Revised Ordinances of Honolulu
(Link to original Word Processing Version)
Article 5. Liens--Foreclosures
Sections:
8-5.1 Tax liens--Co-owners' rights--Foreclosure, limitation.
8-5.2 Tax liens--Foreclosure without suit, notice.
8-5.3 Tax liens--Registered land.
8-5.4 Tax liens--Notice--Form.
8-5.5 Tax liens--Postponement of sale.
8-5.6 Tax liens--Tax deed--Redemption.
8-5.7 Tax liens--Costs.
8-5.8 Tax deed as evidence.
8-5.9 Disposition of surplus moneys.
8-5.10 Tax debt due the county--Lien.
8-5.11 Enforcement of payment by assumpsit action or by levy and distraint upon all
property and rights to property.
Sec. 8-5.1 Tax liens--Co-owners' rights--Foreclosure, limitation.
(a) Every tax due upon real property, as defined by Section 8-1.2, shall be
a paramount lien upon the property assessed, which lien shall attach as of
July 1st in each tax year and shall continue for six years. If
proceedings for the enforcement or foreclosure of the lien are brought within the
applicable period hereinabove designated, the lien shall continue until the termination of said
proceedings or the completion of such sale.
(b) In case of cotenancy, if one cotenant pays, within the period of the
aforesaid government lien, all of the real property taxes, interest, penalties and other
additions to the tax, due and delinquent at the time of payment, the
cotenant shall have, pro tanto, a lien on the interest of any noncontributing
cotenant upon recording in the bureau of conveyances, within 90 days after the
payment so made by the cotenant, a sworn notice setting forth the amount
claimed, a brief description of the land affected by tax key or otherwise,
sufficient to identify it, the tax year or years, and the name of
the cotenant upon whose interest such lien is asserted. When a notice of
such tax lien is recorded by a cotenant, the registrar shall forthwith cause
the same to be indexed in the general indexes of the bureau of
conveyances. In case the land affected is registered in the land court, the
notice shall also contain a reference to the number of the certificate of
title of such land and shall be filed and registered in the office
of the assistant registrar of the land court, and the registrar, in the
registrar's capacity as assistant registrar of the land court, shall make a notation
of the filing thereof on each land court certificate of title so specified.
(c) The cotenant's lien shall have the same priority as the lien or liens
of the government for the taxes paid by the cotenant, and may be
enforced by an action in the nature of a suit in equity. The
lien shall continue for three years after recording or registering, or until termination
of the proceedings for enforcement thereof if such proceedings are begun, and notice
of the pendency thereof is recorded or filed and registered as provided by
law, within the period.
(d) The director or the director's subordinate, in case of a government lien, and
the creditor cotenant, in a case of a cotenant's lien, shall, at the
expense of the debtor, upon payment of the amount of the lien, execute
and deliver to the debtor a sworn satisfaction thereof, including a reference to
the name of the person assessed or cotenant affected as shown in the
original notice, the date of filing of the original notice, a description of
the land involved, and the number of the certificate of title of such
land if registered in the land court, which, when recorded in the bureau
of conveyances or filed and registered in the office of the assistant registrar
of the land court, shall, in the case of a cotenant's lien which
contains the reference to the book and page of the original lien, be
entered in the general indexes of the bureau of conveyances, and if a
notation of the original notice was made on any land court certificate of
title, the filing of such satisfaction shall also be noted on the certificate.
(e) This section as to cotenancy shall apply as well, in any case of
ownership by more than one assessable person.
(f) Upon enforcement or foreclosure by the government in any manner whatsoever, of any
such real property tax lien, all taxes of whatsoever nature and howsoever accruing,
due at the time of the foreclosure sale from the taxpayer against whose
property such tax lien is so enforced or foreclosed, shall be satisfied as
far as possible out of the proceeds of the sale remaining after payment
of (1) the costs and expenses of the enforcement and foreclosure including a
title search, if any, (2) the amount of subsisting real property tax liens,
and (3) the amount of any recorded liens against the property, in the
order of their priority.
(g) The liens may be enforced by action of the director in the circuit
court of the first circuit, and the proceedings had before the circuit court
shall be conducted in the same manner and form as ordinary foreclosure proceedings
as provided for in HRS Chapter 667. If the owners or claimants of
the property against which a lien is sought to be foreclosed, are at
the time out of the city or cannot be served within the city,
or if the owners are unknown, and the fact shall be made to
appear by affidavit to the satisfaction of the court, and it shall in
like manner appear prima facie that a cause of action exists against such
owners or claimants or against the property described in the complaint, or that
such owners or claimants are necessary or proper parties to the action, the
director may request the court that service be made in the manner provided
by HRS Sections 634-23 through 634-29.
(h) In any such case, it shall not be necessary to obtain judgment and
have execution issued and returned unsatisfied, before proceeding to foreclose the lien for
taxes in the manner herein provided.
(Sec. 8-5.1, R.O. 1978 (1987 Supp. to 1983 Ed.))
Sec. 8-5.2 Tax liens--Foreclosure without suit, notice.
All real property on which a lien for taxes exists may be sold
by way of foreclosure without suit by the director, and in case any
lien, or any part thereof, has existed thereon for three years, shall be
sold by the director at public auction to the highest bidder, for cash,
to satisfy the lien, together with all interest, penalties, costs and expenses due
or incurred on account of the tax, lien and sale, the surplus, if
any, to be rendered to the person thereto entitled. The sale shall be
held at any public place proper for sales on execution, after notice published
at least once a week for at least four successive weeks immediately prior
thereto in any newspaper with a general circulation of at least 60,000 published
in the state and any newspaper of general circulation published and distributed in
the county. If the address of the owner is known or can be
ascertained by due diligence, including an abstract of title or title search, the
director shall send to each owner notice of the proposed sale by registered
mail, with request for return receipt. If the address of the owner is
unknown, the director shall send a notice to the owner at the owner's
last known address as shown on the records of the department of finance.
The notice shall be deposited in the mail at least 45 days prior
to the date set for the sale. The notice shall also be posted
for a like period in at least three conspicuous public places within the
city, and if the land is improved, one of the three postings shall
be on the land. (Sec. 8-5.2, R.O. 1978 (1983 Ed.))
Sec. 8-5.3 Tax liens--Registered land.
If the land has been registered in the land court, the director shall
also send by registered mail a notice of the proposed sale to any
person holding a mortgage or other lien registered in the office of the
assistant registrar of the land court. The notice shall be sent to any
such person at such person's last address as shown by the records in
the office of the registrar, and shall be deposited in the mail at
least 45 days prior to the date set for the sale. (Sec. 8-5.3,
R.O. 1978 (1983 Ed.))
Sec. 8-5.4 Tax liens--Notice--Form.
The notice of sale shall contain the names of the persons assessed, the
names of the present owners (so far as shown by the records of
the director and the records, if any, in the office of the assistant
registrar of the land court) the character and amount of the tax, and
the tax year or years, with interest, penalties, costs, expenses and charges accrued
or to accrue to the date appointed for the sale, a brief description
of the property to be sold, and the time and place of sale,
and shall warn the persons assessed, and all persons having or claiming to
have any mortgage or other lien thereon or any legal or equitable right,
title or other interest in the property, that unless the tax, with all
interest, penalties, costs, expenses, and charges accrued to the date of payment, is
paid before the time of sale appointed, the property advertised for sale will
be sold as advertised. The director may include in one advertisement of notice
of sale notice of foreclosure upon more than one parcel of real property,
whether or not owned by the same person and whether or not the
liens are for the same tax year or years. (Sec. 8-5.4, R.O. 1978
(1983 Ed.))
Sec. 8-5.5 Tax liens--Postponement of sale.
If at the time appointed for the sale, the director shall deem it
expedient and for the interest of all persons concerned therein to postpone the
sale of any property or properties for want of purchasers, or for other
sufficient cause, the director may postpone it from time to time, until the
sale shall be completed, giving notice of every such adjournment by a public
declaration thereof at the time and place last appointed for the sale; provided,
that the sale of any property may be abandoned at the time first
appointed or any adjourned date, if no proper bid is received sufficient to
satisfy the lien, together with all interest, penalties, costs, expenses, and charges. (Sec.
