(a)
None
of the exemptions from taxation granted in Secs. 5A-11.4, 5A-11.6
to 5A-11.11, 5A-11.20, 5A-11.24, 5A-11.27, 5A-11.31, and 5A-11.32
shall be allowed in any case, unless the claimant shall have filed
with the Director of Finance, on or before September 30 preceding
the tax year for which such exemption is claimed, a claim for exemption
in such form as shall be prescribed by the Department.
(b)
A
claim for exemption once allowed shall have continuing effect until:
(1)
The exemption is disallowed;
(2)
The Director voids the claim after first giving notice (either to
the claimant or to all claimants in the manner provided by either
Sec. 5A-2.1 or 5A-1.14, as the case may be) that the claim or claims
on file will be voided on a certain date, not less than 30 days after
such notice;
(3)
The five year period for exemption, as allowed in Sec. 5A-11.11,
expires;
(4)
The period for exemption, as allowed in Secs. 5A-11.20 and 5A-11.21,
expires; or
(5)
The claimant makes the report required by Subsection (d) of this
Section.
(c)
A claimant may file a claim for exemption even though there is on file and in effect a claim covering the same premises, or a claim previously filed and disallowed or otherwise voided. However, no such claim shall be filed if it is identical with one already on file and having continuing effect. The report required by Subsection (d) of this Section may be accompanied by or combined with a new claim.
(d)
Any
person who has been allowed an exemption under Sec. 5A-11.4, 5A-11.5
to 5A-11.11, 5A-11.20, 5A-11.24, or 5A-11-32 has a duty to report
to the Assessor within 30 days after he or she ceases to qualify for
such an exemption for one of, but not limited to, the following reasons:
(1)
He or she ceases to be the owner, lessee, or purchaser of the exempt
premises;
(2)
A change in the facts previously reported has occurred concerning
the occupation, use, or renting of the premises, buildings or other
improvements thereon; or
(3)
Some other change in status has occurred which affects his or her
exemption.
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Such report shall have the effect of voiding the claim for exemption
previously filed, as provided in Subsection (b)(5) of this Section.
The report shall be sufficient if it identifies the property involved,
states the change in facts or status, and requests that the claim
for exemption previously filed be voided.
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In the event the property comes into the hands of a fiduciary
who is answerable as provided for by this Chapter, the fiduciary shall
make the report required by this Subsection within 30 days after his
or her assumption of his or her fiduciary duties or within the time
otherwise required, whichever is later.
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Any person who has a duty of making a report as required by
this Subsection, who, within the time required, fails to make a report,
shall be liable for a civil penalty. The amount of the penalty shall
be the lesser of: (A) $200 for each year that the change in facts
remain unreported; or (B) the amount of the taxes due for the property
computed without the claim for exemption as of October 1st of the
year in which the report was due. In addition to this penalty, the
taxes due on the property plus any additional penalties and interest
thereon shall be collected as property taxes and shall be a lien on
the property as provided for by this Chapter.
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(e)
If
the Director is of the view that, for any year the exemption should
not be allowed, in whole or in part, the Director may, for the current
year and up to two prior years, disallow the exemption, in whole or
in part, and may add to the assessment list the amount of value involved,
in the manner provided by Sec. 5A-3A for the assessment of omitted
property; provided, that if an assessment or addition under this Subsection
is made after December 31st preceding the tax year, the taxes on the
amount of value involved in the assessment or addition so made shall
be made a lien as provided for by ordinance by recording a certificate
setting forth the amount of tax involved, penalties, and interest.
(f)
In any case of recordation of a certificate for the amount of the civil penalty under Subsection (d) of this Section, or for the amount of tax, penalties, and interest assessed or added under Subsection (e) of this Section, a person shall be deemed to have an interest arising before the recordation of the certificate only if and to the extent that he or she acquired his or her interest in good faith and for a valuable consideration without notice of a violation of the requirements of Subsection (d) having occurred.
(Ord. No. 394, July 1,
1981; Ord. No. 509, November 23, 1987; Ord. No. 544, July 18, 1988; Ord.
No. 915, November 16, 2011; Ord. No. 920, December 14, 2011; Ord. No. 954, August
28, 2013; Ord. No. 1032, June 4, 2018; Ord.
No. 1078, September 10, 2020; Ord. No. 1148, April 17, 2023)
The Director may promulgate rules and regulations as may be necessary to administer Sections 5A-11.3 to 5A-11.17.
(Ord. No. 394, July 1,
1981)
(Ord. No. 920, December
19, 2011)
(a)
Real
property owned and occupied only as the taxpayer's principal home.
Upon proper application, a taxpayer shall be entitled to a home exemption,
provided the taxpayer:
(1)
Occupies the home in the County for which the exemption is being
filed for more than two hundred seventy calendar days of a calendar
year; and
(2)
Files an income tax return as a resident of the State of Hawai'i
with a reported address in the County the year prior to the effective
date of the exemption. Non-resident and part-year resident State of
Hawai'i income tax returns do not qualify for the home exemption;
and
(3)
Possesses a: (i) Valid Hawai'i driver's license; (ii) Hawai'i state
identification; or (iii) Resident aliens possessing a valid resident
alien card ("green card") must claim residency only in Hawai'i with
an address on Kaua'i; or
(4)
Is stationed in the County under military orders of the United States.
(b)
No
applicant will qualify for an exemption under this section, if on
the date of application the applicant is delinquent on payment of
real property taxes. Notwithstanding the foregoing, an applicant may
enter into a payment agreement with the Director of Finance, for the
repayment of delinquent taxes, and as long as the applicant remains
current with the payment agreement, then the applicant may apply for,
and qualify for, exemptions under this Section.
(c)
As of the date of assessment on October 1, upon application by any
individual or individuals, the principal home shall be exempt only
to the following extent from property assessment:
(1)
Totally exempt where the value of the property is not in excess
of two hundred twenty thousand dollars ($220,000.00);
(2)
Where the value of such property is in excess of two hundred
twenty thousand dollars ($220,000.00), the exemption shall be the
amount of two hundred twenty thousand dollars ($220,000.00).
Provided:
(A)
That no such exemption shall be allowed to any corporation,
copartnership, or company;
(B)
That the exemption shall not be allowed on more than one (1)
home for any one (1) taxpayer;
(C)
That where the taxpayer has acquired the taxpayer's home by
a deed, the deed shall have been recorded on or before September 30
immediately preceding the year for which the exemption is claimed;
(D)
That a husband and wife shall not be permitted exemption of
separate homes owned by each of them, unless they are living separate
and apart, pursuant to a court issued separation order in which case
they shall be entitled to one-half (1/2) of one (1) exemption, for
a maximum period of two (2) years;
(E)
That a person living on-premises, a portion of which is used
for commercial purposes, shall be placed in the Owner-Occupied Mixed-Use
class.
(F)
That a property transferred for the purpose of conveying real
property for the following shall be exempt so long as the real property
is owned and occupied as the same owner's principal home:
(i)
Grantor to the grantor's revocable living trust;
(ii)
Grantor's revocable living trust to grantor;
(iii)
Taxpayer and spouse;
(iv)
Surviving spouse who maintains portion of ownership
and resides on property, but deceased spouse's interest is transferred
to another party;
(v)
Life Estate; or
(vi)
Any other method of property transfer for the
purpose of conveying real property which the Director of Finance finds
to be similar in nature to those listed in this Section.
(d)
Where
two or more individuals jointly, by the entirety, or in common, own
or lease land on which their homes are located, each home, if otherwise
qualified for the exemption granted by this Section, shall receive
the exemption. If a portion of land held jointly, by the entirety,
or in common by two or more individuals, is not qualified to receive
an exemption, such disqualification shall not affect the eligibility
for an exemption or exemptions of the remaining portion.
(e)
For a taxpayer who is at least sixty (60) years of age, but not yet seventy (70) years of age, the amount of two hundred forty thousand dollars ($240,000.00) shall replace the exemption amount referenced in Subsection (c). For a taxpayer who is seventy (70) years of age or over, the amount of two hundred sixty thousand dollars ($260,000.00) shall replace the exemption amount referenced in Subsection (c).
For the purpose of this Subsection, a husband and wife who own property jointly, by their entirety, or in common, on which a home exemption under the provisions of Subsection (a) of this Section has been granted, shall be entitled to the home exemption set forth above when at least one of the spouses reaches the applicable age.
(f)
Real
property which has a homeowner's exemption under this Section shall
be entitled to an additional exemption not to exceed $120,000, provided
that the annual income of the owner-occupant does not exceed 80% of
the Kaua'i median household income as set forth in the Kaua'i County
Housing Agency Affordable Rental Housing Guideline for the calendar
year preceding the year in which the application is filed. The 80%
shall be rounded up to the nearest hundred.
