Maui Property Tax Tips

Maui real property tax rates and classifications vary by class and use. The following is an explanation of the property tax classes of different types of properties to help you understand Maui County Real Property Tax Assessment and how it affects your property taxes.

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 Code. If you miss important deadlines and due dates it could cost you hundreds or thousands of dollars in additional property taxes you will have to pay. If you file a home owners exemption late the Homeowner classification will be disqualified. If you recently purchased a property and the previous owner had a homeowners exemption you may benefit from the previous owners tax classification for a period of time until the next tax year. On the other hand, if you purchased 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 formo 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.

• December 31 Deadline for filing 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

What is a home exemption and what do I need to do to qualify?

• Must occupy the Maui County Home for which the exemption is being claimed for more than two hundred seventy calendar days of each calendar year.
• Must not rent the entire premises for any portion of the year.
• Must file an income tax return as a resident of the State of Hawaii with reported address in Maui County the year prior to the effective date of the exemption. Non-resident and part-year resident State of Hawaii tax returned do not qualify for the home exemption. 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 and Land Class (Zoning)

Residential

• Second homes and homes rented for 6 months or longer
• Vacant and improved non condominium land zoned residential
• Project district designated for residential use

Apartment

• A dwelling unit occupied by the owners for personal use, or by a lessee for a term of six consecutive months or more.
• Condominiums are classified upon consideration of their actual use (Apartment, Commercial, Hotel / Resort, Timeshare, Homeowner).
• 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)

Commercial

• A unit occupied by the owner or lessee for business or mercantile activities.
• 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

Industrial

• A parcel or condominium unit that zoned for industrial uses.

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

Conservation

• A parcel or condominium unit that is zoned conservation.

Hotel and 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

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

Homeowner

• A dwelling unit owned and occupied by the owner as a principal home and for which a home exemption claim was filed and granted.

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

Short Term Rental

• Lodging and dwelling units occupied by transient tenants for periods of less than six consecutive months including properties granted a short-term rental home permit, transient vacation rental permit, bed and breakfast permit, or conditional permit allowing transient vacation rental use, unless classified as "time share," "hotel and resort," or "commercialized residential."

Maui Property Tax Rates 2018
(per $1000 of home value)

• Residential - $5.52
• Apartment - $6.31
• Commercial - $ 7.25
• Industrial - $7.45
• Agricultural - $5.66
• Conservation - $6.35
• Hotel and Resort - $9.37
• Timeshare - $15.41
• Homeowner - $2.85
• Commercialized Residential - $4.55
• Short Term Rental - $9.28

As and example, if you own a condominium valued at $500,000 the current tax rate is $6.31 per $1000 of value ($500,000/1000 x $6.31) and your annual taxes would be $3155. If you are granted a Homeowner exemption your tax rate would be ($500,000/1000 x $2.85) and you'd pay $1425 in taxes annually. Yes, Maui's property tax rates are low for homeowners. 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.