HomeMy WebLinkAboutMay 18, 2023 Agenda Packet G.1.a.May 18, 2023
Kauaʻi County, Hawaiʻi County Code
Title III TAXATION AND FINANCIAL ADMINISTRATION
Chapter 5A REAL PROPERTY TAX
Article 11. Exemptions
Sec. 5A-11.22 Historic Residential Real Property Dedicated for
Preservation, Exemption.
(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 one hundred percent (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 seventy-five percent (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;
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(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 twelve (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 forty-five (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 ten (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 ten (10) years.
(e) The owner may renew the exemption for additional ten (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 thirty (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 twelve percent (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)
Contact:
County Clerk, Council Services Division: 808-241-4188
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May 18, 2023
May 18, 2023
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H.2.a.May 16, 2023