8-5.5, R.O. 1978 (1983 Ed.))
Sec. 8-5.6 Tax liens--Tax deed--Redemption.
The director or the director's subordinate shall, on payment of the purchase price,
make, execute and deliver all proper conveyances necessary in the premises and the
delivery of the conveyances shall vest in the purchaser the title to the
property sold; provided, that the deed to the premises shall be recorded within
60 days after the sale; provided, further, that the taxpayer may redeem the
property sold by payment to the purchaser at the sale, within one year
from the date thereof, or if the deed shall not have been recorded
within 60 days after the sale, then within one year from the date
of recording of the deed, of the amount paid by the purchaser, together
with all costs and expenses which the purchaser was required to pay, including
the fee for recording the deed, and in addition thereto, interest on such
amount at the rate of 12 percent a year, but in a case
of redemption more than one year after the date of sale by reason
of extension of the redemption period on account of late recording of the
tax deed, interest shall not be added for the extended redemption period. (Sec.
8-5.6, R.O. 1978 (1983 Ed.))
Sec. 8-5.7 Tax liens--Costs.
The director by rules or regulations may prescribe a schedule of costs, expenses
and charges and the manner in which they shall be apportioned between the
various properties offered for sale and the time at which each cost, expense
or charge shall be deemed to accrue; and such costs, expenses and charges
shall be added to and become a part of the lien on the
property for the last year involved in the sale or proposed sale, the
tax for which is delinquent. Such costs, expenses and charges may include provision
for the making of and the securing of certificates of searches of any
records to furnish information to be used in or in connection with the
notice of sale or tax deed, or in any case where the director
shall deem such advisable; provided, that the director shall not be required to
make such searches or to cause them to be made except as provided
by Section 8-5.3 with respect to mortgages or other liens registered in the
office of the assistant registrar of the land court. (Sec. 8-5.7, R.O. 1978
(1983 Ed.))
Sec. 8-5.8 Tax deed as evidence.
The tax deed referred to in Section 8-5.6 is prima facie evidence that:
(a) The property described by the deed was duly assessed for taxes in the
years stated in the deed and to the persons therein named.
(b) The property described by the deed was subject on the date of the
sale to a lien or liens for real property taxes, penalties and interest
in the amount stated in the deed, for the tax years therein stated,
and that the taxes, penalties and interest were due and unpaid on the
date of sale.
(c) Costs, expenses and charges due or incurred on account of the taxes, liens
and sale had accrued at the date of the sale in the amount
stated in the deed.
(d) The person who executed the deed was the proper officer.
(e) At a proper time and place the property was sold at public auction
as prescribed by law, and by the proper officer.
(f) The sale was made upon full compliance with Sections 8-5.2 to 8-5.7 and
all laws relating thereto, and after giving notice as required by law.
(g) The grantee named in the deed was the person entitled to receive the
conveyance.
(Sec. 8-5.8, R.O. 1978 (1983 Ed.))
Sec. 8-5.9 Disposition of surplus moneys.
(a) The director shall pay from the surplus all taxes, including interest and penalties,
of whatsoever nature and howsoever accruing, as provided in Section 8-5.1, and further
the director may pay from the surplus the cost of a search of
any records where such search is deemed advisable by the director to ascertain
the person or persons entitled to the surplus; provided, nothing herein contained shall
be construed to require the director to make or cause any such search
to be made. If the director is in doubt as to the person
or persons entitled to the balance of the fund, the director may refuse
to distribute the surplus and any claimant may sue the director in the
first circuit court. The director may require the claimants to interplead, in which
event the director shall state the names of all claimants known to the
director, and shall cause them to be made parties to the action. If
in the director's opinion there may be other claimants who are unknown, the
director may apply for an order or orders joining all persons unknown having
or claiming to have any legal or equitable right, title, or interest in
the moneys or any part thereof or any lien or other claim with
respect thereto.
(b) Any orders of the court or summons in the matter may be served
as provided by law or the rules of court, and all persons having
any interest in the moneys who are known, including the guardians of such
of them as are under legal age or under any other legal disability
(and if any one or more of them is under legal age or
under other legal disability and without a guardian, the court shall appoint a
guardian ad litem to represent them therein) shall have notice of the action
by personal service upon them. All persons having any interest in the moneys
whose names are unknown or who if known do not reside within the
state or for any reason cannot be served with process within the state
shall have notice of the action as provided by HRS Sections 634-23 to
634-29, except that any publication of summons shall be in at least one
newspaper of general circulation published in the state and having a general circulation
in the city, and the form of notice to be published shall provide
a brief description of the property which was sold.
(c) All expenses incurred by the director shall be met out of the surplus
moneys realized from the sale.
(Sec. 8-5.9, R.O. 1978 (1983 Ed.))
Sec. 8-5.10 Tax debt due the county--Lien.
(a) The director may record in the bureau of conveyances, department of land and
natural resources, State of Hawaii, or in the case of a lien on
a motor vehicle to file with the city director of finance, a certificate
setting forth the amount of taxes due and unpaid, which have been assessed
or as to which a notice of proposed assessment has been issued. The
certificate shall identify the taxpayer, the taxpayer's last known address, and the tax
or taxes involved. The certificate shall include such further information, if any, as
may be required by HRS Chapter 501, to procure a lien on registered
land. The recording or filing of the certificate creates a lien in favor
of the city upon all property and rights to property, whether real or
personal, belonging to any person liable for the tax. The lien for the
tax, including penalties and interest thereon, arises at the time of filing by
the director of the certificate of tax lien. From and after the time
the lien arises, it shall be a paramount lien upon the property and
rights to property against all parties. The certificate, if recorded or filed with
the city director of finance shall be entered of record as provided by
law, and if recorded or filed in the bureau of conveyances, department of
land and natural resources, State of Hawaii, shall be recorded in the office
of the registrar of conveyances. Any cost incurred in the filing of the
certificate shall be a part of the lien for the tax therein set
forth.
(b) The lien imposed in subsection (a) of this section shall not be valid
as against: (1) a mortgagee or purchaser of real property, or the lien
of a judgment creditor upon real property, whose interest arose prior to the
recording by the director of the certificate provided for herein; (2) a mortgagee
or purchaser of a motor vehicle who becomes the legal owner or owner
at a time when the tax lien and encumbrance record provided for by
HRS Section 286-46 does not show the lien.
(c) As to tangible personal property, possession of which is held by a person
liable for tax for the purpose of sale to the public in the
ordinary course of the person's business, the lien imposed in subsection (a) of
this section is extinguished as to any such property sold in the ordinary
course of the business by or under the direction of the person to
any purchaser for valuable consideration. As to securities, negotiable instruments and money, the
lien imposed in subsection (a) of this section is extinguished as to such
property upon passage of title to a person without notice or knowledge of
the existence of the lien, for an adequate and full consideration in money
or money's worth.
(d) The director may issue a certificate of discharge of any part of the
property subject to the lien imposed by this section, upon payment in partial
satisfaction of such lien, of an amount not less than the value as
determined by the director of the lien on the part to be so
discharged, or if the director determines that the lien on the part to
be discharged has no value. Any such discharge so issued shall be conclusive
evidence of the discharge of the lien as therein provided.
(e) The lien imposed in this section may be foreclosed in a court proceeding
or by distraint under Section 8-5.11.
(f) Within the meaning of this section:
"Mortgagee" and "purchaser" do not mean or include any person to whom property
or an interest in property is conveyed (A) as security for or in
satisfaction of an antecedent or preexisting debt of a debtor who is insolvent
within the meaning of the Bankruptcy Act, or (B) as trustee, assignee or
agent for the benefit of one or more creditors, other than mortgage bondholders.
"Motor vehicle" means any self-propelled vehicle to be operated on the public highways.
"Real property" means and includes leasehold or other interest in real property and
also any personal property sold or mortgaged with real property if affixed to
the real property and described in the instrument of sale or mortgage.
(Added by Ord. 90-19)
Sec. 8-5.11 Enforcement of payment by assumpsit action or by levy and distraint upon
all property and rights to property.
