation is noted. Examiner of Drivers shall also note on instruction permit the cancellation of the performance test.
Rule 11.8 Automobile Road Test Requirements.
Every road test applicant shall be required to meet the following requirements: (a) Applicant shall provide a vehicle meeting all safety standards.
(b) Applicant shall provide the vehicle’s current certificate of registration and certificate of safety inspection. Photocopies are not acceptable. (c) Applicant shall provide a valid insurance identification card as described in 431:10C-107,
Hawai‘i Revised Statutes. Photocopied insurance identification cards are not acceptable.
Photocopies of certificate of self insurance, issued by the Hawai‘i State Insurance Commission, are acceptable. Information must match certificate of registration. (1) If there are two registered owners, the insurance card must show at least one of
the names.
(2) If none of the names on the certificate of registration and insurance card match, a letter from the insurance company will be required acknowledging that they are aware that the insured is not one of the registered owners and that the vehicle is still covered by a valid insurance policy.
(3) If the vehicle is leased, the insurance card may be in the name of either the leasing company or the lessee. If insurance card shows the name of lessor, proof of the lease agreement is required.
(4) If a company has five or more vehicles registered to the company, the insurance card is not required to indicate the make and serial number (VIN) of each vehicle. (d) If the vehicle being used for the road test is a rented vehicle, the road test applicant must be listed on the rental agreement as a driver. And, the rental agreement or separate letter
from the rental company must authorize the applicant to use the rental vehicle for the road test. (e) Applicant must be accompanied by a duly licensed driver who shall be at least twenty-one years of age.
(f) Applicant must be at least sixteen years of age.
(g) If applicant is less than eighteen years of age, applicant must possess permit for at least one hundred eighty days and must present DOT approved Driver’s Education Student Completion Certificate and a Behind-the-Wheel Completion Certificate.
Rule 11.9 Road Test Cancellation. The road test may be cancelled by the Examiner of Driver due to inclement weather,
unforeseen emergencies, and as deemed necessary WITHOUT NOTICE to the general public.
Rule 11.10 Off-Street Skill and On-Street Road Test of Class (Category) 4.
(a) All applicants shall be tested according to Sections 286-108 and 286-108.5, Hawai‘i
Revised Statutes. The off-street skill test and on-street road test shall be administered to the applicant as described in the Hawai‘i Administrative Rules, Title 19, Subtitle 5, Chapter 122-17, Category 4. (b) The skill test is a three-part test consisting of 1) pre-trip vehicle inspection; 2) basic skill
control; and 3) on-street road test. The tests shall be administered sequentially by category of license without omitting any test. (c) Applicants shall also be required to provide the following:
(1) Vehicle in the category in which the applicant desires a license. (2) Current Certificate of Registration. Photocopies not acceptable. (3) DOT Safety Inspection Certificate of test vehicle (and trailer, if applicable).
(4) Insurance card for test vehicle as listed in Section 431:10C-107, Hawai‘i Revised Statutes. Photocopies not acceptable. (5) Valid instruction permit with endorsements for category being tested.
(6) Valid Hawai‘i driver's license (minimum of Class 3). (7) Current medical examination certificate, DOT 4-766 or facsimile thereof in accordance with the Motor Carrier Regulations (391.41 - 391.49).
(d) All applicants shall be accompanied by a licensed driver with a valid Hawai‘i driver's license of equal category or higher of the license sought by the applicant.
Rule 11.11 Driver License Photographs.
(a) A photograph is required of any applicant renewing a Hawai‘i driver’s license or applying for a new driver’s license, for the exchange of an out-of-state or foreign driver’s license, or for a duplicate driver’s license.
(b) All applicants shall remove any hats, headdress, etc., so as not to obscure more than two-thirds of their full-faced photograph. Exceptions to the removal of headgear will only be allowed for religious beliefs as protected by the First Amendment of the Constitution of the United States and Article I, Section 4, of the Constitution of the State
of Hawai‘i. If the photograph taken is determined to be unacceptable, the temporary
license will be revoked, the application denied and the applicant will be contacted within thirty days of such determination.
Rule 11.12 Duplicate Hawai‘i Driver's License.
(a) A duplicate driver's license may be obtained if the plastic license is lost, stolen or mutilated, or to change the address, sex, name of the licensee or to correct the social security number or date of birth. All applicants changing address, sex, name of the licensee or correcting social security number or date of birth shall furnish the following
as appropriate: (1) A certified copy of marriage certificate, divorce decree or legal name change documents are required in order to change the name on the license.
(2) A certified copy of birth certificate is required to correct date of birth.
(3) A current social security card is required to correct social security number.
(4) Applicants must provide 2 documents showing proof of principal address in
applicant’s name if changing current address.
(b) Any person presenting a driver's license that appears to have been altered or defaced shall be instructed to obtain a duplicate license or apply for a renewal if they are within the renewal period. The altered or defaced license shall be confiscated.
Rule 11.13 Oral Instruction Permit Examinations. All applicants who apply for an oral examination for an instruction permit must call to
secure an appointment date and time.
Rule 11.14 Restrictions.
(a) Subsequent to completion of the examinations required by State statute, the Examiner of Drivers shall explain to the applicant the reasons for any restriction. The following indicate some of the restrictions, which may be required for various deficiencies:
(1) Pedal extensions; special manual brakes, power brakes, special clutch or accelerator controls. (2) Special seat adjustments.
(3) Special knob on steering wheel, power steering, mechanical arm signaling device, gear lever on steering columns, automatic transmission.
Rule 11.15 Expiration and Renewal.
(a) All drivers' licenses and instruction permits shall expire at 12:00 midnight on the expiration dates. (b) An instruction permit for Class 2 licenses may be renewed only after attempting a
practical examination. If no examination is attempted, a three-month waiting period is required before another permit can be issued. (c) An instruction permit for Class 3 and 4 may be renewed on or before the expiration date. The first day of the next one-year period shall begin with the first day after the expiration
of the current instruction permit. If a permit is not renewed within ninety days after the expiration date, the applicant shall be treated as a new applicant for an instruction permit. (d) A driver's license may be renewed WITHIN six months prior to the date of expiration. The last day of this six-month period shall be the expiration date. An applicant with an
expired driver's license may renew the expired driver's license within one year after the expiration date. Pursuant to Section 286-107.5, Hawai‘i Revised Statutes, a reactivation fee shall be assessed after ninety days following the date of expiration. The first day of this one-year period shall begin with the first day after the expiration date and shall end at 12:00 midnight one year after the expiration date. Applicants appearing after the
one-year period, shall be treated as a new applicant and examined as provided in Section 286-108, Hawai‘i Revised Statutes. (e) If the one-year period ends on a weekend or holiday, the renewal, which includes payment of the required fees, must take place by the last working day prior to end of the
one-year period.
Rule 11.16 Out-of-State or Foreign Driver's License.
(a) All applicants holding a valid out-of-state driver's license must surrender their license to obtain a Hawai‘i driver's license. Applicants who do not have their out-of-state license to surrender shall be required to complete all required skills tests (written and road test).
(b) Foreign licenses are valid for use in the United States for one year from the date of first port of entry. Foreign license will be invalidated for use in the United States upon receipt of a Hawai‘i driver's license. Foreign driver's license applicants are required to complete all required skills tests.
Rule 11.17 Right of Applicant or Licensee to Notice and a Hearing. (a) Whenever the Examiner of Drivers denies, cancels, revokes or suspends a permit or
license, pursuant to the Hawai‘i Revised Statutes or these Rules and Regulations of the
Director, the applicant or licensee shall have thirty days to file a notice of appeal for a hearing with the Director or the Director's authorized representative or subordinate. (b) Within twenty working days from the filing of such notice of appeal, the Director or a designated hearing officer shall conduct a hearing. The hearing shall be conducted in
conformity with the provisions of Section 91-9, Hawai‘i Revised Statutes, relating to contested cases. Rule 11.18 Decision and Order.
After the hearing, the Administrator may rescind or affirm the denial, cancellation, suspension or revocation of the permit or license. Each decision or order adverse to the applicant or licensee shall be in writing or stated in the record and shall be accompanied by separate findings of fact and conclusions of law. A certified copy of the decision and order and
accompanying findings of fact and conclusions of law shall be mailed to the applicant or licensee, or to his/her attorney of record, within ten days of such order being issued. Rule 11.19 Reconsideration.
Any applicant or licensee to whom an adverse decision and order has been rendered by the Administrator may request a reconsideration of such adverse decision and order provided that such request shall be based on new evidence which was not considered by the Administrator
during the original hearing.
Rule 11.20 Appeal to Circuit Court.
Appeal of the decision and order rendered in the hearing shall be as provided by Section 286-129, Hawai‘i Revised Statutes.
Rule 11.21 Cancellation of Licenses and Permits. (a) In addition to the provisions contained in Section 286-120, Hawai‘i Revised Statutes, the following shall be reasons for cancellation of licenses or permits by the Examiner of
Drivers:
(1) Cheating on any administered test. (2) Switching testing material.
(3) Substitution of another person during the processing and/or testing phases.
(4) Use of non-authorized written materials which provide answers to test questions in English or other language (dictionaries are allowed).
(b) The cancellation for any infraction under this section shall be for a thirty-day period, and
re-application shall be permitted after such period. Rule 11.22 Severability.
If any portion of these rules or the applicability thereof should be held invalid for any reason, such invalidity shall not affect other provisions or applications and to this end these rules are declared to be severable.
Rule 11.23 Effective Date. These rules and regulations shall take effect ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE COUNTY OF HAWAI‘I STATE OF HAWAI‘I RULES AND REGULATION OF THE DIRECTOR OF FINANCE
RULE 12 RULES AND REGULATIONS RELATING TO THE ADMINISTRATION OF THE MOTOR VEHICLE SAFETY RESPONSIBILITY ACT,
CHAPTER 287, HAWAI‘I REVISED STATUTES
Rule 12.1 Scope of Rules.
The rules established herein shall govern the practice and procedure of the Hawai‘i
County Department of Finance in administering the Motor Vehicle Safety Responsibility Act, Chapter 287, Hawai‘i Revised Statutes. Rule 12.2 Mandate.
These rules are adopted pursuant to and in accordance with the procedural requirements of the Hawai‘i Administrative Procedure Act, Chapter 91, Hawai‘i Revised Statutes.
Rule 12.3 Petition for Hearing. (a) Any person aggrieved by any order or act of the Director of Finance under the Motor Vehicle Safety Responsibility Act may request a hearing by filing a petition in writing.
The petition shall contain the following information:
(1) Petitioner's name, address, telephone number, and place of employment.
(2) A designation of the specific order or act of the Director of Finance in question.
(3) A complete statement of all relevant facts.
(4) A complete statement of petitioner's interest and his/her position or contention,
including any legal authorities in support of such position or contention.
(5) Petitioner's signature and the date the petition is submitted to the Director of
Finance.
(b) The Director of Finance may reject any petition which does not conform to the
requirements set forth above. Rule 12.4 Processing of Petition.
Within ten working days from the receipt of the petition, the Director of Finance shall notify the petitioner in writing as to the date, time, and place of the hearing. Such notice shall be in conformity with Section 91-9(b), Hawai‘i Revised Statutes.
Rule 12.5 Hearings Officer. The Administrator of the Vehicle Registration and Licensing Division of the County of Hawai‘i shall be appointed by the Director of Finance as the hearings officer and shall preside
over all hearings under the Motor Vehicle Safety Responsibility Act.
Rule 12.6 Disposition of Petition.
Within thirty calendar days after a hearing is held, the hearings officer shall either affirm
or deny the petition. Such decision, and any notices with regard thereto, shall be in conformity with Chapter 91, Hawai‘i Revised Statutes, and shall be issued under the name of the Director of Finance.
Rule 12.7 Appeal to Circuit Court. Any order or act of the Director of Finance pursuant to the authority given by the provisions of the Motor Vehicle Safety Responsibility Act or by rules or regulations adopted in
the administration thereof, shall be subject to appeal to the Circuit Court of the Third Circuit.
Rule 12.8 Accident Report Required.
The written accident report form required under Section 287-4, Hawai‘i Revised Statutes.
Rule 12.9 Evidence of Insurance.
The form which is acceptable as evidence that a liability insurance policy was in effect at
the time of any reportable accident under Section 287-4, Hawai‘i Revised Statutes.
Rule 12.10 Release from Liability.
The form which is acceptable and preferred as evidence of one's release from liability shall be made available from the Department of Finance, although other types of release forms may also be accepted. All release forms shall be signed and verified before a person authorized
to administer oaths. If the person giving the release is in the United States military service, the
release form shall be executed in conformity with Section 502-47, Hawai‘i Revised Statutes. Rule 12.11 Installment Agreement.
Any installment agreement filed with the Director of Finance as provided under the Motor Vehicle Safety Responsibility Act shall state the names of the parties thereto, the date and location of the accident, the total amount of each installment and the date each installment payment is due. All installment agreements shall be duly acknowledged by filing a copy with the
Department of Finance. (The party entering into an Installment Agreement must also submit an
SR22 Insurance Certificate (Proof of Financial Responsibility)). Rule 12.12 Final Adjudication of Non-Liability.
A certified copy of a judgment with respect to damages shall be acceptable as evidence of a final adjudication of non-liability for any operator or registered owner involved in a reportable accident.
Rule 12.13 Security Required. The Director of Finance may accept the forms shown in Appendix 1, or any other document which contains information that may assist in determining the amount of security
required under Section 287-5, Hawai‘i Revised Statutes.
Rule 12.14 Notice of Pending Suspension and Order of Suspension -- Accident.
A driver involved in an accident covered under Section 287-4, Hawai‘i Revised Statutes,
shall be sent a notice informing the driver that failure to furnish proof of financial responsibility will result in the suspension of that person's driver's license and notice of suspension. Rule 12.15 Proof of Financial Responsibility or Suspension Notice - Conviction.
A driver convicted of any of the offenses enumerated in Section 287-20, Hawai‘i Revised Statutes, shall be sent a notice informing the driver that failure to furnish proof of financial responsibility will result in the suspension of that person's driver's license.
Rule 12.16 Security Deposit Receipt.
Persons depositing security as required by the Motor Vehicle Safety Responsibility Act shall be issued a receipt.
Rule 12.17 Return of Security. In conformity with Section 287-12, Hawai‘i Revised Statutes, application for the return of security may be made through the Return of Security form.
Rule 12.18 Evidence of No Action for Damages. In conformity with Section 287-9(2), Hawai‘i Revised Statutes, the form acceptable as
evidence that no action for damages arising out of the accident has been commenced may be
made through the Affidavit for Purpose of Regaining Driving Privileges Lost form. Rule 12.19 Notice of Suspension of License --Accident.
Upon failure to provide evidence of financial responsibility after due notice to do so, a driver involved in an accident covered under Section 287-4, Hawai‘i Revised Statutes, the driver’s driving privileges shall be suspended as stated on the Notice and Order of Suspension of License.
Rule 12.20 Notice of Suspension of License --Conviction. Upon failure to provide evidence of financial responsibility after due notice to do so, a
driver convicted of any of the offenses enumerated in Section 287-20, Hawai‘i Revised Statutes,
the driver’s driving privileges shall be suspended as stated on the Notice and Order of Suspension of License. Rule 12.21 Certificate of Insurance as Proof of Financial Responsibility.
In conformity with Sections 287-22 and 287-23, Hawai‘i Revised Statutes, the acceptable form of the certificate of insurance as proof of financial responsibility shall be made through the Proof of Financial Responsibility form.
Rule 12.22 Self- Insurance Certificate as Proof of Financial Responsibility.
In conformity with Sections 287-21 and 287-42, Hawai‘i Revised Statutes, the acceptable form of the certificate of self-insurance as proof of financial responsibility shall be approved by the Insurance Commission.
Rule 12.23 Notice of Cancellation or Termination of Insurance. In conformity with Section 287-33, Hawai‘i Revised Statutes, notice of cancellation or
termination of insurance shall be made through the Notice of Cancellation of Termination of
Insurance form. Rule 12.24 Revision of Forms.
The Director of Finance reserves the right to amend or revise any and all forms used in the administration of the Motor Vehicle Safety Responsibility Act. However, such amendments or revisions may not substantially alter the content of the forms.
Rule 12.25 Severability. If any portion of these rules or the applicability thereof should be held invalid for any reason, such invalidity shall not affect other provisions or applications and to this end these rules
are declared to be severable.
Rule 12.26 Effective Date.
These rules and regulations shall take effect ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULE 13
RULES AND REGULATIONS FOR MOTOR VEHICLE REGISTRATIONS
Rule 13.1 Authority of the Finance Director.
Because of monthly fluctuations in vehicle sales and out-of-state transfers, an imbalance
in monthly workload could develop. To compensate for this possible imbalance, the Finance
Director has the authority to reallocate vehicle registrations to other months. In the event of such
reallocation, fees will be prorated as appropriate.
Rule 13.2 Vehicle Sales.
(a) With the exception of special plates, and as provided in Section 249-7, Hawai‘i Revised
Statutes, the plates will remain with the vehicle when ownership is transferred. The
vehicle will keep the same registration month as it was previously assigned and the new
owner will pay only a filing fee unless the vehicle registration has expired or is within the
45 day renewal period.
(b) When plates are transferred to another vehicle as provided in Section 249-7 and
Section 249-9.1, Hawai‘i Revised Statutes, the vehicles shall maintain their original
registration month. The following specific rules shall apply:
(1) When plates are transferred to a vehicle being registered in Hawai‘i County for
the first time, the owner must pay all applicable fees for a twelve-month period.
The registration period shall begin with the first day of the month in which the
application is first filed.
(2) The vehicle from which the plates were removed shall maintain its originally
assigned registration period. The owner shall be issued new plates with the
appropriate registration tag or emblem. The owner will be subject to transfer,
plate and tag or emblem charges.
(3) When plates are transferred to a vehicle already registered in Hawai‘i County, that
vehicle shall maintain its originally assigned registration month. The owner will
be issued an appropriate tag or emblem and pay transfer and tag or emblem fees.
(c) Vehicles must be re-registered at the time of transfer of ownership if such transfer occurs
forty-five days prior to the expiration date of the registration.
Rule 13.3 Titling and Registering Vehicles from Out-of-State.
(a) To change out-of-state plates to Hawai’i license plates and Hawai’i County registration
owner must provide the following:
(1) The last issued out-of-state certificate of registration;
(2) The last issued out-of-state certificate of title (if you are listed as the lienholder);
(3) A bill of lading or shipping receipt (with date the vehicle arrived in Hawai’i
County);
(4) A current Hawai’i certificate of safety inspection (failed for registration and/or
Insurance only);
(5) State of Hawai’i Excise Tax Clearance with required attachments (if any) for
vehicles with year models as previous, current or subsequent year (ex: 2018,
2017, 2016).
(6) Vehicle may need to be weighed by a State Certified scale if we are unable to
determine the weight as established by the manufacturer.
(b) No title or registration will be processed for vehicles that are disassembled.
Rule 13.4 Payment.
(a) Payment of registration fees shall only be accepted forty-five days prior to the expiration
date.
(b) Payment with insufficient fund checks shall cause the motor vehicle registration to be
cancelled after the following:
(1) Notice of Dishonor of check shall be sent to the issuer notifying the registered
owner that it has ten days to make payment in full at the Motor Vehicle
Registration office in the form of cash, cashier’s check or money order and inform
the registered owner that the motor vehicle registration shall be cancelled for that
payment year.
