Income-based sewer bill credit rules

Definitions. As used in this Section:means the County Engineer, Department of Public Works, County of Kaua'i or duly authorized representative.means the County Director of Finance.means the greater of either (1) a residential sewer customer's adjusted gross income under the U.S. Internal Revenue Code of 1986, as amended, or (2) a residential sewer customer's adjusted gross income under Chapter 235, H.R.S.means a natural person living in a dwelling unit, who is classified as a residential user under Sec. 25-13.5(b), and who owns, rents, or leases the dwelling unit receiving County sewer service.A residential sewer customer shall be granted a monthly credit of twenty-four dollars ($24.00) for Fiscal Year 2024, twenty-eight dollars ($28.00) for Fiscal Year 2025, thirty-two dollars ($32.00) for Fiscal Year 2026, thirty-six dollars ($36.00) for Fiscal Year 2027, and forty dollars ($40.00) for Fiscal Year 2028 if the conditions of paragraph (c) of Sec. 25-13.9 are satisfied. The credit shall be effective the calendar month immediately following the month that the customer has satisfied the conditions of paragraph (c) of Sec. 25-13.9.The County General Fund shall pay for all credits granted.No credit shall be granted under this Section unless the Director determines that a residential sewer customer has satisfied the following conditions:The customer shall sign the application form promulgated by the Director. Where the applicant is a tenant or lessee, the legal owner of the property benefited by the County's sewer service shall also execute the application form. The tenant or lessee and the legal owner shall also provide their address of record in the application form.In the application form, the customer shall consent to the release of, and authorize the State Department of Taxation to release to the Director at any time during the time which the customer receives a residential sewer credit, certified copies of those portions of the customer's State personal income tax return or records showing the customer's adjusted gross income under Chapter 235, H.R.S. This authorization and consent shall be used by the Director for purposes of verifying the customer's income and, therefore, eligibility for the credit granted under this Sec. 25-13.9 The customer shall execute any additional forms required by the Director or the State Department of Taxation to facilitate the release of tax information required under this subparagraph (1).The dwelling unit in which the customer resides must be the customer's principal residence. The customer may receive the credit only if the dwelling unit in which the customer resides is the customer's principal residence.A husband and a wife shall not each be entitled to a credit on separate dwelling units owned, in whole or in part, by either or both of them unless they live physically separate and apart, on a continuous basis, in separate dwelling units.A residential sewer customer's annual income shall not exceed fifty thousand dollars ($50,000.00) for the calendar year immediately preceding the year in which the customer applies for the credit.The customer's annual income shall not exceed fifty thousand dollars ($50,000.00) at any time during the time which the customer enjoys the benefit of the credit under this Sec. 25-13.9.The residential sewer customer shall submit with his or her application filed copies from those portions of the customer's Federal and State personal income tax return or records for the calendar year immediately preceding the year in which the customer applies for the credit, showing the customer's adjusted gross income under the U.S. Internal Revenue Code of 1986, as amended; and adjusted gross income under Chapter 235, H.R.S.If a customer was not required to file a personal income tax return under either the U.S. Internal Revenue Code of 1986, as amended or Chapter 235, H.R.S., or both, the customer shall sign and submit an affidavit attesting to the income the customer received from all sources for the calendar year immediately preceding the year in which the customer applies for the credit. The Director shall prescribe the form of the affidavit.The Director may deny the application of any customer who fails or refuses to provide the proof of income required under this paragraph (c) of Sec. 25-13.9. The Director may also deny a customer's application if the customer fails or refuses to provide information or documents the Director believes is reasonably necessary for purposes of verifying that the customer has satisfied the conditions of this paragraph (c) of Sec. 25-13.9.The Director and the County Engineer shall prescribe the application form and other forms relating to the credit granted under this Sec. 25-13.9.The Director shall annually obtain from the State Department of Taxation certified copies of income tax records from at least one percent (1%) of all customers receiving the residential sewer credit for purposes of verifying that the customers continue to satisfy the income qualifications requirements under paragraph (c) of Sec. 25-13.9. The County Engineer and the Director shall verify the information to satisfy the income qualification requirements under paragraph (c) of Sec. 25-13.9. For this purpose, records shall be randomly selected.Any credit granted under this Sec. 25-13.9 shall continue in effect until one (1) or more of the following events occur:A customer receiving the credit fails to satisfy any condition or requirement under paragraph (c) of this Sec. 25-13.9.A customer receiving the credit is no longer a "residential sewer customer" as defined under this Sec. 25-13.9.Upon the occurrence of any event described immediately above, or any event described in this paragraph (f) which would cause a customer to lose his or her credit, the Director shall terminate the customer's residential sewer credit. The credit shall be terminated sixty (60) calendar days after the date that the Director sends a notice of termination to the customer and legal owner. The notice shall be sent via certified mail to the customer's and legal owner's address of record.A customer receiving the credit shall have a duty to report to the Director any fact or event that would cause the customer to lose his or her residential sewer credit including, but not limited to, the fact that the customer's annual income exceeds fifty thousand dollars ($50,000.00) and that the dwelling unit in which the customer resides is no longer the customer's principal residence. The customer shall report any such facts or events within thirty (30) calendar days of their occurrence. The customer's failure or refusal to report any such fact or event within the specified time shall constitute sufficient basis for the Director to terminate the customer's credit.If the Director has reasonable basis to believe that a customer receiving the credit no longer satisfies the income qualification requirement under paragraph (c) of Sec. 25-13.9, the Director may require the customer to provide evidence of the customer's income. Such evidence may include, but shall not be limited to, filed copies of the customer's Federal and State personal income tax return or records showing the customer's adjusted gross income under the U.S. Internal Revenue Code of 1986, as amended, and adjusted gross income under Chapter 235, H.R.S. The Director may also require the customer to obtain and submit certified copies of such returns and records from the U.S. Internal Revenue Service or State Department of Taxation. The customer's failure or refusal to provide the required tax information shall constitute sufficient basis for the Director to terminate the customer's credit.Any person who files a fraudulent application or attests to any false statement, with intent to defraud or to evade the payment of his or her sewer bill or any part thereof, or who in any manner intentionally deceives or attempts to deceive the Department of Finance to receive the credit granted by this Sec. 25-13.9, shall be fined one thousand dollars ($1,000.00) or imprisoned for not more than one (1) year, or both.The Director and the County Engineer may adopt rules pursuant to Chapter 91, H.R.S. for purposes of implementing and administering this Section.