Maui County Real Property Tax Insider Tips

Maui County real property tax rates and classifications vary depending on the classification as well as its use. There are a few terms and dates property owners in Maui County should make themselves familiar with. The following is a breakdown of the property tax classes of different types of properties to help clarify Maui County property tax structure and how it affects you.

Zoning has a direct effect on classification and valuation in real property taxes. The second most important factor is keeping to the deadlines outlined in Maui County Municipal Code. If you miss important deadlines it could cost you hundreds to thousands of dollars in property taxes.

If you file a home owners exemption late it will not be accepted by Maui County and you will pay the tax class based on the zoning and/or the previous owners tax classification applicable to that property. If you recently purchased a home and the previous owner had a homeowners exemption you will benefit from the previous owners tax classification until the next tax year. On the other hand, if you purchase a property where the previous owner did not have an exemption it will be based on current zoning and use. You may end up paying more than double the rate by failing to file your Home Exemption Claim form 2018 on time.

The following are the important dates to remember and an explanation of the property tax classes and tax rates for each of those and what it means to you.

Important Dates to Remember

  • December 31
    Deadline for filling exemption claims and ownership documents.
    Deadline for filing circuit breaker applications.
  • January 1
    Assessments set for use during the next tax year.
  • February 20
    Second half of previous half year tax payment due
  • March 15
    Assessment notices mailed
  • April 9
    Deadline for filing tax appeals
  • August 20
    First half year tax payment due

Important Rules to Remember to grant Home Exemption for the upcoming tax year

  • Must occupy property as of January 1, 2018
  • Must file home exemption by December 31, 2017
  • Must file 2016 State of Hawaii Resident Income Tax form – non-residents and part-year 2016 residents do not qualify. Also, if you are elderly, on a fixed income or otherwise not required to file State Income Taxes under State law, Maui County Code requires you to file state income tax forms in order to qualify for the Homeowner Exemption and tax rates.
  • Must pay taxes on-time (by Jan 20 or Aug 20) in order to be eligible to appeal your property taxes.

Descriptions of Land Class

Homeowner

  • All properties and condominiums used as the owner’s principle residence, and
  • Has been granted a homeowners exemption

Residential

  • Vacant and improved non condominium land zoned residential
  • Project district designated for residential use
  • Homes are rented long-term or second homes not rented.

Apartment

  • Vacant and improved non condominium land zoned apartment
  • Project district designated for multi-family use (vacant or improved)
  • Condominium vacant land (without regard to highest and best use)
  • Condominium – second home not rented (without regard to highest and best use)
  • Condominium – rented long term (without regard to highest and best use)

Agricultural

  • Vacant and improved non condominium land zoned agricultural or rural
  • Land not zoned agricultural or rural but dedicated to agricultural production
  • Land zoned agricultural improved with residential dwellings
  • Ag zoned with no agricultural use
  • Homes are rented long term or are second homes and not rented

Hotel/Resort

  • Vacant and improved non-condominium land zoned hotel
  • Zoning allows transient occupancy less than 180 days
  • Grandfathered to allow transient occupancy less than 180 days
  • Condominiums used for transient occupancy less than 180 days

Commercialized Residential

  • A parcel or condominium unit that and been granted a Bed and Breakfast Permit (B&B)
  • A parcel or condominium unit the has been granted a Transient Vacation Rental Permit (TVR)
  • A parcel or condominium unit that has been granted a conditional permit to operate a TVR

Timeshare

  • Condominiums occupied by transient tenants for periods of less than six consecutive months and subject to a timeshare plan
  • Non condominium properties subject to a timeshare plan

Commercial

  • Vacant and improved land zoned commercial
  • Project district commercial (vacant and improved)
  • Industrial and commercial condominiums
  • Condominium units used for business or mercantile activities
  • Permitted short term rental homes

Maui Property Tax Rates Current and Proposed 2018

Rates are per $1000 of home value

Homeowner – 2017 $2.70 | 2018 $2.86
Residential – 2071 $5.30
Apartment – 2017 $6.00
Agricultural – 2017 $5.66
Hotel/Resort – 2017 $8.71 | 2018 $10.37
Timeshare – 2017 $14.31 | 2018 $15.43
Commercialized Residential  – 2017 $4.35

As and example, if you own a condominium valued at $500,000 the current tax rate is $6.00 per $1000 of value ($500,000/1000 x $6.00) and your taxes would be $3000. If you are granted a Homeowner exemption your tax rate would be ($500,000/1000 x $2.70) and you’d pay $1350 in taxes. If you miss the filing deadline for your Homeowners exemption this mistake will cost you $1650.

If you are purchasing or own a property on Maui be aware of the property tax rates that apply based on your zoning and land classification and the important dates to remember and important rules to remember above. As a resident “Homeowner” you may qualify for a homeowners exemption. If you qualify and are granted a homeowners exemption you will receive a $200,000 exemption off of the value of your property plus the Homeowners tax rate listed above. The Homeowner tax rate is more than half of all other tax rates and can represent a substantial amount of money.

Frequently Asked Questions

  1. What is a home exemption?
    The home exemption is a tax relief program that reduces taxable assessed value by $200,000 and reclassifies property for tax rate purposes into the Homeowner class.
  2. What are the qualifications for a home exemption? (Must be met annually)
    a. The owner must occupy the Maui County home for which the exemption is being claimed for more than two hundred seventy (270) calendar days of each calendar year.
    b. Owner must not rent the entire premises for any portion of the year.
    c. Owner must file an income tax return as a resident of the State of Hawaii with a reported address in Maui County the year prior to the effective date of the exemption. Non-resident and part-year resident State of Hawaii income tax returns do not qualify for the home exemption.
    d. The property taxes must not be delinquent.
  3. Why do I have to file a Hawaii Resident Income tax return?
    It is one of the requirements of the County ordinance. It is necessary to qualify for the home exemption, as well as to maintain the home exemption status.
  4. Do I have to file a Hawaii Resident Income tax return if my accountant says I don’t have to file because I don’t have income or didn’t make enough income?
    Yes, it is one of the requirements of the County ordinance. It is necessary to qualify for the home exemption, as well as to maintain the home exemption status.
  5. Do I have to file a Hawaii Resident Income tax return every year?
    Yes, it is one of the requirements of the County ordinance. It is necessary to qualify for the home exemption, as well as to maintain the home exemption status.
  6. Is there a deadline to file a claim for home exemption?
    Yes, December 31 of the preceding assessment year.
  7. When does the exemption take effect?
    The exemption will take effect January 1 after a claim has been filed. take effect on the subsequent July 1.
  8. Do you have to file a claim for home exemption every year?
    No, the exemption will remain in effect unless there is a change in status, such as moving, death, renting the home, or no longer meeting the requirements from question 2 above. Owners have the responsibility to inform the Real Property Assessment Division within 30 days of any change in status. Failure to report a change in status or facts will result in disqualification and a $200 penalty.

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