(a) 
Every tax due upon real property, as defined by Sec. 5A-1.1, 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) 
The Department may record with the State of Hawai'i, Bureau of Conveyances, a certificate setting forth the amount of taxes due and unpaid which has been returned, 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 taxes involved. The recording or filing of the certificate shall have the effect set forth in this Section, but nothing in this Section shall be deemed to require that a certificate recorded or filed by the Department must include the amount of any penalty or interest, in order to protect said lien. Recordation of the certificate in the Bureau of Conveyances shall be deemed, at such time, for all purposes and without any further action, to procure a lien on land registered in the land court under Chapter 501 of the Hawai'i Revised Statutes. Any cost incurred in the filing of the certificate shall be a part of the lien for the tax therein set forth.
(c) 
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, he or she 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 his or her 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.
(d) 
The cotenant's lien shall have the same priority as the lien or liens of the government for the taxes paid by him or her, and may be enforced by an action in the nature of 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.
(e) 
The Director or subordinate, in case-of a government lien, and the creditor cotenant, in 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.
(f) 
This Section as to cotenancy shall apply, as well, in any case of ownership by more than one assessable person.
(g) 
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, provided a claim for the surplus has been filed with the Director within one year from the date of the sale.
(h) 
The liens may be enforced by action of the Director in the circuit court and jurisdiction is conferred upon the circuit court to hear and determine all proceedings brought or instituted to enforce and foreclose such tax liens, and the proceedings had before the circuit court shall be conducted in the same manner and form as ordinary foreclosure proceedings. If the owners or claimants of the property against which a lien is sought to be foreclosed are at the time out of the County or cannot be served within the County, 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 court may grant an order that the service may be made in the manner provided by Chapter 634, H.R.S.
(i) 
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.
(j) 
Satisfaction, release, and fulfillment of all obligations under the lien shall include payment of the principal amount of the tax due, penalties, interest, recording fees at the current rate established by the Bureau of Conveyances or Office of the Assistant Registrar of the Land Court for the recording of the sworn satisfaction and Release of Lien, and any other fee paid by the Department due to an act or omission of the taxpayer.
(Ord. No. 394, July 1, 1981; Ord. No. 516, December 9, 1987; Ord. No. 573, July 16, 1990; Ord. No. 658, July 7, 1994; Ord. No. 1052, July 3, 2019)
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 published 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 his or her 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 County, and if the land is improved one of the three postings shall be on the land.
(Ord. No. 394, July 1, 1981)
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 his or her 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.
(Ord. No. 394, July 1, 1981)
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.
(Ord. No. 394, July 1, 1981)
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, he or she 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.
(Ord. No. 394, July 1, 1981)
The Director, on payment of the purchase price, shall make, execute, and deliver all proper conveyances necessary in the premises and the delivery of the conveyances shall vest in the purchaser the title in fee thereto, and such title shall be free and clear of any lien, claim, or encumbrance against such property except the lien for real property taxes subsequent to that for which the property was sold, subject only to any mineral rights of the State and any easements in favor of any government entity; provided, that the taxpayer may redeem the property sold by payment to the purchaser at the sale, within one year from the date of the sale, 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% a year.
(Ord. No. 394, July 1, 1981; Ord. No. 573, July 16, 1990)
The Director by rules or regulation 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 Sec. 5A-5.3 with respect to mortgages or other liens registered in the Office of the Assistant Registrar of the Land Court.
(Ord. No. 394, July 1, 1981)
The tax deed referred to in Sec. 5A-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 5A-5.2 through 5A-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.
(Ord. No. 394, July 1, 1981)
(a) 
The Director shall pay from the surplus all taxes, including interest and penalties, of whatsoever nature and howsoever accruing, as provided in Sec. 5A-5.1, and further he or she may pay from the surplus the cost of a search of any records where such search is deemed advisable by him or her 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.
(b) 
All proceeds remaining after payment of the costs and expenses of the enforcement and foreclosure of the tax lien, including a title search, and the amount of subsisting real property taxes, shall be distributed to lienholders of record in the order of their priority who have filed claims for the surplus with the Director within one year from the date of sale. Any lien, claim or encumbrance against the property remaining unsatisfied after the distribution of the surplus monies shall be extinguished and unenforceable against the property and the purchaser to whom the property is conveyed by the Director. If, in order to ascertain the person or persons entitled to the surplus, the Director deems it advisable to conduct a search of any records, he or she may pay from the surplus the cost of such search; provided, nothing herein contained shall be construed to require the Director to make or cause any search to be made. Any lienholder failing to file a claim for the surplus within one year from the date of the sale shall have no right to the surplus. The Director shall pay from any surplus remaining after distribution to record lienholders who have filed claims, all taxes, including interest and penalties, 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. If after payment of all taxes surplus funds remain, the Director shall pay the surplus to the taxpayer against whose property the tax lien was foreclosed, provided that the taxpayer has filed a claim for the surplus with the Director within one year from the date of sale. Any surplus remaining after payment to all those entitled as herein set forth shall be deposited into the County General Fund.
