WHEREAS, Section 8-3.1(l), ROH, requires the City Council to approve any real property tax compromises made by the Director of Budget and Fiscal Services where the taxpayer’s claim exceeds $500.00; and

    WHEREAS, the City Council policy relating to real property tax compromises was established by the adoption of Resolution 88-113; and

    WHEREAS, Resolution 88-113 provides for real property tax compromises only where a charitable organization fails to make a timely application for an exemption and the charitable organization becomes delinquent in its payment of taxes due; and

    WHEREAS, a charitable organization which fails to make a timely exemption may find it beneficial to be able to request a compromise before the organization’s taxes become delinquent so that the organization does not have to pay penalties and interests in the event the request for compromise is denied; and

    WHEREAS, in order to address this issue, the Council wishes to amend the current policy relating to real property tax compromises and supercede in its entirety Resolution 88-113; now, therefore,

    BE IT RESOLVED by the Council of the City and County of Honolulu that the following policy be and is hereby established with respect to the compromise of real property tax claims of the City in excess of $500:

That when a property or a portion of a property is eligible for an exemption from real property taxes pursuant to Sec. 8-10.10, Revised Ordinances of Honolulu (“Exemption – Charitable purposes”), but does not qualify for the exemption solely because no timely application for exemption is filed[,]:

1.    For claims involving a property or a portion of a property for which property taxes are delinquent, it shall be the policy of the Council to approve the compromise of the claim for the sum of $100 for every six months or portion thereof that the real property taxes are delinquent[;], provided the delinquency was not willful; and

2.    For claims involving a property or a portion of a property for which property taxes are not delinquent, it shall be the policy of the Council to approve the compromise of the claim for the sum of $100.

(Note: For informational purposes only, material added to the policy in Resolution 88-113 is underlined and material no longer included is bracketed.)

    BE IT FURTHER RESOLVED that this Resolution shall supercede in its entirety Resolution 88-113; and

Policy Resolutions