(2) After the tenth day of actual receipt of Notice of Dishonor the motor vehicle
registration shall be cancelled for that payment year.
(c) No refunds for registration except in the following conditions:
(1) Due to an overcharge cause by a clerical error.
(2) A refund may be granted in the event of a traffic accident occurring within 30
days of vehicle registration renewal and the vehicle is deemed a total loss.
Registered owner must provide an official police traffic accident report which
lists the date and time of accident, description of vehicle and registered owner’s
name; verification from insurance company stating vehicle is considered total
loss.
Rule 13.5 Registration Tags or Emblems.
When a vehicle is first registered in the County of Hawai‘i, it will be issued a numbered
tag or emblem on which is printed the registration month. Identification of the registration year
will be accomplished utilizing a different colored tag or emblem.
Rule 13.6 Required Legal Documents.
Legal documents presented must be original or certified copies.
Rule 13.7 Deadline.
Vehicle registrations will be delinquent on the first day of the month following their
expiration dates.
Rule 13.8 Penalties.
(a) The late renewal penalty will be $8.00 for passenger vehicles and $20.00 for vehicles
with gross vehicle weight rating over 6,500 lbs. (freight vehicles). However, late penalty
will not be assessed on registrations occurring on the first working day following the
expiration date when the expiration date falls on a Saturday, Sunday, holiday, or a day
which is not a full working day.
(b) The late penalty for transfer of ownership shall be according to the Hawai’i Revised
Statues.
Rule 13.9 Severability.
If any provision of these rules or the applicability thereof should be held invalid for any
reason, such invalidity shall not affect other provisions or applications which can be given effect
without the invalid provisions or applications and to this end these rules are declared to be
severable.
Rule 13.10 Effective Date.
These rules and regulations shall take effect ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULE 14
RULES AND REGULATIONS RELATING TO MOTOR VEHICLE
DEALER PLATES AND TEMPORARY MOTOR VEHICLE PLATES
Rule 14.1 Purpose and Scope.
These rules govern the procedures to be followed for the issuance of permanent motor
vehicle dealer plates and temporary motor vehicle plates for new motor vehicles.
Rule 14.2 Definitions.
As used in these rules, unless the context clearly requires otherwise:
(a) “Director of Finance” shall mean the Director of Finance of the County of Hawai‘i, or his
duly authorized subordinates.
(b) “Permanent motor vehicle dealer plates” or “dealer plates” shall mean those plates issued
to new motor vehicle dealers which are used only for demonstration of new motor
vehicles to customers upon the public highways.
(c) “Temporary motor vehicle plates” or “temporary plates” shall mean those plates issued to
new motor vehicle dealers which can be utilized on new motor vehicles until the Director
of Finance furnishes to the dealer two number plates and the valid tag or emblem
appropriate for the year of registration or until the expiration of the temporary plates,
whichever occurs sooner.
(d) “Dealer Certification Slips” shall mean those pre-numbered validation slips attached to
the left portion of the temporary plate which contains all the information required in
Section 286-53, Hawai‘i Revised Statutes.
Rule 14.3 Permanent Motor Vehicle Dealer Plate.
The Director of Finance shall, upon receipt of the application, or thereafter, furnish a
manufacturer or dealer in new motor vehicles, one or more single motor vehicle dealer plates as
required by the applicant. The Director of Finance shall charge and collect the sum of $30 for
each permanent motor vehicle dealer plate issued by him. The issuance of plates, whenever the
design of the number plates issued under Chapter 249, Hawai‘i Revised Statutes, is changed,
and/or the replacement of lost or destroyed plates shall be in accordance with Section 286-53,
Hawai‘i Revised Statutes.
Rule 14.4 Temporary Number Plates.
(a) Upon request by a manufacturer or dealer in new motor vehicles, the Director of Finance
shall issue temporary number plates in lots of ten plates. The Director of Finance shall
fix the fees of each lot based upon the most current production and distribution cost per
plate.
(b) The manufacturer or dealer in new motor vehicles shall issue all temporary plates in
consecutive order.
(c) If temporary plates are used upon the sale of a new motor vehicle, the new motor vehicle
dealer or manufacturer shall print all the information on the temporary plate, remove the
dealer certification slips and fasten the temporary plate to the rear of the new motor
vehicle. The numerical expiration date printed by the dealer or manufacturer on the
temporary plate shall not exceed thirty days after the buyer initially takes possession of
the new motor vehicle. The numbers indicating the expiration date shall be large enough
to fill the space provided for them and shall be printed with black permanent ink.
(d) All the information on the dealer certification slips shall be printed or typed. The original
certification slip shall be submitted to the Treasury Division, in person or by mail, within
twenty-four hours after the issuance of a temporary plate to a new motor vehicle.
(e) If a temporary plate has been issued but the vehicle will not be registered with the
Department of Finance, the dealer or manufacturer of new motor vehicles shall certify in
writing the circumstances surrounding the issuance and subsequent cancellation.
(f) The dealer or manufacturer of new motor vehicles shall keep a book or record in which
the following information shall be entered:
(1) Temporary license plate validation number listed in consecutive order.
(2) Date of possession.
(3) Date of expiration indicated on the temporary plate.
(4) Make and type of vehicle.
(5) Name and address of new vehicle owner.
This book or record shall be available for examination by the Director of Finance during
the normal business hours.
Rule 14.5 Penalties.
(a) If the dealer or manufacturer of new motor vehicles fails to submit the original dealer
certification slip in the required time period, or the mail is not postmarked within the
required time period, the dealer or manufacturer shall pay a penalty for each original
dealer certification slip that is late.
(b) If a new motor vehicle, which has attached a temporary plate, is not registered with the
Department of Finance within twenty days after taking possession of the motor vehicle,
the taxes shall become delinquent and a penalty as provided in Section 249-10, Hawai‘i
Revised Statutes, shall be added to, and become part of, the delinquent tax.
Rule 14.6 Severability.
If any portion of these rules or the applicability thereof should be held invalid for any
reason, such invalidity shall not affect other provisions or applications which can be given effect
without the invalid provisions or applications and to this end these rules are declared to be
severable.
Rule 14.7 Effective Date.
These rules and regulations shall take effect ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 15
RULES GOVERNING ISSUANCE OF SPECIAL NUMBER PLATES
PURSUANT TO SECTION 249-9.1, HAWAI‘I REVISED STATUTES
Rule 15.1 Purpose and Scope.
These rules govern the procedures to be followed for the application and issuance of
special number plates.
Rule 15.2 Definition.
As used in these rules, unless the context clearly requires otherwise, “Director” shall
mean the Director of Finance of the County of Hawai‘i, or his duly authorized subordinates.
Rule 15.3 Design of Special Number Plates.
Special number plates shall conform to all requirements as provided in Section 249-9.1,
Hawai‘i Revised States.
Rule 15.4 Applications for Special Number Plates.
(a) Persons desiring special number plates shall make application on forms furnished by the
Director.
(b) Applications shall be approved on a first-come first-serve basis and will not be
considered approved until the required fees are paid and authorized by the Director for
issuance.
(c) Phone requests will not be considered unless the application and required fees have been
submitted.
(d) Refunds shall be authorized if an application has been denied by the Director.
(e) Once the order for special number plates has been placed with the vendor, there will be
no refund for cancellation.
Rule 15.5 Standards for Denial of Special Number Plates.
(a) The following applications shall be denied:
(1) Applications with the letter/numeral combination of regular plates.
(2) Applications with the letter/numeral combination which have been already
assigned or the application has been preceded by another application with the
same letter/numeral combination shall be denied upon request.
(3) Applications bearing the following types of words or connotations will be denied
upon request:
(A) Words or connotations of sexual or vulgar nature, or relating to excretory
functions or intimate body parts.
(B) Drug-related words or connotations.
(C) Words or connotations which are ethnic in origin or character and which
are judged by the Director to be offensive and disparaging.
(b) For purposes of this rule, the following standards shall apply:
(1) In determining the connotation, inference or tendency of a given request, the Director
shall apply an objective test of what inference may reasonably be detected by one
conversant with whatever linguistic, numerical or phonetic mode of communication
may apply to the request. The Director may not consider the subjective intent or the
declared meaning of the applicant. The request shall be considered to be the most
objectionable connotation that reasonably may be ascribed to it.
(2) “Words of a vulgar nature” shall be those words, any connotation of which is
designated a “vulgar,” “usually considered vulgar,” “not used in polite
conversation” or equivalently designated in the Webster’s Collegiate Dictionary,
current edition.
(3) “Intimate body parts” shall include breasts, genitalia, pubic area, buttocks, thighs
and organs related to sexual and eliminatory functions, regardless of whether the
request is couched in common, foreign, vulgar, scientific or other message form.
(4) “Drug-related words or connotations” shall mean messages that may objectively
be construed as referring to any drug, narcotic or intoxicant, including alcohol that
may be abused so as to produce a physical or mental condition that is inconsistent
with the lawful, safe operation of a motor vehicle by the person affected. The
phrase shall also include references to the paraphernalia, sale, use, user, purveyor
of, and state produced by, any such drug, narcotic or intoxicant.
(5) “Words or connotations of a religious nature” shall include messages that can
reasonably be construed as:
(A) Affirming or espousing a particular religious belief such as a belief in, or
denial of, the existence of a supreme being or beings.
(B) Expressing adherence to a particular sect or denomination.
(C) Promoting or discouraging any form of exercise of religious belief (i.e.
“PRAY”). For purposes of this rule, terms merely specifically identifying
the occupation of a vehicle owner (i.e. “PASTOR,” “NUN”), will be
allowed.
(6) “Words or connotations which are ethnic in origin or character” shall mean
messages which may reasonably be the basis of age, sex, race, nationality, creed,
religious preference or place of historical origin.
(7) “Offensive or disparaging” shall mean any message which may reasonably be
construed as singling out any definable class or persons, classified on the basis of
age, sex, race, nationality, creed, religious preference or place of historical origin,
in a manner that subjects that class to contempt or ridicule, or espouses superiority
of that class.
(c) The policies underlying this rule are to:
(1) Prevent constitutionally prohibited governmental involvement in the
disparagement or support of any form of religious belief or practice.
(2) Prevent governmental involvement in any discrimination on the basis of age, sex,
race, nationality, creed, religious preference or place of historical origin.
(3) Protect the public and children, who must by necessity, use the public highways
and therefore be exposed to license plate messages, from offensive, obscene or
unduly distractive messages that may tend to impair their safety or privacy.
(4) Protect license plates, which are necessary to the lawful regulation and
identification of vehicles, from vandalism and defacement that impairs their
function.
(5) Avoid the appearance of governmental approval of conduct inimical to the safe,
responsible operation of vehicles.
Rule 15.6 Issuance and Replacement of Special Number Plates.
(a) Upon receipt of the special number plate, the Director shall send a letter to the applicant
at the address indicated on the application form.
(b) The application and renewal fees for special number plates shall be in addition to all
other fees and taxes required under Chapters 249 and 286, Hawai‘i Revised Statutes, for
issuance of the special number plates to the vehicle and shall not be refundable.
(c) Upon the loss, defacement or destruction of a special number plate, the owner may
request for the reproduction of the same number plate upon payment of a special number
plate replacement fee of $20.
(d) When an old series of license plates are replaced by a new series of license plates, the
holders of special number plates shall be given first preference to apply for renewal of
said special number plates. The Director shall determine the length of such renewal
period. If the special number plates are not renewed within the renewal period, the
letter/numeral combination shall become available for request to any application
thereafter.
(1) The following procedures may be observed by the Director to apprise motorists of
renewal or re-issuance of special number plates when a new series of license
plates are to be issued:
(A) Publish in a newspaper of general circulation a notice of renewal of
special number plates. Such publication shall appear at an appropriate
time so as to permit interested motorists to submit applications for renewal
of special number plates and shall contain the period in which application
shall be made therefore; or
(B) Notice sent to the address of the registered owners of record who are
currently listed on the motor vehicle computer file. Notices need not be
sent to registered owners whose name and address are not currently listed
on the motor vehicle computer file.
Rule 15.7 Surrender of Special Number Plate.
An owner of a special number plate may surrender the special number plate to the
Director for future assignment to another vehicle. The owner shall be subject to the applicable
provisions, taxes, and fees of Chapters 249 and 286, Hawai‘i Revised Statutes.
Rule 15.8 Plates Transferable.
Special number plates may be transferable pursuant to Section 249-7, Hawai‘i Revised
Statutes, and the rules and regulations of the Director of Finance.
Rule 15.9 Right of Applicant to a Hearing.
Whenever the Director denies the issuance of a special number plate pursuant to the
Hawai‘i Revised Statutes or these rules and regulations of the Director of Finance, the applicant
shall have ten days to file a notice of appeal for a hearing with the Director.
Rule 15.10 Hearing.
Within twenty working days from the filing of such notice of appeal, the Director or a
designated hearing officer shall conduct a hearing. The hearing shall be conducted in conformity
with the provisions of Section 91-9, Hawai‘i Revised Statutes, relating to contested cases.
Rule 15.11 Decision and Order.
Within ten working days after the hearing, the Director may rescind or affirm the denial.
Each decision or order adverse to the applicant shall be in writing or stated in the record and
shall be accompanied by separate findings of fact and conclusions of law. The applicant shall be
notified by delivery or mailing of a certified copy of the decision and order and accompanying
findings and conclusions within a reasonable time to the applicant or his attorney of record.
Rule 15.12 Reconsideration.
Any applicant to whom an adverse decision and order has been rendered by the Director
may request a reconsideration of such adverse decision and order provided that such request shall
be based on new evidence which was not considered by the Director during the original hearing.
Rule 15.13 Appeal to District Court.
An applicant to whom an adverse decision and order or ruling has been rendered may file
an appeal to the District Court of Hawai‘i as provided in Section 286-58, Hawai‘i Revised
Statutes.
Rule 15.14 Severability.
If any provision of these rules or the applicability thereof should be held invalid for any
reason, such invalidity shall not affect other provisions or applications which can be given effect
without the invalid provisions or applications and to this end these rules are declared to be
severable.
Rule 15.15 Effective Date.
These rules and regulations shall take effect ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 16
RULES AND REGULATIONS RELATING TO THE ISSUANCE OF
SPECIALTY LICENSE PLATES PURSUANT TO
SECTION 249-9.2, HAWAI‘I REVISED STATUTES
Rule 16.1 Purpose and Scope
These rules govern the requirements and procedures to be followed for issuance of
specialty license plates pursuant to Section 249-9.2, Hawai‘i Revised Statutes.
Rule 16.2 Definitions.
As used in these rules, unless the context clearly requires otherwise:
(a) “Director” shall mean the Director of Finance of the County of Hawai‘i, or his duly
authorized subordinates.
(b) “Specialty license plates” shall mean license plates which are specifically authorized by
statutes and which may not have the same letter-numeral combination as regular issued
license plates but are not special license plates issued pursuant to Section 249-9.1,
Hawai‘i Revised Statutes. The background design of specialty license plates shall be the
same as regular issued license plates.
(c) “Regular issued license plates” shall mean license plates which conform to the
requirements of Section 249-9, Hawai‘i Revised Statutes.
Rule 16.3 Applicable Laws.
The requirements for qualification and issuance of specialty license plates shall be in
accordance with the applicable provisions of Chapter 249 and Chapter 286, Hawai‘i Revised
Statutes.
Rule 16.4 Application for Specialty License Plates.
(a) An applicant for a specialty license plate shall complete and sign the appropriate
application form for such license plates.
(b) The applicant must provide the following evidence of eligibility for issuance of a
designated type of specialty license plates:
(1) COMBAT WOUNDED LICENSE PLATE
The following shall be accepted as proof that the applicant was awarded the
Purple Heart Medal:
(A) DD Form 214.
(B) Official military orders.
(C) Verification letter issued by the Veterans Administration.
(D) Verification letter issued by Office of Veteran Services, State of Hawai‘i.
(2) VETERAN LICENSE PLATE
The following shall be accepted as proof that the applicant is a veteran who has
been honorably discharged from active military service:
(A) DD Form 214.
(B) Official military orders.
(C) Verification letter issued by the Veterans Administration.
(D) Verification letter issued by Office of Veteran Services, State of Hawai‘i.
Rule 16.5 Issuance and Replacement of Specialty License Plates.
(a) Specialty license plates shall be issued only to a vehicle which the applicant is the
registered owner. If the applicant requests issuance of a specialty license plate to a leased
vehicle, the applicant shall provide the lease agreement, which must indicate that the
applicant is the lessee.
(b) Unless otherwise provided by statutes, only one type of specialty license plates may be
issued to an applicant.
(c) Specialty license plates may not be issued to motorcycles and trailers.
(d) Specialty license plates shall be issued in consecutive order. No reservations for a
particular number shall be honored.
(e) If one or both specialty license plates are lost, stolen or mutilated, the qualified applicant
may request a replacement. Such replacement shall be the next license plates in
numerical sequence which are currently being issued.
Rule 16.6 Transfer of Registered Ownership for Vehicles Assigned Specialty License Plates.
(a) Prior to the transfer of ownership of a qualified person’s vehicle to another party, the
specialty license plates shall be surrendered to the Director of Finance as a condition
precedent to the issuance of replacement license plates.
(b) The transfer of registered ownership for a vehicle shall not be recorded until the specialty
license plates assigned to that vehicle have been replaced.
(c) Upon written request by the survivor of a person qualified for issuance of the specialty
license plates, the Director of Finance may authorize the survivor to retain the front
specialty license plate as a memorial.
Rule 16.7 Plates Transferable.
Specialty license plates may be transferable pursuant to Section 249-7, Hawai‘i Revised
Statutes.
Rule 16.8 Taxes and Fees.
(a) The fee for specialty license plates shall be the fee prescribed by ordinance for issuance
of regularly issued license plates.
(b) Vehicles issued specialty license plates shall be subject to all taxes and fees which are
applicable to vehicles issued regular license plates.
Rule 16.9 Change of License Plate Design.
Specialty license plates shall conform to the background design requirements of regular
license plates. Upon change of license plate design of the regular license plates, the design of
specialty license plates shall be changed. Public notification and change procedures shall be the
same as regular license plates. Issuance of the new design license plates shall be in consecutive
order.
Rule 16.10 Right of Applicant to a Hearing.
Whenever the Director denies the issuance of specialty license plates pursuant to the
Hawai‘i Revised Statutes or these Rules and Regulations of the Director of Finance, the
applicant shall have ten days to file a notice of appeal for a hearing with the Director.
Rule 16.11 Hearing.
Within twenty working days from the filing of such notice of appeal, the Director or a
designated hearing officer shall conduct a hearing. The hearing shall be conducted in conformity
with the provisions of Section 91-9, Hawai‘i Revised Statutes, relating to contested cases.
Rule 16.12 Decision and Order.
Within ten working days after the hearing, the Director may rescind or affirm the denial.
Each decision or order adverse to the applicant shall be in writing or stated in the record and
shall be accompanied by separate findings of fact and conclusions of law. The applicant shall be
notified by delivery or mailing of a certified copy of the decision and order and accompanying
findings and conclusions within a reasonable time to the applicant or his attorney of record.
Rule 16.13 Reconsideration.
Any applicant to whom an adverse decision and order has been rendered by the Director
may request a reconsideration of such adverse decision and order provided that such request shall
be based on new evidence which was not considered by the Director during the original hearing.
Rule 16.14 Appeal to District Court.
An applicant to whom an adverse decision and order or ruling has been rendered may file
an appeal to the District Court of Hawai‘i as provided in Section 286-58, Hawai‘i Revised
Statutes.
