(a)
"Dwelling"
"Long-term affordable rental"
"Long-term affordable rental limit"
Definitions. As used in this Section:
means a building or portion thereof designed or used exclusively
for residential occupancy and having all necessary facilities for
permanent residency such as living, sleeping, cooking, eating and
sanitation.
means a dwelling subject to a written lease agreement signed
by the owner or the owner's duly assigned representative with a term
of one (1) year or more and at a monthly rent not to exceed the maximum
housing cost based on the long-term affordable rental limit for the
year in which the owner files his or her application.
means the midpoint of the maximum rental limits for each
unit type using between eighty percent (80%) and one hundred percent
(100%) of the Kaua'i median household income as defined by the Kaua'i
County Housing Agency Rental Housing Guidelines."
(b)
Any owner of real property that is rented or leased as a long-term
affordable rental shall receive the Owner-Occupied tax rate as provided
in Sec. 5A-6.4 provided that all dwellings on the property are long-term
affordable rentals or owner-occupied.
(c)
Any owner of real property that is rented or leased as a long-term affordable rental of which their tenant is operating a day care center as a licensed day care provider shall be an allowed activity under this Section and shall receive the Owner-Occupied tax rate as provided in Sec. 5A-6.4, provided that the day care center is operated out of the long-term affordable rental dwelling. A day care center operating out of a separate dwelling on the property that is not a long-term affordable rental shall not qualify for the Owner-Occupied tax rate.
(d)
The owner may apply for the beneficial tax rate on a single
year or multi-year basis. An owner with a multi-year written lease
agreement may apply to receive the beneficial tax rate for each year
that the lease agreement is in effect up to a maximum of three (3)
years, provided that rent in each year of the lease does not exceed
the long term affordable rental limits at the time of application.
At the expiration of the multi-year beneficial tax period, the owner
may file a new application to receive the beneficial tax rate as long
as the property adheres to the long term affordable rental requirements
at the time of the new application.
(e)
The owner shall file his or her application annually in a form
prescribed by the Director of Finance by September 30 prior to the
tax year beginning July 1 for the beneficial tax rate. The owner shall
notify the Director of Finance within thirty (30) calendar days if
the property is no longer being rented or leased as a long-term affordable
rental due to the sale of the property or conversion to another use.
If there is a change in the use as a long-term affordable rental,
the beneficial tax rate shall be automatically revoked and all differences
in the amount of taxes that should be due for the remainder of the
tax year without the beneficial tax rate shall become due and payable.
(f)
The Director may adopt rules and prescribe forms.
(Ord. No. 821, November
8, 2004; Ord. No. 833, October 7, 2005; Ord. No. 889, December 16, 2009; Ord. No. 920, December 14, 2011; Ord. No. 953, August 28, 2013; Ord. No. 954, August
28, 2013; Ord. No. 995, November 24, 2015; Ord. No. 1004, July 6, 2016; Ord. No. 1016, August 14, 2017; Ord. No. 1038, August
29, 2018; Ord. No. 1053, July 8, 2019; Ord. No. 1152, November 20, 2023)
(a)
"Family member"
"Homeowner"
"Homeowner property"
"Income"
"Own" or "owner"
"Owner-occupant"
Definitions.
For purposes of this section:
means a spouse; child by blood, adoption or marriage; and
the following blood relatives: parent; sibling; grandparent; grandchild;
aunt, uncle, niece, nephew.
means a person who owns the property and has a home exemption
under Sec. 5A-11.4.
means the property with regard to which a homeowner filed
and was granted a home exemption under Sec. 5A-11.4.
means gross income as defined in Sec. 5A-11.4(d) for the
calendar year preceding the year of application.
refers to the act of having, or those persons vested with,
legal title of property.
has the meaning as provided in Sec. 5A-11.4(d).
(b)
A homeowner who meets the criteria in Subsection (c) shall pay as real property taxes the higher of an amount equal to 3% of all the owners' income(s) or the amount of $500.
(c)
In order to receive the home preservation tax limit, the homeowner
shall meet the following criteria at the time of application:
(1)
The homeowner property receives the Owner-Occupied tax rate
or qualifies for the Owner-Occupied tax rate for the tax year the
home preservation tax limit is to be applied.
(2)
The homeowner does not own real property other than the property
at issue in the application.
(3)
The homeowner property has had a home exemption for a minimum
of ten (10) years without change in ownership other than transfers
between family members.
(4)
If there are multiple dwellings on the property, each dwelling
is occupied by an owner-occupant.
(5)
The homeowner property has a net taxable assessed value exceeding
one million dollars ($1,000,000.00).
(6)
The income of all owners does not exceed two hundred thousand
dollars ($200,000.00).
(7)
There are no delinquent real property taxes on the homeowner
property.
(d)
The
homeowner shall apply for the home preservation tax limit annually
on or before September 30th preceding the tax year the home preservation
tax limit is to be applied.
(e)
The
Director shall prescribe appropriate forms for applications and require
proof of income which shall include, but is not limited to, the following:
(1)
A copy of the State personal income tax returns or records for all
owners which set forth their State gross income; and
(2)
A copy of the Federal personal income tax returns for all owners
which set forth their Federal gross income.
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In the event that any of the owners 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 there was no requirement 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(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(s) the fee necessary to obtain said
certified copies.
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(f)
The
Director shall approve the application if the homeowner meets all
of the criteria for the home preservation tax limit. If the Director
determines that the application cannot be approved or the information
contained therein verified, the Director shall so notify the homeowner
and provide the reason for the denial on or before December 1st preceding
the tax year.
(Ord. No. 953, August 28,
2013; Ord. No. 966, March 10, 2014; Ord. No. 1150, July 31, 2023; Ord. No. 1152, November 20, 2023)
(a)
Any owner who has a home exemption pursuant to Sec. 5A-11.4,
Kaua'i County Code 1987, as amended, or receives the beneficial tax
rate due to a long-term affordable rental pursuant to Sec. 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 affect the value shall be excluded from the three percent (3%)
assessment cap limit.
(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. 997, January
28, 2016; Ord. No. 1015, August 14, 2017; Ord. No. 1152, November 20, 2023)
