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Home My WebLink AboutOrdinance 06-147COUNTY OF HAWAII „x „.i r;. STATE OF HAWAII BILL NO. 341 ORDINANCE NO. O6 147 AN ORDINANCE AMENDING CHAPTER 19 OF THE HAWAII COUNTY CODE 1983 (2005 EDITION), REAL PROPERTY TAXES, RELATING TO HOME EXEMPTIONS. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. The purpose of this measure is to assist in alleviating the shortage of available rental units by allowing homeowners to be able to rent a portion of their home as residential rental and retain the home exemption. SECTION 2. Chapter 19, article 7, section 19 -53, of the Hawaii County Code 1983 (2005 edition), is amended by amending subsection (e) to read as follows: (e) Classification of land: (1) Except as otherwise provided in subsection (e)(2) of this section, land shall be classified, upon consideration of its highest and best use, into the following general classes: (A) Improved residential; (B) Unimproved residential; (C) Apartment; (D) Hotel and resort; (E) Commercial; (F) Industrial; (G) Agricultural or native forests; (H) Conservation; and (I) Homeowner. (2) In assigning land to one of the general classes the director of finance shall give major consideration to the districting established by the land use commission pursuant to chapter 205, Hawaii Revised Statutes, the districting established by the County in its general plan and zoning ordinance, use classifications established in the general plan of the State, and such other factors which influence highest and best use, except that parcels which are used exclusively as the owner's principal residence shall be classified as "homeowner" without regard to the highest and best use, provided that the director has granted to the owner a home exemption in accordance with sections 19 -71 to 19 -72. (A) The homeowner class is exclusively reserved for properties which are used as the owner's principal residence. Uses which shall not qualify as "homeowner" include: (i) Real property which is valued according to its nondedicated agricultural use pursuant to subsection 19 -57. (ii) Real property which is dedicated to an agricultural use or native forest use. (iii) Real property which is used for commercial or income - producing purposes, except as exempted under section 19 -71(a) or (b). (iv) Real property which is used for residential rental purposes, whether for short-term or long -term lease[.. -] , except as exempted under section 19- 71(a). (v) Real property which is used for any purpose other than the owner's principal residence. (3) Whenever there is an overlap or contradiction in districting or use classification between the County and the State, zoned districts by the County shall take precedence. (4) "Improved residential" shall mean land which is classified as residential by the department of finance upon consideration of its highest and best use, and is property which fulfills the provisions of at least one of the following subparagraphs: (A) Land which has been subdivided prior to any assessment year as a lot for single- or two - family residential use in conformity with the then existing County zoning ordinances, and has been approved for sale or approved as being in conformity with all of the subdivision requirements of the County, or (B) Land which is in actual single- or two - family residence use at a density of at least a single- or a two - family residential building per acre, or (C) Land which is sufficiently developed with necessary land improvements to support a use density of at least a single- or two - family residential building per acre. (5) "Unimproved residential" shall mean all residential class lands not classified as "improved residential" or "homeowner." SECTION 3. Chapter 19, article 10, section 19 -71, of the Hawaii County Code 1983 (2005 edition), is amended by amending subsection (a) to read as follows: (a) Real property owned and occupied as a principal home shall be exempt to the following extent from property taxes: (1) Totally exempt where the value of the property is not in excess of $40,000; (2) Where the value of the property is in excess of $40,000, the exemption shall be the amount of $40,000. Provided that: (A) No such exemption shall be allowed to any corporation, co- partnership, or company; (B) The exemption shall not be allowed on more than one home for any one taxpayer and that such taxpayer shall certify under penalty of perjury that such taxpayer has no other home exemption in any other jurisdiction; (C) The taxpayer has acquired said home by a recorded deed; (D) A husband and wife shall not be permitted exemption of separate homes owned by each of them, unless they are living separate and apart, in which case they shall be entitled to one exemption, to be apportioned equally between each of their respective homes; (E) A person living on premises, a portion of which is used for commercial purposes, except as provided in (b) or which is legally permitted as a home occupation in accordance with the zoning code, shall not be entitled to an exemption with respect to such portion, but shall be entitled to an exemption with respect to the portion thereof used exclusively as a home; [] (Q A person living on n the premises, a portion of which is used as residential housing rental for a term of not less than six months and legally permitted by all codes, shall be entitled to an exemption, except as provided in (b); and [(F)] (G) In the case of a lease of Hawaiian homestead lands, where either a husband or wife is of non - Hawaiian descent, either spouse shall be entitled to the home exemption in the same manner as if either spouse was considered the owner thereof, provided proof of marriage is submitted to the director of finance." SECTION 4. Material to be repealed is bracketed and stricken. New material is underscored. In printing this ordinance, the brackets, bracketed and stricken material and underscoring need not be included. SECTION 5. If any provision of this ordinance, or the application thereof to any person or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are declared to be severable. SECTION 6. This ordinance shall take effect upon its approval. INTRODUCED BY: 0"-ak- 6/� CO CIL MEMBER, COUNTV OF HAWAII Hilo, Hawaii Date of Introduction: October 31, 2006 Date of 1st Reading: October 31, 2006 Date of 2nd Reading: November 15, 2006 Effective Date: November 28, 2006 REFERENCE: Comm. OFFICE OF THE COUNTY CLERK County of Hawaii Hilo, Hawaii Introduced By: Virginia Isbell Date Introduced: October 31, 2006 First Reading: October 31, 2006 Published: November 9, 2006 REMARKS: Second Reading: November 15, 2006 To Mayor: November 17, 2006 Returned: November 30, 2006 Effective: November 28, 2006 Published: December 15, 2006 REMARKS. RO V E PM 1r) Cr AYES AYES NOES ABS EX Arakaki X Higa Higa X x Hoffmann Hoffmann X Holschuh Holschuh X Ikeda Ikeda X Isbell Isbell X Jacobson Jacobson X Pilago Pilago X Safarik Safarik X X 7 6 0 3 0 ROLL CALL VOTE AYES NOES ABS EX Arakaki X Higa x Hoffmann X Holschuh X Ikeda X Isbell x Jacobson X Pilago X Safarik X 7 0 2 0 I DO HEREBY CERTIFY that the foregoing BILL was adopted by the County Council published as indicated above. APPROVED AS TO FORM AND LEGALITY: ? CO/UUNCIL CHAIRMAN DEPUTY ' RPORAT ON COUNSEL // � COUN OF HAWAII � COUNTY CLERK Date I< ` Bill No.: 341 pprove Disapproved this ).8'11- day Of t ov2mke 20 6 YOR, TY OF HAWAI `I Reference: C- 1096 /FC -340 Ord No.: 06 14 I