(a) Any incremental increase in the valuation of buildings primarily attributable to qualifying construction work shall be exempt from property taxes for a period of seven years following the completion of the qualifying construction work, provided that:
(1) The qualifying construction work commences on or after January 1, 1999 as evidenced by the issuance date of the building permits;
(2) The qualifying construction work is completed on or before June 30, 2003, unless extended pursuant to subsection (d); and
(3) The laborers and mechanics who performed the qualifying construction work were paid at or above the rate of wages established by HRS Chapter 104 and the applicable rules adopted thereunder.
(b) For the purposes of this section, the following definitions apply unless the context clearly indicates or requires a different meaning.
Incremental Increase in the Valuation of Buildings Primarily Attributable to Qualifying Construction Work. Shall be determined by subtracting the valuation of buildings on the property as determined in the real property tax assessment immediately preceding June 22, 1999 from the valuation of buildings following the completion of qualifying construction work as of June 22, 1999.
Qualifying Construction Work. Work to construct new buildings, or to construct additions or renovations to existing buildings, located on land that is classified in accordance with § 8-7.1 as hotel and resort, commercial, industrial, preservation, or agricultural.
(c) The date of the completion of the construction shall be established by the date of the department of planning and permitting’s inspection completion date, or the last of the inspection completion dates, where multiple inspections are required for any one or more of the following: the electrical, plumbing, architectural, or structural work allowed under the building permit.
(d) The claimant may request an extension of time of up to one year but before July 1, 2004 to complete construction, and only if a major change in circumstances beyond the control of the claimant has occurred since the issuance of the building permit that causes the delay. The request for an extension setting forth the claimant’s justification for an extension shall be made in writing to the director of planning and permitting and either receipt-stamped by the department or U.S. postmarked. By either method, the request shall be receipt-stamped or U.S. postmarked no later than June 29, 2003. The decision of the director of planning and permitting on the request shall be final.
(e) The claim for exemption shall be filed with the department of budget and fiscal services on or before September 30 preceding the first tax year for which such exemption is claimed on such form as shall be prescribed by the department, and shall be supported by documentation establishing the date of the issuance of the building permit, the department of planning and permitting’s inspection completion date, and the director of planning and permitting’s decision to grant an extension of time to complete construction, if applicable.
(f) The claim for exemption, once allowed, shall continue for a period of seven years; provided that where an extension has been granted under subsection (d), in no event shall such exemption be allowed beyond June 30, 2012.
(g) To confirm that the laborers and mechanics who performed the qualifying construction work were paid at or above the applicable rate of wages, every claim for exemption filed with the department of budget and fiscal services shall include documentation in a form satisfactory to the director that establishes that the wage rates for the laborers and mechanics who performed the qualifying construction work were not less than the wage rates established by HRS Chapter 104 and the applicable rules adopted thereunder. This documentation shall include but not be limited to a notarized affidavit from the claimant establishing that the wage rates for the laborers and mechanics who performed the qualifying construction work were not less than the wage rates established by HRS Chapter 104 and the applicable rules adopted thereunder.
(1990 Code, Ch. 8, Art. 10, § 8-10.26) (Added by Ord. 99-42; Am. Ords. 00-45, 02-39)