(a) If any tax be unpaid when due, the director may proceed to enforce
the payment of the same, with all penalties, as follows:
(1) By action in assumpsit, in the director's own name, on behalf of the
city for the amount of taxes and costs, or if the tax is
delinquent for the amount of taxes, costs, penalties and interest, in any district
court of the first circuit, State of Hawaii, irrespective of the amount claimed.
Execution may issue upon any judgment rendered in any such action which may
be satisfied out of any real or personal property of the defendant.
(2) By levy upon all property and rights to property (except such property as
is exempt under subsection (b)(5) of this section) belonging to such taxpayer or
on which there is a lien, as the director may deem sufficient to
satisfy the payment of taxes due, penalties and interest if any, and the
costs and expenses of the levy.
(b) The following rules are applicable to the levy as provided in subsection (a)(2)
of this section:
(1) Seizure and Sale of Property. The term "levy" as used in this section
includes the power of distraint and seizure by any means. A levy shall
extend only to property possessed and obligations existing at the time thereof. In
any case in which the director or director's representative may levy upon property
or rights to property, they may seize and sell such property or rights
to property (whether real or personal, tangible or intangible).
(2) Successive Seizures. Whenever any property or right to property upon which levy has
been made is not sufficient to satisfy the claim of the city for
which levy is made, the director or director's representative may, thereafter, and as
often as may be necessary, proceed to levy in like manner upon any
other property liable to levy of the person against whom such claim exists,
until the amount due from such person, together with all expenses, is fully
paid.
(3) Surrender of Property Subject to Levy.
(A) Requirement. Any person in possession of (or obligated with respect to) property or
rights to property subject to levy upon which a levy has been made
shall, upon demand of the director or director's representative, surrender such property or
rights (or discharge such obligation) to the director or director's representative, except such
part of the property or rights as is, at the time of such
demand, subject to an attachment or execution under any judicial process.
(B) Extent of Personal Liability. Any person who fails or refuses to surrender property
or rights of property, subject to levy, upon demand by the director or
director's representative, shall thereby subject such person individually and such person's estate to
liability to the city in a sum equal to the value of the
property or rights not so surrendered, but not exceeding the amount of taxes
for the collection of which such levy has been made, together with costs
and interest on such sum at the rate of 12 percent a year
from the date of such levy. Any amount (other than costs) recovered under
this paragraph shall be credited against the tax liability for the collection of
which such levy was made.
(C) Penalty for Violation. In addition to the personal liability imposed by subparagraph (B)
of this paragraph, if any person required to surrender property or rights to
property fails or refuses to surrender such property or rights to property without
reasonable cause, such person shall be liable for a penalty equal to 50
percent of the amount recoverable under subparagraph (B) of this paragraph. No part
of such penalty shall be credited against the tax liability for the collection
of which such levy was made.
(D) Effect of Honoring Levy. Any person in possession of (or obligated with respect
to) property or rights to property subject to levy upon which a levy
has been made who, upon demand by the director or director's representative, surrenders
such property or rights to property (or discharges such obligation) to the director
or to the director's representative shall be discharged from any obligation or liability
to the delinquent taxpayer with respect to such property or rights to property
arising from such surrender or payment.
(E) Person Defined. The term "person," as used in subparagraph (A) of this paragraph,
includes an officer or employee of a corporation or a member or employee
of a partnership, or a member or employee of any other type of
organization, who as such officer, employee or member is under a duty to
surrender the property or rights to property, or to discharge the obligation.
(4) Production of Books. If a levy has been made or is about to
be made on any property, or right to property, any person having custody
or control of books or records, containing evidence or statements relating to the
property or right to property subject to levy, shall, upon demand of the
director or director's representative, exhibit such books or records to the director or
such representative.
(5) Property Exempt from Levy. Notwithstanding any other law of the city, no property
or rights to property shall be exempt from levy other than the following:
(A) Wearing apparel and school books. Such items of wearing apparel and such school
books as are necessary for the taxpayer or for members of the taxpayer's
family.
(B) Fuel, provisions, furniture and personal effects. If the taxpayer is the head of
a family, so much of the fuel, provisions, furniture and personal effects in
the taxpayer's household and of the arms for personal use, livestock and poultry
of the taxpayer, as does not exceed $500.00 in value.
(C) Books and tools of a trade, business or profession. So many of the
books and tools necessary for the trade, business or profession of the taxpayer
as do not exceed in the aggregate $250.00 in value.
(D) Unemployment benefits. Any amount payable to an individual with respect to such individual's
unemployment (including any portion thereof payable with respect to dependents) under an unemployment
compensation law of the United States or the state.
(E) Undelivered mail. Mail, addressed to any person, which has not been delivered to
the addressee.
(6) Sale of the Seized Property.
(A) Notice of Sale. The director shall take possession and keep the levied property
until the sale. After taking possession, the director shall sell the taxpayer's interest
in the property at public auction after first giving 20 days' public notice
of the time and place of the sale by publication at least once
in the newspaper, published in the district, or by posting the notice in
at least three public places in the district where the sale is to
be held.
(B) Assistance in Seizure and Sale. The director may require the assistance of any
sheriff or authorized police officer of any county to aid in the seizure
and sale of the levied property. The director may further retain the services
of any person competent and qualified to aid in the sale of the
levied property. Any sheriff or the person so retained by the director shall
be paid a fair and reasonable fee but in no case shall the
fee exceed 10 percent of the gross proceeds of the sale. Any person
other than a sheriff so retained by the director to assist the director
may be required to furnish bond in an amount to be determined by
the director. The fees and the cost of the bond shall constitute a
part of the costs and expenses of the levy.
(C) Time and Place of Sale. The sale shall take place within 45 days
after seizure; provided, that by public announcement at the sale, or at the
time and place previously set for the sale, it may be extended for
not more than two weeks. The sale shall, in any event, be completed
within 60 days after seizure of the property unless consent of the delinquent
taxpayer is obtained for further extension of the sale.
(D) Manner and Conditions of Sale. Sufficient property shall be sold to pay all
taxes, penalties, interest, costs and expenses. On payment of the price bid for
any property sold, the delivery thereof with a bill of sale from the
director shall vest the title of the property in the purchaser. No charge
shall be made for the bill of sale. All surplus received upon any
sale after the payment of the taxes, penalties, interest, costs and expenses, shall
be returned to the owner of the property sold, and until claimed shall
be deposited with the department, subject to the order of owner. Any unsold
portion of the property seized may be left at the place of sale
at the risk of the owner.
(E) Redemption of Property. If the owner of the property seized desires to retain
or regain possession thereof, such owner may give a sufficient bond with surety
to produce the property at the time and place of sale, or pay
all taxes, penalties, interest, costs and expenses.
(Added by Ord. 90-19)
Article 6. Rate--Levy
Sections:
8-6.1 Tax base and rate.
8-6.2 Tax year--Time of levy and assessment.
8-6.3 Assessment of property--To whom in general.
8-6.4 Imposition of real property taxes on reclassification.
8-6.5 Assessment of property of corporations or copartnerships.
8-6.6 Fiduciaries--Liability.
8-6.7 Assessment of property of unknown owners.
Sec. 8-6.1 Tax base and rate.
Except as exempted by ordinance, or as otherwise provided for, all real property
shall be subject to a tax upon 100 percent of its fair market
value determined in the manner provided by ordinance, at such rate as shall
be determined in the manner provided in Section 8-11.1. No taxpayer shall be
deemed aggrieved by an assessment, nor shall an assessment be lowered, except as
the result of a decision on an appeal as provided by law. For
the purpose of this section, an exemption listed and recognized under Section 8-10.23
shall be deemed an exemption granted by ordinance. (Sec. 8-6.1, R.O. 1978 (1983
Ed.); Am. Ord. 92-38, 00-64, 00-65)
Sec. 8-6.2 Tax year--Time of levy and assessment.
For real property tax purposes, "tax year" means the fiscal year beginning July
1st of each calendar year and ending June 30th of the following calendar
year. Real property shall be assessed as of October 1st preceding each tax
year and taxes shall be levied thereon in the manner and at the
time provided in this chapter. (Sec. 8-6.2, R.O. 1978 (1987 Supp. to 1983
Ed.); Am. Ord. 96-15)
Sec. 8-6.3 Assessment of property--To whom in general.