(1)
"Income"
(A)
(B)
(C)
(D)
(E)
"Income"
"Owner-occupant"
For the purposes of this Subsection, the following definitions shall
apply:
shall mean the Federal gross income as defined in the Internal
Revenue Code of the United States of 1954, as amended, including all
nontaxable income, including, but not limited to:
Tax-exempt interest received from the Federal government or
any of its instrumentalities;
The gross amount of any IRA distribution, pension or annuity
benefits received (including Railroad Retirement Act benefits and
veterans disability pensions), excluding rollovers;
All payments received under the Security and State unemployment
Federal Social insurance laws;
Nontaxable contributions to public or private pension, annuity
and/or deferred compensation plans; and
Federal cost of living allowances.
shall include gross rental income and gross capital gains.
All income set forth in the tax return filed by the owner-occupant,
whether the tax return is a joint tax return or an individual tax
return, shall be considered the owner-occupant's income. "Income"
does not include nonmonetary gifts from private sources, or surplus
foods or other relief in kind provided by public or private agencies.
shall mean all persons living in the dwelling to be exempted under this Section who are owners of that dwelling as defined in Section 5A-7.1, provided that in cases where husband and wife both occupy the dwelling but only one spouse is an owner, the income of both spouses shall be considered in determining eligibility under this Section.
(2)
Income from the calendar year preceding the year in which the application
is filed shall be the basis for qualification under this Subsection.
(3)
The additional home exemption shall be valid for one tax year and
it shall be the responsibility of the owner-occupant to annually file
an application for the additional home-exemption on or before September
30th immediately preceding the year for which the exemption is claimed.
(4)
The Director shall prescribe appropriate forms for applications and
require proof of income which shall include, but is not limited to,
the following:
(A)
A copy of the State personal income tax returns or records for all
owner-occupants which set forth their State gross income, and
(B)
A copy of the Federal personal income tax returns for all owner-occupants
which set forth their Federal gross income.
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In the event that any of the owner-occupants were not required
to file an income tax return pursuant to the Internal Revenue Code
of the United States of 1954, as amended, or Hawai'i Revised Statutes,
Chapter 235, as amended, the owner-occupant shall sign an affidavit
stating the reason he or she was not required to file, and attesting
to the amount of income received. The applicant may refuse to provide
such proof or any additional information requested by the Director,
but upon such refusal, the Director may deny the application and there
shall be no appeal from such a denial.
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The application form, which shall be signed by the owner-occupant(s),
shall contain authorization to the State Department of Taxation and
the Internal Revenue Service for release to the County
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Finance Director, a certified copy of the income tax records
showing gross income. The Director may charge the owner-occupant the
applicable fee necessary to obtain said certified copies.
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(5)
The Director shall determine eligibility for the additional home
exemption upon review and verification of each application. The Director
shall notify each applicant whose application has been denied of such
denial and the reasons for ineligibility on or before December 1st
preceding the tax year.
(g)
Low
Income Tax Credit.
(1)
"Homeowner"
"Homeowner property"
"Household income"
"Income"
"Titleholder"
When used in this Section, the following words and phrases shall
have the following meaning unless it shall be apparent from the context
that a different meaning was intended:
means a person who filed and was granted a home exemption claim under Section 5A-11.4.
means the property with regard to which a homeowner filed and was granted a home exemption claim under Section 5A-11.4.
means the total gross income of all titleholders for the
preceding tax year.
means the sum of Federal gross income as defined by the Internal
Revenue Code of 1986, as amended, or the sum of Hawai'i gross income,
as defined in Chapter 235 of Hawai'i Revised Statutes, as amended,
whichever is greater.
means the property owner and any other entity listed on the
deed or any other legal instrument establishing the entity's ownership
right in the property.
(2)
Upon proper application, a homeowner whose household income does
not exceed 50% of the Kaua'i median household income as set forth
in the Kaua'i County Housing Agency Affordable Rental Housing Guideline
for the calendar year preceding the year in which the application
is filed, shall be entitled to a credit in the amount that the real
property tax assessed on the homeowner property for the current year
exceeds three percent of the household income. In no event shall the
real property tax due after the application of the credit be less
than the minimum tax pursuant to Sec. 5A-6.3(g).
The credit shall be applied in equal pro rata amounts against
each payment due for the next tax year following the year in which
an application for credit is submitted and granted. No credit shall
be applied if taxes on the property are delinquent.
(3)
No credit shall be granted pursuant to this section unless an application
for credit and proof of income is filed with the Department of Finance.
All applications should be annually submitted by September 30 of the
current year to be effective for the next fiscal year beginning on
July 1.
(4)
Credits granted pursuant to this section shall not be transferable
to other persons or properties.
(h)
The
Director of Finance may adopt rules and prescribe forms to implement
this Section, and the Director may adopt by rule the indicia. criteria,
or factors and methods of proof to establish whether the applicant's
actual occupancy of the real property qualifies for the purposes or
exemptions of this Section.
(i)
In
addition to any penalty provision set forth in Article 11, any person
who files a fraudulent application or attests to any false statement,
with intent to defraud or to evade the payment of taxes or any part
thereof, or who in any manner intentionally deceives or attempts to
deceive the Department of Finance, shall be fined $1,000 or imprisoned
for not more than one year or both.
(j)
For
the purposes of this Section, and counting the days of occupancy,
the commencement of the calendar year shall begin on the date of assessment,
October 1, and end on September 30 of the following year.
(Ord. No. 394, July 1,
1981; Ord. No. 420, January 1, 1983; Ord. No. 561, December 27, 1989; Ord. No. 572, July 16, 1990; Ord. No. 584, March 12, 1991; Ord. No. 603, April 20, 1992; Ord. No. 779, December
10, 2001; Ord. No. 784, May 13, 2002; Ord.
No. 789, August 26, 2002; Ord. No. 799, December 23, 2002; Ord. No. 805, September
19, 2003; Ord. No. 819, October 26, 2004; Ord.
No. 820, November 8, 2004; Ord. No. 834, October 7, 2005; Ord. No. 836, October
7, 2005; Ord. No. 915, November 16, 2011; Ord. No. 920, December 14, 2011; Ord. No. 932, September 5, 2012; Ord. No. 940, April 24, 2013; Ord. No. 953, August
28, 2013; Ord. No. 978, October 24, 2014; Ord.
No. 980, December 3, 2014; Ord. No. 1015, August 14, 2017; Ord. No. 1082, October
29, 2020; Ord.
No. 1150, July 31, 2023; Ord. No. 1151, September
26, 2023)
(a)
For
the purpose of Sec. 5A-11.4, the word "home" includes:
(1)
The entire homestead when it is occupied by the taxpayer as such.
(2)
A residential building on land held by the lessee or his or her successor
in interest under a lease for a term of 15 years or more for residential
purposes and owned and used as a residence by the lessee or his or
her successor in interest, where the lease and any extension, renewal,
assignment or agreement to assign the lease, have been duly entered
into and recorded prior to October 1st preceding the tax year for
which the exemption is claimed and whereby the lessee agrees to pay
all taxes during the term of the lease.
(3)
An apartment which is a living unit (held under a proprietary lease
by the tenant thereof) in a multiunit residential building on land
held by a cooperative apartment corporation (of which the proprietary
lessee of such living unit is a stockholder) under a lease for a term
of 15 years or more for residential purposes and which apartment is
used as a residence by the lessee-stockholder, where the lease and
any extension or renewal have been duly entered into and recorded
prior to October 1st preceding the tax year for which the exemption
is claimed, and whereby the lessee-stockholder agrees to pay all taxes
during the term of the lease provided that:
(A)
The exemption shall not be allowed in respect to any cooperative
apartment unit where the owner of the cooperative apartment unit claims
exemption on a home or other cooperative apartment unit; and
(B)
The owner or owners of a cooperative apartment building or premises
shall not be permitted exemptions where a husband and wife owner of
a cooperative apartment unit own separate cooperative apartment units
or separate homes owned by each of them, unless they are living separate
and apart, in which case the owner of the cooperative apartment or
premises shall be entitled to 1/2 of one exemption.
(4)
An apartment in a multi-unit apartment building which is occupied
by the owner of the entire apartment building as his or her residence,
provided that:
(A)
The exemption shall not be allowed in respect to any apartment owner
who claims any other home exemption; and
(B)
A husband or wife owner of the aforementioned type of apartment shall
not be allowed a full exemption where the husband and wife are living
separate and apart and each is maintaining an apartment or home entitled
to an exemption, in which case they shall be entitled to one exemption
to be apportioned between each of their respective homes in proportion
to the value thereof.
