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Real Property Exemption Reminder
By Carol C. Cummings, R/CRS/GRI/SRES
Origin of the “Exemption”
Actually, the first home exemptions were created by the Republic of Hawaii in 1896, which wanted to encourage “settlement of the land” and home ownership for the people of the republic. To provide the very first tax relief over 100 years ago, Hawaii granted a $300 exemption off the valuation of the property value, and thus lowered the taxable valuation.
Exemptions and You
This concept continues today with the County of Kauai Real Property Division. Presently, exemptions offered 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.
Are You qualified?
You are entitled to the home exemption if:
1) You own and occupy the property as your principal home. Intent to reside in the county may be evidenced by, but not limited to, the following criteria: occupancy of a home for 270 calendar days of a calendar year; registering to vote in Kauai County; being stationed in the county under military orders of the United States; and filing of an income tax return as a resident of the State of Hawaii, with residence address of the subject property.
2) Your ownership must be recorded at the State of Hawaii Bureau of Conveyances, on or before December 31 of the preceding tax year for which you claim the exemption. In the case of a lease, the document must indicate that the lessee has a lease for residential purposes for a term of five years or more and will pay all property taxes;
3) You file a claim for home exemption (Form P-3) with the Real Property Assessment Division on or before December 31 preceding the tax years for which you claim the exemption.
Filing for the Exemption
To receive an exemption you qualify for during the fiscal tax year beginning July 1, you must apply for the exemption by December 31st of the preceding year. All exemptions, except for the income 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 so that the exemption can be removed. You must present the Claim for Home Exemption Form P-3, along with proof of age (Driver’s License, Birth Certificate, etc.) to the County of Kauai Real Property Division. The proof of age will allow the county to automatically grant you additional exemptions when you reach age-qualifying “milestones”. It is strongly recommended that a written acknowledgement of the claim is obtained and retained by the applicant.
Check the Assessment Card
When the real property assessment card arrives on or about March 15th, the exemption will be noted and subtracted from the assessed value of your residence, thereby reducing the actual real property taxes due and payable in the upcoming fiscal year.
Old and New Alike
This reminder is intended for Kauaians who purchased principal residences in 2007, but may be helpful for longtime residents who might have not previously applied for the exemption they are entitled to. Happy New Year!
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