County officials are encouraging homeowners to take advantage of real property tax relief programs. In a letter mailed last week to homeowners, county officials said the programs will result in significant tax savings to those who qualify when next year’s
County officials are encouraging homeowners to take advantage of real property tax relief programs.
In a letter mailed last week to homeowners, county officials said the programs will result in significant tax savings to those who qualify when next year’s tax bills are mailed in July if they apply for the exemptions.
“We want to remind everyone that there are five tax relief programs for homeowners and the deadline to apply for them is Dec. 31,” John Herring, real property tax manager for the County of Kaua‘i, said in a Department of Finance release.
One of the tax relief programs, Home Exemption, entitles homeowners who own and occupy their property as their principal residence to a $48,000 deduction from their property assessment. At ages 60 to 69, the amount for this exemption doubles to $96,000, and for those 70 and older, the exemption is $120,000.
Once a claim for Home Exemption is filed, no additional action is required on the part of the homeowner unless there is a change in status.
Another tax relief program is the Additional Home Exemption Relating to Owner-Occupants’ Income, which would enable a homeowner to shave an additional $55,000 deduction from the property assessment. To qualify for this, a homeowner’s adjusted gross income for 2005 must have been $40,000 or less. Annual filing is required for this program.
The Permanent Home Use Dedication program caps a homeowner’s 2007 property taxes at two percent above the amount of his 2006 tax bill. To be eligible for this, a homeowner must already have a Home Exemption on file with the county’s Real Property Assessment Division or apply for a Home Exemption by Dec. 31.
Once a homeowner files a Home Exemption, the parcel will automatically be enrolled in the Permanent Home Use Dedication program.
Another tax relief program is the Circuit Breaker Tax Credit. This program assists residents whose annual household income is not keeping pace with rising real property values by limiting their taxes to three percent of their total household adjusted gross income, but not less than their 2001 tax bill.
To qualify for the Circuit Breaker Tax Credit, a homeowner must apply for this tax credit and have a Home Exemption on file with the Real Property Assessment Division or apply for one by Dec. 31. There is an annual filing requirement for this program.
The last tax relief program is for property owners who are using their property as a long-term affordable rental. This would cap their property taxes at six percent over the amount they paid in the previous year.
To be eligible for the Long Term Affordable Rental tax relief program, the rental property must be rented or leased for a minimum of one year at a rate that’s less than of 120 percent of the 2006 Affordable Rental Guidelines for the County of Kaua‘i. An annual filing before the last day of each calendar year is required for this program.
Applications for all tax relief programs are available at neighborhood centers around the island, the county’s Real Property Assessment Division or oat www.kauai.gov/taxforms.
For more information, contact the Real Property Assessment Division at 241-6222.