(5)
That portion of a residential duplex and that portion of land appurtenant
to the duplex which are occupied by the owner of the duplex and land
as his or her residence, provided that:
(A)
The exemption shall not be allowed in respect to any duplex owner
who claims any other home exemption;
(B)
The portion of the appurtenant land shall not be exempt unless owned
in fee by the duplex owner; and
(C)
A husband or wife owner of the duplex shall not be allowed a full
exemption where the husband and wife are living separate and apart
and each is maintaining a duplex or home entitled to an exemption,
in which case they shall be entitled to one exemption to be apportioned
between each of their respective homes in proportion to the value
thereof.
(6)
Premises held under an agreement to purchase the same for a home,
where the agreement has been duly entered into and recorded prior
to October 1st preceding the tax year for which the exemption is claimed,
whereby the purchaser agrees to pay all taxes while purchasing the
premises.
(7)
An apartment which is a living unit (held under a lease by the tenant
thereof) in a multi-unit residential building used for retirement
purposes under a lease for a term to last during the lifetime of the
lessee and his or her surviving spouse and which apartment is used
as a residence by the lessee and his or her surviving spouse, and
where the apartment unit reverts back to the lessor upon the death
of the lessee and his or her surviving spouse, and where the lease
has been duly entered into and recorded prior to October 1st preceding
the tax year for which the exemption is claimed, and whereby the lessee
agrees to pay all taxes during the term of the lease.
(b)
The
subletting by the taxpayer of not more than one room to a tenant shall
not affect the exemption provided for by Sec. 5A-11.4.
(c)
As
used in Sec. 5A-11.4, in the first paragraph of Sec. 5A-7.1, and in
Sec. 5A-11.1, the word "lease" shall be deemed to include a sublease,
and the word "lessee" shall be deemed to include a sublessee.
(Ord. No. 394, July 1,
1981; Ord. No. 920, December 14, 2011)
(a)
Real property for which a home exemption under Section 5A-11.4 has been established by a disabled veteran who is eighty percent (80%) to totally disabled due to injuries received while on duty as a member of the armed forces of the United States shall be exempted from all property taxes, other than special assessment, provided that:
(1)
The Director may require proof of the disability.
(2)
This exemption shall be granted only as long as the disabled
veteran claiming the exemption remains eighty percent (80%) to totally
disabled.
(3)
This exemption shall not be allowed on more than one (1) home
for any one (1) disabled veteran.
(4)
This exemption shall not apply to any portion of the property
used for purposes other than the disabled veteran's owner-occupied
home under Section 5A-§ 1. 11.4.
(b)
Following the death of the disabled veteran, the surviving spouse,
civil union partner, or reciprocal beneficiary may continue to receive
this exemption, or may apply for this exemption based on the disabled
veteran's eligibility posthumously, for real property for which a
home exemption has been established by the surviving spouse, civil
union partner, or reciprocal beneficiary, provided that:
(1)
The disabled veteran was eighty percent (80%) to totally disabled
at the time of death and otherwise eligible to receive this exemption.
(2)
The exemption shall end upon the death of the surviving spouse,
civil union partner, or reciprocal beneficiary, or if they remarry
or enter into a new civil union or reciprocal beneficiary relationship.
(Ord. No. 394, July 1,
1981; Ord. No. 920, December 14, 2011; Ord. No. 1152, November 20, 2023)
(Ord. No. 394, July 1,
1981; Ord. No. 420, January 1, 1983; Ord. No. 598, December 17, 1991; Ord. No. 1151, September
26, 2023)
Any person who qualifies under the following Subsection (a),
(b), (c), or (d) shall be allowed to apply for only one (1) of the
following exemptions:
(a)
Any person who is blind as defined in HRS Section 235-1 shall, so
long as his or her sight is so impaired, be exempt from real property
taxes on all real property owned by him or her up to, but not exceeding
a taxable value of fifty thousand dollars ($50,000.00). The impairment
of sight shall be certified to on forms prescribed by the Director
of Finance or by the State Department of Taxation on the basis of
a written report on an examination performed by a qualified ophthalmologist
or a qualified optometrist.
(b)
Any person who is totally disabled, as defined in HRS Section 235-1
shall, so long as he or she is totally disabled, be exempt from real
property taxes on all real property owned by him or her up to, but
not exceeding a taxable value of fifty thousand dollars ($50,000.00).
The disability shall be certified to by a physician licensed under
HRS Chapter 453, HRS Chapter 460, or both, on forms prescribed by
the Director of Finance or by the State Department of Taxation.
(c)
Any person who is deaf, as defined in HRS Section 235-1 shall, so
long as his or her hearing is so impaired, be exempt from real property
taxes on all real property owned by him or her up to, but not exceeding
a taxable value of fifty thousand dollars ($50,000.00). The impairment
of hearing shall be certified on forms prescribed by the Director
of Finance or by the State Department of Taxation on the basis of
a written report on an examination performed by a qualified otolaryngologist.
(d)
Any person who is a disabled veteran and is less than eighty percent
(80%) disabled due to injuries received while on duty as a member
of the armed forces of the United States shall, so long as he or she
is disabled, be exempt from real property taxes on all real property
owned by him or her up to, but not exceeding a taxable value of fifty
thousand dollars ($50,000.00). The disability shall be certified on
forms prescribed by the Director of Finance.
(Ord. No. 394, July 1,
1981; Ord. No. 420, January 1, 1983; Ord. No. 547, October 4, 1988; Ord.
No. 598, December 17, 1991; Ord. No. 1152, November
20, 2023)
Every association or society organized and operating under Chapter
433, H.R.S., solely as a nonprofit medical indemnity or hospital service
association or society or both shall be, from the time of such organization,
exempt from real property taxes on all real property owned by it.
(Ord. No. 394, July 1,
1981)
(a)
There shall be exempt from real property taxes real property designated in Subsection (b) or (c) of this Section and meeting the requirements stated therein, actually and (except as otherwise specifically provided) exclusively used for nonprofit purposes. The exemption shall be effective upon the filing of an application for County or State land use permits, zoning permits, or building permits. If an exemption is claimed under Subsection (b) or (c), an exemption for the same property may not also be claimed under the other Subsection.
For the 2003-2004 tax year only, the deadline to file for the
exemption is January 31, 2003. The preceding deadline of January 31,
2003, is hereby repealed on February 1, 2003.
(b)
This
Subsection applies to property owned in fee simple, leased, or rented
for a period of one year or more, by the person using the property
for the exempt purposes, hereinafter referred to as the person claiming
the exemption. If the property for which exemption is claimed is leased
or rented, the lease or rental agreement shall be in force and recorded
in the Bureau of Conveyances.
Exemption is allowed by this Subsection to the following property:
(1)
Property used for school purposes including:
(A)
Kindergartens, grade schools, junior high schools, and high schools,
which carry on a program of instruction meeting the requirements of
the compulsory school attendance law, Section 298-9, H.R.S., or which
are for preschool children who have attained or will attain the age
of five years on or before December 31st of the school year, provided
that any claim for exemption based on any of the foregoing uses shall
be accompanied by a certificate issued by or under the authority of
the Department of Education stating that the foregoing requirements
are met.
(B)
Junior colleges or colleges carrying on a general program of instruction
of college level. The property exempt from taxation under this Paragraph
is limited to buildings for educational purposes (including dormitories),
housing owned by the school or college and used as a residence for
personnel employed at the school or college, campus and athletic grounds,
and realty used for vocational purposes incident to the school or
college.
(2)
Property used for hospital and nursing home purposes, including housing
for personnel employed at the hospital; in order to qualify under
this Paragraph (2) of Subsection (b), the person claiming the exemption
shall present with the claim a certificate issued by or under the
authority of the Department of Health that the property for which
the exemption is claimed consists in, or is a part of, hospital or
nursing home facilities which are properly constituted under the law
and maintained to serve, and which do serve the public.
(3)
Property used for church purposes, including incidental activities,
parsonages, and church grounds, the property exempt from taxation
being limited to realty exclusive of burying grounds (exemption for
which may be claimed under Paragraph (4) of this Subsection).
(4)
Property used as cemeteries (excluding, however, property used for
cremation purposes) maintained by a religious society, or by a corporation,
association or trust organized for such purpose.
(5)
Property dedicated to public use by the owner, which dedication has
been accepted by the State or County, reduced to writing, and recorded
in the Bureau of Conveyances; and property which has been set aside
for public use and actually used therefor for a period not less than
five years.
