§246-36  Public property, etc.  Thefollowing real property shall be exempt from taxation:

(1)  Real property belonging to the United States, tothe State, or to any county; provided that real property belonging to theUnited States shall be taxed upon the use or occupancy thereof as provided insection 246-37, and there shall be a tax upon the property itself if and whenthe Congress of the United States so permits, to the extent so permitted and inaccordance with any conditions or provisions prescribed in such act ofCongress; provided further that real property belonging to the State or anycounty, or belonging to the United States and in the possession, use, andcontrol of the State, shall be taxed on the fee simple value thereof, andprivate persons shall pay the taxes thereon and shall be deemed the"owners" thereof for the purposes of this chapter, in the followingcases:

(A)  Property held on January 1 precedingthe tax year under an agreement for its conveyance by the government to privatepersons shall be deemed fully taxable, the same as if the conveyance had beenmade;

(B)  Property held on January 1 precedingthe tax year under a government lease shall be entered in the assessment listsand such tax rolls for that year as fully taxable for the entire tax year, butadjustments of the taxes so assessed may be made as provided in section 246-53,so that such tenants are required to pay only so much of the taxes as isproportionate to the portion of the tax year during which the real property is heldor controlled by them;

(C)  Property held under a government leasecommencing after January 1 preceding the tax year or under an agreementfor its conveyance or a conveyance by the government, made after January 1preceding the tax year, shall be assessed as omitted property as provided insection 246-51, but the taxes thereon shall be prorated so as to require thepayment of only so much of the taxes as is proportionate to the remainder ofthe tax year;

(D)  Property where the occupancy by the tenantfor commercial purposes has continued for a period of one year or more, whetherthe occupancy has been on a permit, license, month-to-month tenancy, orotherwise, shall be fully taxable to the tenant after the first year ofoccupancy, and the property shall be assessed in the manner provided insubdivisions (B) and (C) of this paragraph for the assessment of propertiesheld under a government lease; provided that the property occupied by thetenant solely for residential purposes on a month-to-month tenancy shall beexcluded from this paragraph;

(E)  In any case of occupancy of a building orstructure by two or more tenants, or by the government and a tenant, under alease for a term of one year or more, the tax shall be assessed to the tenantupon so much of the value of the entire real property as the floor spaceoccupied by the tenant proportionately bears to the total floor space of thestructure or building.

For the purposes of subdivisions (B) and (C) ofthis subsection:  "Lease" means any lease for a term of one year ormore, or which is renewable for such period as to constitute a total term ofone year or more.  A lease having a stated term shall, if it otherwise comeswithin the meaning of the term "lease," be deemed a lease notwithstandingany right of revocation, cancellation, or termination reserved therein orprovided for thereby.  Whenever a lease is such that the highest and best usecannot be made of the property by the lessee, the measure of the tax imposed onsuch property pursuant to subdivisions (B) and (C) shall be its fee simplevalue upon consideration of the highest and best use which can be made of theproperty by the lessee.

Provided further that real property belongingto the United States, even though not in the possession, use, and control ofthe State, shall be taxed on the fee simple value thereof, and private personsshall pay the taxes thereon and shall be deemed the "owners" thereoffor the purposes of this chapter, in the following cases:

(i)  Property held on January 1 precedingthe tax year under an agreement for the conveyance of the same by thegovernment to private persons shall be deemed fully taxable, the same as if theconveyance had been made, but the assessment thereof shall not impair and shallbe so made as to not impair, any right, title, lien, or interest of the UnitedStates;

(ii)  Property held under an agreement for theconveyance of the same or a conveyance of the same by the government, madeafter January 1 preceding the tax year, shall be assessed as omittedproperty as provided in section 246-51, but the taxes thereon shall be proratedso as to require the payment of only so much of such taxes as is proportionateto the remainder of the tax year, and in the case of property held under anagreement for the conveyance of the same but not yet conveyed, the assessmentthereof shall not impair, and shall be so made as to not impair, any right,title, lien, or interest of the United States;

(2)  Real property under lease to the State or anycounty under which lease the lessee is required to pay the taxes upon suchproperty;

(3)  Subject to section 101-39(B), any real propertyin the possession of the State or any county which is the subject of eminentdomain proceedings commenced for the acquisition of the fee simple estate insuch land by the State or such county; provided the fact of such possession hasbeen certified to the department of taxation as provided by section 101-36 or101-38, or is certified not later than December 31 preceding the tax year for whichsuch exemption is claimed;

(4)  Real property with respect to which the owner hasgranted to the State or any county thereof a right of entry and upon which theState or county has entered and taken possession under the authority of theright of entry with intention to acquire the fee simple estate therein and todevote the real property to public use; provided the State or county shallhave, prior to December 31 preceding the tax year for which the exemption isclaimed, certified to the appropriate tax official the date upon which it tookpossession;

(5)  Any portion of real property within the area uponwhich construction of buildings is restricted or prohibited and which isactually rendered useless and of no value to the owners thereof by virtue ofany ordinance of any county, establishing setback lines thereon; provided thatin order to secure the exemption the person claiming it shall annually filebetween December 15 and December 31 preceding the applicable tax yeara sworn written statement with the tax assessor describing the real property indetail and setting forth the facts upon which exemption is claimed, togetherwith a written agreement that in consideration of the exemption from taxes theperson will not make use of the land in any way whatsoever during the ensuingyear.  Any person who has secured such exemption who violates the terms of theagreement shall be fined twice the amount of the tax which would be assessedupon the land but for such exemption;

(6)  Real property exempted by any laws of the UnitedStates which exemption is not subject to repeal by the legislature;

(7)  Any other real property exempt by law. [L 19322d, c 40, §27; RL 1935, §1976; am L 1939, c 211, §1; am L 1941, c 131, §1; am L1943, c 165, §1; RL 1945, §5154; am L 1945, c 88, §1; am L 1951, c 151, §2; amL 1955, c 238, §3; RL 1955, §128-22; am L Sp 1959 1st, c 28, §§10, 11, 12; am LSp 1959 2d, c 1, §16; am L 1963, c 48, §1; am L 1965, c 201, §§15, 16; am L1967, c 72, §1 and c 255, §§9, 26, 27, 33, 46; HRS §246-36; am L 1969, c 170,§16; am L 1975, c 157, §16; gen ch 1985]

 

Cross References

 

  Private landsurrendered and used as forest reserves, see §183-15.

 

Case Notes

 

  Paragraph (1)(D) doesnot apply to airport parking facility operator.  63 H. 624, 634 P.2d 98.

  In light of the cityand county of Honolulu's enactment of ordinance 95-67, paragraph (2) is nolonger controlling.  99 H. 508, 57 P.3d 433.