(a) 
None of the exemptions from taxation granted in Sections 5A-11.4, 5A-11.6. 5A-11.8, 5A-11.9, 5A-11.10, 5A-11.20, 5A-11.24, 5A-11.27, 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 Section 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 thirty (30) days after such notice;
(3) 
The period for exemption, as allowed in Sections 5A-11.20 and 5A-11.21, expires; or
(4) 
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 Section 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 thirty (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.
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.
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 thirty (30) days after his or her assumption of his or her fiduciary duties or within the time otherwise required, whichever is later.
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) two hundred dollars ($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 1 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.
(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 (2) prior years, disallow the exemption, in whole or in part, and reset the assessment cap, and may add to the assessment list the amount of value involved, in the manner provided by Section 5A-3.4 for the assessment of omitted property.
(f) 
In any case of recordation of a certificate for the amount of the civil penalty under Subsection (d) 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; Ord. No. 1168, January 31, 2025)
(a) 
Any owner who has a home exemption pursuant to Section 5A-11.4, Kaua'i County Code 1987, as amended, or receives the beneficial tax rate due to a long-term affordable rental, and residential leases of state-owned property pursuant to Section 5A-11A.1 shall receive a three percent (3%) assessment cap.
(b) 
The Director shall note on the notice of assessment or tax bill, or both, that the property receives the three percent (3%) assessment cap.
(c) 
Property receiving the assessment cap shall be taxed in the following manner:
(1) 
The property shall be assessed based on its market value, provided that, any increase in assessed value from the prior tax year's assessment shall not exceed three percent (3%).
(A) 
Any improvements to the property, including, but not limited to: new construction, renovations, and partial demolition, that increase the fair market value of the property, the assessment shall be increased based on the value of the improvements undertaken, notwithstanding the assessment cap limits.
(B) 
If property receiving the assessment cap subsequently increases in assessed value due solely to actions of the owner, such as but not limited to, the creation of a subdivision or condominium property regime, consolidation of lots or land area, or change in zoning, the assessment cap shall be reset to market value in the year of the change.
(C) 
If there is an error in the assessment for any year, the correction of which is not permitted under the terms of Section 5A-1.19, the assessment for the next year shall be based on what the assessment would have been for the previous year without the error.
(D) 
The gain or loss of an agricultural dedication, breach or expiration of a dedication, or change in status to another real property program that affects the value shall be excluded from the three percent (3%) assessment cap limit.
(2) 
In the case of properties that are multiuse parcels or structures, no assessment cap shall be granted.
(d) 
The Director shall calculate the assessment cap as prescribed in subsection (c).
(e) 
Upon transfer or sale of property, real property assessments shall be reset to reflect the market value of the property as of October 1 following the transfer or sale.
(f) 
The transfer of property for the purpose of conveying real property shall be excluded from subsection (e) if the same owner continues to maintain a home exemption pursuant to Section 5A-11.4(a) of Kaua'i County Code 1987, as amended.
(Ord. No. 920, December 19, 2011; Ord. No. 1168, January 31, 2025)
(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) 
For the purposes of this Subsection, the following definitions shall apply:
"Income"
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:
(A) 
Tax-exempt interest received from the Federal government or any of its instrumentalities;
(B) 
The gross amount of any IRA distribution, pension or annuity benefits received (including Railroad Retirement Act benefits and veterans disability pensions), excluding rollovers;
(C) 
All payments received under the Security and State unemployment Federal Social insurance laws;
(D) 
Nontaxable contributions to public or private pension, annuity and/or deferred compensation plans; and
(E) 
Federal cost of living allowances.
"Income"
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.
"Owner-occupant"
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.
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.
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
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.
(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) 
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:
"Homeowner"
means a person who filed and was granted a home exemption claim under Section 5A-11.4.
"Homeowner property"
means the property with regard to which a homeowner filed and was granted a home exemption claim under Section 5A-11.4.
"Household income"
means the total gross income of all titleholders for the preceding tax year.
"Income"
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.
"Titleholder"
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.
(k) 
For the purposes of this Section 5A-11.4 and Section 5A-1.2, "claim" may include the retroactive approval and reinstatement of a home exemption, Owner-Occupied or Owner-Occupied Mixed-Use tax rate, and assessment cap of an owner-occupant that was benefiting from a home exemption, Owner-Occupied or Owner-Occupied Mixed-Use tax rate, and assessment cap of a co-owner-occupant that is now deceased, provided that the owner-occupant would have independently qualified for the home exemption at the time of death. "Claim" may also include the retroactive approval and reinstatement of a home exemption. Owner-Occupied or Owner-Occupied Mixed-Use tax rate, and assessment cap of the spouse or civil union partner of an owner-occupant who is now deceased, provided that the spouse or civil union partner is a successor trustee or beneficiary of the owner-occupant and the spouse or civil union partner would have independently qualified for the home exemption at the time of death, and in such case, the surviving owner-occupant who is a successor trustee or beneficiary is not required to demonstrate that they were an owner of record prior to the death of their spouse or civil union partner. This approval and reinstatement shall only be applied retroactively up to three (3) years.
(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; Ord. No. 1157, May 20, 2024)
(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)
(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)
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)
(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)
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:
(A) 
Federal property for which payments are made in lieu of taxes in amounts equivalent to taxes which might otherwise be lawfully assessed;
(B) 
Any property or portion thereof taxed under any other provision of this Chapter to the extent and for the period so taxed.
(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.
(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.
(2) 
To change the use of the exempt property to other than residential use, provided that if the new use meets the requirements for exemption under Sec. 5A-11.10, the provisions of Subsection (f) of this Section shall not apply.
(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.
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.
(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. 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) 
Definitions. When used in this Section 5A-11.27:
"Owner"
shall have the meaning ascribed to it in Article 7, Sec. 5A-7.1, Kaua'i County Code.
"Safe room"
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:
(1) 
Location. The safe room shall not be located in a flood zone, storm surge, or other area susceptible to flooding.
(2) 
Access. The safe room must be readily and easily accessible to persons residing within the residence.
(3) 
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.
(4) 
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.
(5) 
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.
(6) 
Ventilation. Shall be in accordance with the Building Code of the County of Kaua'i, Chapter 12, Kaua'i County Code 1987.
(7) 
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) 
Definitions. When used herein:
"Alternative renewable energy source"
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:
(1) 
Solar energy;
(2) 
Geothermal energy;
(3) 
Conversion of biomass;
(4) 
Fuel cells that do not require hydrocarbon fuel;
(5) 
Hydroelectric generators;
(6) 
Methane from solid waste.
"Commercial alternative energy facility"
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.
"Director"
means the Director of Finance or the Director's duly authorized representative.
"Energy generation improvements"
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.
"Exemption by commutation"
means the fee option paid in place of the real property tax.
"Gross income"
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.
The application form must be signed by the property owner or duly appointed legal representative.
(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.
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.
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.
(Ord. No. 916, December 1, 2011; Ord. No. 920, December 14, 2011; Ord. No. 932, September 5, 2012)
(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.
(c) 
Any owner claiming the beneficial tax rate for long-term affordable rentals in a mixed-use building pursuant to Section 5A-11A.1, shall not be eligible to claim an exemption pursuant to Subsection (a) of this Section.
(Ord. No. 1078, September 10, 2020; Ord. No. 1148, April 17, 2023; Ord. No. 1150, July 31, 2023)