(a) Real property shall be assessed in its entirety to the owner thereof, provided
that where improved residential land has been leased for a term of 15
years or more, the real property shall be assessed in its entirety to
the lessee or the lessee's successor in interest holding the land for such
term under such lease and the lessee or successor in interest shall be
deemed the owner of the real property in its entirety for the purpose
of this chapter; provided, however, that the lease and any extension, renewal, assignment
or agreement to assign the lease (1) shall have been duly entered into
and recorded in the bureau of conveyances or filed in the office of
the assistant registrar of the land court prior to October 1st preceding the
tax year for which the assessment is made, and (2) shall provide that
the lessee shall pay all taxes levied on the property during the term
of the lease.
(b) "Improved residential land" as used herein means land improved with a single-family dwelling
on it.
(c) For the purposes of this chapter, life tenants, personal representatives, trustees, guardians or
other fiduciaries may be, and persons holding government property under an agreement for
the conveyance of the same to such persons shall be considered as owners
during the time any real property is held or controlled by them as
such. Lessees holding under any government lease shall be considered as owners during
the time any real property is held or controlled by them as such,
as more fully provided in Section 8-10.17 and further, notwithstanding any provisions to
the contrary in this chapter, any tenant occupying government land, whether such occupancy
has continued for a period of one year or more, as more fully
provided in Section 8-10.17. Persons holding any real property under an agreement to
purchase the same, shall be considered as owners during the time the real
property is held or controlled by them as such; provided the agreement to
purchase (1) shall have been recorded in the bureau of conveyances, and (2)
shall provide that the purchasers shall pay the real property taxes levied on
the property. Persons holding any real property under a lease for a term
to last during the lifetime of the lessee, shall be considered as owners
during the time the real property is held or controlled by them as
such; provided, that the lease (1) shall have been duly entered into and
recorded in the bureau of conveyances or filed in the office of the
assistant registrar of the land court prior to October 1st preceding the tax
year for which the assessment is made, and (2) shall provide that the
lessee shall pay all taxes levied on the property during the term of
the lease.
(Sec. 8-6.3, R.O. 1978 (1983 Ed.); Am. Ord. 96-15)
Sec. 8-6.4 Imposition of real property taxes on reclassification.
(a) A portion of real property taxes shall be imposed upon and paid by
the owner or owners thereof when:
(1) The property of the owner has been leased for a term of 15
years or more;
(2) The classification of the property has been changed to a classification of a
higher use during the life of the lease; and
(3) The classification to a higher use has occurred without the lessee, who occupies
the property, petitioning for such higher classification.
(b) Taxes which are imposed upon the owners of property under this section shall
be paid by the owner of such property without being transferred to the
lessee who occupies the property and such tax shall be the difference between
the assessed valuation of the property after the classification change times the applicable
tax rate less the assessed valuation of the property as it existed prior
to the classification change times the applicable tax rate.
(Sec. 8-6.4, R.O. 1978 (1983 Ed.))
Sec. 8-6.5 Assessment of property of corporations or copartnerships.
Property of a corporation or copartnership shall be assessed to it under its
corporate or firm name. (Sec. 8-6.5, R.O. 1978 (1983 Ed.))
Sec. 8-6.6 Fiduciaries--Liability.
Every personal representative, trustee, guardian or other fiduciary shall be answerable as such
for the performance of all such acts, matters or things as are required
to be done by this chapter in respect to the assessment of the
real property such person represents in such person's fiduciary capacity, and such person
shall be liable as such fiduciary for the payment of taxes thereon up
to the amount of the available property held by such person in such
capacity, but such person shall not be personally liable. Such person may retain,
out of the money or other property which such person may hold or
which may come to such person in such person's fiduciary capacity, so much
as may be necessary to pay the taxes or to recoup oneself for
the payment thereof, or such person may recover the amount thereof paid by
such person from the beneficiary to whom the property shall have been distributed.
(Sec. 8-6.6, R.O. 1978 (1983 Ed.))
Sec. 8-6.7 Assessment of property of unknown owners.
The taxable property of persons unknown, or some of whom are unknown, shall
be assessed to "unknown owners," or to named persons and "unknown owners," as
the case may be. The taxable property of persons not having record title
thereto on October 1st, preceding the tax year for which the assessment is
made, may be assessed to "unknown owners," or to named persons and "unknown
owners," as the case may be. Such property may be levied upon for
unpaid taxes. (Sec. 8-6.7, R.O. 1978 (1983 Ed.); Am. Ord. 96-15)
Article 7. Valuations
Sections:
8-7.1 Valuation--Considerations in fixing.
8-7.2 Water tanks.
(8-7.3 Dedication of lands for agricultural use. Repealed by Ord. 04-34.)
8-7.3 Dedication of lands for agricultural use.
8-7.4 Lands dedicated for golf course use.
8-7.5 Certain lands dedicated for residential use.
Sec. 8-7.1 Valuation--Considerations in fixing.
(a) The director of budget and fiscal services shall cause the fair market value
of all taxable real property to be determined and annually assessed by the
market data and cost approaches to value using appropriate systematic methods suitable for
mass valuation of real property for taxation purposes, so selected and applied to
obtain, as far as possible, uniform and equalized assessments throughout the county.
(b) So far as practicable, records shall be compiled and kept which shall show
the methods established by or under the authority of the director, for the
determination of values.
(c) (1) Land shall be classified, upon consideration of its highest and best use, into
the following general classes:
(A) Residential;
(B) Hotel and resort;
(C) Commercial;
(D) Industrial;
(E) Agricultural;
(F) Preservation;
(G) Public service; and
(H) Vacant agricultural
(2) In assigning land to one of the general classes, the director shall give
major consideration to the districting established by the city in its general plan
and zoning ordinance, and such other factors which influence highest and best use.
Notwithstanding the city’s zoning district classification, the director shall assign to the agricultural
class any land classified as tree farm property under HRS Chapter 186.
(3) When real property is subdivided into condominium units, each unit and its appertaining
common interest:
(A) Shall be classified upon consideration of the unit's actual use into one of
the general classes in the same manner as land; and
(B) Shall be deemed a parcel and assessed separately from other units.
(4) Notwithstanding any provision contained in this subsection, a condominium unit which is used
at any time during the assessment year as a time share unit shall
be classified for the following tax year as “hotel and resort” unless:
(A) The unit is on property zoned as apartment, apartment mixed use, apartment precinct,
or apartment mixed use precinct,
(B) The property on which the unit is located does not include a lobby
with a clerk’s desk or counter with 24-hour clerk service facilities for registration
and keeping of records relating to persons using the property, and
(C) The unit is part of a condominium property regime established pursuant to HRS
Chapter 514A.
If the requirements of (A), (B) and (C) are met, the time share
unit shall be
classified as “residential.” For purposes of this paragraph, “assessment year” shall mean the
one-year period beginning October 2nd of the previous calendar year and ending October
1st, inclusive, of the calendar year preceding the tax year, and “time sharing”
shall be as defined in Section 21-10.1.
(5) “Vacant agricultural” means a parcel, or portion thereof, which would otherwise be classified
agricultural by the director upon major consideration of the districting established by the
city in its general plan and zoning ordinance and of such other factors
which influence highest and best use, but which parcel, or portion thereof: (i)
has no residential buildings; and (ii) is not dedicated for agricultural purposes. If
a portion of a parcel is dedicated as vacant agricultural, the remainder of
the parcel that is zoned agricultural must be dedicated for agricultural use.
(6) Notwithstanding any provision contained in this subsection, all lands actually used by a
public service company in its public service business shall be classified public service.
