How to claim and keep the Central Kakaako tax exemption

(a) An initial application for exemption under § 8-10.31 shall be filed with the director by September 30 preceding the tax year for which the exemption is claimed. A copy of a certification from the Hawaii Community Development Authority confirming that the property is subject to the maximum floor area ratio of 1.5, as required by Hawaii Administrative Rules § 15-217-57, shall be filed with the application along with any additional documents determined by the director to be necessary to supplement the application. (b) Two years after the initial year for which the property has qualified for an exemption under § 8-10.31 , and every two years thereafter for as long as applicable, the owner of the property shall file, on or before September 30, a recertification by the Hawaii Community Development Authority confirming that the property is subject to a maximum floor area ratio up to 3.5, pursuant to Hawaii Administrative Rules § 15-217-57; provided that all other qualifications set forth in § 8-10.31 continue to be met, except for the qualifications set forth in § 8-10.31 (c)(3). (c) An owner who fails to file for a recertification from the Hawaii Community Development Authority by the respective September 30 deadline shall have the exemption canceled by the director, and the property shall be subject to taxes and penalties pursuant to subsection (f). (d) In the event the director finds that the initial claim for exemption or subsequent recertification by the Hawaii Community Development Authority contains false or fraudulent information, the director shall cancel the exemption retroactive to the date the exemption was first granted pursuant to an initial filing under subsection (a), and the project shall be subject to the taxes and penalties determined in subsection (f). (e) The owner may cancel the exemption by filing a notice of cancellation, and the owner shall not be subject to any penalties; provided that the owner has not filed any claim for exemption or any recertification that contained false or fraudulent information. (f) In the event a property is subject to taxes and penalties as provided in subsection (c) or (d), the differences in the amount of taxes that were paid and those that would have been due but for the exemption allowed shall be payable, together with interest at 10 percent per year, from the respective dates that these payments would have been due. The taxes and penalties due shall be a paramount lien upon the real property. Editor’s note: In accordance with Ord. 25-51 , amendments made to § 8-10.32 take effect retroactive to January 1, 2025; provided that the amendments do not affect the period of applicability of the Central Kakaako industrial zone limited development exemption, which is between July 1, 2017, and June 30, 2027, pursuant to SECTION 5 of Ord. 16-21.