HCC §32-54
When leasehold property must pay special tax
Read the official text at hawaiicounty.gov ↗This section says that if a tax-exempt public body or another owner gives someone a lease or other right to use property, that leasehold interest may be taxed, and the person holding it must pay. The tax becomes a lien on the interest. The contract must warn about this tax, but if it doesn't, the tax is still valid.
landlordstenants
The ordinance, as written (Hawaiʻi County) — Levy of special tax on leasehold or possessory interest in
A copy, taken August 21, 2026. The version published by Hawaiʻi County is the one that governs, and it may have changed since. Check it before relying on anything here.
property. (a) If a public body owning property, including property held in trust for any beneficiary, which is exempt from a special tax pursuant to section 32-53, directly or indirectly grants a leasehold or other possessory interest in the property to a nonexempt person or entity, the special tax shall, notwithstanding section 32-32 or 32-53 or any other provision of this chapter, be levied and constitute a lien on the leasehold or possessory interest and shall be payable by the owner of the leasehold or possessory interest. In addition, in the case of property owned by a person or entity other than a public body, if such person or entity directly or indirectly grants a leasehold or other possessory interest in the property to a nonexempt person or entity, the applicable ordinance of formation, ordinance of consideration or ordinance of annexation may provide, notwithstanding section 32-32 or 32-53 or any other provision of this chapter, that the special tax shall be levied and constitute a lien on either the fee title interest or the leasehold or other possessory interest in such property and shall be payable by either the owner of the fee title interest or the owner of the leasehold or possessory interest, as is specified in the applicable ordinance. (b) When entering into a lease or other written contract creating a possessory interest that may be subject to taxation pursuant to subsection (a), the public body or other lessor or grantor shall include, or cause to be included, in the contract a statement that the possessory interest may be subject to special taxation pursuant to this chapter, and that the party in whom the possessory interest is vested may be subject to the payment of special taxes levied on the possessory interest. Failure to comply with the requirements of this section shall not, however, invalidate the contract or affect the validity or enforceability of the special tax or the obligation of the party in whom the possessory interest is vested to pay the special tax. (1994, ord 94-77, sec 3; am 2007, ord 07-146, sec 4.)32-54
Published by the County of Hawaiʻi Office of the County Clerk.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.