Property tax break for renting to healthcare providers

A. To the following extent, a dwelling unit will be exempt from property taxes if it is under a signed contract to lease for twelve consecutive months to: 1. A state contractor providing emergency medical services as part of the state emergency medical services system; 2. A healthcare facility; 3. An agency contracted by a healthcare facility to staff the healthcare facility with healthcare professionals; or 4. A healthcare professional who is not a full-time County resident but is contracted to provide healthcare services in the County by a healthcare facility or an agency contracted by a healthcare facility: a. For tax years beginning on or after July 1, 2025: i. Totally exempt if the value of the property is $200,000 or less. ii. If the value of the property exceeds $200,000, the exemption is $200,000. B. The provisions of subsection A are subject to the following conditions: 1. A dwelling unit leased to a state contractor providing emergency medical services as part of the state emergency medical services system must use the property for the duration of the lease to house emergency medical services personnel who may be called upon to provide emergency medical services. The dwelling unit may also be used by the residing personnel for other purposes necessary for the personnel to carry out duties relating to providing emergency medical services. 2. A dwelling unit leased to a healthcare facility or to an agency contracted by a healthcare facility to staff the healthcare facility with healthcare professionals must use the property for the duration of the lease to house healthcare professionals who are not full-time County residents but are contracted by the healthcare facility to provide healthcare services in the County. 3. A dwelling unit may be leased for periods of less than twelve months to healthcare professionals who are not full-time County residents but are contracted by a healthcare facility or an agency to provide healthcare services in the County if the leases are consecutive and equal twelve consecutive months. 4. The exemption may be allowed for more than one dwelling unit for any one taxpayer if the dwelling units are located on different parcels. 5. The exemption may be allowed for more than one dwelling unit leased to the same entity if the dwelling units are located on different parcels. 6. If a portion of the structure is used for commercial purposes, that portion of the structure will not be entitled to an exemption. 7. If the term of the lease is greater than one year, one year of exemption will be granted. After the initial year of the exemption, no exemption will be allowed unless the lease terminates after September 30 of any later assessment year. 8. If the lease is granted to any entity that has an ownership interest in the property, the exemption must not be allowed. C. Upon proper application, a taxpayer will be entitled to a healthcare provider rental exemption if the taxpayer provides the director a copy of the signed lease and all required documentation requested by the director to confirm qualification. Failure to respond to the director's demand in thirty days will be grounds for denial of a claim for an exemption. D. If the director obtains evidence that any use other than those authorized in subsection B is occurring, the evidence will serve as prima facie proof that the individual does not qualify for a healthcare provider rental exemption, and the director must provide written notice to the individual by mail that the individual does not qualify for an exemption or continued exemption under this section. Evidence may include homes that are being advertised for occupancy by transients for periods of less than six consecutive months for any period during the course of any assessment. E. If during any tax year, the exemption of a property is revoked, the taxes for the entire tax year will be recalculated without the exemption. F. No healthcare provider rental exemption will be allowed if taxes on the property are delinquent for more than one year. G. If, during the course of the assessment year, any portion of the dwelling is used as a transient vacation rental, the exemption must be revoked and the taxes for the entire year recalculated without the exemption. H. The real property owner must report any change in use or occupancy of a property with a healthcare provider rental exemption within thirty days of the change. The director may investigate any real property and, if the director determines that the actual use differs from the uses authorized in subsection B, may reclassify and reassess the real property. I. As used in this section: "Emergency medical services" means the services used in responding to a perceived need for immediate medical care to prevent loss of life or aggravation of physiological or psychological sickness, injury, or incapacitating condition. "Healthcare facility" means an institution providing healthcare services or a healthcare setting, including hospitals and other licensed inpatient centers, ambulatory surgical or treatment centers, skilled nursing centers, residential treatment centers, urgent care centers, diagnostic facilities, laboratories, and imaging centers, and rehabilitation and other therapeutic health settings licensed or certified by the department of health under chapter 321, Hawaiʻi Revised Statutes. "Healthcare professional" means a doctor, nurse, physician, or other healthcare practitioner licensed, accredited, or certified to perform specified healthcare services consistent with the practitioner's scope of practice under state law." "State emergency medical services system" means the State of Hawaiʻi's system to serve the emergency health needs of the County, including ambulance services. "Transients" means the same as in section 19.040.040. "Transient vacation rental" means the same as in section 19.040.040. ( Ord. No. 5730 , § 5, 2024)