Rule 16.15 Severability.
If any portion of these rules or the applicability thereof should be held invalid for any
reason, such invalidity shall not affect other provisions or applications which can be given effect
without the invalid provisions or applications and to this end these rules are declared to be
severable.
Rule 16.16 Effective Date.
These rules and regulations shall take effect ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE TREASURY DIVISION
COUNTY OF HAWAI‘I
APPLICATION FOR SPECIALTY LICENSE PLATES
In accordance with Section 249-9.2, Hawai‘i Revised Statutes, I hereby make application
for the following specialty license plates:
COMBAT WOUNDED VETERAN
I request that the specialty license plates be assigned to
which is currently registered in my name. (License Plate Number)
I certify that I am eligible for issuance of these specialty license plates to my vehicle
pursuant to the Rules and Regulations of the Director of Finance. I have attached documentary
evidence of my eligibility, my current certificate of registration for my vehicle, my currently
issued license plates, required fees and periodic vehicle inspection certificate, if required. I
understand that specialty license plates may not be assigned to motorcycles and trailers.
I understand these specialty license plates will be invalid upon expiration of the current
regular issued license plates and although I may not receive personal notification of such license
plate change, I am responsible for re-applying for the new series of specialty license plates. Prior
to transferring the registered ownership of a vehicle assigned these specialty license plates, I will
surrender these plates and obtain regular issued license plates. I understand that a transfer of
registered ownership out of my name will not be recorded until the specialty license plates are
replaced.
Unless otherwise provided by law, I am eligible to obtain only one type of specialty
license plates and I must pay for all applicable taxes and fees as a condition precedent to
registration and assignment of the specialty license plates.
(Date) (Signature of Applicant/Registered Owner)
DEPARTMENT OF FINANCE
COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 17
RULES AND REGULATIONS RELATING TO TAXICABS
Rule 17.1 Purpose of Rules.
These rules and regulations are intended to clarify and implement the provisions of
Chapter 18, Hawai‘i County Code, relating to public transportation.
Rule 17.2 Definitions.
For the purpose of these rules and regulations, the following terms, phrases, words and
their derivations shall have the meaning given herein. When not inconsistent with the context,
words used in the present tense include the future, words in the plural number include the
singular number, and words in the singular number include the plural number. The word “shall”
is always mandatory and not merely directory.
(a) “Certificate” means a Certificate of Public Convenience and Necessity issued by the Hawai‘i County Transportation Commission.
(b) “Chief of Police” means the Chief of Police of the County of Hawai‘i or his duly
authorized subordinates.
(c) “Commission” means the Hawai‘i County Transportation Commission.
(d) “Director” means the Director of Finance of the County of Hawai‘i or his duly authorized subordinate.
(e) “Permit” means a taxicab driver’s permit issued by the Director of Finance.
(f) “Taxi” or “taxicab” means a vehicle designed to carry not more than eight passengers
equipped with a taximeter operated by a taxicab driver, which is used in the movement of
passengers for hire on the public highways and which is directed to a destination by the
passenger for hire or on the passenger’s behalf and which operates on call or demand.
(g) “Taxicab company” means any person or entity which holds licenses for one or more
taxicabs, leases motor vehicles to drivers to be used as taxicabs, or which operates a
central dispatch service for one or more taxicabs.
Rule 17.3 Moral Character of Applicant.
Each applicant for a new permit or a renewal of an existing permit shall obtain a criminal
abstract from the Office of the Attorney General, Hawai‘i Criminal Justice Data Center, and a
traffic abstract from the Traffic Violations Bureau of the District Court and shall present these
documents to the Director of Finance prior to the issuance of a permit. The date of the criminal
and traffic abstract shall not be more than thirty days before issuance of the taxicab driver’s
permit. The application for an initial permit or for a renewal of a permit shall be denied if:
(1) The applicant has a criminal conviction involving offenses against the person or property
of another, including: theft, assault, kidnapping, manslaughter, murder, negligent
homicide, reckless endangering, robbery, or larceny (2nd degree); any criminal
conviction involving offenses that are sex related, including: displaying indecent matter,
indecent exposure, open lewdness, promoting pornography, prostitution or promoting
prostitution, rape, sexual abuse, or sodomy; criminal convictions involving offenses that
are drug related, including: promoting a dangerous drug, promoting a detrimental drug,
promoting a harmful drug, or promoting an intoxicating compound; criminal convictions
involving traffic violations while operating a moving vehicle, including: driving under
the influence of an intoxicant, driving under the influence of drugs, or heedless and
careless driving while operating a vehicle.
(2) The applicant has conviction/fines for any major traffic offense, including: driving under
the influence of intoxicating liquor, driving under the influence of drugs, operating a
vehicle under the influence of an intoxicant, heedless and careless driving while
operating a vehicle, reckless driving, racing on highways, speeding in school zone or
construction area, or excessive speeding.
(3) The applicant has been convicted of or fined for repeated minor traffic offenses,
including all moving violations not listed above and any regulatory violations, within the
past year.
(4) The applicant has been convicted of or fined for a violation of any county, state or federal
law relating to the use, possession, or sale of alcoholic beverages or substances regulated
by the State Controlled Substance Act; or
(5) The applicant has demonstrated through past relevant work performance and contacts
with people, insufficient emotional stability to effectively operate a taxicab and deal with
the public.
The Director may use discretion, to deny an application for a permit if a criminal offense has
occurred which is determined to be detrimental to public safety. The Director may grant a
permit despite the presence of one or more of the factors enumerated in subsections 1, 2, 4 and 5
above if the Director concludes that the applicant has established to the Director’s satisfaction
that the behavior evidenced by such factor is not likely to reoccur, or is remote in time, or
occurred under circumstances which diminish the seriousness of the factor as it relates to the
purposes of this Rule.
Rule 17.4 Physical Fitness of Applicant.
Each applicant for a new permit or a renewal of an existing permit shall present to the
Director of Finance a Finding of Physical Fitness that shall specifically comment on
standards (a) and (b) of this section, from a medical doctor or doctor of osteopathy licensed to
practice in the State of Hawai‘i. The application for an initial permit or for a renewal of a permit
shall be denied by the Director of Finance if the Findings of Physical Fitness states that:
(a) The applicant suffers from epilepsy, vertigo, heart trouble, or any other infinity of body
or mind which might render him unfit for the safe operation of a public vehicle; or
(b) The applicant is a habitual drunkard or is addicted to the use of narcotic drugs.
The Director may grant a permit despite the presence of one or more factors in subsection (a) and
(b) above if a licensed medical doctor or doctor of osteopathy states on the Findings of Physical
Fitness that applicant is permitted to drive.
The Director of Finance may at the Director’s discretion require an applicant to undergo a
physical examination by a licensed medical doctor or doctor of osteopathy if the Director deems
it necessary to ensure compliance with this rule.
Rule 17.5 Department of Finance Inspection as Evidence of Compliance.
(a) The Director shall inspect each vehicle to be used as a taxicab at least once a year prior to
the issuance of the annual taxicab license. The Director shall examine each vehicle to
determine whether it is in compliance with the following as required by Article 2,
Chapter 18 of the Hawai‘i County Code, and these rules:
(1) Taxicab driver’s permit mounted so that it is visible to all passengers.
(2) Schedule of the rates of fare posted in a conspicuous place within the taxicab so
that it is readily visible to all passengers.
(3) Bilingual (English and Japanese) notice of where to file complaints posted in a
conspicuous place within the taxicab so that it is readily visible to all passengers.
(4) Vehicle is in reasonably clean and safe condition, inside and out.
(5) Vehicle is identified as a taxicab by a roof sign (which may be a dome light sign),
and what the roof sign reads on front, back and sides shall be recorded on the
inspection form.
(6) Taxicab control numbers are posted on the front and rear bumpers as provided by
this rule.
(7) The taximeter installed is sealed and has a current certificate of inspection by the
State Division of Measurement Standards.
(b) The Director shall indicate compliance with or violations of these requirements on an
inspection form supplied to the applicant by the Director.
Rule 17.6 Severability.
If any provision of these rules or the applicability thereof should be held invalid for any
reason, such invalidity shall not affect other provisions or applications which can be given effect
without the invalid provisions or applications and to this end these rules are declared to be
severable.
Rule17.7 Effective date.
This rule shall become effective ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 18
RULES AND REGULATIONS RELATING TO
PERMANENT REGISTRATION OF FLEET VEHICLES
Rule 18.1 Purpose and Scope.
These rules govern the procedures to be followed for the issuance, renewal, additions,
deletions, cancellation and payment of fees for permanent registration of fleet vehicles.
Rule 18.2 Definitions.
As used in these rules, unless the context clearly requires otherwise:
(a) “Director” shall mean the Director of Finance of the County of Hawai‘i, or his duly
authorized subordinates.
(b) “Division” shall mean the Vehicle Registration and Licensing Division, Department of
Finance, County of Hawai‘i.
(c) “Fleet” shall mean twenty-five or more vehicles consisting of commercial motor vehicles,
commercial trailers or passenger automobiles registered or leased to a commercial
company. All such vehicles shall display in a conspicuous place on both the right and
left side of each vehicle, the name, trademark, or logo of the company. The display of
the name, trademark, or logo shall be printed in sharp contrast to the background of the
vehicle and shall be of such size, shape and color as to be readily identifiable during
daylight hours from a distance of fifty feet.
(d) “Companies” shall mean those commercial companies who elect to register their fleet
under the permanent fleet registration system.
(e) “DF-L-79” shall mean the Application for Fleet Addition form, produced by the
Department of Finance, for adding to the fleet registration system. These forms must be
certified by an authorized company representative.
(f) “DF-L-80” shall mean the Application for Fleet Deletion form, produced by the
Department of Finance, for deleting from the fleet registration system. These forms must
be certified by an authorized company representative.
Rule 18.3 Letter of Authorization.
All forms necessary for the registration of vehicles under the permanent fleet registration
system must be certified, under penalty of perjury, by an authorized company representative. A
letter of authorization, signed by a corporate officer, listing their authorized company
representatives must be submitted to the Division.
Rule 18.4 Conversion.
(a) Companies will receive renewal cards forty-five days prior to the last day of the month
their vehicles have been staggered.
(b) Companies who qualify under Section 286-53.5, Hawai‘i Revised Statutes, and desire to
register their fleet shall comply with Rule 18.7, Addition to Fleet Registration, for each
renewal period until all desired vehicles have been registered.
(c) Companies may not convert any vehicle into the permanent fleet registration system out
of the vehicle’s staggered monthly sequence.
(d) For the conversion only, companies may delay for ten working days the surrender of the
previously issued license plates. Companies must list the license plates that will be
surrendered and certify in writing that these license plates will be surrendered to the
Division within ten working days after the receipt of the permanent fleet license plates.
This letter, signed by an authorized company representative, must accompany the
application for fleet registration.
Rule 18.5 Fleet Renewal.
a) Companies who have registered under the permanent fleet registration system will
receive renewal cards and a computer listing of all fleet vehicles forty-five days prior to
the last day of their respective expiration month.
(b) Companies will be responsible for any additions or deletions from the listing sent to
them. Vehicles not deleted from the listing will be automatically renewed pursuant to
Sections 286-53.5 and 286-53.6, HRS, and all renewals for that company shall be
rejected by the Division until the fees are paid or vehicles deleted as prescribed by these
rules. A validated copy of the DF-L-80 must be submitted with the renewal listing for
each vehicle deleted from the permanent fleet registration system.
(c) Vehicles must be reregistered at the time of transfer of ownership if such transfer occurs
forty-five days prior to the expiration date of the registration.
(d) Companies will be responsible for the submission of any required certificates of safety or
PUC inspections.
(e) Companies will be responsible for the submission of any required traffic violation
clearances.
(f) The renewal cards, total payment due, corrected copy of the renewal listing and any other
requirements must be mailed or delivered to the Division no later than ten working days
before the last working day of the vehicles’ respective expiration date.
(g) Companies are still responsible for the monthly renewals of their fleet even if they are not
sent the renewal notification.
Rule 18.6 Addition to Fleet Registration.
(a) Initial application for vehicles not registered in County of Hawai‘i:
(1) Complete DF-L-79 for each vehicle.
(2) Complete all requirements for the initial application for registration.
(3) Payment of all required fees.
(b) Application for vehicles currently registered in County of Hawai‘i:
(1) Complete DF-L-79 for each vehicle.
(2) Surrender previously issued license plates and current Certificate of Registration.
(3) If transfer of ownership, complete all requirements for the transfer.
(4) Payment of all required fees.
(c) The Division will issue permanent certificate of registration and license plates and the
vehicle will be added to the company’s renewal listing.
Rule 18.7 Deletion From Fleet Registration.
(a) Complete DF-L-80 for each vehicle.
(b) Surrender current permanent Certificate of Registration for cancellation. If the vehicle’s
registration has not been paid for the current year, the company is responsible for
payment of the required fees before deletion. If the permanent Certificate of Registration
is lost, the company must obtain a duplicate permanent Certificate of Registration and
surrender that certificate for cancellation.
(c) Surrender the permanent fleet license plates for that vehicle. If the permanent fleet
license plates are lost or stolen, the company must certify that the plates are lost and if
stolen, a report must be filed with the Hawai‘i Police Department.
(d) The Division will return the cancelled permanent Certificate of Registration to the
company upon completion of the aforementioned requirements. The cancelled
permanent Certificate of Registration must be given to the buyer of a previously
registered fleet vehicle to complete the transfer of ownership.
(e) The company may apply for regular license plates and emblems upon completion of
items (a), (b) and (c) of this section and the payment of the required fees.
(f) Failure to properly delete a vehicle from the permanent fleet registration system will
require payment by the fleet owner of fees due for registration of the vehicle as though
the vehicle remained part of the fleet.
(g) A validated copy of the DF-L-80 must accompany the renewal listing for each vehicle
deleted from the permanent fleet registration system if the vehicle appears on the listing.
Rule 18.8 Plate Replacement and Duplicate Certificate of Registration.
(a) Companies may apply for replacement of permanent license plates which are lost, stolen
or mutilated. Application for Replacement of License Plate, Emblem and/or Tag will be
utilized for this purpose and the remaining plate must be returned for cancellation. If
plates are stolen, a report must be filed with the Hawai‘i Police Department and the report
number written on the application.
(b) Companies may apply for duplicate permanent Certificate of Registration by completing
the Application for Duplicate Motor Vehicle Certificate of Registration.
(c) All required fees for the aforementioned applications must be paid upon application.
Rule 18.9 Penalties.
(a) All penalties applicable to other types of motor vehicle registrations and transactions are
also applicable to the permanent fleet registration system.
(b) The Division will reject any application for permanent fleet registration until all
requirements have been met. Penalty will be assessed if the transaction is not completed
within the required time period.
(c) The Division will reject the entire monthly fleet registration renewal if any discrepancy
exists and the entire listing for that renewal month will be subject to penalty if submitted
after the expiration date.
(d) Fees determined to be due and owing under these rules and regulations,
Sections 286-63.5 and 286-63.6, HRS, shall be a lien upon all vehicles of the company
subject to registration under Chapter 286, Hawai‘i Revised Statutes, whether or not they
are fleet vehicles.
(e) Falsification of the DF-L-79 and/or DF-L-80 shall subject the company to
Section 710-1063, Hawai‘i Penal Code.
Rule 18.10 Severability.
If any portion of these rules or the applicability thereof should be held invalid for any
reason, such invalidity shall not affect other provisions or applications which can be given effect
without the invalid provisions or applications and to this end these rules are declared to be
severable.
Rule 18.11 Effective Date.
These rules and regulations shall take effect ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 19
RULES AND REGULATIONS RELATING
TO USED MOTOR VEHICLE PARTS AND ACCESSORIES
Rule 19.1 Definitions.
(a) “Motor Vehicle Part or Accessory” – A major part or accessory, such as a body shell,
transmission, engine, bucket seat, radio, stereo or mag wheel.
Rule 19.2 Kind of Business For Which License Required.
(a) Purchasing or selling used motor vehicle parts or accessories.
(b) Engaging in the business of wrecking, salvaging, or dismantling motor vehicles for the
purpose of reselling the parts or accessories thereof.
(c) Rebuilding wrecked or dismantled vehicles for the purpose of resale.
Rule 19.3 Application for License.
Any person who wishes to obtain a license shall make application at the Vehicle
Registration & Licensing (VRL) Division of the Department of Finance. The application must
be accompanied by a police abstract of criminal record for the applicant, each partner or joint
venture, each corporate officer and director, and each employee.
Rule 19.4 Renewal of License.
(a) Prior to the expiration of a license and in lieu of an application for renewal of a license, a
licensee may submit a verified certificate showing that no proceeding is pending for the
suspension or revocation of his license and that there has been no change, or no change
with specified exceptions, since the last filing of an application with respect to:
(1) Owners, partners, officers or directors.
(2) Location of offices, or principal place of business.
(b) An application form (Appendix A) may be used to renew an existing license. Renewal
application must be filed on or before June 30 of each year.
Rule 19.5 License Fee.
A license fee of $10 for engaging in each kind of business must accompany the
application for new license or renewal of an existing license.
Rule 19.6 Term of License.
Every license shall be effective on July 1 or upon approval thereafter and shall expire on
June 30 next following the date of issuance, unless sooner terminated, suspended or revoked.
Rule 19.7 Change in Personnel.
(a) In an individual proprietorship, the sale or transfer of the business covered by the license
shall automatically terminate the license. The buyer or transferee of the business must
file an application for a new license.
(b) Whenever a person not covered by a police abstract of criminal record on file with the
Director of Finance is to become an officer, director, partner or employee of a licensee,
the licensee, prior to such event, shall submit a police abstract of criminal record covering
such person.
Rule 19.8 Records to be Kept by Licensee.
(a) Master Record. The Licensee shall make a record in duplicate on loose-leaf pages
obtainable from the Director of Finance of all acquisitions, consignments, sales and
exchanges of wrecked, salvaged or rebuilt motor vehicles, or used motor vehicle parts or
accessories without regard to whether or not consideration was involved. In addition,
such record shall include all consideration, including anything of value, paid or agreed to
be paid to or by any person for each wrecked, salvaged, or rebuilt motor vehicle, or each
used motor vehicle part or accessory purchased, sold, consigned to be sold, or exchanged.
The original of the record shall be maintained in a loose-leaf book and kept for three
years. All loose-leaf pages in said book shall be numbered in numerical order. Within
ten days after the close of a month, the duplicate copy of the record of all transactions in
the month shall be sent to the Hawai‘i Police Department, Detective Division. The
loose-leaf pages in said book shall be consecutively numbered and shall contain columns
with the following headings:
(1) Identification or Stock Number. Enter licensee’s identification or stock number.
(2) Date of Purchase. Date of acquisition by licensee.
(3) Description. Enter manufacturer’s serial number as part of description whenever
the part and/or accessory bear such number as well as the make (such as Ford,
Chevrolet, etc.), kind of part or accessory. In the case of wrecked, salvaged, or
dismantled motor vehicle the make, type, year, model and serial number shall be
entered for this purpose.
(4) Purchased From. Enter name, address and driver’s license number of the person
from whom the wrecked, salvaged, or rebuilt motor vehicle, or used motor vehicle
part or accessory was acquired.
(5) Purchase Price. Enter the consideration, including anything of value, paid or to be
paid for the wrecked, salvaged, or rebuilt motor vehicle, used motor vehicle part
or accessory.
(6) Sale Price. The consideration received by the licensee for the item sold.