(6)
Property owned by any nonprofit corporation, admission to membership
of which is restricted by the corporate charter to members of a labor
union; property owned by any government employees' association or
organization, one of the primary purposes of which is to improve employment
conditions of its members; property owned by any trust, the beneficiaries
of which are restricted to members of a labor union; property owned
by any association or league of credit unions chartered by the United
States or the State, the sole purpose of which is to promote the development
of Federal credit unions in the State. Notwithstanding any provision
in this Section to the contrary, the exemption shall apply to property
or any portion thereof which is leased, rented, or otherwise let to
another, if such leasing, renting, or letting is to a nonprofit association,
organization, or corporation.
(c)
This
Subsection shall apply to property owned in fee simple or leased or
rented for a period of one year or more, the lease or rental agreement
being in force and recorded in the Bureau of Conveyances at the time
the exemption is claimed, by either:
(1)
A corporation, society, association, or trust having a charter or
other enabling act or governing instrument which contains a provision
or has been construed by a court of competent jurisdiction as providing
that in the event of dissolution or termination of the corporation,
society, association, or trust, or other cessation of use of the property
for the exempt purpose, the real property shall be applied for another
charitable purpose or shall be dedicated to the public; or
(2)
A corporation chartered by the United States under Title 36, United
States Code, as a patriotic society. Exemption is allowed by this
Subsection for property used for charitable purposes which are of
a community, character building, social service, or educational nature,
including museums, libraries, art academies, and senior citizens housing
facilities qualifying for a loan under the laws of the United States
as authorized by Section 202 of the Housing Act of 1959, as amended
by the Housing Act of 1961, the Senior Citizens Housing Act of 1962,
the Housing Act of 1964, and the Housing and Urban Development Act
of 1965.
(d)
If
any portion of the property which might otherwise be exempted under
this Section is used for commercial or other purposes not within the
conditions necessary for exemption (including any use the primary
purpose of which is to produce income even though such income is to
be used for or in furtherance of the exempt purposes) that portion
of the premises shall not be exempt but the remaining portion of the
premises shall not be deprived of the exemption if the remaining portion
is used exclusively for purposes within the conditions necessary for
exemption. In the event of an exemption of a portion of a building,
the tax shall be assessed upon so much of the value of the building
(including the land thereunder and the appurtenant premises) as the
proportion of the floor space of the non-exempt portion bears to the
total floor space of the building.
(e)
The
term "for nonprofit purposes" as used in this Section requires that
no monetary gain or economic benefit inure to the person claiming
the exemption, or any private shareholder, member, or trust beneficiary.
"Monetary gain" includes, without limitation, any gain in the form
of money or money's worth. "Economic benefit" includes, without limitation,
any benefit to a person in the course of his or her business, trade,
occupation, or employment.
(Ord. No. 394, July 1,
1981; Ord. No. 509, November 23, 1987; Ord. No. 800, December 23, 2002)
(Ord. No. 394, July 1,
1981; Ord. No.
1151, September 26, 2023)
Any other law to the contrary notwithstanding, any permanent
structure constructed or installed on any taxable real property consisting
of frames or supports and covered by rigid plastic, fiber glass, or
other rigid and semirigid transparent or translucent material, and
including wooden laths, used primarily for the protection of crops,
shall be exempted in determining and assessing the value of such taxable
real property for 10 years or for a period of 10 years from the first
day of January following commencement of construction or installation
of the structure on the property for such purpose; provided that any
temporary structure so constructed or installed and covered by flexible
plastic or other flexible transparent or translucent material, used
for such purpose, shall be so exempted not subject to the 10 year
limitation; provided, further, that such exemption shall continue
only so long as the structure is maintained in good condition. Only
structures used for commercial agricultural or horticultural purposes
shall be included in the exemption.
(Ord. No. 394, July 1,
1981)
(a)
Portions
of taxable real property which are dedicated and approved by the Director
as provided for by this Section shall be exempted in determining and
assessing the value of such taxable real property.
(b)
Any
owner of taxable real property in an urban district desiring to dedicate
a portion or portions thereof for landscaping, open spaces, public
recreation, and other similar uses shall petition the Director stating
the exact area of the land to be dedicated and that the land is not
within the setback and open space requirements of applicable zoning
and building code laws and ordinances, and that the land shall be
used, improved, and maintained in accordance with and for the sole
purpose for which it was dedicated, except that land within a historic
district may be so dedicated without regard to the setback and open
space requirements of applicable zoning and building code laws and
ordinances.
The Director shall make a finding as to whether the use to which
such land will be dedicated has a benefit to the public at least equal
to the value of the real property taxes for such land. Such finding
shall be measured by the cost of improvements, the continuing maintenance
thereof, and such other factors as the Director may deem pertinent.
If the Director finds that the public benefit is at least equal to
the value of real property taxes for such land, he or she shall approve
the petition and declare such land to be dedicated land.
(c)
The
approval of the petition by the Director shall constitute a forfeiture
on the part of the owner of any right to change the use of his or
her 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 after the end of the fifth year.
(d)
Failure
of the owner to observe the restrictions on the use, improvement,
and maintenance of his or her land shall cancel the special tax exemption
privilege retroactive to the date of the original dedication, and
all differences in the amount of taxes that were paid and those that
would have been due from the assessment of the tax exempted portion
of his or her land shall be payable together with interest of 5% a
year 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, improve, and maintain
the land in the manner requested in the petition or any overt act
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 the land.
(e)
The
Director shall prescribe the form of the petition. The petition shall
be filed with the Director by July 1st of any calendar year and shall
be approved or disapproved by September 15th of such year. If approved,
the exemption based upon the use requested in the dedication shall
be effective October 1st.
(f)
The
owner may appeal any disapproved petition as in the case of an appeal
from an assessment.
(g)
The
Director shall make and adopt necessary rules and regulations including
such rules and regulations governing minimum areas which may be dedicated
for the improvement and maintenance of such areas.
(h)
"Landscaping"
means lands which are improved by landscape architecture, cultivated
plantings, or gardening.
(i)
"Open
spaces" means lands which are open to the public for pedestrian use
and momentary repose, relaxation, and contemplation.
(j)
"Public
recreation" refers to lands which may be used by the public as parks,
playgrounds, historical sites, campgrounds, wildlife refuges, scenic
sites, and other similar uses.
(k)
"Owner"
includes lessees of real property whose lease term extends at least
10 years from October 1st following the filing of the petition.
(Ord. No. 394, July 1,
1981; Ord. No. 523, December 9, 1987; Ord. No. 920, December 14, 2011)
(Ord. No. 394, July 1,
1981; Ord. No.
1151, September 26, 2023)
(a)
The
value of all improvements in the County (not including a building
or its structural components, except where alternate energy improvements
are incorporated into the building, and then only that part of the
building necessary to such improvement) actually used for an alternate
energy improvement shall be exempted from the measure of the taxes
imposed by this Chapter.
(b)
As
used in this Section "alternate energy improvement" means any construction
or addition, alteration, modification, improvement, or repair work
undertaken upon or made to any building which results in:
(1)
The production of energy from a source, or uses a process which does
not use fossil fuels or nuclear fuels or geothermal source. Such energy
source may include, but shall not be limited to solid wastes, wind,
solar, or ocean waves, tides, or currents.
(2)
An increased level of efficiency in the utilization of energy produced
by fossil fuels or in the utilization of secondary forms of energy
dependent upon fossil fuels for its generation.
(3)
Alternate energy production or energy by-products transferred, marketed,
or sold on a commercial basis shall not qualify for exemption under
the provisions of this Section. Provided further, that alternate energy
improvements used primarily for personal consumption and producing
excess energy incidental to personal consumption may transfer, market,
or sell such excess energy produced and continue to qualify for the
exemption as provided for by the provisions of this Section; however,
the transfer, marketing, or sale shall be limited to less than 25%
of the total energy output produced by such improvements. Nuclear
fission and geothermal energy sources shall be excluded from the provisions
of this Section.
(4)
Application for the exemption provided by this Section shall be made
with the Director of Finance on or before September 30th, preceding
the tax year for which the exemption is claimed, except that no claim
need be filed for the exemption of solar water collectors, heaters,
heat pumps and similar devices. The Director of Finance may require
the taxpayer to furnish reasonable information in order that he or
she may ascertain the validity of the claim for exemption made under
this Section and may adopt rules and regulations to implement this
Section.
(Ord. No. 394, July 1,
1981; Ord. No. 451, September 21, 1983; Ord. No. 920, December 14, 2011)
(Ord. No. 394, July 1,
1981; Ord. No.