For purposes of this subsection, a public service company is defined as a
public utility, except airlines, motor carriers, common carriers by water, and contract carriers,
where:
(A) "Public utility" means and includes every person who may own, control, operate, or
manage as owner, lessee, trustee, receiver, or otherwise, whether under a franchise, charter,
license, articles of association, or otherwise, any plant or equipment, or any part
thereof, directly or indirectly for public use, for the transportation of passengers or
freight, or the conveyance or transmission of telecommunications messages, or the furnishing of
facilities for the transmission of intelligence by electricity by land or water or
air within the state, or between points within the state, or for the
production, conveyance, transmission, delivery, or furnishing of light, power, heat, cold, water, gas,
or oil, or for the storage or warehousing of goods, or the disposal
of sewage; provided that the term:
(i) Shall include any person insofar as that person owns or operates a private
sewer company or sewer facility;
(ii) Shall include telecommunications carrier or telecommunications common carrier;
(iii) Shall not include any person insofar as that person owns or operates an
aerial transportation enterprise;
(iv) Shall not include persons owning or operating taxicabs, as defined in this subsection;
(v) Shall not include common carriers transporting only freight on the public highways, unless
operating within localities or along routes or between points that the public utilities
commission of the State of Hawaii finds to be inadequately serviced without regulation
under this chapter;
(vi) Shall not include persons engaged in the business of warehousing or storage unless
the public utilities commission of the State of Hawaii finds that regulation thereof
is necessary in the public interest;
(vii) Shall not include:
(aa) The business of any carrier by water to the extent that the carrier
enters into private contracts for towage, salvage, hauling, or carriage between points within
the state and the carriage is not pursuant to either an established schedule
or an undertaking to perform carriage services on behalf of the public generally;
and
(bb) The business of any carrier by water, substantially engaged in interstate or foreign
commerce, transporting passengers on luxury cruises between points within the state or on
luxury round-trip cruises returning to the point of departure;
(viii) Shall not include any person who:
(aa) Controls, operates, or manages plants or facilities for the production, transmission, or furnishing
of power primarily or entirely from nonfossil fuel sources; and
(bb) Provides, sells, or transmits all of that power, except such power as is
used in its own internal operations, directly to a public utility for transmission
to the public;
(ix) Shall not include a telecommunications provider only to the extent determined by the
public utilities commission of the State of Hawaii, pursuant to applicable state law;
(x) Shall not include any person who controls, operates, or manages plants or facilities
developed pursuant to applicable state law for conveying, distributing, and transmitting water for
irrigation and such other purposes that shall be held for public use and
purpose; and
(xi) Shall not include any person who owns, controls, operates, or manages plants or
facilities for the reclamation of wastewater; provided that:
(aa) The services of the facility shall be provided pursuant to a service contract
between the person and a state or county agency and at least 10
percent of the wastewater processed is used directly by the state or county
which has entered into the service contract;
(bb) The primary function of the facility shall be the processing of secondary treated
wastewater that has been produced by a municipal wastewater treatment facility that is
owned by a state or county agency;
(cc) The facility shall not make sales of water to residential customers;
(dd) The facility may distribute and sell recycled or reclaimed water to entities not
covered by a state or county service contract; provided that, in the absence
of regulatory oversight and direct competition, the distribution and sale of recycled or
reclaimed water shall be voluntary and its pricing fair and reasonable. For purposes
of this subparagraph xi, "recycled water" and "reclaimed water" mean treated wastewater that
by design is intended or used for a beneficial purpose; and
(ee) The facility shall not be engaged, either directly or indirectly, in the processing
of food wastes.
(B) “Motor carrier” means a common carrier or contract carrier transporting freight or other
property on the public highways, other than a public utility or taxicab.
(C) “Contract carrier” means a person other than a public utility or taxicab which,
under contracts or agreements, engages in the transportation of persons or property for
compensation, by land, water, or air.
(D) “Carrier” means a person who engages in transportation, and does not include a
person such as a freight forwarder or tour packager who provides transportation by
contracting with others, except to the extent that such person oneself engages in
transportation.
(E) "Taxicab" means and includes:
(i) Any motor vehicle used in the movement of passengers on the public highways
under the following circumstances, namely, the passenger hires the vehicle on call or
at a fixed stand, with or without baggage for transportation, and controls the
vehicle to the passenger's destination; and
(ii) Any motor vehicle having seating accommodations for eight or less passengers used in
the movement of passengers on the public highways between a terminal, i.e., a
fixed stand, in the city of Honolulu, and a terminal in a geographical
district outside the limits of the city of Honolulu, and vice versa, without
picking up passengers other than at the terminals or fixed stands; provided that
passengers may be unloaded at any point between terminals; and provided further that
this definition relating to motor vehicles operating between terminals shall pertain only to
those motor vehicles whose operators or owners were duly licensed under any applicable
provision of law or ordinance and doing business between such terminals on January
1, 1957.
(F) "Telecommunications carrier" or "telecommunications common carrier" means any person that owns, operates, manages,
or controls any facility used to furnish telecommunications services for profit to the
public, or to classes of users as to be effectively available to the
public, engaged in the provision of services, such as voice, data, image, graphics,
and video services, that make use of all or part of their transmission
facilities, switches, broadcast equipment, signalling, or control devices.
(G) “Telecommunications service” or “telecommunications” means the offering of transmission between or among points
specified by a user, of information of the user's choosing, including voice, data,
image, graphics, and video without change in the form or content of the
information, as sent and received, by means of electromagnetic transmission, or other similarly
capable means of transmission, with or without benefit of any closed transmission medium,
and does not include cable service as defined under applicable state law.
(d) Whenever land has been divided into lots or parcels as provided by law,
each such lot or parcel shall be separately assessed.
(e) When a parcel of land which has been classified as agricultural is improved
with a single-family
dwelling and has qualified for a home exemption for the tax year, that
portion of the parcel
which is used for residential purposes shall be classified as residential. This
classification shall:
(1) Apply only to that portion used for residential purposes;
(2) Not exceed 5,000 square feet of land and the buildings and improvements on
that land; and
(3) Remain in effect only so long as the property qualifies for a home
exemption.
(f) When a parcel of land which has been classified as preservation is improved
with a single-family dwelling and has qualified for a home exemption for the
tax year, that portion of the parcel which is used for residential purposes
shall be classified as residential. This classification shall:
(1) Apply only to that portion used for residential purposes;
(2) Not exceed 5,000 square feet of land and the buildings and improvements on
that land; and
(3) Remain in effect only so long as the property qualifies for a home
exemption.
(g) (1) In determining the value of buildings, consideration shall be given to any additions,
alterations, remodeling, modifications or other new construction, improvement or repair work undertaken upon
or made to existing buildings as the same may result in a higher
assessable valuation of said buildings; provided, however, that any increase in value resulting
from any additions, alterations, modifications or other new construction, improvement or repair work
to buildings undertaken or made by the owner-occupant thereof pursuant to the requirements
of any urban redevelopment, rehabilitation or conservation project under the provisions of Part
II of HRS Chapter 53, shall not increase the assessable valuation of any
building for a period of seven years from the date of certification as
hereinafter provided.
(2) It is further provided that the owner-occupant shall file with the director, in
the manner and place which the director may designate, a statement of the
details of the improvements certified in the following manner:
(A) In the case of additions, alterations, modifications or other new construction, improvement or
repair work to a building that are undertaken pursuant to any urban redevelopment,
rehabilitation or conservation project as hereinabove mentioned, the statement shall be certified by
the mayor or any governmental official designated by the mayor and approved by
the council, that the additions, alterations, modifications, or other new construction, improvement or
repair work to the buildings were made and satisfactorily comply with the particular
urban development, rehabilitation or conservation act provision; or
(B) In the case of maintenance or repairs to a residential building undertaken pursuant
to any health, safety, sanitation or other governmental code provision, the statement shall
be certified by the mayor or any governmental official designated by the mayor
and approved by the council, that (i) the building was inspected by them
and found to be substandard when the owner-occupant made the claim, and (ii)
the maintenance or repairs to the buildings were made and satisfactorily comply with
the particular code provision.
(h) Notwithstanding the provisions of subsection (c)(2), properties operating as transient vacation units in
accordance with Section 21-4.110-1, and which have a valid nonconforming use certificate, shall
be classified based on their underlying zoning.
(Sec. 8-7.1, R.O. 1978 (1987 Supp. to 1983 Ed.); Am. Ord. 91-84, 92-63,
94-08, 94-79, 00-66, 02-39, 02-45, 02-57, 04-34, 04-35, 07-4, 07-10)
Sec. 8-7.2 Water tanks.
Any provision to the contrary notwithstanding, any tank or other storage receptacle required
by any government agency to be constructed or installed on any taxable real
property before water for home and farm use is supplied, and any other
water tank, owned and used by a real property taxpayer for storing water
solely for the taxpayer's own domestic use, shall be exempted in determining and
assessing the value of such taxable real property. (Sec. 8-7.2, R.O. 1978 (1983
Ed.))
