How Property Tax Rates Are Set Each Year

Unless a different meaning is clearly indicated by the context, as used in this Section:"Net taxable real property" means the fee simple fair market value of property determined pursuant to this Chapter, which the Director certifies as the tax base as provided by law less exemptions as provided by law and, in all cases where appeals from the Director's assessment are then unsettled, less fifty percent (50%) of the value in dispute.The Council shall annually set the tax rates, and valuation thresholds for any tiered tax rates (maximum of three (3)), for the classes of real property established in accordance with Section 5A-6.4. A resolution setting the tax rates and valuation thresholds shall be adopted on or before June 20 preceding the tax year for which property tax revenues are to be raised according to the following procedures:The Council shall advertise its intention to set the tax rates and valuation thresholds, and the date, time, and place of a public hearing in a newspaper of general circulation. The date of the public hearing shall be not less than ten (10) days after the advertisement is first published and shall set forth the proposed tax rates and valuation thresholds to be considered by the Council.After the public hearing provided for in Paragraph (1) of this Subsection, the Council shall re-advertise and reconvene within three (3) weeks to adopt a resolution setting the tax rates for the tax year for which property tax revenues are to be raised. The advertisement shall state the rates and valuation thresholds proposed to be set and the date, time, and place of the meeting scheduled for setting such rates. The date, time, and place of the meeting shall also be announced at the public hearing required by Paragraph (1). If the resolution setting the tax rates and valuation thresholds is not adopted within three (3) weeks from the public hearing required by Paragraph (1) of this Subsection, the Council shall again advertise and meet as required by Paragraph (1).If, after adopting the proposed tax rates and valuation thresholds as provided by Paragraphs (1) and (2) of this Subsection, the Council determines that it requires a further increase or decrease in a tax rate or fails to act in any specified period, the Council shall re-advertise and follow the requirements of Paragraphs (1) and (2).The Council shall set the tax rates for each class of real property for a tax year using the following method:Net taxable real property within each class shall be assigned a percentage of the total revenue to be derived from all real property.The percentage of revenue to be raised from net taxable real property within each class shall be multiplied by the total revenue to be raised from all real property in order to determine the amount of revenue to be derived from that class.The amount of revenue to be raised from each class shall be divided by the net taxable real property of that class to determine the applicable tax rate. The tax rate shall be expressed as a dollar amount per one thousand dollars ($1,000.00) of net taxable real property.The Council shall notify the Director of the tax rates and valuation thresholds set for a tax year before the commencement of that tax year. Upon receipt of the notification, the Director shall employ such rates in the levying of property taxes as provided by this Chapter.The Director shall, on or before March 15 preceding the tax year, furnish the Council with a calculation certified as being as nearly accurate as may be, of the net taxable real property within the County, separately stated for each class established in accordance with Sec. 5A-6.4, plus such additional data relating to the property tax base as may be necessary.Insofar as the validity of any tax rate is concerned, the provisions of Subsections (b) and (e) of this Section as to dates, shall be deemed directory; provided that all other provisions of Subsections (b) and (e) and all provisions of Subsections (c) and (d) of this Section shall be deemed mandatory.Notwithstanding any provision to the contrary, there shall be levied upon each individual parcel of real property taxable under this Chapter a minimum real property tax of one hundred fifty dollars ($150.00) per year, except as follows:Type of PropertyMinimum TaxDepartment of Hawaiian Home Lands property as defined by Sec. 5A-11.23(a)$0Public utilities that have elected to be taxed pursuant to Sec. 5A-8.3(e)$0Roads that exist as individual parcels, lots, or common elements$0Public property that is exempt pursuant to Sec. 5A-11.17$0Homeowners with income exemption per Sec. 5A-11.4(d)$75Island of Ni'ihau$40,000The solid waste fee, or any other fee applicable to an owner's property, is not a tax, and is not counted toward the minimum real property tax.The Council at any time may, and upon any significant change of use (e.g., which could follow change of ownership) involving the island of Ni'ihau shall, amend the minimum tax that shall be levied upon the island of Ni'ihau, including abolishment of the minimum tax.