1151, September 26, 2023)
The following real property shall be exempt from taxation:
(a)
Real property belonging to the United States, to the State, or to the County; provided that real property belonging to the United States shall be taxed upon the use or occupancy thereof as provided in Sec. 5A-11.18, and there shall be a tax upon the property itself if and when the Congress of the United States so permits, to the extent so permitted and in accordance with any conditions or provisions prescribed in such act of Congress; provided, further, that real property belonging to the State or to the County, or belonging to the United States and in the possession, use, and control of the State, shall be taxed on the fee simple value thereof, and private persons shall pay the taxes thereon and shall be deemed the "owners" thereof for the purposes of this Chapter, in the following cases:
(1)
Property held on October 1st preceding the tax year under an agreement
for its conveyance by the government to private persons shall be deemed
fully taxable, the same as if the conveyance had been made.
(2)
Property held on October 1st preceding the tax year under a government
lease shall be entered in the assessment lists and tax rolls for that
year as fully taxable for the entire tax year, but adjustments of
the taxes so assessed may be made as provided in Sec. 5A-4.1, so that
such tenants are required to pay only so much of the taxes as is proportionate
to the portion of the tax year during which the real property is held
or controlled by them.
(3)
Property held under a government lease commencing after October 1st
preceding the tax year or under an agreement for its conveyance or
a conveyance by the government, made after October 1st preceding the
tax year, shall be assessed as omitted property as provided in Sec.
5A-3.4, but the taxes thereon shall be prorated so as to require the
payment of only so much of the taxes as is proportionate to the remainder
of the tax year.
(4)
Property where the occupancy by the tenant for commercial purposes
has continued for a period of one year or more, whether the occupancy
has been on a permit, license, month-to-month tenancy, or otherwise,
shall be fully taxable to the tenant after the first year of occupancy,
and the property shall be assessed in the manner provided in Paragraphs
(2) and (3) of this Subsection for the assessment of properties held
under a government lease; provided that the property occupied by the
tenant solely for residential purposes on a month-to-month tenancy
shall be excluded from this Paragraph.
(5)
In any case of occupancy of a building or structure by two or more
tenants, or by the government and a tenant, under a lease for a term
of one year or more, the tax shall be assessed to the tenant upon
so much of the value of the entire real property as the floor space
occupied by the tenant proportionately bears to the total floor space
of the structure or building.
For the purposes of Paragraphs (2) and (3) of this Subsection:
"Lease" means any lease for a term of one year or more, or which is
renewable for such period as to constitute a total term of one year
or more. A lease having a stated term shall, if it otherwise comes
within the meaning of the term "lease," be deemed a lease notwithstanding
any right of revocation, cancellation, or termination reserved therein
or provided for thereby. Whenever a lease is such that the highest
and best use cannot be made of the property by the lessee, the measure
of the tax imposed on such property pursuant to Paragraphs (2) and
(3) shall be its fee simple value upon consideration of the highest
and best use which can be made of the property by the lessee.
Provided, further, that real property belonging to the United
States, even though not in the possession, use, and control of the
State, shall be taxed on the fee simple value thereof, and private
persons shall pay the taxes thereon and shall be deemed the "owners"
thereof for the purposes of this Chapter, in the following cases:
(A)
Property held on October 1st preceding the tax year under an agreement
for the conveyance of the same by the government to private persons
shall be deemed fully taxable, the same as if the conveyance had been
made, but the assessment thereof shall not impair and shall be so
made as to not impair, any right, title, lien, or interest of the
United States.
(B)
Property held under an agreement for the conveyance of the same or
a conveyance of the same by the government, made after October 1st
preceding the tax year, shall be assessed as omitted property as provided
in Sec. 5A-3.4, but the taxes thereon shall be prorated so as to require
the payment of only so much of such taxes as is proportionate to the
remainder of the tax year, and in the case of property held under
an agreement for the conveyance of the same but not yet conveyed,
the assessment thereof shall not impair, and shall be so made as to
not impair, any right, title, lien, or interest of the United States.
(b)
Real
property under lease to the United States, the State, or any county
under which lease the lessee is required to pay the taxes upon such
property.
(c)
Subject
to Section 101-39(B), H.R.S., any real property in the possession
of the State or any county which is the subject of eminent domain
proceedings commenced for the acquisition of the fee simple estate
in such land by the State or such county; provided the fact of such
possession has been certified to the Director as provided by Section
101-36 or 101-38, H.R.S., or is certified not later than September
30th preceding the tax year for which such exemption is claimed.
(d)
Real
property with respect to which the owner has granted to the State
or any county thereof a right of entry and upon which the State or
county has entered and taken possession under the authority of the
right of entry with intention to acquire the fee simple estate therein
and to devote the real property to public use; provided the State
or county shall have, prior to September 30th preceding the tax year
for which the exemption is claimed, certified to the Director of the
date upon which it took possession.
(e)
Any
portion of real property within the area upon which construction of
buildings is restricted or prohibited and which is actually rendered
useless and of no value to the owners thereof by virtue of any ordinance
of any county, establishing setback lines thereon; provided, that
in order to secure the exemption the person claiming it shall annually
file prior to September 30th preceding the applicable tax year, an
affidavit with the Director describing the real property in detail
and setting forth the facts upon which exemption is claimed, together
with a written agreement that in consideration of the exemption from
taxes, he or she will not make use of the land in any way whatsoever
during the ensuing year. Any person who has secured such exemption
who violates the terms of the agreement shall be fined twice the amount
of the tax which would be assessed upon the land but for such exemption.
(f)
Real
property exempted by any laws of the United States which exemption
is not subject to repeal by the Council.
(g)
Any
other real property exempt by law.
(Ord. No. 394, July 1,
1981; Ord. No. 915, November 16, 2011; Ord. No. 920, December 14, 2011)
(a)
When any real property which, for any reason is exempt from taxation, is leased to and used or occupied by a private person in connection with any business conducted for profit, such use or occupancy shall be assessed and taxed in the same amount and to the same extent as though the lessee were the owner of the property and as provided in Subsection (b) of this Section, provided that:
(1)
The foregoing shall not apply to the following:
(2)
The term "lease" shall mean any lease for a term of one year or more,
or which is renewable for such period as to constitute a total term
of one year or more. A lease having a stated term shall, if it otherwise
comes within the meaning of the term "lease," be deemed a lease notwithstanding
any right of revocation, cancellation, or termination reserved therein
or provided for thereby.
(3)
The assessment of the use or occupancy shall be made in accordance
with the highest and best use permitted under the terms and conditions
of the lease.
(b)
The
tax shall be assessed to and collected from such lessee as nearly
as possible in the same manner and time as the tax assessed to owners
of real property, except that the tax shall not become a lien against
the property. In case the use or occupancy is in effect on October
1st preceding the tax year, the lessee shall be assessed for the entire
year but adjustments of the tax so assessed shall be made in the event
of the termination of the use or occupancy during the year so that
the lessee is required to pay only so much of the tax as is proportionate
to the portion of the tax year during which the use or occupancy is
in effect, and the Director is hereby authorized to remit the tax
due for the balance of the tax year. In case the use or occupancy
commences after October 1st preceding the tax year, the lessee shall
be assessed for only so much of the tax as is proportionate to the
period that the use or occupancy bears to the tax year.
The assessment of the use or occupancy of real property made under this Section shall not be included in the aggregate value of taxable realty for the purposes of Sec. 5A-6.3 but the Council, at the time that it is furnished with information as to the value of taxable real property, shall also be furnished with information as to the assessments made under this Section, similarly determined but separately stated.
If a use or occupancy is in effect on October 1st preceding
the tax year, the assessment shall be made and listed for that year
and the notice of assessment shall be given to the taxpayer in the
manner and at the time prescribed in Sec. 5A-2.1, and when so given,
the taxpayer, if he or she deems him or herself aggrieved, may appeal
as provided in Sec. 5A-12.1. If a use or occupancy commences after
October 1st preceding the tax year or if for any reason an assessment
is omitted for any tax year, the assessment shall be made and listed
and notice thereof shall be given in the manner and at the time prescribed
in Sec. 5A-2.1, and an appeal from an assessment so made may be taken
as provided in Sec. 5A-3.4.
(Ord. No. 394, July 1,
1981; Ord. No. 524, December 9, 1987; Ord. No. 920, December 14, 2011)
Real property belonging to the United States leased pursuant
to Title VIII of the National Housing Act, as amended or supplemented
from time to time:
(a)
Shall not be taxed under this Chapter upon the lessee's interest or any other interest therein, except as provided in Subsection (b) of this Section.
