What's New

2022/2023 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 2022 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.

  • 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 1097 - Amended Changes to Appeal Fees and Electronic Submission
    (a) The notice of appeal must be lodged with the Assessor on or before the date fixed by law for the taking of the appeal by either personal delivery, depositing the appeal in the mail, or by electronic\transmission, provided, however, that a notice of appeal cannot be lodged by facsimile transmission. Personal delivery shall include delivery by private delivery services. Private delivery services are those designated by the Internal Revenue Services. A notice of appeal transmitted electronically, properly addressed to the Assessor, with payment of costs also transmitted electronically, shall be deemed lodged with the Assessor on the date the electronic transmission and electronic payment are electronically received by the server designated by the Assessor to receive appeals and payment of costs transmitted electronically. The cost to be deposited on appeal to the Board shall be seventy-five dollars ($75.00) for each real property tax appeal application. An application shall be filed for each assessment and for each tax appeal year.

  • Tax on Use Rules Amended - changes include: "Living unit" means an apartment, condominium, house, portion of a house, or structure designed or intended for occupancy by a person(s). "Long term rental" means a residential rental agreement for a period of at least one hundred and eighty days. "Vacation rental" includes the renting out or exchange of an apartment, condominium, living unit or house on a temporary basis to a person(s) as an alternative to a hotel for a period of less than one hundred-eighty consecutive days. Engaging or advertising on Home Exchange websites. "Residential Investor" is a classification for properties that do not qualify for the home exemption, are improved with a dwelling unit(s), not vacant land, and have an assessed value of one million three hundred thousand dollars ($1,300,000.00) or more. This class does not include a property where all living units are rented on a long term rental basis. In order for property to be excluded from the Residential Investor tax class the Owner must submit an application before Sept 30 th .
Application forms shall be made available at the Real Property Assessment Division Office or can be downloaded from the web at www.kauaipropertytax.com OR Connect.Kauai.gov OUR NEW ONE-STOP County Business Account Site. For more information & to inquire for other available tax credit & exemption programs, visit our website or contact the Real Property Assessment Division at 4444 Rice Street, Suite A-454, Lihue, Hawaii, 96766 or call (808) 241-4224.