If you became a Kaua`i property home owner this year, or if you own your home but have never applied for a Kaua`i County Homeowner’s exemption, you have until the end of this calendar year to file an exemption request with the real property division.

The exemptions offered are deducted from a property’s assessed value, and hence, reduce taxes due on owner occupied residences. The basic home exemption is $48,000. There is a double exemption ($96,000) for home owners over 60 years of age, and increased to 2.5x ($120,000) for owners over 70. Other exemptions are provided for totally disabled veterans, owners with disabilities, and owners meeting limited income criteria. In rare cases, the total exemptions may exceed the value of the property. The property owner would be subject to the minimum property tax, currently $25.00.

Exemptions are realized during the tax (fiscal) year, but must be filed for the by December 31^st of the preceding year. All exemptions, except for the income-based exemption, need to be filed for only once. You are required to produce proof of age, such as a valid driver’s license or birth certificate, on your initial filing for an exemption. The County makes note of your age, and when the appropriate age rolls around (60, then 70), you will be “good to go” with your additional exemption. If you do not live in the house that was previously entitled to a home owner’s exemption, your property no longer qualifies for an exemption, and it is your civic duty to notify the Real Property Tax Division.

Each year the County Council of Kauai establishes the real property tax rates for the fiscal year. There are separate rates for building and land. The total valuation of your property, minus any exemptions, will establish the taxable value of your property. The net assessed value (per every $1,000) is then multiplied by the appropriate rate. There are different rates for the following property classes: Homestead, Single Family Residential, Apartment, Commercial, Industrial, Agricultural, Conservation, & Hotel and Resort.

One important note: the annual increase in taxes is currently limited by the 2% Permanent Home Use Exemption.