(7) Date of Sale. Date the item was sold by the licensee.
(8) Name and Address of Purchaser. Enter name and address of the purchaser of the
used motor vehicle part or accessory or the rebuilt motor vehicle.
(9) Commission Paid To. Enter name and address of any person to whom any
money, commission, or anything of value, or to whom the same is due and owing,
in connection with the sale or purchase of any wrecked, salvaged, or rebuilt motor
vehicle, or used part or accessory.
(b) Supplemental Report. Whenever an item is sold after the month in which it was
acquired, the licensee shall prepare a supplemental report in duplicate on a form
obtainable from the Director of Finance covering the sale. The item sold shall be
identified in the supplemental report form by its identification or stock number and the
page number of the original record covering its acquisition. The original of a
supplemental report shall be maintained in a loose-leaf book and kept for three years.
The duplicate copy of the supplemental report shall be sent to the Hawai‘i Police
Department, Detective Division, within ten days after the close of the month in which the
item was sold.
Rule 19.9 Other Requirements of Licensee.
(a) Except where a motor vehicle was the subject of a total loss insurance settlement, the
licensee shall, upon acquiring a registered motor vehicle, with or without consideration,
for wrecking, salvaging or dismantling, forward the said motor vehicle’s endorsed
certificate of ownership, certificate of registration and license plates to the Director of
Finance, together with a notification on a form furnished by the Director of Finance,
within ten days from the acquisition. Where a motor vehicle was the subject of a total
loss insurance settlement, the licensee, upon acquiring the same, shall note this fact in the
record relating to the acquisition. If the motor vehicle had no certificate of registration or
license plate or plates at the time of its acquisition, then the licensee shall submit a
statement showing in detail the efforts made to obtain the certificate of registration or
license plate or plates.
(b) In the event the wrecked or salvaged motor vehicle is rebuilt or restored for use upon
public highways, the licensee shall furnish the purchaser with a notarized bill of sale,
certificate of safety inspection, and application for registration of said rebuilt or restored
motor vehicle for presentation to the Director of Finance.
Rule 19.10 Severability.
If any provision of these rules or the applicability thereof should be held invalid for any
reason, such invalidity shall not affect other provisions or applications which can be given effect
without the invalid provisions or applications and to this end these rules are declared to be
severable.
Rule 19.11 Effective Date.
These rules and regulations shall take effect ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 20
RESERVED
DEPARTMENT OF FINANCE
COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULE 21
RULES AND REGULATIONS RELATING TO THE LICENSING
OF GUIDE, SIGNAL OR SERVICE DOGS
Rule 21.1 Purpose and Scope.
These rules govern the requirements and procedures to be followed for the issuance of
licenses to guide, signal and service dogs pursuant to Section 143-4, Hawai‘i Revised Statutes.
Rule 21.2 Definitions.
As used in these rules, unless the context clearly requires otherwise:
(a) “Director” shall mean the Director of Finance of the County of Hawai‘i, or his duly
authorized subordinates.
(b) “Assistance dog” shall mean any dog which has been certified as a guide dog, signal or
hearing dog, or service dog.
(c) “Guide dog” shall have the same meaning as defined in Section 515-3, Hawai‘i Revised
Statutes.
(d) “Service dog” shall have the same meaning as defined in Section 515-3, Hawai‘i Revised
Statutes.
(e) “Signal dog” shall have the same meaning as defined in Section 515-3, Hawai‘i Revised
Statutes.
(f) “Hearing dog” shall have the same meaning as a signal dog.
(g) Dog license and registration card are synonymous for purposes of this rule.
(h) “Person with a disability” shall mean an individual who has a physical or mental
impairment that substantially limits one or more major life activities, has a record of such
an impairment, or is regarded as having such an impairment.
Rule 21.3 Applicable Laws.
The requirements for licensing of guide, service and signal dogs shall be in accordance
with the applicable provisions of Chapter 143, Hawai‘i Revised Statutes.
Rule 21.4 Application for Licensing of a Guide, Signal or Service Dog.
(a) Depending upon the type of assistance dog, an Application for Dog License shall be
submitted with one of the following:
(1) Guide dog – appropriate documentation from an accredited guide dog trainer
certifying the dog to be a guide dog.
(2) Signal or hearing dog – appropriate documentation from a nationally or
internationally recognized signal or hearing dog organization or an accredited dog
trainer recognized by the Hawai‘i Island Humane Society, certifying the dog to be
a signal or hearing dog.
(3) Service dog – appropriate documentation from a nationally or internationally
recognized service dog organization or an accredited dog trainer recognized by
the Hawai‘i Island Humane Society, certifying the dog to be a service dog.
(b) If there are any questions whether an organization is nationally or internationally
recognized or certified, or an assistance dog trainer is accredited, the final determination
shall be made by the Hawai‘i Island Humane Society or any other appropriate resource
agency designated by the Director or the Director’s designee.
Rule 21.5 Dog License and Registration Card.
(a) The dog license or registration card shall be clearly marked with the notation, “Guide
Dog,” “Signal or Hearing Dog” or “Service Dog.”
(b) The dog license or registration card shall be carried by the person with a disability being
accompanied by the assistance dog. The person with a disability may choose to show the
card.
Rule 21.6 Unauthorized Use; Penalty.
The dog license or registration card shall not be used by anyone other than a person with
a disability and the metal tag shall be worn only by the dog to whom it was issued. Any
unauthorized person using the dog license or registration card or utilizing the metal tag on a dog
that is not an assistance dog shall be guilty of any applicable law and subject to the penalties
provided by such law. A dog license may be revoked for any unauthorized use.
Rule 21.7 Currently Licensed Assistance Dogs.
Persons with disabilities who are owners of assistance dogs that are currently licensed are
not required to obtain a new license prior to their expiration date. However, their dog license or
registration card will not have the guide, signal, or service dog notation. To obtain the
appropriate notation on the dog license or registration card before the expiration date, the owner
must provide the applicable documentation together with the current dog license or registration
card. The new dog license or registration card with the appropriate notation shall maintain the
same expiration date.
Rule 21.8 Renewal.
(a) Unless otherwise required by the Director, the certifying documentation shall not be
required for each renewal of an assistance dog that has the proper notation on the dog
license or registration card.
(b) Persons with disabilities who are owners of assistance dogs that do not have the
applicable notation on the dog license or registration card may submit the appropriate
certifying documentation upon renewal of the dog’s license. The procedures specified in
Section 21.5 shall be followed for certification.
Rule 21.9 Right of Applicant to a Hearing.
Whenever the Director denies an application for licensing of a guide, signal or hearing, or
service dog pursuant to the Hawai‘i Revised Statutes or these Rules and Regulations of the
Director of Finance, the applicant shall have ten calendar days to file a written notice of appeal
for a hearing with the Director.
Rule 21.10 Hearing.
Within twenty calendar days from the filing of such notice of appeal, the Director or a
designated hearing officer shall conduct a hearing. The hearing shall be conducted in conformity
with the provisions of Chapter 91, Hawai‘i Revised Statutes, relating to contested cases.
Rule 21.11 Decision and Order.
Each decision or order adverse to the applicant shall be in writing or stated in the record
and shall be accompanied by separate findings of fact and conclusions of law. The applicant
shall be notified by delivery or mailing of a certified copy of the decision and order and
accompanying findings and conclusions with a reasonable time to the applicant or his attorney of
record.
Rule 21.12 Appeal to Circuit Court.
An applicant to whom an adverse decision and order or ruling has been rendered may file
an appeal to the Circuit Court of Hawai‘i as provided in Section 91-14, Hawai‘i Revised
Statutes.
Rule 21.13 Severability.
If any portion of these rules or the applicability thereof should be held invalid for any
reason, such invalidity shall not affect other provisions or applications which can be given effect
without the invalid provisions or applications and to this end these rules are declared to be
severable.
Rule 21.14 Effective Date.
These rules and regulations shall take effect ten days after filing with the County Clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAI‘I
STATE OF HAWAI‘I
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
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RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 31A
RULES AND REGULATIONS RELATING TO LONG-TERM COMMERCIAL
AGRICULTURAL USE DEDICATION UNDER CHAPTER 19, ARTICLE 8, SECTION 19-60,
HAWAI‘I COUNTY CODE 1983 (2016 EDITION, AS AMENDED)
Rule 31A.1 Purpose of rules; designation to real property tax office.
These rules and regulations are intended to implement the provisions of chapter 19, article 8,
section 19-60 of the county code, relating to long-term commercial agricultural use dedication.
The director designates the real property tax office to perform the administration of the long-term
commercial agricultural program.
Rule 31A.2 Definitions.
A. As used in these rules and regulations, these terms shall have the following meaning:
1. “Agricultural use” shall mean lands used on a continuous and regular basis for intensive
agriculture, orchards, feed crops and fast rotation forestry or pasture and slow rotation
forestry on lands zoned by the county to be in the districts of agricultural, residential and
agricultural, family agricultural, intensive agricultural, and agricultural project district.
The term "agricultural use" does not include or apply to areas used primarily as farm
dwelling sites, such as, but not limited to, yard space, setbacks, or open landscape
associated with residential use planted with ornamental plants, fruit or ornamental trees
and vegetables primarily for home use or recreation.
2. “Change of use date” means the effective date of change of use dedication approved by
the real property tax office.
3. “Commercial dedicated agricultural use value” shall mean the agricultural use values
established under the provisions of section 19-53(a)(2) of the county code.
4. “Commercial agricultural activities” shall mean farm operations, that may include
multiple parcels that need not be contiguous, that generate income, monetary gain, or
economic benefit in the form of money or money’s worth of a minimum $2,000 annual
gross income per farm operation or adhere to generally accepted standards or recognized
practices within that agricultural industry.
5. “Commercially viable agricultural operation" shall mean an agricultural business or
service with the ability to compete effectively and to make a profit, either without
subsidies or with reliable, long- term subsidies as demonstrated by an analysis of
comparable practices within the area of operation under comparable conditions.
6. “Date of the dedication” means the effective date of dedication approved by the real
property tax office.
7. “Dedicated area” means the land area approved as dedicated lands by the real property
tax office.
8. “Diversified agriculture" means a blend of agricultural activities while
transitioning from one category to the other during the term of the dedication or on
a continuous and regular basis.
9. “Farm dwelling site” means that portion of the land not exceeding one-fourth acre which
is used for residential purposes, including the land upon which any house is located,
together with all accessory buildings and the land designated to be the yard space.
10. “Farm equipment" means machinery, implements, and tools used exclusively and directly
for farming or ranching operations.
11. “Farm plan" means an agricultural business plan, in a form prescribed by the director,
that describes the agricultural practices of a commercially viable agricultural operation,
all relevant tax map key numbers, and a financial projection.
12. “Fertilizers” means a natural or synthetic material added to the soil to supply plant
nutrients.
13. “Long-term commercial agricultural use dedication” means the use of land on a
continuous and regular basis for a minimum of ten (10) years that demonstrates the owner
is engaged in commercial agriculture activities from intensive agriculture; orchards; feed
crops and fast rotation forestry; pasture and slow rotation forestry; or diversified
agriculture.
14. “Owner” means the fee simple owner, or a recorded lessee of the land with a term of five
(5) or more years remaining on the lease as of the date of the dedication and who
is responsible for payment of the real property taxes.
15. “Soil amendments” means material added to the soil to improve its physical properties
such as compost, agricultural lime, greensand, or manure.
16. “Violation” means the failure by the owner or any owner by succession who signed a
notarized affidavit to use the land for the general agricultural category, that was listed on
the petition and approved by the real property tax office, for a period of six consecutive
months. It also means the overt act of changing between commercial agricultural
categories without prior notification and approval of such change by the real property tax
office for any period of time during the life of the dedication or any failure by the owner
to observe any of the terms, conditions, or restrictions of the dedication.
B. Use of gender and number. Words importing the singular number shall extend to and
include the plural; words importing the plural shall extend to and include the singular;
words importing the masculine or the feminine gender shall extend to and include the male
or the female as the case may be.
Rule 31A.3 Dedication; requirements.
A. The dedication of lands for long-term commercial agricultural use shall be initiated by the
property owner by filing a complete application with the real property tax office on or before
September 1 for the dedication to become effective on July 1 of the f ollowing tax year if the
application is approved. If an applicant submits an incomplete application before the
September 1 deadline, the real property tax office shall make reasonable efforts to notify the
applicant of the deficiency in the application, and it shall be the responsibility of the applicant
to correct the deficiency and return the completed application to the real property tax office
by the September 1 deadline. The real property tax office shall either disapprove or approve
all timely and complete applications for dedication by December 15. Where multiple parcels
are being considered for dedication, a separate application for dedication is required for each
parcel with its own tax map key to apply for, and receive if approved, the agricultural
preferential assessment value.
1. The application for dedication shall be submitted on a form prescribed by the real
property tax office. Applications shall be available at the physical locations of the
real property tax office and the real property tax office website.
2. All applicants shall submit the Schedule F (IRS Form 1040) or State of Hawai‘i
tax form G-49 from the previous tax year as evidence of long-term commercial
agricultural use minimum of $2,000 annual gross income.
3. In addition, the application shall include at least one of the following:
a. A farm plan, as defined;
b. Documentation of organic certification from U.S. Department of
Agriculture;
c. A plan from U.S. Department of Agriculture, Natural Resources
Conservation Service;
d. Documentation of food safety certification from the U.S. Department
of Agriculture;
e. Receipts demonstrating an investment of a minimum of $10,000 in
farm equipment, fertilizers, or soil amendments for use on the subject
property within the previous two years of the application for
dedication; or
f. Documentation of an agricultural conservation easement with a term of
at least ten (10) years, that has been recorded with the state bureau of
conveyances.
B. The proposed parcel included within the application for dedication shall be located within
a county-zoned district of agricultural, residential and agricultural, family agricultural,
intensive agricultural, agricultural project district, or any other county-zoned district
meeting the approval of the director of planning in accordance with chapter 25 of the
county code; provided that, with respect to any parcel located within county -zoned
districts other than agricultural, residential and agricultural, family agricultural, intensive
agricultural, or agricultural project district, the real property tax office shall make
additional findings of fact on the petition for dedication as set forth in rule 31A.4.
C. Only the following five (5) general agricultural categories shall be eligible and
considered for dedication of land for long-term commercial agriculture use:
1. Intensive agriculture, which includes such crops as vegetables, ginger, taro,
herbs, nurseries, foliage, cut and potted flowers, piggeries, dairy, poultry,
feedlots, aquaculture, honey, and honeybees.
2. Orchards, which includes such crops as macadamia nuts, guava, banana, papaya,
avocado, grapes, passion fruit, coffee, citrus, cacao, pineapple, and tropical
specialty fruits.
3. Feed crops and fast rotation forestry, which includes forage crops, seed crops,
cane, short rotation forestry, biomass, and grasses.
4. Pasture and slow rotation forestry, which includes pasture and longer rated
forestry.
5. Diversified agriculture, which includes a blend of agricultural activities.
D. Lands petitioned for dedication shall be of the following minimum lot size schedule in
each of the following five agricultural categories.
1. Intensive agriculture: 0.25 acres
2. Orchards: 1.0 acre
3. Feed crops or fast rotation forestry: 2.5 acres
4. Pasture or slow rotation forestry: 5.0 acres
5. Diversified agriculture: 0.25 acres
Exceptions to these minimum lot sizes are allowed where the dedication application
indicates a commercially viable agricultural operation on a smaller lot. Where a parcel
does not meet the minimum size requirements, but all or a portion of land is in active
agriculture by way of lease to a farm or ranch, the lease shall be recorded with the state
bureau of conveyances to be eligible for consideration of the dedication. The lessee shall
complete the application and provide documentation for the commercially viable
agricultural operation.
E. The land dedicated for long-term commercial agricultural use for the following three (3)
agricultural categories shall not be fallow for more than three (3) out of every ten (10)
years of the dedication period, unless the dedication application describes and provides
reasons why it is necessary to have greater fallow periods, whose determination of
necessity shall be subject to review of the real property tax office:
1. Intensive agriculture;
2. Orchards; and
3. Diversified agriculture.
For purposes of this section, the term “fallow” shall mean cultivated land that is allowed
to lie idle during the growing season.
F. Each application for dedication shall be signed by all living owners of the land, shall
indicate the general agricultural category to which the land is to be dedicated, and shall
include a map delineating the area to be dedicated. Any farm dwelling site shall be
indicated in the application and shall not be in the dedicated area.
G. A separate application shall be filed for each parcel or portion thereof to be dedicated;
however, one farm plan listing all tax map key numbers may be submitted. For parcels
where animals are grazing on a rotational basis, all TMK numbers for where the animals
are rotated shall be included with a farm plan indicating the rotation schedule.
H. Applications shall be for a ten-year dedication term unless the remaining recorded lease is
for a term of less than ten (10) years; provided that a minimum of five years remaining on
the lease is required. The provision for a twenty (20) year agricultural dedication has
been repealed.
I. The real property tax office shall utilize and refer to the agricultural use guidelines for
density, crops types to agricultural categories and rotation schedule for proper ranching
management. The agricultural use guidelines provide for fair and equitable treatment of
the real property tax office’s validation process to approve or disapprove a preferential
agricultural use value.
J. Each timely, completed application and document filed shall be reviewed, and any errors
or deficiencies shall be corrected by the applicant. No application for dedication shall be
deemed to have been filed unless the application is complete in form and any and all
errors or deficiencies have been corrected. The real property tax office shall assign a
dedication number to each completed and timely submitted application.
K. The real property tax office shall conduct site inspections for all parcels included within
each timely, completed application. Thereafter, the real property tax office shall conduct
periodic inspections of dedicated lands and shall note any violations for appropriate
action pursuant to rule 31A.8. Submittal of an application by the owner or lessee shall
constitute an acknowledgement that site visit inspections may be performed without prior
notice, unless the application requests that the real property tax office provide prior
notification of the site inspection. In the event the application requests such prior notice,
the real property tax office will make reasonable efforts to contact the applicant, which
may include but is not limited to telephone calls or email.
Rule 31A.4 Findings of facts.
The real property tax office shall, by December 15 of each year, make a finding of fact as to
whether the land in the application has been approved in full, approved in part, or denied. The
following criteria must be considered:
A. That the land has been visually inspected to confirm active agricultural use as noted in the
application.
1. Criteria for active agricultural use may include, but is not limited to, the
following:
a. For intensive agriculture, orchards, diversified agriculture, or feed
crops and fast rotation forestry, plantings must be observed at time of
inspection. Rows of plantings, including crops, must be made in a
manner as to maximize the productivity of the land being committed to
the agricultural dedication.
2. Criteria for active agricultural use for pasture and slow rotation forestry may
include, but is not limited to, the following:
a. Permanent water source and perimeter fencing or another barricade
sufficient to restrain freely grazing animals.
b. Only the areas with perimeter fencing or barricades shall be included in
the total dedicated area.
c. Where multiple parcels are contiguous and have animals grazing,
perimeter fencing may be around the exterior boundary of all parcels.
B. That the productivity ratings of the land provide that the land is well suited for the
intended long-term commercial agricultural use.
C. A study of the ownership of the land to ensure the application is submitted by the proper
owner.
D. The size of the farm operation as a whole.
E. The present use of other surrounding similar lands.
F. The size or area for the proposed agricultural use is adequate or sufficient.
G. The use is permissible under the county-zoning district or ordinance. For parcels located
within county-zoned districts other than agricultural, residential and agricultural, family
agricultural, intensive agricultural, or agricultural project district, the real property tax
office shall make additional findings of fact on the economic feasibility of the intended
use of the land in accordance with allowable uses for planning purposes.
