(a) The county by ordinance shall provide for the allocation of real property taxes and tax increments in the manner required by this part.

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Terms Used In Hawaii Revised Statutes 46-105

  • Adjustment rate: means a percentage rate or rates of adjustment of the assessment base determined by the director of finance at the time the tax increment district is established, based on the historical and projected increases to the assessed values of taxable real property within the boundary of the tax increment district and the projected cost increases to the county for servicing the new developments within the tax increment district. See Hawaii Revised Statutes 46-102
  • Assessment base: means the total assessed values of all taxable real property in a tax increment district as most recently certified by the director of finance on the date of creation of the tax increment district. See Hawaii Revised Statutes 46-102
  • Assessment increment: means the amount by which the current assessed values of taxable real property located within the boundaries of a tax increment district exceeds its assessment base. See Hawaii Revised Statutes 46-102
  • county: includes the city and county of Honolulu. See Hawaii Revised Statutes 1-22
  • district: means a contiguous or noncontiguous geographic area designated pursuant to § 46-103 by the county council for the purpose of tax increment financing. See Hawaii Revised Statutes 46-102
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Principal: means a person who has entered into a development agreement pursuant to the procedures specified in this chapter, including a successor in interest. See Hawaii Revised Statutes 46-122
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Tax increment: means the amount of real property taxes levied for one year on the assessment increment. See Hawaii Revised Statutes 46-102
  • Tax increment fund: means a fund which shall be held by the director of finance or other fiduciary designated by the county council and into which all tax increments and other moneys pledged by the county for payment of tax increment bonds are paid, and all proceeds from the sale of tax increment bonds are deposited, and from which moneys are disbursed to pay project costs for the tax increment district or to satisfy claims of holders of tax increment bonds issued for the district. See Hawaii Revised Statutes 46-102
(b) If a county exercises the power allowed under this part, then commencing with the first payment of real property taxes levied by the county subsequent to the time a tax increment district takes effect, receipts from real property taxes shall be allocated and paid over as follows:

(1) The amount of real property tax produced from the assessment base shall be paid to the county general fund; and
(2) The tax increments produced from the assessment increment in the tax increment district shall be applied as follows:

(A) First, an amount equal to the installment of (i) principal and interest falling due of any tax increment bonds, or (ii) any project cost approved by the county, shall be deposited into the tax increment fund established for the tax increment district.
(B) Second, an amount equal to the adjustment rate times the amount of real property tax produced from the assessment base shall be computed and paid to the county general fund.
(C) Third, the remaining amount of tax increments, if any, shall be deposited into the tax increment fund established for the tax increment district.
(c) The allocation of real property taxes pursuant to this part shall in no way limit the power of the county under section 47-12 to levy ad valorem taxes without limitation as to rate or amount on all real property subject to taxation by the county for the payment of the principal and interest of its general obligation bonds.