(Sec. 8-7.3 Dedication of lands for agricultural use. Repealed by Ord. 04-34.)
Sec. 8-7.3 Dedication of lands for agricultural use.
(a) As used in this section:
“Agricultural use of land” means the active use of the land for the
production of agricultural products.
“Agricultural products” include such products as floricultural, horticultural, viticultural, aquacultural, forestry, nut, coffee,
dairy, livestock, poultry, bee, animal, tree farm, animals raised by grazing and pasturing,
and any other farm, agronomic, or plantation products.
“Owner” or “property owner” means the fee simple owner of the real property
provided that for government-owned real property, “owner” or “property owner” means a lessee
of the land where (i) the lease allows the specific agricultural use, and
(ii) the lease term extends through the period of the dedication.
“Maintain as agricultural land” means that the land dedicated for agricultural use throughout
the dedication period is not, at the initiation of the owner or with
the authorization of the owner, subject to (i) a change in the state
land use classification from agricultural to urban or rural district, (ii) a change
in the county zoning from agricultural, preservation or country district, or (iii) a
subdivision of the land into parcels of five acres or less.
“Residential homesite area” means that portion of the parcel, which is zoned agricultural
and used for residential purposes, including land upon which the house is located
and the land designated to be the yard space. A residential homesite area
cannot be dedicated for agricultural use.
“Substantial and continuous agricultural use” means no less than 75 percent of the
area of the subject land, but excluding the area of unusable land, is
in active, continuous and revenue-generating agricultural use throughout the subject time period. For
lands dedicated for a period of five years or 10 years, substantial and
continuous agricultural use shall include necessary and customary fallowing periods.
“Tree farm property” and “tree farm” mean land classified as tree farm property
under HRS Chapter 186.
“Unusable land” means that portion of the lands dedicated for a specific agricultural
use that the director determines to be unsuitable for the dedicated agricultural use.
(b) Lands for which the director has approved a petition for dedication for a
specific agricultural use for a period of one year, five years, or 10
years shall be classified and assessed for real property tax purposes at a
percentage of the land’s fair market value as established in subdivision (2) and
shall be subject to the following:
(1) The land dedicated must be substantially and continuously used for the business of
raising and producing agricultural products in their natural state.
(2) Dedicated land shall be assessed as follows:
(A) For land dedicated for a period of one year, the land shall be
assessed at five percent of its fair market value.
(B) For land dedicated for a period of five years, the land shall be
assessed at three percent of its fair market value.
(C) For land dedicated for a period of 10 years, the land shall be
assessed at one percent of its fair market value.
(D) For land dedicated for a pasture use for a period of one, five
or 10 years, the land shall be assessed at one percent of its
fair market value.
(3) The land dedicated shall be substantially and continuously in a use specified under
subdivision (1) for the duration of the dedication period.
(c) Notwithstanding the provisions of subsection (b), in the event the highest per-acre calculation
for lands dedicated for five years under subsection (b)(2)(B) based on the minimum
lot size as designated in Chapter 21 for lands located in agricultural districts
exceeds the average agricultural production value per acre for the county for vegetables
and melon crops, and fruits excluding pineapple, as determined annually by the director,
then the percent of market value for five-year dedications set forth in subsection
(b)(2)(B) shall be changed so as not to exceed the average agricultural production
value per acre for such crops. The percent of market value for one-year
dedications set forth in subsection (b)(2)(A) shall also be changed to not exceed
the percent of market value for five-year dedications by more than 1.67 times,
and the percent of market value for 10-year dedications set forth in subsection
(b)(2)(C) shall also be changed to not exceed the percent of market value
for five-year dedications by more than 0.33 times.
(d) Lands for which the director has approved a petition for dedication as vacant
agricultural land for a period of 10 years shall be classified and assessed
for real property tax purposes at 50 percent of the land’s fair market
value, provided that for the period of the dedication, the land dedicated is
not, at the initiation of the owner or with the authorization of the
owner, subject to (i) a change in the state land use classification from
agricultural to urban or rural district, (ii) a change in the county zoning
from agricultural or (iii) a subdivision of the land into parcels of 10
acres or less.
(e) A petition to dedicate land or a portion thereof for a specific agricultural
use or as vacant agricultural land shall be filed with the director. An
owner of the land may petition for dedication, or with the written authorization
of the owner, a lessee, permittee or licensee may petition for dedication of
the owner’s land. The petition for dedication for a specific agricultural use shall
require a declaration that if the petition is approved by the director, the
land shall be used for the specific agricultural use for the duration of
the dedication period, and a petition for dedication as vacant agricultural land shall
require a declaration that if the petition is approved by the director, the
land shall be maintained as agriculture land for the duration of the dedication
period. The petition for a dedication for a specific agricultural use shall be
supported by an agricultural plan. The director shall prescribe the form of the
petition and of the agricultural plan. The agricultural plan may include the following:
(1) A description of the specific agricultural use;
(2) A tax map key number of the owner’s land;
(3) A description of the total acreage of the land;
(4) A description of the acreage to be utilized for the specific agricultural use
or as
vacant agricultural land;
(5) A description of the residential homesite area, if any, excluded from the
dedication;
(6) A timetable for implementation of the plan; and
(7) A copy of a valid State of Hawaii general excise tax license issued
for
agricultural purposes.
(f) A parcel, or portion thereof, which has been approved for dedication as vacant
agricultural land may have its dedicated use, for all or a portion thereof,
changed to a specific agricultural use without the imposition of the rollback tax
and penalty upon petition to the director to change the dedication of the
parcel or portion thereof to a specific agricultural use, provided that:
(1) When the remaining period of the dedication for vacant agricultural land is more
than five years, the dedication for a specific agricultural use shall be for
a 10-year period;
(2) When the remaining period of the dedication for vacant agricultural land is less
than five years, the dedication for a specific agricultural use shall be for
a five- or 10-year period.
The petition for change of the dedication shall be filed by the owner
of the land or with the written authorization of the owner, by a
lessee, permittee or licensee of the land, as the case may be. The
director shall prescribe the form of the petition to change dedication.
(g) Upon receipt of a petition as provided in subsection (e), the director shall
make a finding of fact as to whether the land in the petition
area is reasonably well suited for the designated specific agricultural use or is
classified agricultural under Section 8-7.1 and qualifies to be maintained as agricultural land.
The finding shall be based upon a study of the ownership, size of
operating unit, the present use of surrounding similar lands, the state and county
land use restrictions for the land and other criteria as may be appropriate.
The director shall also make a finding of fact as to whether the
designated specific agricultural use or vacant agricultural land use conforms to the development
plan for the area. The director shall also make a finding of fact
as to the economic feasibility of the designated specific agricultural use of the
land. If all the findings are favorable, the director shall approve the petition
and declare the land to be dedicated for the designated specific agricultural use
or as vacant agricultural land.
(h) The approval by the director of the petition to dedicate shall constitute a
forfeiture on the part of the owner of any right to change the
use of the owner's land to a use other than agricultural for a
minimum period of one year, five years, or 10 years, as the case
may be or to cease to maintain the land as agricultural land for
a minimum of 10 years.
(i) The petition for dedication shall be filed with the director by September 1st
of any calendar year and shall be approved or disapproved by October 31.
If approved, the assessment based upon the use requested in the petition for
dedication shall be effective on October 1st of the same calendar year.
(j) The owner of any parcel of land dedicated under this section shall annually
submit a report to the director no later than September 1st following each
tax year of the dedication. The report may be rejected by the director
in the event the report is incomplete or contains erroneous or incorrect information.
The report shall be accepted or rejected by the director by October 31
of the year in which it is submitted. The director shall prescribe the
form of the report. The report may include but is not limited to:
(1) An updated description of the agricultural use of the land during the immediately
preceding and current tax years;
(2) A copy of all state general excise tax returns for the immediately preceding
tax year
concerning activities conducted on the parcel of land dedicated for a specific
agricultural use;
(3) A description of the acreage and percentage of the area of the parcel
of land utilized for
the specified agricultural use during the immediately preceding and current tax years;
and
(4) A declaration, if applicable, that the owner will keep the land in substantial
and
continuous agricultural use, or will maintain the land as agricultural land through the
remaining period of the dedication.
