Property tax exemption for kuleana land and Kuleana Act grants

A. Those portions of real property designated as kuleana land or Kuleana Act government grant land are exempt from paying real property taxes, delinquent taxes, and penalties if: 1. The property is owned in whole or in part by a lineal descendant of the person who received the original title to the kuleana land or Kuleana Act government grant land. 2. The portion of property designated as kuleana land or Kuleana Act government grant land is not used for commercial purposes. 3. An application for exemption is filed with, and approved by, the director. B. An application for the exemption described in subsection A must be on forms prescribed by the director and must include documents verifying ownership of the portion of real property concerned and satisfaction of the requirements of subsection A. For a period of ten years beginning January 1, 2022, applications under this section will be accepted retroactively for assessment years 2010 through 2031. C. The applicant is responsible for the cost of obtaining evidence in support of an application. If the applicant is not identified as the owner of the property in the records of the director, the director must require the applicant, at the applicant's expense, to obtain a deed or court order to verify ownership of the property. For purposes of determining whether the lineal descendancy requirement in subsection A.1 has been satisfied, genealogy verification by the Office of Hawaiian Affairs or by court order is sufficient. D. For the purposes of ownership and lineal descendancy requirements, an owner who is a lineal descendant of a person who received original title to kuleana land or Kuleana Act government grant land may include: 1. A trust where a trustee or a beneficiary is a lineal descendant of the person who received the original title to the kuleana land or Kuleana Act government grant land; or 2. A corporation, limited liability company, nonprofit organization, or similar entity where the owners or board of directors are lineal descendants of the person who received the original title to the kuleana land or Kuleana Act government grant land. E. For the purposes of this section: 1. "Agriculture" means the production of plant and animal life for food and fiber, and for raw materials for processed products, and includes: fruit, vegetable, and flower growing; forestry; aquaculture; beekeeping; grazing and dairying; and their accompanying services and facilities. 2. "Commercial purposes" means the processing, manufacturing, warehousing, distribution, or sale of goods, or the provision of services for consideration and profit, including the operation of transient vacation rental and bed and breakfast homes, but excludes agriculture on kuleana land or Kuleana Act government grant land. 3. "Kuleana land" means those lands granted to native tenants in accordance with L. 1850, p. 202, entitled "An Act Confirming Certain Resolutions of the King and Privy Council, Passed on the 21st Day of December, A.D. 1849, Granting to the Common People Allodial Titles for Their Own Lands and House Lots, and Certain Other Privileges," as amended by L. 1851, p. 98, entitled "An Act to Amend An Act Granting to the Common People Allodial Titles for Their Own Lands and House Lots, and Certain Other Privileges" and as further amended by any subsequent legislation. 4. "Kuleana Act government grant land" means those lands set aside in accordance with section 4 of L. 1850, p. 202, entitled "An Act Confirming Certain Resolutions of the King and Privy Council, Passed on the 21st Day of December, A.D. 1849, Granting to the Common People Allodial Titles for Their Own Lands and House Lots, and Certain Other Privileges," as amended by L. 1851, p. 98, entitled "An Act to Amend An Act Granting to the Common People Allodial Titles for Their Own Lands and House Lots, and Certain Other Privileges" and as further amended by any subsequent legislation, and title to which was purchased or otherwise obtained through a royal patent grant issued by the land commission or Minister of the Interior. ( Ord. No. 5252 , § 1, 2021; Ord. No. 3679, § 4, 2009)