If you are a property owner on Kauai, you received the “NOTICE OF PROPERTY ASSESSMENT-2007” via USPS mail. Therefore, this is a great time to review Kaua`i’s real property tax procedures.

Real Property Assessment Notices. By March 15^th each year, the County of Kauai Real Property Tax Division mails out the annual real property assessment cards to all Kauai property owners.

A Wealth of Information. Before you toss the card, take some time to note the information included on this card. Notably, the card lists land classification, assessed value of land, assessed value of any buildings, exemptions granted to you, and finally, net taxable value. The 2007 Notice of Property Assessment includes the current year’s assessed valuation, as well as the 2006 (prior year) assessed valuation, which provides a quick comparison reference for the property owner.

Got questions? If you find any error, or have any questions regarding the information on the assessment card, it is your responsibility to contact the Real Property Division at 4444 Rice Street, Suite A-454, Lihu`e, HI 96766, or telephone 241-6222. Likewise, if you did not receive your assessment card last month, contact the Real Property Division, as it is possible the owner’s address on file with the County of Kauai is incorrect or no longer used.

Exemptions and you. There are exemptions offered, which are deducted from assessed values, and hence, reduce taxes due on owner occupied residences. The basic home exemption is $48,000. There are multiple exemptions for home owners over 60 years of age, and increased again for owners over 70. Other exemptions are provided for totally disabled veterans, owners with disabilities, and owners meeting. To receive an exemption you qualify for during the tax year, you must apply for the exemption by December 31^st of the preceding year. All exemptions, except for the inco exemption, need to be filed for only once. When your property no longer qualifies for an exemption, it is your civic duty to notify the Real Property Tax Division.

Appealing your Property’s Value Assessment. If you disagree with the value assessment assigned to your property, you may file and appeal usually by April 9^th. You may choose to have your appeal heard by the Board of Review, which is comprised of a 5-person citizen panel, and costs $10.00 to file an appeal. You may also file your appeal with the Small Claims section of the State Tax Appeal Court for a $25.00 non-refundable deposit, or the Tax Appeal Court for a $100.00 non-refundable deposit. Please note, you must provide documentation to support your claim that one of the following applies:

While your appeal is being processed, you are still responsible for taxes due and payable.

Tax Rates. Tax rates are set annually by the Kauai County Council, based on budget needs, no later than June 20^th each year, for the tax year which commences on July 1. The rate is based on class of property, and there is a separate rate for buildings and land.

Taxes Due. Kauai real property taxes are due on August 20^th, for the period of July 1st to December 31^st. The second tax payment is due on February 20^th, for the period of January 1^st to June 30^th. Some mortgage companies and banks collect escrow funds monthly with the mortgage payments and make the tax payments on behalf of the customers. The lender is then assured that the customer (property owner) is not delinquent on the tax payments.