What's New

DEPARTMENT OF FINANCE, REAL PROPERTY ASSESSMENT DIVISION
2021/2022 PROPERTY TAX RELIEF PROGRAM UPDATES

The Department of Finance would like to inform all County of Kauai real property owners of the changes to the REAL
PROPERTY LEGISLATION as outlined below. FOR DEADLINES -CHECK THE BACK PAGE OF YOUR 2021 ASSESSMENT NOTICE

TAX RELIEF PROGRAMS REQUIRING ANNUAL APPLICATIONS:

  • Very Low Income Tax Credit - owner-occupied properties with current Home Exemption and all titleholders who have a combined GROSS INCOME not exceeding a maximum set each year, may be eligible for property tax relief, limiting total real property taxes to 3% of the GROSS INCOME or Minimum Tax, whichever is higher.
  • Additional Home Exemption for Low Income - owner-occupied properties with a current Home Exemption where the combined GROSS INCOME from all household members is at or below 80% of the Kaua'i Median Household Income as determined annually by the department of Housing and Urban Development. Previous Year Additional Low Income Exemptees MUST RE-APPLY for 2022
  • Home Preservation Tax Limitation - owner-occupants with property value of $750,000 or more after deducting exemptions, gross income of ALL titleholders does not exceed $100,000 documented by Federal Internal Revenue Income Tax Return and State of Hawai'i Income Tax Return, taxes are computed at 3% of total gross income.
  • Long Term Affordable Rentals - residences rented for one-year or longer and at rent levels that do not exceed the affordable rental rates established by HUD and reported by the Kaua'i Housing Agency based on 90% of the Kaua'i Median Household Income. Exceptions to Annual Filing for those Qualified under Ordinance 1053 (5/8/2019)
CHANGES TO REAL PROPERTY TAX OUTLINED BELOW:
  • Ordinance 1078 - Exemption for Residential units in a Mixed Use Building - The ordinance provides an incentive for property owners to provide residential units within Commercial buildings. See Kauai County code Sec. 5A-11.32 for further details.
  • Ordinance 1057 - Definition of "Owner" expanded - "for purposes of assigning a real property tax rate classification under Section 5A-6.4(a)(8) (Homestead) or (a)(10) (Commercialized Home Use), or considering an exemption under Section 5A-11.4 (Homes), 5A-11A.1 (Long-Term Affordable Rental), or 5A-11.29 (Kuleana Land), to include A family member of any owner listed on the title of the property who died intestate where no owner listed on the title is living, or a family member of a person who may have a potential claim to the property where the Director determines that no property owner of record has been established, provided that, for purposes of this definition: "Family member" means a person who is related by blood, adoption, marriage, or as a step-relative‚Ķ"
  • Ordinance 1044 - "Claim" for Home Exemption - Allows for retroactive approval and reinstatement of a home exemption, appropriate tax rates and assessment cap of an owner occupant that was benefiting from a home exemption of a co-owner occupant that is now deceased provided that the owner would have independently qualified for the home exemption at the time of death. See Kauai County Code Sec. 5A-1.1 for further details.
RECENT CHANGES TO REAL PROPERTY TAX THAT WILL TAKE AFFECT FOR 2022 TAX YEAR:
  • Bill 2803, passed by Council on October 23, 2020 and signed into law on October 30, 2020 - This Bill amends the Home Exemption law to require the owner of a home to occupy the residence for more than 270 days, file an income tax return as a resident of the State of Hawaii with a reported address in the County the year prior to the effective date of the exemption and possess either a valid Hawaii State driver's license, Hawaii State identification or a resident alien claiming residency only in Hawaii with an address in Kauai. For further information see the Basic Home Exemption Claim Form, Rules and Policy on the Real Property website at: www.kauai.gov/RealProperty/TaxRelief