EXEMPTIONS



 



§246-23  Claims for certain exemptions. 
(a)  None of the exemptions from taxation granted in sections 246-26 and 246-29
to 246-33 shall be allowed in any case, unless the claimant shall have filed
with the department of taxation, on or before December 31 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 by
either section 246-43 or section 246-40, as the case may be) that the claim or
claims on file will be voided on a certain date, not less than thirty days
after such notice;



(3)  The five-year period for exemption, as allowed in
section 246-33, expires; or



(4)  The claimant makes the report required by
subsection (d).



(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) may be
accompanied by or combined with a new claim.



(d)  Any person who has been allowed an
exemption under sections 246-26 or 246-29 to 246-33 has a duty to report to the
assessor within thirty days after he ceases to qualify for such an exemption
for one of, but not limited to, the following reasons:



(1)  He ceases to be the owner, lessee, or purchaser
of the exempt premise;



(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)  Some other change in status has occurred which
affects his exemption.



Such report shall have the effect of voiding
the claim for exemption previously filed, as provided in subsection (b)(4). 
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 under sections 246-7 and 246-41, the fiduciary
shall make the report required by this subsection within thirty days after his
assumption of his fiduciary duties or within the time otherwise required,
whichever is later.



Any person who has a duty of making a report as
required by this subsection, who within the time required fails to make a
report, shall be liable for a civil penalty.  The amount of the penalty shall
be $100 or the amount of the taxes on the property computed without the claim
for exemption as of January 1 of the year in which the report was due,
whichever is lesser.  The penalty shall be recovered in accordance with section
231-33.  In addition to this penalty, the taxes due on the property plus any
additional penalties and interest thereon shall be collected as property taxes
and shall be a lien on the property in accordance with section 246-55.



(e)  If the assessor is of the view that, for
any year, the exemption should not be allowed, in whole or in part, he may at
any time within five years of January 1 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 by
section 246-51 for the assessment of omitted property; provided that if an
assessment or addition under this subsection is made after April 9 preceding
the tax year, the taxes on the amount of value involved in the assessment or
addition so made shall not be a lien under section 246-55 but may be made a lien
as provided for in section 231-33 by recording a certificate setting forth the
amount of tax involved, penalties, and interest.



(f)  In any case of recordation of a
certificate for the amount of the civil penalty under subsection (d), or for
the amount of tax, penalties, and interest assessed or added under subsection
(e), a person shall be deemed to have an interest arising before the
recordation of the certificate only if and to the extent that he acquired his
interest in good faith and for a valuable consideration without notice of a
violation of the requirements of subsection (d) having occurred. [L 1925, c
192, §10; am L 1932 2d, c 41, §5; RL 1935, §1971; am L 1939, c 29, §2; RL 1945,
§5147; am L 1949, c 218, §1; am L Sp 1949, c 64, §2; am L 1955, c 64, §2; RL
1955, §128-12; am L Sp 1959 1st, c 28, §3; am L Sp 1959 2d, c 1, §16; am L
1964, c 21, §3; am L 1967, c 255, §§5, 24, 46; HRS §246-23; am L 1969, c 170,
§7; am L 1972, c 200, §1; am L 1975, c 157, §9]



 



Case Notes



 



  Tax exemptions are
strictly construed.  7 H. 627; 12 H. 76; 28 H. 197, aff'd 8 F.2d 845; 35 H.
627; 44 H. 519, 356 P.2d 1028.