H. The intended use does not conflict with either the general plan of the county or any
applicable community development plan for the area.
Rule 31A.5 Approval or disapproval.
A. If all findings of fact from rule 31A.4, as applicable, are approved in full, or approved in
part, the real property tax office shall accept the application for dedication and declare
that the land be dedicated.
B. The real property tax office shall notify the owner of record, the lessee, and the person
named on the application for petition, if different from the owner or lessee, of approval or
disapproval of the application for dedication no later than December 15. Upon approval,
the dedication shall become effective July 1 of the following tax year, but the assessed
value shall be determined on the assessment date of January 1.
C. The application number and the effective date of the dedication are to be noted on
appropriate records accessible to the public.
D. If the application for dedication was not approved in full, the notice shall state the reasons
for such disapproval.
E. Upon approval, the owner(s) of record or the real property tax office shall record the
dedication in accordance with the requirements of the Hawaiʻi bureau of conveyances
within ninety (90) days of the date the application for dedication was approved. The
county shall not be responsible for any recording fees.
F. The land dedicated for long-term commercial agricultural use for intensive agriculture,
orchards, or diversified agriculture shall not grow any crops designated as noxious weeds
for eradication or control purposes by the state department of agriculture, set forth in
chapter 68, subtitle 6, title 4, of the Hawaiʻi Administrative Rules, as amended, or any
crops included in schedule I of the Controlled Substances Act in 21 U.S.C. § 812.
Rule 31A.6 Effects of dedication; enforceable restriction upon use; changes in dedicated
use.
A. The effective date of any approved application for dedication shall be July 1. The real
property tax office shall assess, at the applicable agricultural use value, only those areas
actually in active agricultural use as of the assessment date of January 1. A farm plan is
required when there is an anticipated or intended agricultural use within the first year of
the dedication period, and the application shall not be accepted or assessed as dedicated
agricultural use, unless the anticipated or intended uses are included in the farm plan
approved by the real property tax office.
B. Unless otherwise provided, each approved application for long-term commercial
agriculture dedication shall constitute a forfeiture on the part of the owner of any right to
change the use of the land, except where the use is for another long-term commercial
agriculture dedication for a minimum period of ten (10) years or the use is for a native
forest dedication for a minimum period of twenty (20) years.
C. In the case of a change in zoning not as a result of an application by an owner or lessee
such that the dedicated land is placed within any zoned district other than agricultural,
residential and agricultural, family agricultural, intensive agricultural, or agricultural
project district, the dedication may be canceled by the owner within sixty (60) calendar
days of the change in zoning. The owner shall provide written notice to the real property
tax office of the cancellation within the sixty (60) calendar day period.
D. The dedication shall bind and inure to each successor owner unless the dedication is
properly cancelled by the owner and released by the real property tax office. The
dedication shall be cancelled if the dedicated land, or any portion thereof, is sold by way
of a conveyance subject to conveyance tax under the terms of chapter 247, Hawaiʻi
Revised Statutes; provided that the dedication shall not be canceled if a notarized
affidavit is signed by all new owners of the land stating that the land will continue to be
subject to the full requirements of the dedication, including any penalties for violation.
E. Where dedicated land has been subdivided, each parcel shall be independently subject to
the provisions of the original dedication. The owner shall notify the real property tax
office, within thirty (30) calendar days, of any subdivision of the dedicated land and shall
submit a copy of the approved subdivision map or the registered file plan number,
whichever is applicable.
1. The real property tax office shall note the dedication upon appropriate records of
each subdivided parcel and record the subdivided dedication. The owner shall be
responsible for all recording fees.
2. The owner(s) shall inform each prospective purchaser of a subdivided parcel of
the dedicated status of the land.
3. Each owner of a subdivided parcel may, independently of any other owner, apply
for a change in dedicated use or may provide the notice of cancellation to the real
property tax office within sixty (60) calendar days.
4. Any action taken by the owner of a subdivided parcel shall not have any effect on
the owners of the other parcels resulting from the subdivision.
F. If any owner wishes to change its dedicated use from one commercial agricultural
category to another category, the owner shall submit for evaluation a change of use form
to the real property tax office that identifies the new proposed commercial agricultural
category.
1. The owner shall submit the change of use form within six (6) months from the
date that the land was last used for the approved dedicated agricultural use.
a. Any change of use form received after the sixth month shall be deemed
in violation of the original terms, conditions, and restrictions of the
dedicated use of the land, and the dedication shall be cancelled, and
retroactive assessments may be imposed.
2. The owner’s change of use form shall be subject to the dedication requirements
of rule 31A.3, as applicable, and required findings of facts of rule 31A.4, as
applicable; provided the deadline for the real property tax office to approve or
disapprove the change of use form shall be within ninety (90) calendar days from
receipt.
3. If the change of use form is approved, the real property tax office shall provide a
written notice of its approval and indicate the effective change of use date. The
owner shall have twenty-four (24) months from the effective change of use date
to convert to the new long-term commercial agricultural use category. The
change of use shall not alter the initial dedication period, and the conversion to
the new use shall be completed prior to the end of the initial dedication period.
a. Failure to initiate the approved change in use or conversion plan may
cancel the dedication and subject special tax assessments retroactive to
the date the assessment was made but for not more than ten (10) years.
b. Failure for a period of six (6) consecutive months to show any visible
signs of converting to the new commercial agricultural activity shall
constitute a failure to initiate the approved change in use or conversion
plan.
c. The owner or lessee shall submit annual progress reports explaining the
efforts in converting to the change of use. The progress report shall be
submitted to the real property tax office on or before the anniversary of
the change of use date, and yearly thereafter.
4. If the change of use form or the native forest dedication application is
disapproved, the written notice shall state the reasons for such disapproval.
Rule 31A.7 Special tax assessment of dedicated lands.
A. The determination of the value of dedicated lands for long-term commercial agricultural
use, which includes intensive agriculture, orchards, feed crops and fast rotation forestry,
pasture and slow rotation forestry, and diversified agriculture, shall be based upon
considerations prescribed in chapter 19, article 7, section 19-53(a)(2), and chapter 19,
article 8, section 19-60(c) of the county code, including the following:
1. Rent;
2. Productivity;
3. Nature of actual commercial agricultural use;
4. The advantage or disadvantage of factors, such as location, accessibility,
transportation facilities, size, shape, topography, water privileges, availability of
water and its cost, easements and appurtenances; and
5. Opinions of persons who may be considered to have special knowledge of land
values, such as agriculturalists and/or experts in the field.
B. In the event of any violations, pursuant to rule 31A.8, or cancellations, pursuant to rule
31A.9, of the dedicated use, dedicated lands shall be assessed at their highest and best use
as though not dedicated for purposes of determining and computing retroactive taxes.
C. All portions of land, excluding the farm dwelling site, that are not dedicated for long-term
commercial agricultural use, shall be assessed based on the proportional market value of
the total property.
D. Each farm dwelling site, if any, shall not exceed one-fourth acre and shall be assessed at
the highest commercial agricultural use value. The farm dwelling site area for the parcel
shall be determined when the owner applies for the long-term commercial agricultural
use dedication. The assigned appraiser for that zone shall be responsible for verifying the
accuracy of the farm dwelling site area listed in the application and shall make
corrections upon observation of the land, if necessary.
E. The real property tax office shall report the total market value of land, along with the
assessed value of land for tax assessment purposes.
Rule 31A.8 Retroactive assessment, violation, and penalty.
A. The retroactive assessment and penalty provisions of chapter 19, article 8, section 19-
60(g) of the county code, shall be imposed by the real property tax office for any
violation of the dedication.
1. The retroactive assessment shall be the difference in the amount of taxes between
what should have been paid when assessed at the highest and best use and the
amount paid based upon its assessment for dedicated uses for each year the land
has been dedicated, based on the rollback tax schedule provided in section 19-
60(g)(3)(F) of the county code or the latest renewal date of the dedication. The
retroactive assessment shall be subject to a penalty of ten percent per year.
B. Whenever a violation of the dedication occurs (whether in whole or in part of the area in
the dedication), the owner shall first be provided written notice of such violation. The
notice of such violation shall be mailed to the last known address on file with the real
property tax office. Each owner shall be afforded an opportunity to discuss the violation
informally with the real property tax office. In the absence of any appropriate
justification, the real property tax office shall cancel the dedication and subject the lands
to retroactive assessments and penalties. A violation occurs upon any one of the
following:
1. Failure of the owner to comply with any restriction, condition, or provision on
the use of the dedicated land;
2. If the dedicated land, or any portion thereof, is sold by way of a conveyance
subject to the conveyance tax under the terms of chapter 247, Hawaiʻi Revised
Statutes, provided that the dedication shall not be canceled if a notarized affidavit
is signed by all new owners of the land stating that the land will continue to be
subject to the full requirements of the dedication, including any penalties for
violation;
3. For an approved change of use pursuant to Rule 31A.6, the failure to initiate the
approved change in use or conversion plan for a period of six (6) consecutive
months, or if the land remains vacant, idle, or fallow for twelve (12) consecutive
months from the date of approval of the change in use; or
4. The land dedicated for intensive agriculture, orchards, or diversified agriculture
is fallow for no more than three (3) out of every ten (10) years of the dedication
period, except when greater fallow periods are necessary as described in the
dedication application or change of use form.
C. If a violation occurs with respect to only a portion of the dedicated lands, such as when a
portion of the land is subsequently applied to a use other than its dedicated use or such
portion is not put to its long-term commercial agricultural use, the real property tax office
shall cancel only that portion that is in violation and subject that portion to retroactive
assessment and penalties.
D. In situations where the owner has satisfied the original terms and conditions of the
dedication and has renewed the dedication, the real property tax office shall, in cases of
violation, calculate the deferred or rollback taxes from the date of violation back to the
latest renewal date and apply the deferred or rollback tax schedule provided in section 19-
60(g)(3)(F) of the county code.
E. A change in zoning as a result of an application by an owner or lessee such that the
dedicated land is placed within any zoned district other than agricultural, residential and
agricultural, family agricultural, intensive agricultural, or agricultural project district,
shall be deemed to constitute an overt act of changing the use of the dedicated land and
may be subject to a retroactive assessment including rollback taxes and penalties.
F. All unpaid taxes, including retroactive assessments and penalties shall constitute
a paramount lien upon the property.
Rule 31A.9 Cancellation (withdrawal) without penalty.
A. Where lands have been rezoned in any county-zoned district other than agricultural,
residential and agricultural, family agricultural, intensive agricultural, or agricultural
project district by the county council not as a result of a petition initiated by the owner of
the dedicated land, such owner may cancel the dedication within sixty (60) days after the
reclassification and shall not be subject to the retroactive assessment and penalty
provisions by this rule 31A, or by the provisions of chapter 19, article 8, section 19-60 of
the county code. If the owner desires to cancel the dedication, the owner shall notify the
real property tax office in writing of the cancellation. The notice of cancellation shall be
accompanied by a copy of the notice of zoning change from the county Council.
B. All cancellations shall become effective July 1 of the following tax year.
C. The real property tax office may cancel a dedication without rollback taxes or penalties in
the event of any of the following:
1. A recognized natural disaster beyond the farmer’s control;
2. The land can no longer be used for the dedicated agricultural use, which final
determination shall be made by the real property tax office; or
3. The death or severe disability of the principal farmer such that the farm operation
cannot continue. Corporations and partnerships are not eligible for this death or
severe disability exemption.
D. The dedication shall be canceled upon expiration of the dedication. At least one hundred
eighty (180) days prior to the ending of the dedication period, the real property tax office
shall notify the owner by mail of such expiration. If the owner desires, the owner shall
reapply for renewal of the dedication by filing a renewal petition on or before September
1 of the last year of the dedication.
Rule 31A.10 Appeals.
The owner may appeal any disapproved petition or cancellation of dedication to the county tax
board of review. Appeals shall be governed by the appropriate sections of chapter 19 of the
county code.
Rule 31A.11 Severability.
If any provision of these rules or the applicability thereof should be held invalid for any reason,
such invalidity shall not affect other provisions or applications, which can be given effect without
the invalid provisions or applications and to this end, these rules are declared to be severable.
Rule 31A.12 Effective date.
These rules and regulations shall take effect ten (10) days after filing with the county clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAIʻI
STATE OF HAWAIʻI
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 31B
RULES AND REGULATIONS RELATING TO SHORT-TERM COMMERCIAL
AGRICULTURAL USE DEDICATION UNDER CHAPTER 19, ARTICLE 8, SECTION 19-61,
HAWAI‘I COUNTY CODE 1983 (2016 EDITION, AS AMENDED)
Rule 31B.1 Purpose of Rules; designation to real property tax office.
These rules and regulations are intended to implement the provisions of Chapter 19, Article 8,
Section 19-61 of the county code, relating to the short-term commercial agricultural use
dedication. The director of finance designates the real property tax office to perform the
administration of the short-term commercial agricultural program.
Rule 31B.2 Definitions.
A. As used in these rules and regulations, these terms shall have the following meaning:
1. “Agricultural use” shall mean lands used on a continuous and regular basis for intensive
agriculture, orchards, feed crops and fast rotation forestry or pasture and slow rotation
forestry on lands zoned by the county to be in the districts of agricultural, residential and
agricultural, family agricultural, intensive agricultural, and agricultural project district.
The term "agricultural use" does not include or apply to areas used primarily as farm
dwelling sites, such as, but not limited to, yard space, setbacks, or open landscape
associated with residential use planted with ornamental plants, fruit or ornamental trees
and vegetables primarily for home use or recreation.
2. “Change of use date” means the effective date of change of use dedication approved by
the real property tax office.
3. “Commercial dedicated agricultural use value” shall mean the agricultural use values
established under the provisions of section 19-53(a)(2) of the county code.
4. “Commercial agricultural activities” shall mean farm operations, that may include
multiple parcels that need not be contiguous, that generate income, monetary gain, or
economic benefit in the form of money or money’s worth of a minimum $2,000 annual
gross income per farm operation or adhere to generally accepted standards or recognized
practices within that agricultural industry.
5. “Commercially viable agricultural operation” shall mean an agricultural business or
service with the ability to compete effectively and to make a profit, either without
subsidies or with reliable, long- term subsidies as demonstrated by an analysis of
comparable practices within the area of operation under comparable conditions.
6. “Date of the dedication” means the effective date of dedication approved by the real
property tax office.
7. “Dedicated area” means the land area approved as dedicated lands by the real property
tax office.
8. “Diversified agriculture" means a blend of agricultural activities while
transitioning from one category to the other during the term of the dedication or on
a continuous and regular basis.
9. “Farm dwelling site” means that portion of the land not exceeding one-fourth acre which
is used for residential purposes, including the land upon which any house is located,
together with all accessory buildings and the land designated to be the yard space.
10. “Farm equipment" means machinery, implements, and tools used exclusively and directly
for farming or ranching operations.
11. “Farm plan" means an agricultural business plan, in a form prescribed by the director,
that describes the agricultural practices of a commercially viable agricultural operation,
all relevant tax map key numbers, and a financial projection.
12. “Fertilizers” means a natural or synthetic material added to the soil to supply plant
nutrients.
13. “Owner” means the fee simple owner, or a recorded lessee of the land with a term of
three (3) or more years remaining on the lease as of the date of the dedication and who is
responsible for payment of the real property taxes.
14. “Short-term commercial agricultural use dedication” means the use of land on a
continuous and regular basis for a minimum of three years that demonstrates the owner is
engaged in commercial agricultural activities from: Intensive agriculture; orchards; feed
crops and fast rotation forestry; pasture and sole rotation forestry; or diversified
agriculture.
15. “Soil amendments” means material added to the soil to improve its physical properties
such as compost, agricultural lime, greensand, or manure.
16. “Violation” means the failure by the owner or any owner by succession who signed a
notarized affidavit to use the land for the general agricultural category, that was listed on
the petition and approved by the real property tax office, for a period of six consecutive
months. It also means the overt act of changing between commercial agricultural
categories without prior notification and approval of such change by the real property tax
office for any period of time during the life of the dedication or any failure by the owner
to observe any of the terms, conditions, or restrictions of the dedication.
B. Use of gender and number. Words importing the singular number shall extend to and
include the plural; words importing the plural shall extend to and include the singular;
words importing the masculine or the feminine gender shall extend to and include the male
or the female as the case may be.
Rule 31B.3 Dedication; requirements.
A. The dedication of lands for short-term commercial agricultural use shall be initiated by
the property owner filing a complete application with the real property tax office on or
before September 1 for the dedication to become effective on July 1 of the following tax
year if the application is approved. If an applicant submits an incomplete application
before the September 1 deadline, the real property tax office shall make reasonable
efforts to notify the applicant of the deficiency in the application, and it s hall be the
responsibility of the applicant to correct the deficiency and return the completed
application to the real property tax office by the September 1 deadline. The real property
tax office shall either disapprove or approve all timely and complete applications for
dedication by December 15. Where multiple parcels are being considered for dedication,
a separate application for dedication is required for each parcel with its own tax map key
to apply for, and receive if approved, the agricultural preferential assessment value.
1. The application for dedication shall be submitted on a form prescribed by the real
property tax office. Applications shall be available at the physical locations of the
real property tax office and the real property tax office website.
2. All applicants shall submit the Schedule F (IRS Form 1040) or State of Hawai‘i
tax form G-49 from the previous tax year as evidence of short-term commercial
agricultural use minimum of $2,000 annual gross income.
3. In addition, the application shall include at least one of the following:
a. A farm plan, as defined;
b. Documentation of organic certification from U.S. Department of
Agriculture;
c. A plan from U.S. Department of Agriculture, Natural Resources
Conservation Service;
d. Documentation of food safety certification from the U.S. Department
of Agriculture; or
e. Receipts demonstrating an investment of a minimum of $10,000 in
farm equipment, fertilizers, or soil amendments for use on the subject
property within the previous two years of the application for
dedication.
B. The proposed parcel included within the application for dedication shall be located within
a county-zoned district of agricultural, residential and agricultural, family agricultural,
intensive agricultural, agricultural project district, or any other county-zoned district
meeting with the approval of the county director of planning in accordance with chapter
25 of the county code; provided that, with respect to any parcel located within county-
zoned districts other than agricultural, residential and agricultural, family agricultural,
intensive agricultural, or agricultural project district, the real property tax office shall
make additional findings of fact on the petition for dedication as set forth in rule 31B.4.
C. Only the following five (5) general agricultural categories shall be eligible and
considered for dedication of land for short-term commercial agriculture use:
1. Intensive agriculture, which includes such crops as vegetables, ginger, taro, herbs,
nurseries, foliage, cut and potted flowers, piggeries, dairy, poultry, feedlots,
aquaculture, honey, and honeybees.
2. Orchards, which includes such crops as macadamia nuts, guava, banana, papaya,
avocado, grapes, passion fruit, coffee, citrus, cacao, pineapple, and tropical
specialty fruits.
3. Feed crops and fast rotation forestry, which includes forage crops, seed crops,
cane, short rotation forestry, biomass, and grasses.
4. Pasture and slow rotation forestry, which includes pasture and longer rated
forestry.
5. Diversified agriculture, which includes a blend of agricultural activities.
D. Lands petitioned for dedication shall be of the following minimum lot size schedule in
each of the following five agricultural categories.