(b)
Shall
be taxed under this Chapter to the extent of and measured by the value
of the lessee's interest in any portion of the real property (including
land and appurtenances thereof and the buildings and other improvements
erected on or affixed to the same) used for, or in connection with,
or consisting in, shops, restaurants, cleaning establishments, taxi
stands, insurance offices, or other business or commercial facilities.
The tax shall be assessed to and collected from the lessee. The assessment
of such property shall not impair, and shall be so made as to not
impair, any right, title, lien, or interest of the United States.
(Ord. No. 394, July 1,
1981)
(a)
For
the purposes of this Section, "qualified entity" means a person, corporation
or organization regulated by Federal, State or County laws or ordinance
as to rents, charges, profits, dividends, development costs and methods
of operation.
(b)
Real
property for a housing project or low and moderate-income housing,
which is owned and operated by a qualified entity shall be exempt
from property taxes.
(c)
Exemptions
claimed under this Section shall disqualify the same property from
receiving an exemption under Section 53-38, H.R.S.
(d)
The
Director shall, pursuant to Chapter 91, H.R.S., promulgate rules and
regulations necessary to administer this Section.
(Ord. No. 394, July 1,
1981; Ord. No. 954, August 28, 2013)
(a)
Notwithstanding any provision in this chapter to the contrary, any real property which may be exempt from property taxes under Sec. 5A-11.20 shall qualify only upon the date when the regulatory agreement, mortgage or other encumbrance made by a qualified entity is filed for recording under the regular system or land court with the bureau of conveyances.
(b)
The
Director shall refer all claims for exemption to the Kaua'i County
Housing Agency to determine eligibility, certify qualification for
the exemption, and determine the term of the exemption which shall
correspond with the duration of the primary recorded mortgage, regulatory
agreement or other encumbrance made by a qualified entity. The Kaua'i
County Housing Agency shall provide the director with its findings
and a recommendation whether to grant or deny the exemption.
(c)
The
term of exemption may be extended or renewed when multiple recorded
mortgages, regulatory agreements or other encumbrances extend beyond
the initial term; provided that an additional claim for exemption,
extension or renewal is filed with the Director prior to the end of
the initial term.
(Ord. No. 954, August 28,
2013; Ord. No. 394, July 1, 1981)
(a)
Portions
of residential real property which are dedicated and approved by the
Director of Finance as provided for by this Section, shall be exempt
from real property taxation to the following extent:
(1)
Those residential properties qualifying for a home exemption under Section 5A-11.4 and those residential properties owned by a nonprofit organization as defined in Section 5A-11.10(c) shall be exempt to the extent of 100% of the assessed value of real property as determined by the Director of Finance pursuant to Subsection (c) of this Section, except that the minimum tax provision of Sec. 5A-6.3(g) shall apply; and
(2)
All other properties shall be exempt to the extent of 75% of the
assessed value of the real property as determined by the Director
of Finance pursuant to Subsection (c).
|
"Residential" as used in this Subsection shall mean improved
with a building designed for or adapted to residential use and currently
used solely as a dwelling.
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(b)
An
owner of taxable real property that is the site of an historic residential
property that has been individually placed on the Hawai'i Register
of Historic Places after January 1, 1977, desiring to dedicate the
property or a portion thereof for historic preservation, may petition
the Director of Finance by July 1st of any year, provided that in
cases of leasehold property the petition shall be signed by both the
lessor and the lessee. The form of the petition shall be determined
by the Director of Finance and shall include:
(1)
A copy of the registration form for the Hawai'i Register of Historic
Places, certified by the Historic Preservations Office, Department
of Land and Natural Resources, State of Hawai'i, including all attachments;
(2)
A map showing the area to be dedicated and the location of the historic
buildings, structures and sites as set forth on the registration form,
provided the Director may require a map drawn to scale by a licensed
surveyor if it is necessary in order to make a determination of the
land area to be exempted;
(3)
A certification by the owner that the property is visually accessible
to the public or that the public shall be allowed visual access at
least 12 days per year, the specific dates of which shall be set forth
in the petition; and
(4)
The owner's authorization for members of the assessment staff to
visit and inspect the property as necessary to conduct a finding of
fact as set forth in Subsection (c) of this Section.
(c)
Upon receipt of a completed petition as set forth in Subsection (b) of this Section, the Director of Finance shall prepare findings of fact as to whether the property has been placed on the Hawai'i Register of Historic Places after January 1, 1977 and whether the building is residential as defined in this Section.
If the findings of fact are favorable, the Director shall approve
the petition and determine what portion or portions of the real property
shall be exempted. The exempt area shall be limited to the area surrounding
the historic residence traditionally and currently maintained as its
grounds, including the lawn, landscaped areas and other areas directly
associated with the residential use of the historic dwelling, and
such historic sites as designated on the registration form for the
Hawai'i Register of Historic Places; provided the exempt area shall
not include any area not on the Hawai'i Register of Historic Places
nor any lots of record which are not improved with a historic residence
meeting the requirements of this Section. The Director shall notify
the owner of the approval or disapproval of the petition by September
15th of the year of application. If the petition is approved, the
Director shall prepare a notice of dedication and deliver it to the
owner along with the notice of approval. The owner shall execute and
record the notice of dedication with the Bureau of Conveyances of
the Department of Land and Natural Resources so that prospective buyers
will be put on notice as to the restrictions on the property. The
exemption shall take effect on October 1st; provided that if the Director
does not receive a recorded copy of the notice of dedication within
45 days of the date of approval, the exemption shall be canceled and
the dedication approval shall be rescinded.
(d)
Upon
approval of the petition, the owner shall enter into an agreement
with the Director of Finance to maintain the historic residence in
structurally sound and weathertight condition free from decay, or
to perform such repairs as necessary for the dwelling to be in structurally
sound and weathertight condition free from decay by the fifth (5th)
year following the effective date of the exemption. Such condition
shall be certified in writing by a licensed architect or general contractor
and submitted to the Director of Finance by July 1st of the fifth
(5th) and tenth (10th) years of the first 10 year exempt period and
every tenth (10th) year after that as long as the property remains
dedicated to historic preservation under this Section.
The approval of the petition by the Director shall constitute
a forfeiture on the part of the owner of any right:
(1)
To subdivide or to register under the Condominium Property Regime
any portion of the exempt area.
(3)
To construct or cause to be constructed any additions or new buildings
in the exempt area without approval by the State Historic Preservation
Office, provided that no new dwelling units or guest houses may be
built in the exempt area. The additions and buildings as approved
and constructed and the land they occupy shall be fully taxable.
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The approval of the petition shall also constitute a commitment
on the part of the owner to maintain the visual accessibility of the
building to the public, to maintain the exempt land area and to continue
to be listed on the Hawai'i Register of Historic Places.
|
|
These restrictions and the exemption shall be in effect for
a period of 10 years.
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(e)
The owner may renew the exemption for additional 10 year periods by applying for such renewal according to the same timetable as a new petition subject to the Director's certification that the property continues to meet the requirements set forth in Subsection (c) of this Section.
(f)
Failure of the owner to provide the certification of structural soundness and weathertightness as provided in Subsection (d) of this Section or to observe the other restrictions of Subsection (d) shall cancel the tax exemption and subject the owner to a retroactive tax and interest which shall be due and payable within 30 days following the mailing of the notice of retroactive assessment to the owner. The retroactive tax and interest shall be computed from the beginning of the tax year for which the application was originally approved to the end of the tax year that the cancellation occurred. The retroactive tax for each tax year shall be based on the difference in the amount of taxes that were paid and those that would have been due but for the exemption allowed by this Section. The retroactive tax shall be payable together with interest at 12% per annum from the respective dates that these payments would have been due provided the provision in this Subsection shall not preclude the County from pursuing any other remedy to enforce the covenant on the use of the land.
The retroactive taxes and interest due and owing as a result
of a cancellation of the dedication shall be a paramount lien upon
the property pursuant to Sec. 5A-5.1.
(g)
Any
person who becomes an owner of real property that is permitted an
exemption under this Section shall be subject to the restrictions
and duties imposed under this Section.
(h)
An
owner applicant may appeal any determination as in the case of an
appeal from an assessment.
(i)
Subject
to Chapter 91, Hawai'i Revised Statutes, the Director shall adopt
rules and regulations deemed necessary to accomplish the foregoing.
