LĪHU‘E, HI – October 22, 2009 – (RealEstateRama) — County officials are encouraging homeowners to take advantage of the county’s real property tax relief programs.
“We want 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 Director of Finance Wallace Rezentes, Jr.
The deadline to apply for most of the tax relief programs is Dec. 31, 2009.
The Home Exemption program entitles homeowners who own and occupy their property as their principal residence to a $48,000 deduction from their property assessment. At ages 60- 69, the amount for this exemption doubles to $96,000, and for those 70 and older, the exemption is $120,000.
Once a claim for the Home Exemption is filed, no additional action is required on the part of the homeowner unless he has a change in status.
Another tax relief program is the Additional Home Exemption Relating to Owner- Occupants’ Income, which would enable a homeowner to shave an additional $55,000 deduction from the property assessment. To qualify for this, a homeowner’s adjusted gross income for 2008 must have been $40,000 or less. An annual filing is required for this program.
The Circuit Breaker Tax Credit program is designed to assist residents whose annual household income is not keeping pace with real property values, and limits their taxes to three percent of their total household adjusted gross income, but not less than their 2001 tax bill.
To qualify for the Circuit Breaker Tax Credit, a homeowner must apply for this tax credit and have a Home Exemption on file with the Real Property Assessment Division or apply for one by Dec. 31, 2009. There is an annual filing requirement for this program.
Another relief program is for property owners who are using their property as a long-term affordable rental. This would cap their property taxes at six percent over the amount they paid in the previous year.
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 2004 Affordable Rental Guidelines for the County of Kaua‘i. An annual filing before the last day of each calendar year is required for this program.
Other tax relief programs include: Deployed Active-Duty Military Personnel; Totally Disabled Veterans; Kuleana landowners; and Persons who are vision- or hearing-impaired, totally disabled or affected with Hanson’s Disease.
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.
WALLACE REZENTES, JR., DIRECTOR
Tel (808) 241-4200
Fax (808) 241-6529