ROH §8-6.4

Property Tax on Reclassified Leased Land

Read the official text at honolulu.gov ↗

This section says that if you own land leased for 15 years or more, and the land's tax classification is changed to a higher-use class during the lease (without the tenant asking for it), you must pay a special property tax. You cannot pass this tax on to your tenant. The tax is the difference between the tax on the new classification and the tax on the old classification.

landlords

The ordinance, as written (Honolulu County) — Imposition of real property taxes on reclassification

A copy, taken August 22, 2026. The version published by Honolulu is the one that governs, and it may have changed since. Check it before relying on anything here.

(a) A portion of real property taxes shall be imposed upon and paid by the owner or owners thereof when: (1) The property of the owner has been leased for a term of 15 years or more; (2) The classification of the property has been changed to a classification of a higher use during the life of the lease; and (3) The classification to a higher use has occurred without the lessee, who occupies the property, petitioning for such higher classification. (b) Taxes that are imposed upon the owners of property under this section shall be paid by the owner of such property without being transferred to the lessee who occupies the property and such tax shall be the difference between the assessed valuation of the property after the classification change times the applicable tax rate less the assessed valuation of the property as it existed before the classification change times the applicable tax rate. )

Read the official text at honolulu.gov ↗as published Jan 1, 2026our copy taken Aug 22, 2026

Published by the City and County of Honolulu through American Legal Publishing.

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.