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HomeMy WebLinkAboutNR04-27-17-B C O U NT Y O F KAU A‘I BERNARD P. CARVALHO JR. Mayor WALLACE G. REZENTES JR. Managing Director DEPARTMENT OF FINANCE News Release April 27, 2017 KEN M. SHIMONISHI, DIRECTOR Tel (808) 241-4200 Fax (808) 241-6529 Reminder: Tax relief programs available for Kaua‘i homeowners LĪHU‘E – County officials are encouraging homeowners to take advantage of the county’s real property tax relief programs. “We would like to remind everyone that there are a number of tax relief programs available to Kaua'i homeowners and urge them to apply for these programs,” said Finance Director Ken Shimonishi. The deadline to apply for most of the tax relief programs is Sept. 30, 2017. The Home Exemption program entitles homeowners who own and occupy their property as their principal residence to a $160,000 deduction from their property assessment. For those between the ages of 60 and 69, the amount for this exemption is $180,000. For those 70 and older, the exemption is $200,000. Once a claim for the Home Exemption is filed, no additional action is required on the part of the homeowner unless there is a change in status. Another tax relief program is the Additional Home Exemption Relating to Owner- Occupants’ Income, which would enable a homeowner to reduce their net assessed values by an additional $120,000. To qualify for this, a homeowner’s gross income for 2016 must have been $63,400 or less. Owner-occupants with a gross income equal to or less than $39,600 may qualify for the Very Low Income tax credit program. This would allow them to pay 3 percent of their gross income in lieu of property taxes if the amount is lower than the calculated market taxes after all exemptions have been applied. Annual filings are required for this program. The Home Preservation Limit program is designed to assist residents who reside in high- value neighborhoods where increased values have significantly outpaced their annual income. This program is available for owner-occupants that have owned their property for at least 10 years, are eligible for the Homestead tax rate, have a net assessed value of $750,000 or more, do not own other real estate, and where the combined gross income of all titleholders is $100,000 or less. Another tax relief program is for property owners who are using their property as long- term affordable rentals. This program allows participants to have their rentals be classified as Homestead, which has the lowest tax rate. To be eligible for the Long Term Affordable Rental tax relief program, the rental property must be rented or leased for a minimum of one year at a rate that meets the requirements of the affordable rental guidelines for the County of Kaua‘i that are established by the Kaua‘i Housing Agency. Other tax relief programs include: Totally Disabled Veterans; Kuleana landowners; and Persons who are vision- or hearing-impaired, totally disabled or affected with Hanson’s Disease. Property owners are also encouraged to complete the property use surveys as tax classifications are based on use. Applications for all tax relief programs can be downloaded from the county’s website, www.kauai.gov or www.kauapropertytax.com. Paper applications are also available at all neighborhood centers on the island and at the Real Property Assessment office located in the Kapulē Building at the Līhu'e Civic Center. For more information or to inquire about additional exemptions, please contact the Real Property Assessment Division at 241-4224.