§246-37  Lessees of exempt real property. (a)  When any real property which for any reason is exempt from taxation isleased to and used or occupied by a private person in connection with anybusiness conducted for profit, such use or occupancy shall be assessed andtaxed in the same amount and to the same extent as though the lessee were theowner of the property and as provided in subsection (b), provided that:

(1)  The foregoing shall not apply to the following:

(A)  Federal property for which payments aremade in lieu of taxes in amounts equivalent to taxes which might otherwise belawfully assessed;

(B)  Any property or portion thereof taxedunder any other provision of this chapter to the extent and for the period sotaxed.

(2)  The term "lease" shall mean any leasefor a term of one year or more, or which is renewable for such period as toconstitute a total term of one year or more.  A lease having a stated termshall, if it otherwise comes within the meaning of the term "lease",be deemed a lease notwithstanding any right of revocation, cancellation, ortermination reserved therein or provided for thereby.

(3)  The assessment of the use or occupancy shall bemade in accordance with the highest and best use permitted under the terms andconditions of the lease.

(b)  The tax shall be assessed to and collectedfrom such lessee as nearly as possible in the same manner and time as the taxassessed to owners of real property, except that the tax shall not become alien against the property.  In case the use or occupancy is in effect onJanuary 1 preceding the tax year, the lessee shall be assessed for theentire year but adjustments of the tax so assessed shall be made in the eventof the termination of the use or occupancy during the year so that the lesseeis required to pay only so much of the tax as is proportionate to the portionof the tax year during which the use or occupancy is in effect, and the taxassessor and tax collector of the district in which the property is situatedare hereby authorized to remit the tax due for the balance of the tax year.  Incase the use or occupancy commences after January 1 preceding the taxyear, the lessee shall be assessed for only so much of the tax as isproportionate to the period that the use or occupancy bears to the tax year.

The assessment of the use or occupancy of realproperty made under this section shall not be included in the aggregate valueof taxable realty for the purposes of section 248-2 but each county council, atthe time that it is furnished with information as to the value of taxable realproperty, shall also be furnished with information as to the assessments madeunder this section, similarly determined but separately stated.

If a use or occupancy is in effect onJanuary 1 preceding the tax year, the assessment shall be made and listedfor that year and the notice of assessment shall be given to the taxpayer inthe manner and at the time prescribed in section 246-43; and when so given, thetaxpayer, if the taxpayer deems oneself aggrieved, may appeal as provided insection 246-46; if a use or occupancy commences after January 1 precedingthe tax year or if for any reason an assessment is omitted for any tax year,the assessment shall be made and listed and notice thereof shall be given in themanner and at the time prescribed in section 246-43, and an appeal from anassessment so made may be taken as provided in section 246-51. [L 1963, c 48,§2; am L 1965, c 201, §17; Supp, §128-22.1; am L 1967, c 37, §1 and c 255,§§11, 34, 46; HRS §246-37; am L 1969, c 170, §17; am L 1975, c 157, §17; gen ch1985]

 

Note

 

  Section 248-2referred to in text is repealed.

 

Revision Note

 

  "Countycouncil" substituted for "board of supervisors or city council".