(Ord. No. 434, September
16, 1982; Ord. No. 467, September 13, 1984; Ord. No. 564, January 22, 1990; Ord. No. 637, October 14, 1993; Ord. No. 920, December
14, 2011)
(a)
Exemptions
from real property taxes as set forth in Chapter 53, Chapter 183,
and Chapter 234, Hawai'i Revised Statutes, and in Section 208 of the
Hawaiian Homes Commission Act, 1920, and which were enacted prior
to November 7, 1978, shall remain in effect and be recognized by the
County in its administration of the real property tax system; provided,
that real property leased under homestead and not general leases pursuant
to the authority granted the Department of Hawaiian Home Lands by
Section 207 of the Hawaiian Homes Commission Act, 1920, shall be exempt
from real property taxes, the seven year limitation on the exemption
afforded by Section 208 of the Hawaiian Homes Commission Act, 1920,
notwithstanding. Any exemption from real property taxation granted
by HRS Chapter 239 shall be of no force and effect.
(b)
If State legislation is enacted requiring a public utility under Hawai'i Revised Statutes Chapter 239 to pay a tax to the County of at least 1.885% upon the gross income of the public utility's business within the County, commencing with payments in July 2001, then, notwithstanding any provision in K.C.C. Chapter 5A to the contrary including, but not limited to, K.C.C. Sec. 5A-8.3, the County exemption from real property taxes for a public utility under Hawai'i Revised Statutes Chapter 239, as this exemption was codified in K.C.C. Sec. 5A-11.23 on August 1, 2000, shall be reinstated retroactive to January 1, 2001.
(c)
If
reinstated, this exemption shall be construed and applied in conjunction
with Hawai'i Revised Statutes Sec. 239-3, as Hawai'i Revised Statutes
Sec. 239-3 was codified on August 1, 2000; provided that the exemption
shall be limited to real property used by the public utility in its
public utility business. For the 2001-2002 tax year only, a public
utility shall apply for an exemption no later than 45 calendar days
after the enactment of legislation requiring a public utility under
Hawai'i Revised Statutes Chapter 239 to pay a tax to the County of
at least 1.885% upon the gross income of the public utility's business
within the County, commencing with payments in July 2001. After the
2001-2002 tax year, such claims for exemption shall be filed by the
deadline specified in Hawai'i Revised Statutes Sec. 239-3, as codified
on August 1, 2000.
(d)
As
used within this Sec. 5A-11.23, "public utility" has the meaning ascribed
to it in Hawai'i Revised Statutes Sec. 269-1, except airlines, motor
carriers, common carriers by water, and contract carriers subject
to taxation under Hawai'i Revised Statutes Sec. 239-6.
(Ord. No. 394, July 1,
1981; Ord. No. 563, January 4, 1990; Ord. No. 682, April 13, 1995; Ord.
No. 756, November 30, 2000; Ord. No. 1132, September 26, 2022)
(a)
Real
property owned in fee simple or leased for a period of one year or
more by a Federal or State credit union which is actually and exclusively
used for credit union purposes shall be exempt from all real property
taxes over $300. If the property for which exemption is claimed is
leased, the lease agreement shall be in force and recorded in the
Bureau of Conveyances at the time the exemption is claimed. As used
in this Section, "Federal credit union" means a credit union organized
under the Federal Credit Union Act of 1934, 12 U.S.C. Chapter 14,
as amended, and "State credit union" means a credit union organized
under the Hawai'i Credit Union Act, HRS Chapter 410, as amended.
(b)
If
any portion of the property which might otherwise be exempted under
this Section is used for commercial or other purposes not within the
conditions necessary for exemption (including any use the primary
purpose of which is to produce income even though such income is to
be used for or in furtherance of the exempt purposes) that portion
of the premises shall not be exempt but the remaining portion of the
premises shall not be deprived of the exemption if the remaining portion
is used exclusively for purposes within the conditions necessary for
exemption. In the event of an exemption of a portion of a building,
the tax shall be assessed upon so much of the value of the building
(including the land thereunder and the appurtenant premises) as the
proportion of the floor space of the nonexempt portion bears to the
total floor space of the building.
(Ord. No. 509, November
23, 1987; Ord. No. 953, August 28, 2013; Ord.
No. 985, March 27, 2015)
(Ord. No. 562, January
4, 1990; Ord. 1111, May 4, 2022)
(Ord. No. 562, January
4, 1990; Ord. No. 705, August 6, 1996; Ord. No. 782, December 10, 2001; Ord. No. 916, December 1, 2011; Ord. No. 920, December 14, 2011; Ord. No. 1113, May 19,
2022; Ord. No. 1132, September 26, 2022)
(a)
"Owner"
"Safe room"
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Definitions. When used in this Section 5A-11.27:
shall have the meaning ascribed to it in Article 7, Sec. 5A-7.1, Kaua'i County Code.
means a windowless room within a residence or within an accessory
building to a residence, designed and constructed to resist the effects
of wind pressures and to resist the impact from windborne debris which,
upon completion of construction, meets the following minimum design
specifications:
Location. The safe room shall not be located in a flood zone,
storm surge, or other area susceptible to flooding.
Access. The safe room must be readily and easily accessible
to persons residing within the residence.
Load Criteria. Design and construction of the safe room shall
be for wind loads of not less than 250 miles per hour, in accordance
with American Society of Civil Engineers Standard Number 7-98 Minimum
Design Loads For Buildings And Other Structures with an Importance
Factor (I) of 1.0, a Directional Factor (Kd) of 1.0, a Minimum Site
Exposure of C, and as recommended by the Federal Emergency Management
Agency (hereafter FEMA) Publication 320 "Taking Shelter From The Storm:
Building a Safe Room Inside Your House," August 1999 edition, as amended.
Missile Impact Criteria. Design and construction of the safe
room shall be for missile impact not less than or equal to a 15 pound,
wooden, two inch by four inch beam, striking on one end, perpendicular
to any building component, traveling at not less than 100 miles per
hour, in accordance with systems tested, approved, and recommended
by FEMA 361 "Design and Construction Guidance For Community Shelters,"
July 1999 edition, as amended.
Size Criteria. Shall contain not less than 40 square feet of
interior floor space or 10 square feet of interior space per occupant,
whichever is more.
Ventilation. Shall be in accordance with the Building Code of
the County of Kaua'i, Chapter 12, Kaua'i County Code 1987.
References. The safe room shall be designed and constructed
pursuant to standards which at a minimum are in compliance with FEMA
320 "Taking Shelter From the Storm: Building a Safe Room Inside Your
House," August 1999 edition, as amended, and FEMA 361 "Design and
Construction Guidance for Community Shelters," July 1999 edition,
as amended.
(b)
Application
for Eligibility. The owner of real property with a residential building(s),
which meets the safe room definition, may apply to the Director pursuant
to K.C.C. 1987, Sec. 5A-11.1 for a safe room exemption. No exemption
shall be granted unless the owner has submitted to the Director an
acceptable certification from an architect or structural engineer
licensed to practice in the State of Hawai'i stating that the completed
safe room meets the minimum FEMA and Building Code specifications
for a safe room.
(c)
Partial
Valuation Exemption. Residential buildings or accessory buildings
to a residence certified as containing one or more safe rooms shall
receive an exemption of $40,000 per residence.
(Ord. No. 752, November
6, 2000)
(a)
Veterans
deployed before the 2008 tax year to a combat zone or hazardous duty
zone are qualified to receive a one-time real property tax credit
of a maximum of $1,500 for the 2008 tax year, provided:
(1)
That such veteran shall provide to the Director of Finance or any
of his or her representatives proof of service in a combat zone or
hazardous duty area. Supporting documents include, but are not limited
to, DD Form 214, Orders, Leave and Earning Statement reflecting combat
pay, letters from unit commanders attesting to combat duty and dates,
combat awards and decorations, or other official documentation specifying
dates of combat duty.
(2)
That the real property tax credit of $1,500 shall not be granted
on more than one property for any one person.
(3)
This Section does not apply to veterans that have been discharged
under other than honorable conditions.
(b)
A surviving spouse of a veteran is qualified to receive a one-time real property tax credit of a maximum of $1,500 for the 2008 tax year, provided that the provisions set forth in Subsection (a) of this Section are met.
(c)
Deployed
Active-Duty Military Personnel Exemption. Individuals serving in the
armed forces of the United States at any time during a tax year subsequent
to the 2007 tax year in a combat zone or hazardous duty area, or in
an area outside the United States in direct support of military operations
in a combat zone or hazardous duty area are hereby granted a full
exemption of the real property tax assessment for their primary residence.
(1)
The exemption shall be applied to the assessment made for the tax
year for which a claim for exemption is submitted and granted. Claims
shall be filed on or before June 30th of the tax year for which the
exemption is claimed.
(2)
The individual shall submit to the Director proof of deployment for
the tax year for which the exemption is sought. Such proof shall include,
but is not limited to, official orders issued by the United States
Department of Defense that state the date of deployment and duration
thereof.