1. Intensive Agriculture: 0.25 acres
2. Orchards: 1.0 acre
3. Feed Crops or Fast Rotation Forestry: 2.5 acres
4. Pasture or Slow Rotation Forestry: 5.0 acres
5. Diversified agriculture: 0.25 acres
Exceptions to these minimum lot sizes are allowed where the dedication application
indicates a commercially viable agricultural operation on a smaller lot. Where a parcel
does not meet the minimum size requirements, but all or a portion of land is in active
agriculture by way of lease to a farm or ranch, the lease shall be recorded with the State
of Hawai‘i bureau of conveyances to be eligible for consideration of the dedication. The
lessee shall complete the application and provide documentation for the commercially
viable agricultural operation.
E. The land dedicated for short-term commercial agricultural use for the following three (3)
agricultural categories shall not be fallow for more than one (1) of out every three (3)
years of the dedication period, unless the dedication application describes and provides
reasons why it is necessary to have greater fallow periods, whose determin ation of
necessity shall be subject to review of the real property tax office:
1. Intensive agriculture;
2. Orchards; and
3. Diversified agriculture.
For purposes of this section, the term “fallow” shall mean cultivated land that is allowed
to lie idle during the growing season.
F. Each application for dedication shall be signed by all living owners of the land, shall
indicate the general agricultural category to which the land is to be dedicated, and shall
include a map delineating the area to be dedicated. Any farm dwelling site shall be
indicated in the application and shall not be in the dedicated area.
G. A separate application shall be filed for each parcel or portion thereof to be dedicated;
however, one farm plan listing all tax map key numbers may be submitted. For parcels
where animals are grazing on a rotational basis, all TMK numbers for where the animals
are rotated shall be included with a farm plan indicating the rotation schedule.
H. Applications shall be for a three-year dedication term, or in the case of a recorded
agricultural lease, a minimum of three (3) years remaining on the lease as of the date of
the dedication.
I. The real property tax office shall utilize and refer to the agricultural use guidelines for
density, crops types to agricultural categories and rotation schedule for proper ranching
management. The agricultural use guidelines provide for fair and equitable treatment of
the real property tax office’s validation process to approve or disapprove a preferential
agricultural use value.
J. Each timely, completed application and document filed shall be reviewed, and any errors
or deficiencies shall be corrected by the applicant. No application for dedication shall be
deemed to have been filed unless the application is complete in form and any and all
errors or deficiencies have been corrected. The real property tax office shall assign a
dedication number to each completed and timely submitted application.
K. The real property tax office shall conduct site inspections for all parcels included within
each timely, completed application. Thereafter, the real property tax office may conduct
periodic inspections of dedicated lands and shall note any violations for appropriate
action pursuant to rule 31B.8. Submittal of an application by the owner or lessee shall
constitute an acknowledgement that site visit inspections may be performed without prior
notice, unless the application requests that the real property tax office provide prior
notification of the site inspection. In the event the application requests such prior notice,
the real property tax office will make reasonable efforts to contact the applicant, which
may include but is not limited to telephone calls or email.
Rule 31B.4 Findings of facts.
The real property tax office shall, by December 15 of each year, make a finding of fact as to
whether the land in the application has been approved in full, approved in part, or denied. The
following criteria must be considered:
A. That the land has been visually inspected to confirm active agricultural use as noted in the
application.
1. Criteria for active agricultural use may include, but is not limited to, the
following:
a. For intensive agriculture, orchards, diversified agriculture, or feed
crops and fast rotation forestry, plantings must be observed at time of
inspection. Rows of plantings, including crops, must be made in a
manner as to maximize the productivity of the land being committed to
the agricultural dedication.
2. Criteria for active agricultural use for pasture and slow rotation forestry may
include, but is not limited to, the following:
a. Permanent water source and perimeter fencing or another barricade
sufficient to restrain freely grazing animals.
b. Only the areas with perimeter fencing or barricades shall be included in
the total dedicated area.
c. Where multiple parcels are contiguous and have animals grazing,
perimeter fencing may be around the exterior boundary of all parcels.
B. That the productivity ratings of the land provide that the land is well suited for the
intended long-term commercial agricultural use.
C. A study of the ownership of the land to ensure the application is submitted by the proper
owner.
D. The size of the farm operation as a whole.
E. The present use of other surrounding similar lands.
F. The size or area for the proposed agricultural use is adequate or sufficient.
G. The use is permissible under the county-zoning district or ordinance. For parcels located
within county-zoned districts other than agricultural, residential and agricultural, family
agricultural, intensive agricultural, or agricultural project district, the real property tax
office shall make additional findings of fact on the economic feasibility of the intended
use of the land in accordance with allowable uses for planning purposes.
H. The intended use does not conflict with either the general plan of the county or any
applicable community development plan for the area.
Rule 31B.5 Approval or disapproval.
A. If all findings of fact from rule 31B.4, as applicable, are approved in full, or approved in
part, the real property tax office shall accept the application for dedication and declare
that the land be dedicated.
B. The real property tax office shall notify the owner of record, the lessee, and the person
named on the application for petition, if different from the owner or lessee, of approval or
disapproval of the application for dedication no later than December 15. Upon approval,
the dedication shall become effective July 1 of the following tax year, but the assessed
value shall be determined on the assessment date of January 1.
C. The application number and the effective date of the dedication are to be noted on
appropriate records accessible to the public.
D. If the application for dedication was not approved in full, the notice shall state the reasons
for such disapproval.
E. The land dedicated for short-term commercial agricultural use for intensive agriculture,
orchards, or diversified agriculture shall not grow any crops designated as noxious weeds
for eradication or control purposes by the state department of agriculture, set forth in
chapter 68, subtitle 6, title 4, of the Hawaiʻi Administrative Rules, as amended, or any
crops included in schedule I of the Controlled Substances Act in 21 U.S.C. § 812.
Rule 31B.6 Effects of dedication; enforceable restriction upon use; changes in dedicated
use.
A. The effective date of any approved application for dedication shall be July 1. The real
property tax office shall assess, at the applicable agricultural use value, only those areas
actually in active agricultural use as of the assessment date of January 1. A farm plan is
required when there is an anticipated or intended agricultural use within the first year of
the dedication period, and the application shall not be accepted or assessed as dedicated
agricultural use, unless the anticipated or intended uses are included in the farm plan
approved by the real property tax office.
B. Unless otherwise provided, each approved application for short-term commercial
agriculture dedication shall constitute a forfeiture on the part of the owner of any right to
change the use of the land, except where the use is for another short-term commercial
agriculture dedication for a minimum period of three (3) years or the use is for a native
forest dedication for a minimum period of twenty (20) years.
C. In the case of a change in zoning not as a result of an application by an owner or lessee
such that the dedicated land is placed within any zoned district other than agricultural,
residential and agricultural, family agricultural, intensive agricultural, or agricultural
project district, the dedication may be canceled by the owner within sixty (60) calendar
days of the change in zoning. The owner shall provide written notice to the real property
tax office of the cancellation within the sixty (60) calendar day period.
D. The dedication shall bind and inure to each successor owner unless the dedication is
properly cancelled by the owner and released by the real property tax office. The
dedication shall be cancelled if the dedicated land, or any portion thereof, is sold by way
of a conveyance subject to conveyance tax under the terms of chapter 247, Hawaiʻi
Revised Statutes.
E. Where dedicated land has been subdivided, each parcel shall be independently subject to
the provisions of the original dedication. The owner shall notify the real property tax
office, within thirty (30) calendar days, of any subdivision of the dedicated land and shall
submit a copy of the approved subdivision map or the registered file plan number,
whichever is applicable.
1.The real property tax office shall note the dedication upon appropriate records of
each subdivided parcel.
2.The owner(s) shall inform each prospective purchaser of a subdivided parcel of
the dedicated status of the land.
3.If the subdivision results in a change in ownership that is subject to conveyance
tax under chapter 247, Hawaiʻi Revised Statutes, then each owner of the
subdivided parcels shall apply for a new short-term commercial agricultural use
dedication.
4.Failure of the new owner to apply for a new short-term commercial agricultural
use dedication by the statutory deadline shall result in the loss of the preferential
agricultural use assessment value.
F.If any owner wishes to change its dedicated use from one commercial agricultural
category to another, the owner shall submit for evaluation a change of use form within
twelve (12) months from the effective date of the dedication to the real property tax
office that identifies the new proposed commercial agricultural category.
1.The owner’s change of use form shall be subject to the dedication requirements of
rule 31B.3, as applicable, and required findings of facts of rule 31B.4, as
applicable.
2.If the change of use form is approved, the real property tax office shall provide a
written notice of its approval and indicate the effective change of use date. The
owner shall have twelve (12) months from the effective change of use date to
convert to the new short-term commercial agricultural use category. The change
of use shall not alter the initial dedication period, and the conversion to the new
use shall be completed prior to the end of the initial dedication period.
a.Failure to initiate the approved change of use or conversion plan may
cancel the dedication and subject special tax assessments retroactive
to the date the assessment was made but for not more than three (3)
years.
b.Failure for a period of six (6) consecutive months to show any visible
signs of converting to the new commercial agricultural activity shall
constitute a failure to initiate the approved change of use or
conversion plan.
c.The owner or lessee shall submit a progress report explaining the efforts
in converting to the change in use at the conclusion of the change of
use. The progress report shall be submitted to the real property tax
office on or before the anniversary of the change of use date, and yearly
thereafter.
3.If the change of use form is disapproved, the written notice shall state the reasons
for such disapproval.
Rule 31B.7 Special tax assessment of dedicated lands.
A.The determination of the value of dedicated lands for short-term commercial agricultural
use shall be assessed at two times the value of the lands dedicated for long-term
commercial agricultural use.
B.The agricultural use value shall be based upon considerations prescribed in chapter 19,
article 7, section 19-53(a)(2), and chapter 19, article 8, section 19-60(c) of the county
code, including the following:
1.Rent;
2.Productivity;
3.Nature of actual commercial agricultural use;
4.The advantage or disadvantage of factors, such as location, accessibility,
transportation facilities, size, shape, topography, water privileges, availability of
water and its cost, easements and appurtenances; and
5.Opinions of persons who may be considered to have special knowledge of land
values, such as agriculturalists and/or experts in the field.
C.In the event of any violations, pursuant to rule 31B.8, or cancellations, pursuant to rule
31B.9, of the dedicated use, dedicated lands shall be assessed at their highest and best use
as though not dedicated for purposes of determining and computing retroactive taxes.
D.All portions of land, excluding the farm dwelling site, that are not dedicated for short-
term commercial agricultural use, shall be assessed based on the proportional market
value of the total property.
E.Each farm dwelling site, if any, shall not exceed one-fourth acre and shall be assessed at
the highest commercial agricultural use value. The farm dwelling site area for the parcel
shall be determined when the owner applies for the short-term commercial agricultural
use dedication. The assigned appraiser for that zone shall be responsible for verifying the
accuracy of the farm dwelling site area listed in the application and shall make
corrections upon observation of the land, if necessary.
F.The real property tax office shall report the total market value of land, along with the
assessed value of land for tax assessment purposes.
Rule 31B.8 Retroactive assessment, violation, and penalty.
A.The retroactive assessment and penalty provisions of chapter 19, article 8, section 19-
61(f) of the county code, shall be imposed by the real property tax office for any violation
of the dedication.
1.The retroactive assessment shall be the difference in the amount of taxes between
what should have been paid when assessed at the highest and best use and the
amount paid based upon its assessment for dedicated uses for each year the land
has been dedicated. The retroactive assessment shall be subject to a penalty of ten
percent per year.
B.Whenever a violation of the dedication occurs (whether in whole or in part of the area in
the dedication), the owner shall first be provided written notice of such violation. The
notice of such violation shall be mailed to the last known address on file with the real
property tax office. Each owner shall be afforded an opportunity to discuss the violation
informally with the real property tax office. In the absence of any appropriate
justification, the real property tax office shall cancel the dedication and subject the lands
to retroactive assessments and penalties. A violation occurs upon any one of the
following:
1.Failure of the owner to comply with any restriction, condition, or provision on
the use of the dedicated land;
2.For an approved change of use pursuant to Rule 31B.6, the failure to initiate the
approved change in use or conversion plan for a period of six (6) consecutive
months, or if the land remains vacant, idle, or fallow for more than twelve (12)
consecutive months from the date of approval of the change in use; or
3.The land dedicated for intensive agriculture, orchards, or diversified agriculture
is fallow for no more than one (1) out of every three (3) years of the dedication
period, except when greater fallow periods are necessary as described in the
dedication application or change of use form.
C.If a violation occurs with respect to only a portion of the dedicated lands, such as when a
portion of the land is subsequently applied to a use other than its dedicated use, the real
property tax office shall cancel only that portion that is in violation and subject that
portion to retroactive assessment and penalties.
D.In situations where the owner has satisfied the terms and conditions of the initial
dedication and has renewed the dedication, the real property tax office shall, in cases of
violation, calculate the deferred or rollback taxes from the date of violation back to the
latest renewal date.
E.A change in zoning as a result of an application by an owner or lessee such that the
dedicated land is placed within any zoned district other than agricultural, residential and
agricultural, family agricultural, intensive agricultural, or agricultural project district,
shall be deemed to constitute an overt act of changing the use of the dedicated land and
shall be subject to a retroactive assessment including rollback taxes and penalties.
F.All unpaid taxes, including retroactive assessments and penalties shall constitute
paramount lien upon the property.
Rule 31B.9 Cancellation (withdrawal) without penalty.
A.Where lands have been rezoned in any county-zoned district other than agricultural,
residential and agricultural, family agricultural, intensive agricultural, or agricultural
project district by the county council not as a result of a petition initiated by the owner of
the dedicated land, such owner may cancel the dedication within sixty (60) days after the
rezoning and shall not be subject to the retroactive assessment and penalty provisions.
B.All cancellations shall become effective July 1 of the following tax year.
C.The real property tax office may cancel a dedication without rollback taxes or penalties in
the event of any of the following:
1.A recognized natural disaster beyond the farmer’s control;
2.The land can no longer be used for the dedicated agricultural use, which final
determination shall be made by the real property tax office; or
3.The death or severe disability of the principal farmer such that the farm operation
cannot continue. Corporations and partnerships are not eligible for this death or
severe disability exemption.
D.The dedication shall be canceled upon expiration of the dedication. At least one hundred
eighty (180) days prior to the ending of the dedication period, the real property tax office
shall notify the owner by mail of such expiration. If the owner desires, the owner shall
reapply for renewal of the dedication by filing a renewal petition on or before September
1 of the last year of the dedication.
Rule 31B.10 Appeals.
The owner may appeal any disapproved petition or cancellation of dedication to the county tax
board of review. Appeals shall be governed by the appropriate sections of chapter 19 of the
county code.
Rule 31B.11 Severability.
If any provision of these rules or the applicability thereof should be held invalid for any reason,
such invalidity shall not affect other provisions or applications, which can be given effect without
the invalid provisions or applications and to this end, these rules are declared to be severable.
Rule 31B.12 Effective date.
These rules and regulations shall take effect ten (10) days after filing with the county clerk.
DEPARTMENT OF FINANCE
COUNTY OF HAWAIʻI
STATE OF HAWAIʻI
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 34
RULES AND REGULATIONS RELATING TO THE NONDEDICATED AGRICULTURAL
USE ASSESSMENT UNDER CHAPTER 19, ARTICLE 7, SECTION 19-57,
HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED)
Rule 34.1 Purpose of Rules.
A. These rules and regulations are intended to implement the provisions of chapter 19, article 7,
section 19-57 of the county code, relating to nondedicated agricultural use assessment of land
classified and used for agriculture.
B. The purpose of s ection 19-57 (to be consistent with Act 175, Session Laws of Hawaii 1973)
is to encourage the owners of land, which are situated within the agricultural district and
suitable for agriculture, to put that land to agricultural uses on a continuous and regular basis,
and to discourage the conversion of such lands or the reduction or subdivision of agricultural
land parcels to less than reasonable economic size. Such lands classified and used for
agriculture shall be assessed at their use in agriculture without regard to market value or
neighboring land values.
Rule 34.2 Definitions.
A. As used in these rules and regulations:
1. The term "agricultural use" shall mean lands used on a continuous and regular basis
for intensive agriculture, orchards, feed crops and fast rotation forestry or pasture and
slow rotation forestry on lands owned by the County to be in the districts of
agricultural, residential and agricultural, family agricultural, intensive agricultural,
and agricultural project district. The term "agricultural use" does not include nor
apply to areas used primarily as farm dwelling sites, such as, but not limited to, yard
space, setbacks, or open landscape associated with residential use planted with fruit
and ornamental trees, flowers, and vegetables primarily for home use or rec reation.
2. The term "conversion" shall mean (i) the change of zoning to any County-zoned district
other than agricultural, residential and agricultural, family agricultural, intensive
agricultural, or agricultural project district as a result of a petition by the owner or
lessee; (ii) the government approved subdivision of agricultural land into parcels of less
than five acres; or (iii) a condominium property regime is declared for the property
having condominium units with an area equivalent to less than five acres in size.
3. The term "farm dwelling site" shall mean that portion of the land not exceeding one-
fourth acre which is used for residential purposes, including the land upon which the
house is located, together with all accessory buildings and the land designated to be the
yard space.
B. Use of gender and number. Words importing the singular number shall extend to and include the
plural; words importing the plural shall extend to and include the singular; and words importing
the masculine or the feminine gender shall extend to and include the male and the female as the
case may be.
Rule 34.3 Land Subject to the Deferred or Rollback Tax.
Agricultural lands shall be subject to the deferred or rollback tax when:
A. The land is zoned by the county to be in the districts of agricultural, residential and
agricultural, family agricultural, intensive agricultural, and agricultural project district.
B. The land is committed to a specific nondedicated agriculture use.
C. The land has been assessed by the director according to its value in nondedicated agricultural
use.
D. The land has not been dedicated under the provisions of chapter 19, article 8, section 19-60 of
the county code.
Rule 34.4 Assessment of Lands Subject to the Deferred or Rollback Tax.
A. Where lands have been annually applied for, approved and used for nondedicated agricultural
purposes, the director shall:
1. Classify the land in its nondedicated agricultural use, and determine the assessed value
of the land in its nondedicated agricultural use.
2. Classify the land according to its highest and best use and determine the assessed value
of the land according to such highest and best use.
3. Record the assessed value of the land (i) in its highest and best use and (ii) in its
nondedicated agricultural use for at least the current and past two years.
4. Tax the land according to its nondedicated agricultural use assessment.
B. All portions of land, excluding the farm dwelling site, that are not committed or used for a
specific agricultural use shall be assessed based on the proportional market value of the total
property.
The farm dwelling site for the parcel, if any, shall not exceed one-fourth acre, shall be reported
on the "Non-Dedicated Agricultural Use Application," and shall be assessed at the highest
commercial agricultural use value. The assigned appraiser for the zone shall be responsible for
verifying the accuracy of this area and make corrections, if necessary.
C. The director shall report the total market value of land, along with the assessed value of land, for
tax assessment purposes.
Rule 34.5 Valuation Considerations.
A. The agricultural use value of lands classified and used for nondedicated agriculture use shall
be assessed at two times the commercial dedicated agricultural use value as established by the
Director, as prescribed in chapter 19, article 8, section 19-60(c) of the county code.
B. The farm dwelling site shall be assessed at the highest commercial agriculture use value as
prescribed in chapter 19, article 8, section 19-60(c) of the county code, provided that the
maximum farm dwelling site shall not exceed one-fourth acre.
Rule 34.6 Reserved.
Rule 34.7 Liens.
