Maui County Tax Exemptions that can Save Homeowners Money
Rising mortgage rates, increasing home prices, and inflation of several different products are at the forefront of many people's minds right now, especially when considering a home purchase. This is why many Maui potential homebuyers are searching for any way possible to keep housing costs down.
The good news is there are a couple of ways to save some money and a home purchase in Maui and Maui County. One of the most helpful ways is to utilize tax relief programs available to homeowners in the state of Hawaii and in Maui county. In Hawaii, tax relief programs can vary from island to island. These tax exemptions are available to anyone that owns a property in Maui County.
The homeowner exemption
This helpful program can reduce the taxable assessed value of a property by up to $200,000. This exemption is only applicable to homeowners that live within a property as their primary first home. This means that the home owner must occupy the property as their first primary residence and live within it for the majority of the year. They must have also filed at least two years of Hawaii state property taxes back to back.
The Maui County long-term rental exemption
Another helpful tax exemption program available to property owners in Maui County Hawaii is fairly new to the area. This new tax exemption offers potential savings to both residents of Hawaii and non-residence. This is reserved for property owners who rent their property for long-term purposes.
To qualify for the long-term rental exemption the property owner must rent to at least one tenant for 12 or more consecutive months. The property owner must retain a signed long-term lease contract that reflects and proves these terms. The property owner must not owe any back property taxes. The tax exemption will only be applied to residential properties and not commercial or industrial properties.
If you are interested in benefiting from this tax exemption program for the year 2022 the application must be filled out no later than December 31, 2022. You will want to head over to the Maui County real property tax website and fill out this application as soon as possible. You will also need to attach a signed copy of the executed rental contract. If your application is approved the tax exemption will go into effect on January 1 of the upcoming assessment year.
It is recommended that once you fill out your application that you turn it in in person to the department of finance located at 110 Ala'ihi Street suite 108 in Kahului. This is very helpful and beneficial news for anyone who owns property in Maui County but is not a resident of Hawaii. It can also help encourage property owners to rent out to Maui residents looking for affordable long-term housing.
Is it possible to combine the two tax exemptions in Maui County?
If a resident of Hawaii owns multiple properties in Maui County it can be possible to claim both of these tax exemptions. They would qualify for a $200,000 rebate on their owner-occupied property and would additionally be able to qualify for up to $100,000 for each tenant-occupied property with a long-term rental contract. These long-term property exemptions are applicable to more than one property as long as they are located on separate lots of land.
Of course, with any tax filing, it is always highly advised that you seek professional tax advice for your personal filing strategy. We are in no way tax experts in our only sharing helpful information. As far as actually qualifying for exemptions it is always best to check with tax professionals.
For more information on real estate in Maui County please contact us anytime.