REPORT TITLE:
Real Property, Tax Appeals


DESCRIPTION:
Restricts right of real property tax appeal to a person
contractually obligated to pay it.

 
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                                            1521        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO REAL PROPERTY TAX APPEALS.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this amendment to section 232-1,
 
 2 Hawaii Revised Statutes, is to restrict the right of appeal by
 
 3 persons under a contractual obligation to pay a tax, to those
 
 4 persons actually paying the tax.  With respect to real property
 
 5 tax assessments, a commercial property may be subject to a master
 
 6 lease and more than one sublease, where each lease contractually
 
 7 provides for the lessee to pay the real property taxes.  In such
 
 8 situations under existing law, any one lessee may appeal and
 
 9 claim a refund of the taxes even if such lessee does not actually
 
10 pay the taxes.  Restricting the right of appeal only to the
 
11 person who is under a contractual obligation to pay and who will
 
12 actually pay the taxes, protects the right of the person to
 
13 obtain a refund in a successful appeal.
 
14      SECTION 2.  Section 232-1, Hawaii Revised Statutes, is
 
15 amended to read as follows:
 
16      "�232-1 Appeals by persons under contractual obligations.
 
17 Whenever any person is under a contractual obligation to pay a
 
18 tax assessed against another, and the obligation has not been
 
19 contractually transferred from the person to another, the person
 

 
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                                     H.B. NO.           
                                                        
                                                        

 
 1 shall have the same rights of appeal to the board of review and
 
 2 the tax appeal court and the supreme court, in the person's own
 
 3 name, as if the tax were assessed against the person.  The person
 
 4 against whom the tax is assessed shall also have a right to
 
 5 appear and be heard on any such application or appeal."
 
 6      SECTION 3.  New statutory material is underscored.
 
 7      SECTION 4.  This Act shall take effect upon its approval.
 
 8 
 
 9                           INTRODUCED BY:_________________________
 

 
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