LIHU‘E — Depending on current assessments, some people’s property tax bills will rise, some will fall, based on rates approved Thursday by the Kaua‘i County Council’s Budget and Finance Committee. The resolution setting real property tax rates for the fiscal
LIHU‘E — Depending on current assessments, some people’s property tax bills will rise, some will fall, based on rates approved Thursday by the Kaua‘i County Council’s Budget and Finance Committee.
The resolution setting real property tax rates for the fiscal year starting July 1 was unanimously approved by the committee in a special meeting in the Council Chambers at the Historic County Building.
The proposed RPT rates are the same for 2009-2010 as they were for 2008-2009, said Daryl Kaneshiro, committee chair.
The resolution and operating and capital improvement project budgets, also approved unanimously by the committee Thursday, are scheduled to be approved by the full council at a special meeting around 8:45 a.m. Wednesday in the Council Chambers, following an 8:30 a.m. public hearing on Mayor Bernard Carvalho Jr.’s modifications to the budgets.
The rate of $3.44 per $1,000 of assessed value for buildings and $4 per $1,000 of assessed value for land in the homestead class means a house and lot assessed at a total of $587,600 (after a $48,000 basic home exemption as a sole full-time residence for a Kaua‘i resident) will have an RPT bill of just under $2,112 for the 2009-10 fiscal year (ending June 30, 2010).
In this real-life case, the county assessment on the land (9,083 square feet) dropped to $300,000 from $331,600 last year, and the assessment on the building (around 2,100 square feet, five-bedroom, three-bath) in Puhi rose from $304,000 last year to $313,100 this year.
Officials with the county Department of Finance Real Property Assessment Division said some property owners’ assessments rose this year compared to last year and some fell.
Tax bills will rise or fall depending on those assessments.
In order to calculate RPT bills, divide the assessed value of building and land (separately as listed on RPT assessments mailed to homeowners in mid-March) by 1,000, then multiply by the tax rates as approved by the County Council for the appropriate classification (see chart).
The RPT certification, provided to the County Council earlier this month, shows property subject to county taxation valued at over $18 billion, with estimated RPT revenues of $90.6 million.
That $90.6 million represents over 58 percent of the total revenue necessary to balance the county’s $154 million operating budget for fiscal 2009.
Of that $90.6 million in expected RPT revenues, home and apartment owners (excluding those with dwellings on agricultural land) will contribute over $56 million, or over 55 percent of that total.
According to information from the Real Property Assessments Division, there are several property-owner, tax-relief programs, including homeowner’s exemption, disability exemption, additional home exemption, permanent home use exemption, circuit beaker tax credit (for low-income property owners) and long-term affordable rental credit.
While it is too late this year to appeal county assessments on real property, property owners have until Sept. 1 to file dedication petitions (to dedicate property to specific uses, such as primary residence), and until Dec. 31 to file exemption claims, which if approved would take effect in fiscal year 2010-2011 (starting July 1, 2010).
The Web site for the Real Property Assessment Division is www.kauaipropertytax.com, and the phone number is 241-4224 (the number is different than the one listed on the 2009 assessments mailed out in March).
Proposed property tax rates
Following are the proposed real property tax rates for Kaua‘i County for fiscal 2009-2010 (from July 1 to June 30, 2010), as approved Thursday by the Kaua‘i County Council’s Budget and Finance Committee (rates are per $1,000 of assessed value):
Classification Building Land
Homestead $3.44 $4.00
Single family residential $4.25 $3.95
Apartment $7.90 $6.90
Commercial $7.90 $6.90
Industrial $7.90 $6.90
Agricultural $4.25 $6.90
Conservation $4.25 $6.90
Hotel and Resort $7.90 $6.90
Source: Kaua‘i County Council
