EXEMPTIONS

 

§246-23  Claims for certain exemptions. (a)  None of the exemptions from taxation granted in sections 246-26 and 246-29to 246-33 shall be allowed in any case, unless the claimant shall have filedwith the department of taxation, on or before December 31 preceding the taxyear for which such exemption is claimed, a claim for exemption in such form asshall be prescribed by the department.

(b)  A claim for exemption once allowed shallhave continuing effect until:

(1)  The exemption is disallowed;

(2)  The assessor voids the claim after first givingnotice (either to the claimant or to all claimants in the manner provided byeither section 246-43 or section 246-40, as the case may be) that the claim orclaims on file will be voided on a certain date, not less than thirty daysafter such notice;

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

(4)  The claimant makes the report required bysubsection (d).

(c)  A claimant may file a claim for exemptioneven 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, nosuch claim shall be filed if it is identical with one already on file andhaving continuing effect.  The report required by subsection (d) may beaccompanied by or combined with a new claim.

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

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

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

(3)  Some other change in status has occurred whichaffects his exemption.

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

In the event the property comes into the handsof a fiduciary who is answerable under sections 246-7 and 246-41, the fiduciaryshall make the report required by this subsection within thirty days after hisassumption of his fiduciary duties or within the time otherwise required,whichever is later.

Any person who has a duty of making a report asrequired by this subsection, who within the time required fails to make areport, shall be liable for a civil penalty.  The amount of the penalty shallbe $100 or the amount of the taxes on the property computed without the claimfor 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 section231-33.  In addition to this penalty, the taxes due on the property plus anyadditional penalties and interest thereon shall be collected as property taxesand shall be a lien on the property in accordance with section 246-55.

(e)  If the assessor is of the view that, forany year, the exemption should not be allowed, in whole or in part, he may atany time within five years of January 1 of that year disallow theexemption for that year, in whole or in part, and may add to the assessmentlist for that year the amount of value involved, in the manner provided bysection 246-51 for the assessment of omitted property; provided that if anassessment or addition under this subsection is made after April 9 precedingthe tax year, the taxes on the amount of value involved in the assessment oraddition so made shall not be a lien under section 246-55 but may be made a lienas provided for in section 231-33 by recording a certificate setting forth theamount of tax involved, penalties, and interest.

(f)  In any case of recordation of acertificate for the amount of the civil penalty under subsection (d), or forthe amount of tax, penalties, and interest assessed or added under subsection(e), a person shall be deemed to have an interest arising before therecordation of the certificate only if and to the extent that he acquired hisinterest in good faith and for a valuable consideration without notice of aviolation of the requirements of subsection (d) having occurred. [L 1925, c192, §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; RL1955, §128-12; am L Sp 1959 1st, c 28, §3; am L Sp 1959 2d, c 1, §16; am L1964, 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 arestrictly 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.