All taxes and penalties due and owing as deferred taxes shall attach to the land as a
paramount lien pursuant to chapter 19, article 5, section 19-37 of the county code.
Rule 34.8 Appeals.
The owner shall have thirty days from the mailing of the notice of deferred tax assessment, and
within the time prescribed following a subdivision to appeal the assessment of the deferred tax.
Appeals shall be governed by the appropriate sections of chapter 19 of the county code, and may be
taken to the tax board of review or be taken directly to the Tax Appeal Court without appealing to the
tax board of review.
Rule 34.9 Severability.
If any provision of these rules or the applicability thereof should be held invalid for any
reason, such invalidity shall not affect other provisions or applications which can be given effect
without the invalid provisions or applications and to this end these rules are declared to be severable.
Rule 34.10 Effective Date and Sunset Date.
These rules and regulations shall take effect ten (10) days after filing with the county clerk. Rule 34
shall automatically sunset on January 1, 2029 (however, the tax benefit shall end on June 30, 2029).
DEPARTMENT OF FINANCE
COUNTY OF HAWAIʻI
STATE OF HAWAIʻI
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 34A
RULES AND REGULATIONS RELATING TO COMMUNITY FOOD SUSTAINABILITY USE
ASSESSMENT UNDER CHAPTER 19, ARTICLE 7, SECTION 19-57.1,
HAWAI‘I COUNTY CODE 1983 (2016 EDITION, AS AMENDED)
Rule 34A.1 Purpose of Rules; designation to real property tax office.
These rules and regulations are intended to implement the provisions of chapter 19, article 7, section 19-
57.1 of the county code, relating to the community food sustainability use assessment. The director
designates the real property tax office to perform the administration of the community food sustainability
use assessment.
Rule 34A.2 Definitions.
A. As used in these rules and regulations, these terms shall have the following meaning:
1. “Agricultural use” shall mean lands used on a continuous and regular basis for intensive
agriculture, orchards, or diversified agriculture on lands zoned by the county to be in the districts
of agricultural, residential and agricultural, family agricultural, intensive agricultural, and
agricultural project district. The term "agricultural use" does not include or apply to areas used
primarily as farm dwelling sites, such as, but not limited to, yard space, setbacks, or open
landscape associated with residential use planted with ornamental plants, fruit or ornamental trees
and vegetables primarily for home use or recreation.
2. “Commercially viable agricultural operation” shall mean an agricultural business or service with
the ability to compete effectively and to make a profit, either without subsidies or with reliable,
long- term subsidies as demonstrated by an analysis of comparable practices within the area of
operation under comparable conditions.
3. “Community Food Sustainability Use Assessment” means the use of land on a continuous and
regular basis that demonstrates the owner is engaged in agricultural activities to provide food to
the community, including intensive agriculture, orchards, diversified agriculture, or pasture for
food production.
4. “Diversified agriculture" means a blend of agricultural activities while transitioning from one
category to the other during the term of the dedication or on a continuous and regular basis.
5. “Farm dwelling site” means that portion of the land which is used for residential purposes,
including the land upon which any house is located, together with all accessory buildings and the
land designated to be the yard space.
6. “Farm equipment" means machinery, implements, and tools used exclusively and directly for
farming or ranching operations.
7. “Farm plan" means an agricultural business plan, in a form prescribed by the director, that
describes the agricultural practices of a commercially viable agricultural operation, all relevant
tax map key numbers, and a financial projection.
8. “Fertilizers” means a natural or synthetic material added to the soil to supply plant nutrients.
9. “Intensive agriculture” includes, but is not limited to, such crops as vegetables, ginger, taro,
herbs, nurseries, foliage, cut and potted flowers, piggeries, dairy, poultry, feedlots, aquaculture,
honey and honeybees.
10. “Orchards” includes, but is not limited to, such crops as macadamia nuts, guava, banana, papaya,
avocado, grapes, passion fruit, coffee, citrus, cacao, pineapple, noni and tropical specialty fruits.
11. “Owner” means the fee simple owner, or a recorded lessee of the land with a term of five (5) or
more years remaining on the lease as of the date of the community food sustainability use
assessment and who is responsible for payment of the real property taxes.
12. “Soil amendments” means material added to the soil to improve its physical properties such as
compost, agricultural lime, greensand, or manure.
13. “Violation” means the failure by the owner or any owner by succession who signed the
community food sustainability use assessment application to use the land for the general
agricultural category, that was listed on the petition and approved by the real property tax office,
for a period of six consecutive months. It also means the overt act of changing between
commercial agricultural categories without prior notification and approval of such change by the
real property tax office for any period of time during the term of the use assessment except as
allowed under the diversified agricultural use category, or any failure by the owner to observe any
of the terms, conditions, or restrictions of the use assessment.
B. Use of gender and number. Words importing the singular number shall extend to and include the
plural; words importing the plural shall extend to and include the singular; words importing the
masculine or the feminine gender shall extend to and include the male or the female as the case
may be.
Rule 34A.3 Use Assessment; requirements.
A. Lands committed to the community food sustainability use assessment shall be initiated by the
property owner filing a complete application with the real property tax office on or before
December 31 for the agricultural use assessment to become effective on July 1 of the
following tax year if the application is approved. If an applicant submits an incomplete
application before the December 31 deadline, the real property tax office shall make
reasonable efforts to notify the applicant of the deficiency in the application, and it shall be the
responsibility of the applicant to correct the deficiency and return the completed application to
the real property tax office by the December 31 deadline. Where multiple p arcels are being
considered for the agricultural use assessment, a separate application is required for each
parcel with its own tax map key to apply for, and receive if approved, the agricultural
preferential assessment value.
1. The application for the agricultural use assessment shall be submitted on a form
prescribed by the real property tax office. Applications shall be available at the physical
locations of the real property tax office and the real property tax office website.
2. In addition, the application shall include at least one of the following:
a. A farm plan, as defined;
b. Documentation of organic certification from U.S. Department of Agriculture;
c. A plan from U.S. Department of Agriculture, Natural Resources Conservation
Service;
d. Documentation of food safety certification from the U.S. Department of
Agriculture; or
e. Receipts demonstrating an investment of a minimum of $10,000 in farm
equipment, fertilizers, or soil amendments for use on the subject property
within the previous two years of the application for the community food
sustainability use assessment.
B. The proposed parcel included within the application for the agricultural use assessment shall be
located within a county-zoned district of agricultural, residential and agricultural, family
agricultural, intensive agricultural, agricultural project district.
C. Only the following three (3) general agricultural categories shall be eligible and considered for
the agriculture use assessment:
1. Intensive agriculture, which includes such crops as vegetables, ginger, taro, herbs,
nurseries, foliage, cut and potted flowers, piggeries, dairy, poultry, feedlots, aquaculture,
honey, and honeybees.
2. Orchards, which includes such crops as macadamia nuts, guava, banana, papaya, avocado,
grapes, passion fruit, coffee, citrus, cacao, pineapple, and tropical specialty fruits.
3. Diversified agriculture, which includes a blend of agricultural activities.
D. Lands committed to the community food sustainability use assessment shall not be fallow for
more than one (1) of out every five (5) years of the agricultural use assessment period, unless the
agricultural use assessment application describes and provides reasons why it is necessary to have
greater fallow periods, whose determination of necessity shall be subject to review of the real
property tax office:
1. Intensive agriculture;
2. Orchards; and
3. Diversified agriculture.
For purposes of this section, the term “fallow” shall mean cultivated land that is allowed to lie
idle during the growing season.
E. Each application for the agricultural use assessment shall be signed by all living owners of the
land, shall indicate the general agricultural category to which the land is to be committed to
community food production, and shall include a map delineating the area to be committed. Any
farm dwelling site shall be indicated in the application and shall not be included in the
agricultural use assessment area.
F. A separate application shall be filed for each parcel or portion thereof to be committed to
agricultural use; however, one farm plan listing all tax map key numbers may be submitted.
G. Applications shall carry a specified term of five years, or in the case of a recorded agricultural
lease, a minimum of five (5) years remaining on the lease as of the date of the agricultural use
assessment.
H. The real property tax office shall utilize and refer to the agricultural use guidelines for density,
crop types to agricultural categories for proper agricultural land management. The agricultural
use guidelines provide for fair and equitable treatment of the real property tax office’s validation
process to approve or disapprove a preferential agricultural use value.
I. Each timely, completed application and document filed shall be reviewed, and any errors or
deficiencies shall be corrected by the applicant. No application for the agricultural use assessment
shall be deemed to have been filed unless the application is complete in form and any and all
errors or deficiencies have been corrected.
J. The real property tax office shall conduct site inspections for all parcels included within each
timely, completed application. Thereafter, the real property tax office may conduct periodic
inspections of lands receiving the agricultural use assessment and shall note any violations for
appropriate action pursuant to rule 34A.8. Submittal of an application by the owner or lessee
shall constitute an acknowledgement that site visit inspections may be performed without prior
notice, unless the application requests that the real property tax office provide prior notification
of the site inspection. In the event the application requests such prior notice, the real property
tax office will make reasonable efforts to contact the applicant, which may include but is not
limited to telephone calls or email.
Rule 34A.4 Findings of facts.
The real property tax office shall make a finding of fact as to whether the land in the application has
been approved in full, approved in part, or denied. The following criteria must be considered:
A. That the land has been visually inspected to confirm active agricultural use as noted in the
application.
1. Criteria for active agricultural use may include, but is not limited to, the following:
a. For intensive agriculture, orchards, diversified agriculture, plantings must be
observed at time of inspection. Rows of plantings, including crops, must be
made in a manner as to maximize the productivity of the land being committed
to the agricultural use assessment.
B. That the productivity ratings of the land provide that the land is well suited for the intended
agricultural use.
C. A study of the ownership of the land to ensure the application is submitted by the proper owner.
D. The size of the farm operation as a whole.
E. The present use of other surrounding similar lands.
F. The size or area for the proposed agricultural use is adequate or sufficient.
G. The use is permissible under the county-zoning district or ordinance.
H. The intended use does not conflict with either the general plan of the county or any applicable
community development plan for the area.
Rule 34A.5 Approval or disapproval.
A. If all findings of fact from rule 34A.4, as applicable, are approved in full, or approved in part, the
real property tax office shall accept the application for the agricultural use assessment and declare
that the land be committed for the use as applied.
B. The real property tax office shall notify the owner of record, the lessee, and the person named on
the application for petition, if different from the owner or lessee, of approval or disapproval of the
application for the agricultural use assessment. Upon approval, the agricultural use assessment
shall become effective July 1 of the following tax year, but the assessed value shall be determined
on the assessment date of January 1.
C. If the application for the agricultural use assessment was not approved in full, the notice shall
state the reasons for such disapproval.
D. The land committed to the community food sustainability use assessment for intensive
agriculture, orchards, or diversified agriculture shall not grow any crops designated as noxious
weeds for eradication or control purposes by the state department of agriculture, set forth in
chapter 68, subtitle 6, title 4, of the Hawaiʻi Administrative Rules, as amended; or any crops
included in schedule I of the Controlled Substances Act in 21 U.S.C. § 812.
E. If the application is approved, renewal of the application for the assessment, based upon the use
requested, shall be required every five years from the initial approval date or earlier, at the
discretion of the director, provided that:
1. The documentation provided under subsection 34A.3(A)(2) encompasses at least five years
and remains in effect; and
2. Documentation of annual sales or donations of food totaling a minimum of $1,000 are
provided to the director at the time of renewal. Sales or donations must be generated from
the assessed property. Annual sales shall be documented through excise tax receipts.
Donations of food must be to a nonprofit 501(c)(3) organization.
Rule 34A.6 Effects of agricultural use assessment; enforceable restriction upon use; changes in
committed use.
A. The effective date of any approved application for agricultural use assessment shall be July 1.
The real property tax office shall assess, at the applicable agricultural use value, only those areas
actually in active agricultural use as of the assessment date of January 1.
B. Unless otherwise provided, each approved application for the community food sustainability use
assessment shall constitute a forfeiture on the part of the owner of any right to change the use of
the land.
C. In the case of a change in zoning not as a result of an application by an owner or lessee such that
the committed land is placed within any zoned district other than agricultural, residential and
agricultural, family agricultural, intensive agricultural, or agricultural project district, the
agricultural use assessment shall be canceled without penalty July 1 of the following tax year.
D. The agricultural use assessment shall be canceled without penalty July 1 of the following tax year
if the committed land, or any portion thereof, is sold by way of a conveyance subject to
conveyance tax under the terms of chapter 247, Hawaiʻi Revised Statutes.
E. Where committed land has been subdivided into parcels equal to or greater than five acres in size:
1. The agricultural use assessment shall be canceled without penalty July 1 of the following
tax year unless the owner of the subdivided parcels has applied for no later than December
31 and been approved for a new agricultural use assessment on the newly subdivided
parcels.
2. Failure of the new owner to apply for a new agricultural use assessment by the statutory
deadline shall result in the loss of the preferential agricultural use assessment value.
F. If any owner wishes to change the committed use from one agricultural category to another, the
owner shall apply for a new agricultural use assessment by the statutory deadline.
Rule 34A.7 Special tax assessment of committed lands.
A. The portion of land committed to specific community food production shall be assessed at 30% of
the fair market value.
B. In the event of any violations, pursuant to rule 34A.8, or cancellations, pursuant to rule 34A.9, of
the committed use, lands shall be assessed at their highest and best use as though not committed
for purposes of determining and computing retroactive taxes.
C. All portions of land, excluding the farm dwelling site, that are not committed for the agricultural
use assessment, shall be assessed based on the proportional market value of the total property.
D. A farm dwelling site shall be assessed based on the proportional market value of the total
property. The farm dwelling site area for the parcel shall be determined when the owner applies
for the agricultural use assessment. The assigned appraiser for that zone shall be responsible for
verifying the accuracy of the farm dwelling site area listed in the application and shall make
corrections upon observation of the land, if necessary.
E. The real property tax office shall report the total market value of land, along with the assessed
value of land for tax assessment purposes.
Rule 34A.8 Retroactive assessment, violation, and penalty.
A. The retroactive assessment and penalty provisions of chapter 19, article 7, section 19-57.1(d) of
the county code, shall be imposed by the real property tax office for any violation of the
agricultural use assessment.
1. The retroactive assessment shall be the difference in the amount of taxes between what
should have been paid when assessed at the highest and best use and the amount paid
based upon its assessment for committed uses, but for not more than a period of two plus
the current year.
B. Whenever a violation of the committed use occurs (whether in whole or in part of the area
committed) the owner shall first be provided written notice of such violation. The notice of such
violation shall be mailed to the last known address on file with the real property tax office. Each
owner shall be afforded an opportunity to discuss the violation informally with the real property
tax office. In the absence of any appropriate justification, the real property tax office shall cancel
the agricultural use assessment and subject the lands to retroactive assessments and penalties. A
violation occurs upon any one of the following:
1. Failure of the owner to comply with any restriction, condition, or provision on the use of
the committed land; or
2. The land committed for intensive agriculture, orchards, or diversified agriculture is
fallow for more than one (1) out of every five (5) year period, except when greater fallow
periods are necessary as described in the application.
C. If a violation occurs with respect to only a portion of the committed lands, such as when a portion
of the land is subsequently applied to a use other than its committed use without the required
reapplication, the real property tax office shall cancel only that portion that is in violation and
subject that portion to retroactive assessment and penalties.
D. A change in zoning as a result of an application by an owner or lessee such that the committed
land is placed within any zoned district other than agricultural, residential and agricultural, family
agricultural, intensive agricultural, or agricultural project district, shall be deemed to constitute an
overt act of changing the use of the committed land and shall be subject to a retroactive
assessment including rollback taxes and penalties.
E. All unpaid taxes, including retroactive assessments and penalties shall constitute paramount lien
upon the property.
Rule 34A.9 Cancellation (withdrawal) without penalty.
A. Where lands have been rezoned in any county-zoned district other than agricultural, residential
and agricultural, family agricultural, intensive agricultural, or agricultural project district by the
county council not as a result of a petition initiated by the owner of the dedicated land, the
agricultural use assessment shall be canceled without penalty July 1 of the following tax year.
B. All cancellations shall become effective July 1 of the following tax year.
C. The real property tax office may cancel an agricultural use assessment without rollback taxes or
penalties in the event of any of the following:
1. A recognized natural disaster beyond the farmer’s control;
2. The land can no longer be used for the committed agricultural use, which final
determination shall be made by the real property tax office; or
3. The death or severe disability of the principal farmer such that the farm operation cannot
continue. Corporations and partnerships are not eligible for this death or severe disability
exemption.
D. The agricultural use assessment shall be canceled upon failure to submit an application to renew
the agricultural use assessment every five years from the initial approval date or earlier, at the
discretion of the director. If the owner desires, the owner shall reapply for renewal of the
agricultural use assessment by filing a renewal application on or before December 31 of the last
year of the agricultural use assessment.
Rule 34A.10 Appeals.
The owner may appeal any disapproved application or cancellation of the agricultural use assessment to
the county tax board of review. Appeals shall be governed by the appropriate sections of chapter 19 of
the county code.
Rule 34A.11 Severability.
If any provision of these rules or the applicability thereof should be held invalid for any reason, such
invalidity shall not affect other provisions or applications, which can be given effect without the invalid
provisions or applications and to this end, these rules are declared to be severable.
Rule 34A.12 Effective date.
These rules and regulations shall take effect ten (10) days after filing with the county clerk.
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The Rules and Regulations of the Director of Finance, Department of Finance, County of Hawaiʻi, State of Hawaiʻi, is amended by adding a new rule to be appropriately designated and to read as follows:
“DEPARTMENT OF FINANCE COUNTY OF HAWAIʻI STATE OF HAWAIʻI
RULES AND REGULATIONS OF THE DIRECTOR OF FINANCE
RULE 60
RULES AND REGULATIONS RELATING TO THE LEVY, ASSESSMENT, AND COLLECTION OF COUNTY TRANSIENT ACCOMMODATIONS TAX UNDER CHAPTER 2, ARTICLE 48, HAWAI‘I COUNTY CODE 1983 (2016 EDITION, AS AMENDED)
Rule 60.1 Purpose.
These rules and regulations are intended to implement the provisions of chapter 2, article 48, sections 2-259 thru 2-269 of the County Code, relating to the County’s transient accommodations tax.
Rule 60.2 Definitions.
A.As used in these rules and regulations, these terms shall have the following meaning:
1.“County” means the County of Hawaiʻi, State of Hawaiʻi.
2.“County Code” means the Hawaiʻi County Code 1983 (2016 edition, as amended).
3.“Department” means the Department of Finance of the County of Hawaiʻi.
4.“Director” means the Director of Finance of the County of Hawaiʻi, or the director’s designee.
5.“Direct transmitter” means a company that receives prepared returns and serves as a pass-through, transmitting the returns to the appropriate agencies on behalf of the taxpayer. Thetransmitter receives acknowledgements from taxing agencies which are forwarded to their clients.The transmitter has authority to communicate with taxing agencies on behalf of their clientsregarding the success of the transmission, but does not have authority to communicate with taxingagencies regarding the data that is transmitted.
6.“Software developer” means a company that provides desktop or online software to aid taxpayersand reporting agents in filing taxes. The software user could then add on additional services suchas a transmitter model to file their taxes electronically.
7.“State” means the State of Hawaiʻi.
8.“Tax” means the transient accommodations tax.
9.“Taxpayer” means any person liable for any transient accommodations tax. The term also
includes a taxpayer’s duly authorized agent or designee, which may include but is not limited to
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any designated person authorized by writing to file, make payment of taxes, or communicate with the County on behalf of the taxpayer.
