General Info

REAL PROPERTY TAX POWERS

     The four counties of Hawaiʻi were given the real property tax system in 1981 after voters approved a constitutional amendment transferring the responsibility for property valuation, exemptions, and tax collection from the State of Hawaiʻi, over to its four counties.

 VALUE

     Beginning in 1983, the need to insure “truth in taxation” brought a major change in the methods of assessing properties. In earlier years, properties had been assessed at 60% of fair market value. In 1983, real property began to be assessed at 100% of the fee simple fair market value, making it easier for homeowners to comprehend the actual value of their property.

FAIR MARKET VALUE

     The responsibilities of the Real Property Division are locating, identifying, classifying and appraising property at fair market value, in addition to the approval of property tax exemptions. Market value, or the price a property would likely sell for in a competitive market under normal conditions, is the standard used to measure equity in assessments. Great strides have been made to improve the methods used to assess properties in a uniform and fair manner.

     Property owners are encouraged to visit the Real Property Division located at 4444 Rice Street., Suite 454, Līhuʻe, HI. Individuals may inspect property records at the front counter or discuss property assessments with a county appraiser.

APPRAISING YOUR PROPERTY

     There are approximately 35,000 taxable parcels in the County of Kauaʻi, and a limited number of County appraisers. A personal inspection of a property is normally undertaken only at the time of construction or remodeling and then every 4-6 years thereafter, according to the International Association of Assessing Officer’s Standards. “Mass Methodology” and “Market Modeling” are used to annually update property value. The appraisal process continues throughout the year, but the property values established by the Real Property Division as of October 1 constitute the property value which will be used during the following fiscal year, which begins July 1.

HOMEOWNERS EXEMPTIONS/TAX RELIEF

     As a property owner you should be aware that there are homeowner’s tax exemptions & property tax relief programs which may reduce your property tax, providing you apply with all requirements by September 30 preceding the tax year.

CLAIM FOR HOME EXEMPTION

     Homeowners or lessees, defined as Homeowners under Chapter 5.A-11.4 (a) and who are up to 60 years of age, will be eligible for a home exemption of $220,000. Homeowners between the ages of 60 and 70 will receive $240,000 which will automatically increase to $260,000 for homeowners aged 70 and over. NOTE: You are required to contact the Real Property Assessment office should you change your status, such as moving, renting and/or using any portion of your residence as a business, within 30 days.

ADDITIONAL HOME EXEMPTION BASED ON INCOME

     Properties receiving homeowner’s exemption may be eligible for an additional $120,000 tax credit for low-income, provided the annual gross income of all owner occupants do not exceed 80% of the Kaua‘i Median Household Income as published annually by the Kauaʻi Housing Agency. ANNUAL FILING IS REQUIRED.

VERY LOW-INCOME TAX CREDIT

     Homeowners whose household incomes do not exceed 50% of the Kauaʻi Median Household Income published by the Kaua‘i Housing Agency for the calendar year preceding the application, shall be entitled to a credit equal to the difference between the calculated taxes and 3% of gross household income. Owners must have a current home exemption, taxes must be current, and the amount of credit cannot result in lowering the annual property taxes below the $75.00 minimum tax. ANNUAL FILING REQUIRED.

HOME PRESERVATION LIMIT

     Homeowners who meet the criteria in Subsection 5A-11A.2 (c) shall pay real property taxes at the higher of an amount equal to 3% of the combined gross income of all owners or $500.00. To be eligible, owners must have maintained a home exemption for not less than 10 years, cannot own other real property, and must have combined gross income of $200,000 or less. ANNUAL FILING REQUIRED.

LONG-TERM AFFORDABLE RENTAL

     Any owner of real property that is rented or leased as a long-term affordable rental may be eligible to receive the 3% assessment cap as well as Owner-Occupied or Long-Term Affordable rental rate as provided in Sec. 5A-6.4 provided that all dwellings on the property are long-term affordable rentals or owner-occupied. Rent levels must not exceed the affordable rental rates established by HUD and reported by the Kaua'i Housing Agency based on 90% of the Kauaʻi Median Household Income.

DISABILITY EXEMPTION

     Any homeowner who is blind, deaf or totally disabled shall be exempt up to $50,000 in addition to the homeowner’s exemption. Any person who is a disabled Veteran and is less than 80% disabled due to injuries received while on duty as a member of the United States Armed Forces shall, so long as he or she is disabled, be exempt of up to $50,000. Applicants must file a P-6 form.

DISABLED VETERAN EXEMPTION

Real Property for which a home exemption under Section 5A-11.4 has been established by a veteran who is 80% to totally disabled due to injuries sustained while on duty as a member of the United States Armed Forces shall be exempt from all property tax (with the exclusion of multi-unit properties) except the minimum tax of $150. Qualified Additional Income Exemption filings are eligible for the discounted minimum tax of $75. Veterans must file a claim on Form P-6. The tax credit will be valid if the veteran claiming the exemption remains totally disabled. Following the death of the disabled veteran, the surviving spouse, civil union partner, or reciprocal beneficiary may continue to receive this tax credit on the real property for which a home exemption has been established.

ASSESSMENT CAP

     Starting in 2017, properties classified as Owner-Occupied or Owner-Occupied Mixed-Use for two consecutive years, have retained the same ownership, and not initiated any property characteristic changes shall have their assessed values limited to increases of 3%.

REAL PROPERTY DOES NOT AUTOMATICALLY GRANT HOMEOWNER EXEMPTIONS.

     Completing a Use Survey does not mean you will get the homeowner exemption or the Owner-Occupied tax rate. To be eligible, individuals must file an exemption claim with all requirements met on or before September 30 for consideration. If approved, you do not need to apply annually. The additional exemption for age will occur when the eldest exemption applicant reaches the exemption age milestones.

TAX MAP KEY IS IMPORTANT

     Homeowners should know their tax map key number, which is also referred to as Parcel ID number. Real property is mapped and indexed numerically according to a tax map key system which identifies property. To expedite customer service, all matters concerning property should be made in reference to the tax map key number.

ASSESSMENT NOTICES

     The intervals when assessment notices are mailed are important to know. Assessment notices are mailed each year by December 1st. Upon receipt of an assessment notice, study it carefully. It lists tax classification, property value, exemptions and net taxable value. If an issue is found or if questions arise regarding an assessment, contact the Real Property Division. Individuals have until December 31 to appeal disputed assessments.