Any part of the report containing confidential commercial or financial information, including
income statements or tax statements, shall be clearly labeled by the owner as
such and shall not
be open to inspection by the public.
(k) If land dedicated for agricultural use undergoes a change in classification which is
not at the
initiation of the owner or with the authorization of the owner, such that
there is (i) a change in the
state land use classification from agriculture to urban or rural district, (ii) a
change in the county
zoning from agriculture, preservation or country district, the dedication shall continue unless the
owner files a written notice of cancellation with the director within 60 days
of the change. Such
cancellation shall be effective on the next July 1st which is at least
nine months after the filing.
(l) In the event that a dedication is canceled or expires, the director shall
execute an expiration or
cancellation of the dedication.
(m) In the event the director, upon inspection, finds that dedicated agricultural land is
not in
substantial and continuous agricultural use, that the land has not been maintained as
agricultural land, that the property owner failed to file the required report in
a timely manner, or that the required report must be rejected, the owner
shall be notified of the finding and the owner shall have 60 days
to address the finding. In the event the owner fails to satisfactorily address
the finding, the dedication shall be canceled and the property owner shall be
subject to a rollback tax and penalty. The rollback tax shall be the
difference between the taxes owed for the land at 100 percent of the
land's assessed value at fair market value and the taxes actually imposed on
the land, retroactive from June 30th of the tax year in which the
dedication was canceled to July 1st of the initial year of the dedication
at the tax rate applicable for the respective tax years, except as provided
in paragraphs (1) and (2) below. The penalty shall be 10 percent for
each year of the rollback tax. The rollback tax and penalty shall be
a paramount lien upon the property.
(1) For lands dedicated for five years and subject to a cancellation after the
third tax year of
the dedication period, the period of the rollback tax shall be in accordance
with the
following schedule:
(A) For two tax years for a cancellation in the fourth tax year of
the dedication
period, retroactive from June 30th of the fourth tax year to July 1st
of the third tax
year of the dedication period;
(B) For one tax year for a cancellation in the fifth tax year of
the dedication period,
retroactive from June 30th of the fifth tax year to July 1st of
the fifth tax year of
the dedication period.
(2) For lands dedicated for 10 years and subject to a cancellation after the
fifth year of the
dedication period, the period of the rollback tax shall be in accordance with
the following
schedule:
(A) For five tax years for a cancellation in the sixth tax year of
the dedication period,
retroactive from June 30th of the sixth tax year to July 1st of
the second tax year
of the dedication period;
(B) For four tax years for a cancellation in the seventh tax year of
the dedication
period, retroactive from June 30th of the seventh tax year to July 1st
of the fourth
tax year of the dedication period;
(C) For three tax years for a cancellation in the eighth tax year of
the dedication
period, retroactive from June 30th of the eighth tax year to July 1st
of the sixth tax
year of the dedication period;
(D) For two tax years for a cancellation in the ninth tax year of
the dedication period,
retroactive from June 30th of the ninth tax year to July 1st of
the eighth tax year
of the dedication period;
(E) For one tax year for a cancellation in the tenth tax year of
the dedication period,
retroactive from June 30th of the tenth tax year to July 1st of
the tenth tax year
of the dedication period;
(n) The owner may appeal any disapproved petition for dedication, rejection of the annual
report,
cancellation of the dedication, or imposition of a rollback tax and penalty in
the same manner as an
appeal from an assessment.
(o) Notwithstanding any provision in this section to the contrary, the occurrence of any
of the
following events shall cause the dedication to be canceled without the imposition of
any rollback taxes or penalties whatsoever.
(1) The death of any owner; or
(2) Events beyond the owner’s control make it unfeasible to continue the agricultural use
of
the dedicated property, including, but not limited to:
(A) A serious or debilitating long-term illness or injury suffered by the owner;
(B) A natural disaster such as a windstorm, flood, disease, or infestation that
destroys the crop or livestock on the dedicated parcel; or
(C) The taking of the dedicated parcel or any portion thereof by a governmental
entity, provided that where only a portion of the parcel is taken, the
cancellation shall be effective only as to the portion taken.
(3) The change of a dedication of vacant agricultural lands to a dedication for
a specific
agricultural use under subsection (f).
(p) Notwithstanding any provisions in this section to the contrary, for five- and 10-year
dedications of land for a specific agricultural use, the director may grant an
owner a grace period which may be
granted subject to the following conditions:
(1) A grace period may be granted only if one of the following events
occurs:
(A) A bank or other lending institution acquires possession of a property as a
result
of a default of a mortgage on the property; or
(B) The agricultural use of a dedicated parcel is terminated because a lessee has
abandoned or terminated a lease prior to the end of the term of
the lease, the
owner of the parcel has not found another lessee, and the lease has
a term of
five years or longer.
(2) During the grace period, the owner is not required to use the land
for the business of
raising and producing agricultural products.
(3) At the end of the grace period, the owner shall use the land
for the business of raising
and producing agricultural products for the entire remaining period of the owner’s dedication.
The grace period shall not be counted in determining the owner’s compliance with
the dedication.
(4) The grace period shall not exceed two years.
(5) During the grace period, the land shall be assessed at 100 percent of
market value.
(6) No grace period shall be granted for a parcel of land within five
years following the
expiration of a previous grace period.
(Added by Ord. 04-34; Am. Ord. 07-4)
Sec. 8-7.4 Lands dedicated for golf course use.
(a) The following definitions shall apply for purposes of this section.
“Cost of development” means the actual or estimated costs to improve the land
into an operating golf course.
“Golf course” means property that has been developed for the sport of golf,
including its related and incidental activities.
“Golf course use” means the actual use of property for the sport of
golf and its related and incidental activities.
“Owner” means a fee owner or any lessee of real property whose lease
term extends at least 10 years effective from the date of the petition.
Such lease must be duly entered into and recorded at the bureau of
conveyances or filed in the office of the assistant registrar of the land
court, on or before the date of the petition.
“Rental income” means land rent based on golf course use.
“Rollback tax” means the difference between the amount of taxes that a dedicated
golf course owner paid and the higher amount of taxes, if any, that
would have been due from the owner if the golf course had not
been dedicated under this section.
“Sale price” means the sale price of a property operated and used as
a golf course and land acquired for golf course use.
(b) In order to qualify in having land valued and assessed as a golf
course, the owner of any parcel of land desiring to use or presently
using such person's land for a golf course shall as a condition precedent
qualify as follows:
(1) Dedication of Land.
(A) The owner of any parcel of land for a golf course shall petition
the director and declare in the owner's petition that the owner will dedicate
the owner's parcel of land for golf course use.
(B) The approval by the director of the petition to dedicate the land shall
constitute a forfeiture on the part of the owner of any right to
change the use of the land for a minimum period of 10 years,
automatically renewable indefinitely, subject to cancellation by either the owner or the director
upon five years' notice at any time.
(C) The failure of the owner to observe the restrictions on the use of
the land as a golf course shall cancel the land assessment based on
golf course use retroactive to the date of the dedication, but not more
than 10 years prior to the tax year in which the dedication is
canceled; and all differences in the amount of taxes that were paid and
those that would have been due from assessment in the higher use shall
be payable with a six percent a year penalty from the respective dates
that these payments would have been due. Failure to observe the restrictions on
the use means failure for a period of over 12 consecutive months to
use the land in that manner requested in the petition as a golf
course by the overt act of changing the use for any period. Nothing
in this paragraph shall preclude the county from pursuing any other remedy to
enforce the covenant on the use of that land as a golf course.
(D) The director shall prescribe the form of the petition. The petition shall be
filed by September 1st of any calendar year and shall be approved or
disapproved by October 31st of such year. If approved, the assessment based upon
the use requested in the dedication shall be effective on October 1st of
the same calendar year.
(E) The owner may appeal any disapproved petition as in the case of an
appeal from an assessment.
(F) When the owner has failed to observe the dedication restriction on golf course
use, and at which time the dedication is canceled, the amount of additional
taxes due and owing shall attach to the property as a paramount lien
in favor of the county.