10. “Tax return” means the reporting to the appropriate taxing authority (either the State or the County) of revenue applicable to the transient accommodations tax. B. Unless otherwise provided in this rule, the definitions provided in section 237D-1, Hawaiʻi Revised Statutes, as may be amended, and by the State administrative rules in section 18-237D-1, Hawaiʻi Administrative Rules, as may be amended, adopted for application to chapter 237D, Hawaiʻi Revised Statutes, shall apply to this rule. C. Use of gender and number. Words importing the singular number shall extend to and include the plural; words importing the plural shall extend to and include the singular; words importing the masculine or
the feminine gender shall extend to and include the male or the female as the case may be. Rule 60.3 Imposition of County transient accommodations tax.
A. Unless otherwise provided in article 48 of the County Code, any taxpayer required to pay State transient accommodations tax pursuant to chapter 237D, Hawaiʻi Revised Statutes, shall also pay the
County transient accommodations tax imposed herein. B. The director shall levy, assess, and collect a three percent County transient accommodations tax established on all gross rental, gross rental proceeds, and fair market rental value considered taxable under chapter 237D, Hawaiʻi Revised Statutes. 1. The County transient accommodations tax shall be imposed on the gross rental, gross rental proceeds, and fair market rental value of all written contracts that require the passing on of the taxes imposed under chapter 237D, Hawaiʻi Revised Statutes; provided that if the gross rental, gross rental proceeds, and fair market rental value are received as payments beginning in the taxable year in which the taxes become effective, on contracts entered into prior to December 10, 2021, and the written contracts do not provide for the passing on of increased rates of taxes, the County transient accommodations tax shall not be imposed.
2. The County transient accommodations tax shall be imposed on the gross rental, gross rental proceeds, and fair market rental value from all contracts entered into on or after
December 10, 2021, regardless of whether the contract allows for the passing on of any tax or any tax increases. 3. No person shall be excused from the payment of the County transient accommodations tax or delinquent penalties or interest thereon by reason of failure on the person’s part to receive a tax bill. C. The director shall have all the rights and powers of the State director of taxation provided under chapter 237D, Hawaiʻi Revised Statutes. D. Any person required to collect, account for, and pay over any County transient accommodations tax,
who willfully fails to collect or truthfully account for and pay over such tax may be guilty of a class C felony, in addition to any other penalties provided by law and, upon conviction, may be subject to the penalties set forth in section 231-36.4, Hawaiʻi Revised Statutes, as amended.
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Rule 60.4 Application of transient accommodations tax; presumption of transient purpose.
A. The transient accommodations tax imposed by Rule 60.3 shall be in addition to any other taxes imposed by any other laws of the State or County, except as otherwise specifically provided for in chapter 237D, Hawaiʻi Revised Statutes; provided that if it be held by any court of competent jurisdiction that the tax imposed by chapter 237D, Hawaiʻi Revised Statutes, may not legally be imposed in addition to any other tax or taxes imposed by any other law or laws with respect to the same property or the use thereof, then these rules shall be deemed not to apply to such property and the use thereof under the specific circumstances, but the other laws shall be given full effect with respect to such property and use. B. In order to determine if the County transient accommodations tax is to be levied, assessed, and collected, the following presumptions shall control:
1. If a person lets a transient accommodation for less than one hundred eighty consecutive days, it shall be presumed that the accommodation furnished is for a transient purpose.
2. If a person lets a transient accommodation for one hundred eighty days or more, there is no presumption one way or another as to the purpose for which the accommodation is
furnished. C. The taxpayer shall have the burden of proving whether an accommodation is not being furnished for a transient purpose. The County may confer with the State department of taxation as necessary. Rule 60.5 Exemptions from imposition of transient accommodations tax. Those furnishing transient accommodations but which are exempt from these rules are those individuals and entities set forth in section 237D-3, Hawaiʻi Revised Statutes, and section 18-237D-3-01, Hawaiʻi Administrative Rules, as may be amended. Rule 60.6 Certificate of registration; display of certificate; enforcement by State. All certificates of registration for any transient accommodations within the County shall be obtained
by each taxpayer, operator, or plan manager, as applicable, from the State director of taxation. The display of the registration certificate and display of local contact information, the issuance of citations, and the imposition of monetary fines are enforced and administered only by the State
department of taxation, not the County. Any required permits for a short-term vacation rental shall be obtained from the County department
of planning, as required under article 4, chapter 25, of the County Code. Rule 60.7 Returns and payments; tax refunds. A. All transient accommodations tax returns shall be filed directly with the State department of taxation district office where the transient accommodation is located and registered, or in the first taxation district office. All transient accommodations tax returns filed directly with the State department of taxation are presumed accurate. 1. Amended returns. Any changes to a taxpayer’s return shall be completed by the taxpayer via an amended State filing form TA-1 or TA-2, as appropriate.
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a. If the taxpayer files an amended TA-1 or TA-2, the amended TA-1 or TA-2 shall supersede the previously filed TA-1 or TA-2, as appropriate, in
calculating the amount owed or to be refunded. Absent a TA-2, the County shall use the taxpayer’s TA-1 State filing(s). B. Monthly returns and payments. Unless otherwise allowed by the State director of taxation to file quarterly or semiannually, all transient accommodations tax returns shall be filed with the State department of taxation on or before the twentieth day of each calendar month, together with the payment for the amount of the County transient accommodations tax, which payment shall be made to the “County of Hawaiʻi Director of Finance” on or before the twentieth day of each calendar month. The payment shall be accompanied by a tax payment voucher form approved by the director and available to the taxpayer.
1. Quarterly returns and payment. If the taxpayer obtains approval to file quarterly returns, based on a calendar or fiscal year period, the return filed with the State department of taxation and payment due to the County shall be made on or before the twentieth day of
the calendar month after the close of each quarter, based on the following schedule: a. For calendar year taxpayers:
i. On or before April 20, July 20, October 20, and January 20; or b. For fiscal year taxpayers: i. On or before the twentieth day of the fourth month, seventh month, and tenth month following the beginning of the fiscal year and on or before the twentieth day of the month following the close of the fiscal year. 2. Semiannual returns and payment. If the taxpayer obtains approval to file semiannual returns, based on a calendar or fiscal year period, the return filed with the State department of taxation and payment due to the County shall be made on or before the twentieth day of the calendar month after the close of each six-month period, based on the following schedule: a. For calendar year taxpayers:
i. On or before July 20 and January 20; or b. For fiscal year taxpayers:
i. On or before the twentieth day of the seventh month following the beginning of the fiscal year and the month following the close of the fiscal year.
C. Annual returns and payment. Every taxpayer shall file an annual transient accommodations tax return with the State department of taxation on or before the twentieth day of the fourth month following the close of the taxable year. The annual return shall summarize the taxpayer’s liability for the preceding tax year and shall transmit to the County director of finance a remittance covering the residue of the County transient accommodations tax due, if any. The remittance shall be accompanied by a reconciliation voucher form approved by the director and available to the taxpayer. D. Form of payment. All payments of tax owed to the County shall be made by money, bank draft, check, cashier’s checks, money order, electronic payment, automated clearing house (ACH), wire transfer, credit or debit card (via the County’s online payment portal website) or certificate of deposit
payable to the “County of Hawaiʻi Director of Finance.”
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1. Mail-in payment for two or more tax accounts. Any taxpayer making payment for more
than two transient accommodations (TA) tax account numbers shall provide an individual, separate payment for each and every transient accommodations (TA) account number. Each payment shall be accompanied by a tax payment voucher form approved by the director and available to the taxpayer. Mail-in payments not submitted in accordance with this rule may be rejected and returned to the taxpayer for proper resubmittal. Example: Taxpayer A operates six transient accommodations rentals and has six separate TA tax account numbers for each rental. Taxpayer A wants to mail payment by check for all six TA tax account numbers for the County transient accommodations tax due. Taxpayer A must mail in six separate checks and six separate tax payment vouchers.
Alternatively, the taxpayer may utilize the bulk filer program to make payments.
2. Bulk filer program. Any taxpayer, including the individual taxpayer, may participate in the County’s bulk filer program for transient accommodations tax payments. If not being filed by the individual taxpayer, the program allows the taxpayer’s duly authorized
reporting agent to make one payment, on behalf of the taxpayer, to multiple transient accommodations (TA) tax account numbers via an ACH payment/direct deposit to the County’s bank account. The taxpayer shall first submit a Reporting Agent Authorization Form, which form shall designate the reporting agent. The taxpayer’s duly authorized reporting agent shall subsequently file with the County a Bulk Filers Program Registration form prior to making any payment on behalf of the taxpayer. For purposes of this paragraph, the term “reporting agent” also includes a “direct transmitter” or “software developer”, as appropriate, and as defined by these rules. 3. Online payments. Electronic Funds Transfer (EFT) payments are accepted via the County’s online payment portal website. Taxpayer shall be responsible for any transaction fees. Taxpayers whose liability for the transient accommodations tax exceeds $100,000 per year shall pay the tax by EFT. ACH payments made online will satisfy this
requirement. E. Refund of tax payment. Any taxpayer may request a tax refund in the following circumstances:
1. For annual reconciliation, where the annual return shows a refund owed to the taxpayer, and the taxpayer submits a tax refund request voucher form approved by the director and
available to the taxpayer; 2. For a duplicate payment, and the taxpayer attaches proof of duplicate payment and submits a tax refund request voucher form approved by the director and available to the taxpayer; 3. For payment made to the wrong County, and the taxpayer attaches State form TA-1 or TA-2, as appropriate, and submits a tax refund request voucher form approved by the director and available to the taxpayer;
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4. For an overpayment of a periodic tax, and the taxpayer attaches State form TA-1, and submits a tax refund request voucher form approved by the director and available to the
taxpayer; or 5. Any other reason not listed in clauses (1) through (4) of this rule; provided that the taxpayer provides sufficient documentation evidencing an entitled refund that is approved by the director; provided further that the taxpayer submits a tax refund request voucher form approved by the director and available to the taxpayer. 6. For any refund, at the taxpayer’s election, the amount to be refunded may be applied as a credit to taxes subsequently accruing, or the taxpayer may request that a manual check be issued for the refunded amount. If the taxpayer requests a manual check to be issued, the taxpayer shall attach a properly completed and signed tax refund request voucher form.
7. In all instances where a taxpayer is due a refund, the taxpayer shall claim the refund within three (3) years from either the payment of the tax or the due date of the annual
reconciliation, whichever is later. If the taxpayer does not claim the refund within the requisite three-year period, then the tax refund shall escheat to the State of Hawaiʻi.
Rule 60.8 Assessment upon failure to make payment; receipt of any payment; limitation period; extension by agreement. A. If any taxpayer fails to make the County transient accommodations tax payment as required by applicable law, the director shall proceed to assess the tax due based upon the best information available and impose any applicable penalty and interest upon the taxpayer. The director shall give written notice to the taxpayer and make demand upon the taxpayer for payment. The assessment shall be presumed to be correct unless the contrary shall be clearly proven by the person assessed upon an appeal duly taken as provided in section 2-265 of the County Code, as amended. B. Upon receipt of any tax payment, the director shall have the authority to examine payment and may conduct additional audits or investigations as necessary. If the director determines there is a deficiency in payment of any tax owed to the County, the director shall assess the tax and interest due, give written notice to the taxpayer and make demand for payment. The assessment shall be
presumed to be correct unless the contrary shall be clearly proven by the person assessed upon an appeal duly taken as provided in section 2-265 of the County Code, as amended.
1. Partial payment of taxes. Whenever a taxpayer makes a partial payment of a particular assessment of taxes, the amount received by the County shall first be credited to interest, then to penalties, and then to principal.
C. Except as provided by this Rule 60.8, the amount of taxes imposed by this rule and article 48 of the County Code, shall be assessed or levied within three years after the annual tax return was filed or within three years of the due date prescribed for the filing of the annual tax return, whichever is later. Where the assessment of the tax imposed by these rules has been made within the period of limitation applicable thereto, the tax may be collected by levy or by a proceeding in court under chapter 231, Hawaiʻi Revised Statutes; provided that the levy is made or the proceeding was begun within fifteen (15) years after the assessment of the tax. No proceeding in court without assessment for the collection of any such taxes shall be begun after the expiration period.
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1. For tax returns filed before the due date, the limitations period on assessment begins to run as of the last day prescribed for filing. The filing of an amended tax return shall
extend the statute of limitations. 2. The statute of limitations shall begin to run only upon the filing of a tax return that is complete and meets all legal requirements. 3. The assessment of tax or proceeding for collection without assessment shall not be barred by the statute of limitations, and the tax may be assessed or levied at any time if no annual tax return is filed or if a false or fraudulent tax return is filed with intent to evade tax liability, and the tax may be assessed or levied at any time. In the case of a return claimed to be false or fraudulent with intent to evade tax, the claim shall first be determined by the circuit court as provided in section 235-111(c), Hawaiʻi Revised
Statutes, as amended. 4. At any time prior to the expiration of the limitations period, the period may be extended
by a written agreement between the taxpayer and the County. Rule 60.9 Penalty and interest; waivers of penalty and interest.
A. Penalties and interest shall be added to, and become a part of, the County transient accommodations tax in the same manner as penalties and interest are added to, and become a part of, the State transient accommodations tax, in accordance with the following: 1. Failure to pay tax due to neglect or intentional disregard; penalty. a. If the taxpayer fails to pay tax, and the failure is due to neglect or intentional disregard of the rules (but not intent to defraud), there shall be added to the tax a twenty-five percent (25%) penalty of the underpayment as determined by the director. If the taxpayer fails to pay tax, and the failure is due to fraud, there shall be added to the tax a fifty percent (50%) penalty of the underpayment as determined by the director. For purposes of this section, the term “fraud” means an intentional wrongdoing on
the part of a taxpayer, with the specific purpose of evading a tax known or believed to be owing but shall not include a mistake or any accident, carelessness, or reliance on others.
2. Failure to pay tax after filing timely returns; penalty. a. If a return is filed on or before the date prescribed therefor and the amount
shown as tax on the return is not completely paid within sixty (60) days of the prescribed filing date, there shall be added to the unpaid tax a twenty percent (20%) penalty. 3. Interest on underpayment or nonpayment of tax. a. If any amount of tax and penalty is not paid on or before the last date prescribed for payment, interest on such amount at the rate of two-thirds of one percent a month or a fraction of a month shall be added for the period beginning with the first calendar day after the date prescribed for payment, to the date paid.
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b. Interest on any tax shall be paid upon notice and demand, and shall be assessed, collected, and paid in the same manner as taxes.
B. Waivers of penalty or interest not paid but due. Upon application by the taxpayer, if the director determines that any penalty, interest, or both, has been erroneously or illegally computed, the penalty, interest, or both, shall be waived by the director. Upon application by the taxpayer, penalty, interest, or both, may be waived by the director provided the taxpayer submits a waiver of penalty or interest request form provided by the director and available to the taxpayer; provided further that all transient accommodations tax is paid in full at the time the application is filed with the director. Applications for waiver shall be accompanied by documentation and/or proof supporting the reason(s) for the waiver request. Rule 60.10 Payment plans.
A. Upon application by the taxpayer, the director and the taxpayer may execute a written agreement for a payment plan, subject to the following:
1. The minimum monthly payment required shall be determined by the director, based on taxpayer information on the taxpayer’s ability to pay;
2. There shall be no pre-payment penalty; 3. The payment plan shall be limited to twelve (12) months, unless, upon application for extension by the taxpayer and in the sole discretion of the director, circumstances warrant an extension of the payment plan; provided further, however, that the extension of the payment plan shall not exceed twenty-four (24) months total; 4. Upon application for a payment plan, the taxpayer shall provide sufficient documentation including, but not limited to, financial information and bank statements for the director to appropriately determine repayment installments;
5. During the duration of the payment plan, the following provisions shall apply:
a. The director shall collect, and the taxpayer shall pay, all penalties and interest owed on the delinquent amount of taxes. b. The taxpayer shall make timely payments in accordance with the payment plan.
c. The taxpayer shall stay current with all future transient accommodations tax obligations owed to the County. 6. If, upon assessment of current taxes of the taxpayer, the taxpayer’s account becomes delinquent, the director shall, upon written notice to the taxpayer, revoke the payment plan, and the taxpayer shall be immediately responsible for the total amount owed to the County under the payment plan, including any accrued penalties and interest. B. Notwithstanding the foregoing, the director may allow a grace period not to exceed twenty (20) days that shall be calculated from the date the director’s written notice was mailed.
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Rule 60.11 Notices; how given.
Unless otherwise provided, every notice including the assessment of tax owed, the giving of which by the department is required or authorized, shall be deemed to have been given on the date when the notice was mailed, properly addressed to the addressee at the addressee’s last known address or place of business. Rule 60.12 Timely mailing treated as timely filing and paying. A. Any report, claim, tax return, statement, or other document required or authorized to be filed with, or any payment made to, the County which is: 1. Transmitted through the United States mail, shall be deemed filed and received by the County on the date shown by the post office cancellation mark stamped upon the
envelope or other appropriate wrapper containing it. 2. Mailed but not received by the County or where received and the cancellation mark is
illegible, erroneous, or omitted, shall be deemed filed and received on the date it was mailed if the sender establishes by competent evidence that the report, claim, tax return, statement, remittance, or other document was deposited in the United States mail on or
before the date due for filing. B. If any report, claim, tax return, statement, remittance, or other document is sent by United States registered mail, certified mail, or certificate of mailing, a record authenticated by the United States Post Office of the registration, certification, or certificate shall be considered competent evidence that the report, claim, tax return, statement, remittance, or other document was delivered to the County officer or County agency to which addressed, and the date of registration, certification, or certificate shall be deemed the postmarked date. C. Any reference to this rule to the United States mail shall be treated as including a reference to a designated delivery service, and any reference to a postmark by the United States Postal Service
shall be treated as including a reference to any date recorded or marked by the designated delivery service. As used in this section, “designated delivery service” means any delivery service designated for purposes of section 7502 of the Federal Internal Revenue Code.
Rule 60.13 Complete submittals required; signature presumed authentic.
A. Where these rules require the taxpayer to submit any County forms, all forms shall be completely filled out and signed, as necessary, by the taxpayer. Incomplete submitted forms may be rejected and returned to the taxpayer.
B. The fact that an individual’s name is signed on a return, statement or other document shall be prima facie evidence for all purposes that the return, statement, or other document was actually signed by the individual. Rule 60.14 Appeals. Any taxpayer aggrieved by any assessment of the tax or liability imposed by these rules may appeal the assessment in accordance with section 2-265 of the County Code.
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Rule 60.15 Collection by suit; injunction.
A. The director may collect taxes due and unpaid under article 48 of the County Code, together with all accrued penalties, by filing suit or other appropriate proceeding in an appropriate venue located in the third circuit having jurisdiction over the amount due and paid. B. Notwithstanding Rule 60.15(A.), the director may join any proceeding filed by the State department of taxation to collect State transient accommodations tax and assert the County’s claims for County transient accommodations tax regardless of whether the venue is located in the third circuit. Rule 60.16 Severability. If any provision of these rules or the applicability thereof should be held invalid for any reason, such
invalidity shall not affect other provisions or applications, which can be given effect without the invalid provisions or applications and to this end, these rules are declared to be severable.
Rule 60.17 Effective date. These rules and regulations shall take effect ten (10) days after filing with the Hawaiʻi County Clerk.”