(3)
The exemption shall be applied in addition to any other exemption
provided by this Section.
(4)
For the purpose of this Section, spouses who own property jointly,
by the entirety, or in common, on which a home exemption has been
granted pursuant to this Section shall be entitled to this exemption
when at least one of the spouses qualifies for this exemption.
(d)
"Combat
zone" means any area the President of the United States designates
by executive order as an area in which the U.S. Armed Forces are engaging
in or have engaged in combat. An area becomes a combat zone and ceases
to be a combat zone on the dates the President designates by executive
order. Past combat zones include the various theaters of World Wars
I and II, the Korean conflict, the Vietnam conflict, Operation Urgent
Fury (Invasion of Granada), and Operation Just Cause (Panama). Current
combat zones include the Persian Gulf, Red Sea, Gulf of Oman, Gulf
of Aden, the Arabian Sea north of 10 degrees north latitude and west
of 68 degrees east longitude, Iraq, Kuwait, Saudi Arabia, Oman, the
United Arab Emirates and the airspace above these areas effective
January 17, 1991, the former Federal Republic of Yugoslavia (Serbia/Montenegro),
Albania, the Adriatic Sea, the Ionian Sea north of the 39th parallel
and the airspace above these locations effective March 24, 1999, and
Afghanistan, including the airspace above, effective September 19,
2001.
(e)
"Hazardous
duty area" means an area that Congress has designated through legislation
where the Armed Forces are entitled to the same benefits afforded
service in a combat zone. Currently, there are two such areas: Bosnia/Herzegovina,
Croatia, and Macedonia, effective November 21, 1995, and the former
Republic of Yugoslavia (Serbia/Montenegro), Albania, the Adriatic
Sea, the Ionian Sea north of the 39th parallel and the airspace above,
effective March 24, 1999.
(Ord. No. 862, December
19, 2007)
(a)
Real
property shall pay the minimum real property tax as long as the real
property is owned in whole or in part by a lineal descendant of the
person(s) that received the original title to the kuleana land, and
provided that the kuleana land shall be for primary ka hale use (owner-
or family-occupied), agricultural use, or vacant. Residential use
shall not include vacation rental use.
(b)
An
application for this exemption shall be filed with the Director of
Finance on or before September 30th preceding the next tax year on
forms prescribed by the Director. For the initial 2009 tax year, a
grace period of 45 days will be granted to apply for the Kuleana Land
Exemption. The application shall include documents verifying that
the condition set forth in Paragraph (1) of this Subsection has been
satisfied. The Director of Finance shall prescribe what shall be sufficient
to show genealogy verification, provided that:
(1)
Genealogy verification by the Office of Hawaiian Affairs or by court
order shall be deemed sufficient; and
(2)
The applicant/landowner shall be responsible for the cost of such
evidence. The Director of Finance shall require the applicant to obtain
a court order verifying ownership of property if the applicant is
not identified as the owner of the property in the records of the
Director.
(c)
For
purposes of this Section, "kuleana land" means those lands granted
to native tenants pursuant to L. 1850, p. 202, entitled "An Act Confirming
Certain Resolutions of the King and Privy Council, Passed on the 21st
Day of December, A.D. 1849, Granting to the Common People Allodial
Titles for Their Own Lands and House Lots, and Certain Other Privileges,"
as amended by L. 1851, p. 98, entitled "An Act to Amend An Act Granting
to the Common People Allodial Titles for Their Own Lands and House
Lots, and Certain Other Privileges" and as further amended by any
subsequent legislation.
(Ord. No. 873, October
8, 2008; Ord. No. 877, January 28, 2009; Ord. No. 920, December 14, 2011)
(a)
"Alternative renewable energy source"
"Commercial alternative energy facility"
"Director"
"Energy generation improvements"
"Exemption by commutation"
"Gross income"
Definitions.
When used herein:
means a form of energy or matter that is capable of being
converted into useful and marketable forms of energy, including electricity,
from sources that are not deemed exhaustible. The term includes, but
is not limited to:
means an energy production facility that generates, stores,
or distributes energy from alternative renewable energy sources with
the selling of more than 25% of the energy produced to the electric
utility.
means the Director of Finance or the Director's duly authorized
representative.
refers to machinery, equipment, structures, transmission
lines, generators, associated prime movers, measuring and regulating
equipment, and any other physical improvements that are normally operated
together to produce electric power, but does not include the owner's
residence or other property improvements that are non-essential to
the production, storage, or distribution of alternative renewable
energy.
means the fee option paid in place of the real property tax.
means gross income as defined in Chapter 239 of the Hawai'i
Revised Statutes.
(b)
Eligibility;
Application. The commercial alternative energy facility projects shall
sell at least 25% of the energy being produced at the facility to
the electric utility; the energy generation improvements are located
on and affixed to the property under consideration for exemption;
and the property owner, lessee, or qualified representative applies
for the commercial alternative energy facilities exemption on or before
September 30th of the year preceding the tax year in which the exemption
is being sought.
The Director shall prescribe the form of the application for
the exemption which shall be filed with the Director by September
30th of any year and shall contain such information as the Director
prescribes by rules. The application shall include, but not be limited
to the following:
(1)
Name and contact information of applicant;
(2)
Physical address and tax map key number of said property or properties;
(3)
A site plan, including defined land area(s), indicating where the
commercial alternative energy facility and associated energy generation
improvements are located;
(4)
A copy of the approved use permit for constructing (or adding additional
energy generation improvements to) the commercial energy facility;
(5)
Photographs of the energy generation improvements; and
(6)
Copies of energy purchase agreement contracts with the electric utility,
if any.
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The application form must be signed by the property owner or
duly appointed legal representative.
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(c)
An
eligible commercial alternative energy facility shall be assessed
and taxed in accordance with Paragraph (1) of this Subsection. After
a commercial alternative energy facility has had, at a minimum, a
full year of gross income, it may make a one time selection on a form
prescribed by the Director to be assessed and taxed in accordance
with Paragraph (2) of this Subsection for the duration of its time
as a commercial alternative energy facility.
(1)
Exemption. Energy generation improvements shall be 100% exempt from
real property taxes and the lands underlying areas that are designated
and approved for commercial alternative energy facilities shall be
50% exempt from real property taxes provided the form of energy being
produced originates from an alternative renewable energy source.
(2)
Exemption by Commutation. In lieu of the assessment method specified in Sec. 5A-8.4 and Paragraph (1) of this Subsection, the commercial alternative energy facility shall be assessed and shall pay property tax of 1% multiplied by the gross income generated by the commercial alternative energy facility in the prior tax year.
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If a commercial alternative energy facility has selected the
exemption by commutation, it shall provide the Director proof of gross
income, as prescribed by the Director, with its exemption application
on or before September 30th. If the commercial alternative energy
facility fails to provide said proof by the deadline, it shall be
assessed and taxed in accordance with Paragraph (1) of this Subsection.
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Where the commercial alternative energy facility is 100% owned
by a public utility which currently pays a public service company
tax in lieu of real property taxes, the commercial alternative energy
facility will be 100% exempt from real property tax, provided the
form of energy being produced originates from an alternative renewable
energy source.
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(Ord. No. 916, December
1, 2011; Ord. No. 920, December 14, 2011; Ord. No. 932, September 5, 2012)
(Ord. No. 1032, June 4,
2018;Ord. No. 1151, September 26, 2023 )
(a)
If a parcel has a mixture of both residential and commercial use within the same building, it may be entitled to the following exemptions: (1) A one hundred thousand dollar ($100,000) exemption for each residential unit in a mixed-use building; and (2) A one hundred fifty thousand dollar ($150,000) exemption for each residential unit in a mixed-use building that meets the lease and rent requirements of a long-term affordable rental pursuant to Section 5A-11A.1(a). For all qualifying residential units, the exemptions apply to the total assessed value with a maximum reduction to the assessment of 25% for residential units or 35% if more than 50% of the units meet the lease and rent requirements of a long-term affordable rental. The underlying tax class is to remain Commercial. The maximum reduction amount is based on the difference between the Non-Owner-Occupied Residential tax rate or the Owner-Occupied Mixed-Use tax rate and the Commercial tax rate.
(b)
The exemption shall be valid for one tax year and it shall be the responsibility of the owner to annually file an application for a residential unit in a mixed-use building pursuant to Subsection (a) of this Section on or before September 30 immediately preceding the tax year for which the exemption is claimed.
(Ord. No. 1078, September
10, 2020; Ord. No. 1148, April 17, 2023; Ord. No. 1150, July 31, 2023)
