Definitions for property tax rules

Wherever used in this chapter: “Accessory dwelling unit” means a structure or portion thereof designed and used for single-family residential purposes as permitted under chapter 25, article 6, division 3 of this Code, and which can be detached from or attached to an existing residence, to be used for single-family occupancy and containing one kitchen. “Affordable rental rate” means a monthly rent not to exceed the most recent affordable rental guidelines for eighty percent of the area median income of the County as established by the Hawai‘i housing finance and development corporation. “Agriculture use value” means the productivity value for assessment purposes determined for lands being put to any agricultural use. “Certification of rental rate” means the sworn statement of the parcel owner attesting under penalty of law the rental rate that the land owner will charge and maintain for all renters on that parcel for that calendar year. “Commercial agricultural activities” shall mean farm operations, that may include multiple parcels that need not be contiguous, that generate income, monetary gain, or economic benefit in the form of money or money’s worth of a minimum $2,000 annual gross income per farm operation or adhere to generally accepted standards or recognized practices within that agricultural industry. “Commercially viable agricultural operation” shall mean an agricultural business or service with the ability to compete effectively and to make a profit, either without subsidies or with reliable, long-term subsidies as demonstrated by an analysis of comparable practices within the area of operation under comparable conditions. “Community food sustainability use” means the present use of agricultural or residential and agricultural zoned land on a continuous and regular basis that demonstrates the owner is engaged in agricultural activities to provide food to the community, including: (1) Intensive agriculture; (2) Orchards; (3) Diversified agriculture; or (4) Pasture for food production. 19-1 SUPP. 20 (7-2026) “Continuous and regular basis” shall be evidenced by the recurring planting, cultivation and harvesting of crops or ongoing animal husbandry or aquaculture activities that adhere to generally accepted standards or recognized practices within that agricultural industry. “County” means the County of Hawai‘i. “Date of classification” means July 1 of the tax year for which such classification is claimed. “Dedicated lands” are lands which are restricted in their use for specified periods of time by covenants executed between the landowners and the director of finance as provided by this chapter. “Director” means the director of finance of the County of Hawai‘i or the director’s authorized representative. “Diversified agriculture” means a blend of agricultural activities while transitioning from one category to the other during the term of the dedication or on a continuous and regular basis. “Duplex” and “double-family dwelling” means a building containing only two dwelling units. “Dwelling unit” means one or more rooms designed for or containing or used as the complete facilities for the cooking, sleeping, and living area of a single-family only and occupied by no more than one family and containing a single kitchen. “Farm dwelling” means a single-family dwelling located on and used in direct connection with a farm, or where the agricultural activity provides income to the occupant(s) of the dwelling. A farm dwelling includes employee housing for that farm. “Farm equipment” means machinery, implements, and tools used exclusively and directly for farming or ranching operations. “Farm plan” means an agricultural business plan, in a form prescribed by the director, that describes the agricultural practices of a commercially viable agricultural operation, all relevant tax map key numbers, and a financial projection. “Feed crops and fast rotation forestry” includes, but is not limited to, such crops as forage, seed, cane, rice, and biomass grasses. “Fertilizers” means a natural or synthetic material added to the soil to supply plant nutrients. “Intensive agriculture” includes, but is not limited to, such crops as vegetables, ginger, taro, herbs, nurseries, foliage, cut and potted flowers, piggeries, dairy, poultry, feedlots, aquaculture, honey and honey bees. “Long-term commercial agricultural use dedication” means the use of land on a continuous and regular basis for a minimum of ten years that demonstrates the owner is engaged in commercial agricultural activities from: (1) Intensive agriculture; (2) Orchards; (3) Feed crops and fast rotation forestry; (4) Pasture and slow rotation forestry; or (5) Diversified agriculture. SUPP. 17 (1-2025) 19-2 REAL PROPERTY TAXES § 19-2 “Long-term rental” means property occupied under a signed lease for six consecutive months or more to the same tenant(s). “Market value” is the most probable sale price of a property in terms of money in a competitive and open market assuming that the buyer and seller are acting prudently and knowledgeably, allowing sufficient time for the sale, and assuming that the transaction is not affected by undue stress. “Nondedicated agricultural use assessment” means the present use of agricultural or residential and agricultural zoned land on a continuous and regular basis that demonstrates the owner is engaged in agricultural activities from: (1) Intensive agriculture; (2) Orchards; (3) Feed crops and fast rotation forestry; and/or (4) Pasture and slow rotation forestry. This definition shall be repealed on January 1, 2028. “Orchards” includes, but is not limited to, such crops as macadamia nuts, guava, banana, papaya, avocado, grapes, passion fruit, coffee, citrus, cacao, pineapple, noni and tropical specialty fruits. “Pasture and slow rotation forestry” includes, but is not limited to, pasture and longer rotation forestry. “Property” or “real property” means and includes all land and appurtenances thereof and the buildings, structures, fences, and improvements erected on or affixed to the same, and any fixture which is erected on or affixed to such land, buildings, structures, fences, and improvements, including all machinery and other mechanical or other allied equipment and the foundations thereof, whose use thereof is necessary to the utility of such land, buildings, structures, fences, and improvements, or whose removal therefrom cannot be accomplished without substantial damage to such land, buildings, structures, fences, and improvements, excluding, however, any growing crops. “Short-term commercial agricultural use dedication” means the use of land on a continuous and regular basis for a minimum of three years that demonstrates the owner is engaged in commercial agricultural activities from: (1) Intensive agriculture; (2) Orchards; (3) Feed crops and fast rotation forestry; (4) Pasture and slow rotation forestry; or (5) Diversified agriculture. “Single-family dwelling” means a building containing only one dwelling unit. 19-2.1 SUPP. 20 (7-2026) “Soil amendments” means material added to the soil to improve its physical properties such as compost, agricultural lime, greensand, or manure. “Solar water heater” means a solar thermal energy system that qualifies for the State income tax credit authorized in the Hawai‘i Revised Statutes, section 235-12.5. Intentionally left blank. SUPP. 20 (7-2026) 19-2.2 REAL PROPERTY TAXES § 19-3