(c) 
If the Director is in doubt as to the person or persons entitled to the balance of the fund, he or she may refuse to distribute the surplus and any claimant may sue the Director in the circuit court. The Director may require the claimants to interplead, in which event he or she shall state the names of all claimants and shall cause them to be made parties to the action. If there are persons entitled to the fund who have not filed a claim, or if in the Director's opinion there may be other persons entitled to the fund who are unknown, the Director may apply for an order or orders joining these persons.
(d) 
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 monies 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 monies whose names are unknown or who, if known, do not reside within the County, or for any reason cannot be served with process within the County, shall have notice of the action as provided by Chapter 634, H.R.S., except that any publication of summons shall be held in at least one newspaper of general circulation published in the County of Kaua'i, and the form of notice to be published shall provide a brief description of the property which was sold.
(e) 
All expenses incurred by the Director shall be met out of the surplus monies realized from the sale.
(Ord. No. 394, July 1, 1981; Ord. No. 573, July 16, 1990)
In the case of real property which is subject to a time share plan, all provisions of this Article relating to enforcement and collection of delinquent taxes shall be administered against any time share unit. The plan manager of a time share unit shall be primarily liable for the payment of any real property tax delinquencies due on a time share unit under the plan manager's authority.
(Ord. No. 713, November 22, 1996)
(a) 
Pursuant to Chapter 26, Kaua'i County Code 1987, as amended, the County may establish community facilities districts and levy special taxes upon properties within such districts and, in the event the special tax is not paid when due with respect to any such property, may foreclose the lien of the special tax by way of advertisement and sale without suit, in the same manner, except as otherwise approved by Council, under the same conditions and penalties, and with the same effect as provided by general law for sales of real property pursuant to default in payment of property taxes. In the case of properties within a community facilities district, the lien of delinquent real property taxes and the lien of delinquent special taxes shall be foreclosed together in a single sale to satisfy both liens, together with all applicable charges for interest, penalties, costs and expenses; provided, however, that: (1) the lien of delinquent special taxes may be foreclosed separately in the case of properties within a community facilities district for which bonds have been issued and remain outstanding pursuant to Chapter 26; and (2) in the event of a delinquency in either, but not both, the real property tax or special tax on a property, the lien of the delinquent real property tax or special tax, as applicable, may be foreclosed separately if so directed by the Director of Finance.
(b) 
Sales upon foreclosure pursuant to Subsection (a) of this Section shall be conducted in the manner provided in this Chapter for foreclosures of real property tax liens, subject to the following further provisions:
(1) 
In the case of a single sale upon foreclosure to satisfy both the lien of real property taxes and the lien of special taxes, the proceeds of the sale shall be applied first to satisfy both the delinquent real property taxes and delinquent special taxes, together with all applicable charges for interest, penalties, costs and expenses, and surplus sale proceeds, if any, shall be applied as set forth in Sections 5A-5.1 and 5A-5.9.
(2) 
In the case of a separate sale upon foreclosure of the lien of special taxes, the proceeds of the sale shall be applied first to satisfy the delinquent special taxes, together with applicable charges for interest, penalties, costs and expenses, and surplus sale proceeds, if any, shall be applied as set forth in Sections 5A-5.1 and 5A-5.9, which shall be applicable to the foreclosure in the same manner as in the case of foreclosures of real property tax liens. Any such foreclosure of the lien of special taxes shall not be deemed to satisfy, extinguish or otherwise affect the lien of real property taxes on the property, whether then due or delinquent or thereafter coming due, except to the extent that such surplus sale proceeds are applied to the payment of real property taxes pursuant to Sections 5A-5.1 and 5A-5.9, nor shall such foreclosure prevent or restrict any subsequent sale of the property upon foreclosure of the lien of real property taxes.
(3) 
In the case of a separate sale upon foreclosure to satisfy the lien of real property taxes, the proceeds of the sale shall be applied first to satisfy the delinquent real property taxes, together with all applicable charges for interest, penalties, costs and expenses, and surplus sale proceeds, if any, shall be applied as set forth in Secs. 5A-5.1 and 5A-5.9. Such foreclosure shall not be deemed to satisfy, extinguish or otherwise affect the lien of special taxes on the property, whether then due or overdue or thereafter coming due, except to the extent that such surplus sale proceeds are applied to the payment of special taxes pursuant to Secs. 5A-5.1 and 5A-5.9, nor shall such foreclosure prevent or restrict any subsequent sale of the property upon foreclosure of the lien of special taxes.
(4) 
In each case, title to the property shall be conveyed subject to the liens of all real property taxes and special taxes not satisfied by the foreclosure, and the conveyance instruments for the property shall so provide, notwithstanding anything to the contrary in this Chapter, including, without limitation, any provisions to the contrary in Sec. 5A-5.6 or 5A-5.9.
(c) 
Notwithstanding the foregoing, if the County issues bonds for a community facilities district pursuant to Chapter 26, the enforcement of the lien of special taxes on properties within the district may be subject to such further covenants and agreements of the County as may be set forth in the bond indenture or other applicable documents pursuant to which the bonds are issued.
(Ord. No. 927, March 28, 2012)