Council Bills and Resolutions Text

BE IT ORDAINED by the people of the City and County of Honolulu:

    SECTION 1. Purpose. The purpose of this ordinance is to modify the existing homeowner exemption for real property taxes.

    SECTION 2. Section 8-10.4, Revised Ordinances of Honolulu 1990, as amended, is amended to read as follows:

“ Sec. 8-10.4        Homes.

(a)    Real property owned and occupied only as the owner's principal home as of the date of assessment by an individual or individuals, shall be exempt only to the following extent from property taxes:

(1)    Totally exempt where the value of a property is not in excess of $40,000.00;

(2)    Where the value of the property is in excess of $40,000.00, the exemption shall be the amount of $40,000.00.

Provided:

(A)    That no such exemption shall be allowed to any corporation, copartnership or company;

(B)    That the exemption shall not be allowed on more than one home for any one taxpayer;

(C)    That where the taxpayer has acquired the taxpayer's home by a deed made on or after July 1, 1951, the deed shall have been recorded on or before September 30th immediately preceding the year for which the exemption is claimed;

(D)    That 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 between each of their respective homes in proportion to the value thereof; and

(E)    That a person living on premises, a portion of which is used for commercial purposes, 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.

For the purposes of this section, "real property owned and occupied only as the owner's principal home" means occupancy of a home in the city with the intent to reside in the city. Intent to reside in the city may be evidenced by, but not limited to, the following indicia: occupancy of a home in the city for more than 270 calendar days of a calendar year; registering to vote in the city; being stationed in the city under military orders of the United States; and filing of an income tax return as a resident of the State of Hawaii, with a reported address in the city. The director may demand documentation of the above or other indicia of intent to reside in the city from a property owner applying for an exemption or from an owner as evidence of continued qualification for an exemption. Failure to respond to the director's request shall be grounds for denying a claim for an exemption or disallowing an existing exemption.

In the event the director receives satisfactory evidence that an individual occupies a home outside the city and there is documented evidence of the individual's intent to reside outside the city, that individual shall not be qualified for an exemption or continued exemption under this section, as the case may be.

(b)    The use of a portion of any building or structure for the purpose of drying coffee and the use of a portion of real property, including structures, in connection with the planting and growing for commercial purposes, or the packing and processing for such purposes, of flowers, plants, or foliage, shall not affect the exemptions provided for by this section.

(c)    Where two or more individuals jointly, by the entirety, or in common own or lease land on which their homes are located, each home, if otherwise qualified for the exemption granted by this section, shall receive the exemption. If a portion of land held jointly, by the entirety, or in common by two or more individuals is not qualified to receive an exemption, such disqualification shall not affect the eligibility for an exemption or exemptions of the remaining portion.

(d)    A taxpayer who is 55 years of age or over on or before June 30th preceding the tax year for which the exemption is claimed and who qualifies under subsection (a) of this section shall be entitled to one of the following multiples of home exemption:
Age of Taxpayer                   Multiple to be Used
    in Computing Home

    For the purpose of this subsection, a husband and wife who own property jointly, by the entirety, or in common, on which a home exemption under the provisions of subsection (a) of this section has been granted shall be entitled to the applicable multiple of home exemption set forth above when at least one of the spouses qualifies each year for the applicable multiple of home exemption.