Deadline Approaches to File Tax Exemptions

The deadline to file tax exemptions for the 2022 Real Property Assessment is Sept. 30, 2021.

If you are a primary resident of Kaua‘i and are not currently receiving a home exemption or related tax credit, you may be eligible to file a claim to reduce the real property taxes on your home. To qualify for a home exemption, you must occupy your property as your principal home for more than 270 days, provide a 2020 Full-Time Residency State of Hawai‘i Income Tax Return (form N-11), a Hawai‘i Driver’s License or State ID, and do not hold another primary resident exemption elsewhere.

Other exemptions include totally disabled veterans; persons with impaired sight or hearing and persons totally disabled; charitable organizations; low- and moderate-income housing; property owners with eligible safe rooms; kuleana landowners; and an additional home exemption relating to owner-occupants’ income.

Tax credits include the limitation of taxes for home preservation and the low-income tax credit.

The Long Term Affordable Rental program provides the “Homestead” tax class, the lowest tax rate, for approved property owners who rent their properties at or below 90% of the Kaua‘i median household income as set forth in the Kaua‘i County Housing Agency Affordable Rental Housing guidelines. Property owners now have the option to apply for this program online at https://connect.kauai.gov by Sept. 30.

If there are any questions regarding the continuing status of a multi-year lease agreement, contact the Real Property Assessment office or file prior to Sept. 30.

The Residential Investor tax classification includes properties with dwellings that are valued at over $1.3 million. An owner is required to file a Long Term Lease/Rental Annual Application for all living units on the parcel to qualify for the lower residential tax rate.

Failure to notify the assessor of any change to current tax relief status subjects the property to back taxes and a civil penalty for each year that the change is unreported.

Exemption or tax credit claim forms are available at 4444 Rice St., Suite 454, Līhu‘e, Hawai‘i, 96766 or on the following website www.kauaipropertytax.com (click on “Forms & Instructions”). For additional information, call 808-241-4224.