It’s that time again: Kauai Property Tax Use Forms are Due!

September 30th is the annual deadline for submitting your Kauai property tax use and exemptions forms. Don't miss the date.

Do you think you pay too much in property taxes? You might be right! Take a minute to open this map and find your property:
https://kauaigis.maps.arcgis.com/apps/instant/sidebar/index.html?appid=f88686a2ee5345769db6caed17b82625.
If you are a full-time Kauai resident living in your property and it is not yellow or orange on this map you are probably paying TOO MUCH property tax. Yikes! Here’s how you fix it.

The deadline to file your Kauai County Property Tax forms is September 30th. These forms are used to determine your correct property tax liability. It is important to complete them accurately, with the right documentation, and on time. The information you submit (or fail to submit) will affect the amount you pay in property tax for the next 18 months and could affect how much the next owner of your property pays in property tax too.

The easiest way to file is online at connect.kauai.gov. Click on the Real Property Department link and you will be prompted to login. If you’ve never used the site you will need to create an account. The next step is to click on the Real Property Department link, and then click on the form type that you need to complete. If your property wasn’t Yellow or Orange you will want to complete the Property Use Survey, and the Claim for Home Exemption. You may also qualify to apply for additional exemptions.

Three of the most common exemptions are the Basic Home Exemption, the Additional Age Exemptions, the Additional Home Exemption Based on Income, and the Long-term Affordable Rental Program.

Every Kauai homeowner who lives in their home or condo for 270 days per year as their principal residence should be aware of The Basic Home Exemption. This basic home exemption reduces the taxable value of the property by $160,000. When applying for this exemption you must submit a copy of your Kauai Driver’s License and a copy of your Hawaii State Tax return. If you’ve applied for the basic home exemption previously, it is not necessary to apply every year.

The Additional Age Exemption is for homeowners over the age of 60. Homeowners between the ages of 60 and 70 years are eligible for an additional $20,000 of exemption for a total of $180,000.  Homeowners over the age of 70 get another $20,000 for a total of $200,000 in homeowners exemptions. Only one of the homeowner’s needs to meet the age requirements to qualify. 

The Additional Home Exemption Based on Income grants an additional $120,000 of exemption for Low-Income provided the gross household income does not exceed 80% of the Kauai Median Household Income as published annually by the Kauai Housing Agency. Add this to the Basic Home Exemption for a $280,000 total exemption. If you are 70 or older and qualify for this you would get $320,000 in exemptions! This exemption must be reapplied for by September 30th of every year.

For homeowners who are not living in their Kauai residence, or are renting a portion of their property out to others, there’s another tax break opportunity. By offering affordable rent for a minimum of a one year term the owner can qualify for the Homestead Tax rate (renting a property, or a portion thereof, usually changes your tax rate to the commercialized residential or residential tax rate). The rent must be kept below a determined amount to qualify for this exemption/program. This must be applied for annually, by September 30th, and a copy of the rental contract must be submitted as well.

There are several other more rare exemptions available. To see what additional property tax exemptions you may qualify for check out the county’s Exemption/Tax Relief Information page at https://www.kauai.gov/Government/Departments-Agencies/Finance/Real-Property-Tax/Assessment/ExemptionTax-Relief-Information.

It is important to remember the September 30th date because there is very little wiggle room for appeals to property taxes, especially when it comes to tardiness. If you receive your tax bill in December and don’t see the exemptions you applied for being applied properly you have only until December 31st to make an appeal. And after that date you are stuck with the rate you’ve been given. Your first bill will come out in February and be due in August, and your second installment will come out in August and be due in February. If you’re following that timeline you see that your September adjustments don’t hit your pocketbook until the following August and don’t let up until the February after that.

Don't wait until the last minute to complete your forms, and if at all possible complete them online. If you complete them online a copy of your forms is saved in your account. If this is all stressing you out and you’re not sure how to complete your Property Tax Use Forms without messing it up, you can research more online at https://www.kauai.gov/Government/Departments-Agencies/Finance/Real-Property-Tax, or talk to a person at the Kauai County Real Property Tax office at (808)241-4224.

Here are few last tips for as we approach the September 30th deadline:

• Want to see what exemptions you are getting? Check your address on the Property Assessor’s site here: https://qpublic.schneidercorp.com/Application.aspx?AppID=986&LayerID=20101&PageTypeID=2&PageID=8742
• For more info on property taxes check out the Understand Your Real Property Taxes, county pamphlet: https://www.kauai.gov/files/assets/public/v/1/finance/documents/understanding-rptaxes-8.23.22.pdf
• And, General Info - Understanding Real Property Taxes, county website at: https://www.kauai.gov/Government/Departments-Agencies/Finance/Real-Property-Tax/Assessment/General-Info
• For more information about Kauai property taxes and how they are charged visit: https://www.kauai.gov/Government/Departments-Agencies/Finance/Real-Property-Tax/Assessment
  

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