Council Bills and Resolutions Text

BE IT ORDAINED by the People of the City and County of Honolulu:

SECTION 1. Purpose. The purpose of this ordinance is to provide an exemption from real property taxes on the building improvements for a period of one year on all new construction which achieves a LEED" Certification.

LEED" or Leadership in Energy and Environmental Design, is a rating system established through a national consensus-based approach by the U.S. Green Building Council, a non-profit building industry organization based in Washington, D.C., to define building practices that promote integrated, whole-building design practices, energy and water efficiency, and indoor environmental quality, by establishing a common standard of measurement. LEED" provides a complete framework for assessing building performance and meeting sustainability goals. By providing a tax incentive for LEED" certified buildings, the City and County of Honolulu will promote integrated, whole-building design practices, energy and water efficiency, and indoor environmental quality while increasing worker productivity.

SECTION 2. Chapter 8, Article 10, Revised Ordinances of Honolulu, 1990, as amended, is amended by adding a new section to be appropriately designated by the revisor of ordinances and to read as follows:

Sec. 8-10.___   Exemption – Green Building Standards Incentives.

(a)    New buildings located on lands classified in accordance with Section 8-7.1 as hotel and resort, commercial, or industrial shall be exempt from real property tax for a period of one year following the completion and qualification as a LEED" certified building.

(b)    The claim for exemption shall be filed with the department of budget and fiscal services pursuant to Section 8-10.1 on such form as shall be prescribed by the department, and shall be supported by a LEED" certificate.

(c)    As used in this section:

    LEED" means the Leadership in Energy and Environmental Design.

    LEED certified and LEED certificate means the certification issued by the U.S. Green Building Council.

Sec. 810.1 Cl aims for certain exemptions.

(a)    None of the exemptions from taxation granted in Sections 810.4, 810.6 through 810.11, 810.24, 8-10.27, 8-10.29, and 8-10. shall be allowed in any case, unless the claimant shall have filed with the department of budget and fiscal services on or before September 30th preceding the tax year for which such exemption is claimed, a claim for exemption in such form as shall be prescribed by the department.

(b)    A claim for exemption, once allowed, shall have continuing effect until:

(1)    The exemption is disallowed;

(2)    The assessor voids the claim after first giving notice (either to the claimant or to all claimants in the manner provided for by this chapter) that the claim or claims on file will be voided on a certain date, not less than 30 days after such notice;

(3)    The fiveyear period for exemption, as allowed in Section 810.11, expires; or

(4)    The report required by subsection (d) is made.

(c)    A claimant may file a claim for exemption even though there is on file and in effect a claim covering the same premises, or a claim previously filed and disallowed or otherwise voided. However, no such claim shall be filed if it is identical with one already on file and having continuing effect. The report required by subsection (d) of this section may be accompanied by or combined with a new claim.

(d)    The owner of any property which has been allowed an exemption under Sections 810.4, 810.6 through 810.11, 810.24, 8-10.27, 8-10.29, or 8-10. has a duty to report to the assessor within 30 days after such owner or property ceases to qualify for such an exemption for, among others, the following reasons:

(1)    The ownership of the property has changed;

(2)    A change in the facts previously reported has occurred concerning the occupation, use or renting of the premises, buildings or other improvements thereon; or

(3)    A change in status has occurred which affects the owner's exemption.

    Such report shall have the effect of voiding the claim for exemption previously filed, as provided in subsection (b)(4) of this section. The report shall be sufficient if it identifies the property involved, states the change in facts or status, and requests that the claim for exemption previously filed be voided.

    In the event the property comes into the hands of a fiduciary who is answerable as provided for by this chapter, the fiduciary shall make the report required by this subsection within 30 days after the assumption of the fiduciary's duties or within the time otherwise required, whichever is later.

    A penalty shall be imposed for the failure to make the report required by this subsection. The amount of the penalty shall be the lesser of: (A) $200.00 for each year that the change in facts remains unreported; or (B) the amount of the taxes due for the property computed without the claim for exemption as of October 1st immediately preceding the tax year in which the report was due. In addition to this penalty, the taxes due on the property plus any additional penalties and interest thereon shall be a paramount lien on the property as provided for by this chapter.

(e)    If the assessor is of the view that, for any tax year, the exemption should not be allowed, in whole or in part, the assessor may at any time within five years of October 1st of that year disallow the exemption for that year, in whole or in part, and may add to the assessment list for that year the amount of value involved, in the manner provided for by this chapter for the assessment of omitted property.

    SECTION 3. New ordinance material is underscored. When revising, compiling or printing this ordinance for inclusion in the Revised Ordinances of Honolulu, the revisor of ordinances need not include the underscoring.

    SECTION 4. This ordinance shall take effect upon its approval.

                    INTRODUCED BY: