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



(1)  Real property belonging to the United States, to
the State, or to any county; provided that real property belonging to the
United States shall be taxed upon the use or occupancy thereof as provided in
section 246-37, and there shall be a tax upon the property itself if and when
the Congress of the United States so permits, to the extent so permitted and in
accordance with any conditions or provisions prescribed in such act of
Congress; provided further that real property belonging to the State or any
county, or belonging to the United States and in the possession, use, and
control of the State, shall be taxed on the fee simple value thereof, and
private persons shall pay the taxes thereon and shall be deemed the
"owners" thereof for the purposes of this chapter, in the following
cases:



(A)  Property held on January 1 preceding
the tax year under an agreement for its conveyance by the government to private
persons shall be deemed fully taxable, the same as if the conveyance had been
made;



(B)  Property held on January 1 preceding
the tax year under a government lease shall be entered in the assessment lists
and such tax rolls for that year as fully taxable for the entire tax year, but
adjustments 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 is
proportionate to the portion of the tax year during which the real property is held
or controlled by them;



(C)  Property held under a government lease
commencing after January 1 preceding the tax year or under an agreement
for its conveyance or a conveyance by the government, made after January 1
preceding the tax year, shall be assessed as omitted property as provided in
section 246-51, but the taxes thereon shall be prorated so as to require the
payment of only so much of the taxes as is proportionate to the remainder of
the tax year;



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



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



For the purposes of subdivisions (B) and (C) of
this subsection:  "Lease" means any lease for a term of one year or
more, or which is renewable for such period as to constitute a total term of
one year or more.  A lease having a stated term shall, if it otherwise comes
within the meaning of the term "lease," be deemed a lease notwithstanding
any right of revocation, cancellation, or termination reserved therein or
provided for thereby.  Whenever a lease is such that the highest and best use
cannot be made of the property by the lessee, the measure of the tax imposed on
such property pursuant to subdivisions (B) and (C) shall be its fee simple
value upon consideration of the highest and best use which can be made of the
property by the lessee.



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



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



(ii)  Property held under an agreement for the
conveyance of the same or a conveyance of the same by the government, made
after January 1 preceding the tax year, shall be assessed as omitted
property as provided in section 246-51, but the taxes thereon shall be prorated
so as to require the payment of only so much of such taxes as is proportionate
to the remainder of the tax year, and in the case of property held under an
agreement for the conveyance of the same but not yet conveyed, the assessment
thereof 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 any
county under which lease the lessee is required to pay the taxes upon such
property;



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



(4)  Real property with respect to which the owner has
granted to the State or any county thereof a right of entry and upon which the
State or county has entered and taken possession under the authority of the
right of entry with intention to acquire the fee simple estate therein and to
devote the real property to public use; provided the State or county shall
have, prior to December 31 preceding the tax year for which the exemption is
claimed, certified to the appropriate tax official the date upon which it took
possession;



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



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



(7)  Any other real property exempt by law. [L 1932
2d, c 40, §27; RL 1935, §1976; am L 1939, c 211, §1; am L 1941, c 131, §1; am L
1943, c 165, §1; RL 1945, §5154; am L 1945, c 88, §1; am L 1951, c 151, §2; am
L 1955, c 238, §3; RL 1955, §128-22; am L Sp 1959 1st, c 28, §§10, 11, 12; am L
Sp 1959 2d, c 1, §16; am L 1963, c 48, §1; am L 1965, c 201, §§15, 16; am L
1967, 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 land
surrendered and used as forest reserves, see §183-15.



 



Case Notes



 



  Paragraph (1)(D) does
not apply to airport parking facility operator.  63 H. 624, 634 P.2d 98.



  In light of the city
and county of Honolulu's enactment of ordinance 95-67, paragraph (2) is no
longer controlling.  99 H. 508, 57 P.3d 433.