(c) Dedicated property operated and used as a golf course shall be valued and
assessed for property tax purposes on the following basis:
(1) The value to be assessed by the director shall be on the basis
of its actual use as a golf course rather than on the valuation
based on the highest and best use of the land.
(2) In determining the value of actual use, the factors to be considered shall
include, among others, rental income, cost of development, and sale price.
(d) Covenant Not to Engage in Discrimination. The owner shall covenant in the owner's
petition with the director that the owner will not discriminate against any individual
in the use of the golf course facilities because of the individual's race,
sex, religion, color or ancestry.
(Sec. 8-7.4, R.O. 1978 (1987 Supp. to 1983 Ed.); Am. Ord. 96-15, 00-64)
Sec. 8-7.5 Certain lands dedicated for residential use.
(a) The term "owner" as used in this section means a person who is
the fee simple owner of real property, or who is the lessee of
real property whose lease term extends at least 10 years from the date
of the petition.
(b) A special land reserve is established to enable the owner of any parcel
of land within a hotel, apartment, resort, commercial or industrial district to dedicate
such person's land for residential use and to have such person's land assessed
at its value in residential use; provided, that (1) the land dedicated shall
be limited to a parcel used only for single family dwelling residential use;
(2) the owner of the land dedicated shall use it as the owner's
home; and (3) not more than one parcel of land shall be dedicated
for residential use by any owner.
(c) (1) If any owner desires to use such person's land for residential use and
to have such person's land assessed at its value in this use, the
owner shall so petition the director of finance and declare in such person's
petition that if such person's petition is approved, the owner will use such
person's land for single family dwelling residential use only and that such person's
land so dedicated will be used as such person's home.
(2) Upon receipt of any such petition, the director of finance shall make a
finding of fact as to whether the land described in the petition is
being used by the owner for single-family dwelling residential use only and as
the owner's home. If the finding is favorable to the owner, the director
of finance shall approve the petition and declare the land to be dedicated.
(d) The approval of the petition by the director of finance to dedicate shall
constitute a forfeiture on the part of the owner of any right to
change the use of such person's land for a minimum period of 10
years, automatically renewable thereafter for additional periods of 10 years subject to cancellation
by either the owner or the director of finance.
(e) (1) Failure of the owner to observe the restrictions on the use of such
person's land or the sale of the property shall cancel the special tax
assessment privilege retroactive to the date of the dedication, or the latest renewal-10-year
period, and all differences in the amount of taxes that were paid and
those that would have been due from assessment in the higher use shall
be payable with a 10 percent per year penalty from the respective dates
that these payments would have been due. Failure to observe the restrictions on
the use means failure for a period of over 12 consecutive months to
use the land in the manner requested in the petition or the overt
act of changing the use for any period, or the sale of the
real property. Nothing in this subsection shall preclude the county from pursuing any
other remedy to enforce the covenant on the use of the land.
(2) The additional taxes and penalties, due and owing as a result of failure
to use or any other breach of the dedication shall be a paramount
lien upon the property as provided for by this chapter.
(f) The director of finance shall prescribe the form of the petition. The petition
shall be filed with the director of finance by September 1st of any
calendar year and shall be approved or disapproved by October 31st of that
calendar year. If the petition is approved, the assessment based upon the use
requested in the dedication shall be effective on October 1st of the same
calendar year.
(g) The owner may appeal any disapproved petition as in the case of an
appeal from an assessment.
(Sec. 8-7.5, R.O. 1978 (1987 Supp. to 1983 Ed.); Am. Ord. 96-15)
Article 8. Wasteland Development
Sections:
8-8.1 Definitions.
8-8.2 Eligibility.
8-8.3 Application.
8-8.4 Classification.
8-8.5 Development and maintenance of wasteland development property.
8-8.6 Special tax assessment.
8-8.7 Declassification.
8-8.8 Appeals.
Sec. 8-8.1 Definitions.
When used in this article:
"Department" means the department of finance.
"Director" means the director of the department of finance.
The term "owner" includes any person leasing the real property of another under
a lease having a stated term of not less than 30 years.
"Wasteland" means land which is classified as such by the director of the
department of finance. (Sec. 8-8.1, R.O. 1978 (1983 Ed.))
Sec. 8-8.2 Eligibility.
Any property of not less than 25 acres in area is eligible for
classification as wasteland development property if it meets the classification requirements of wasteland
property as established by the director of finance. No real property under a
lease having an unexpired term of less than 30 years shall be eligible
for classification as wasteland development property. (Sec. 8-8.2, R.O. 1978 (1983 Ed.))
Sec. 8-8.3 Application.
The owner of any property may apply to the director of finance for
classification of the owner's land as wasteland development property. The application shall include
a description of the property, the manner in which the property will be
developed, and such additional information as may be required by the director. The
application shall state that all persons having any interest in or holding any
encumbrance upon the property have joined in making the application and that all
of them will comply with the laws and regulations relating to the use,
building requirements, and development of real property. (Sec. 8-8.3, R.O. 1978 (1983 Ed.))
Sec. 8-8.4 Classification.
(a) Within four months after the filing of the application with the director of
finance, the director shall make a finding of fact as to the eligibility
of such land for classification as wasteland development property, whether it can be
developed in the manner specified by the owner, whether the development will add
to the development of the economy of the state, and whether the development
will broaden the tax base of the state. The determination shall be based
upon all available information on soils, climate, land use trends, watershed values, present
use of surrounding similar lands, and other criteria as may be appropriate.
(b) Upon the finding by the director that the property is eligible for classification
as wasteland development property, that it can be developed in the manner specified
by the owner, that the development will add to the economy of the
state, and that it will broaden the tax base of the state, the
property shall be classified as wasteland development property. If the director finds it
otherwise for any one of the above criteria, the application shall be disapproved.
(c) The applicant may appeal any disapproved application as in the case of an
appeal from an assessment.
(d) Land classified as wasteland development property shall be administered by the department of
finance and the department may from time to time make rules and regulations
for their administration pursuant to HRS Chapter 91.
(Sec. 8-8.4, R.O. 1978 (1983 Ed.))
Sec. 8-8.5 Development and maintenance of wasteland development property.
Within one year following the approval of the application, the owner shall develop
that portion of the owner's land as specified in the owner's application and
as approved by the director of finance. Additional areas shall be developed each
year as prescribed by the director. (Sec. 8-8.5, R.O. 1978 (1983 Ed.))
Sec. 8-8.6 Special tax assessment.
Any property classified as wasteland development property by the director of finance shall
be, for a period of five years, assessed for real property tax purposes
at its value as wasteland. The five-year period shall commence from July 1st
of the tax year following the approval of the application. (Sec. 8-8.6, R.O.
1978 (1987 Supp. to 1983 Ed.))
Sec. 8-8.7 Declassification.
Thirty days after notification to the owner by the department of finance for
noncompliance of any law, ordinance, rule or regulation, the director of finance may
declassify any land classified as wasteland development property. The department shall notify the
owner of the declassification and in that event, the director shall cancel the
special tax assessment provided in Section 8-8.6 retroactive to the date that the
property qualified for special tax assessment and the difference between the real property
taxes that would have become due and payable but for such classification for
all the years the land was classified as wasteland development property and the
real property taxes paid by the owner during such period shall become immediately
due and payable together with a five percent a year penalty from the
respective dates that such additional tax would otherwise have been due. (Sec. 8-8.7,
R.O. 1978 (1983 Ed.))
Sec. 8-8.8 Appeals.
Any person aggrieved by the additional assessment for any year may appeal from
such assessment in the manner provided in the case of real property tax
appeals. (Sec. 8-8.8, R.O. 1978 (1983 Ed.))
Article 9. Nontaxable Property--Assessment
Sections:
8-9.1 Nontaxable property.
Sec. 8-9.1 Nontaxable property.
(a) For purposes of accountability, the director of budget and fiscal services shall prepare
a notice of property assessment for each parcel of nontaxable real property within
the city.
(b) The notice shall contain the valuation of the real property and an exemption
in the full amount of the valuation.
(Sec. 8-9.1, R.O. 1978 (1983 Ed.); Am. Ord. 92-124, 02-45)
Revised Ordinances
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