Real Property Assessment
Exemption Information
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Sections: 5. In Lieu Of Home Exemption For Homeowners Age 75 Years And Older 8. Sec. 8-10.21 Claim for exemption.Whose Household qualifies As Low-Income Purpose This document was prepared by the Real Property Assessment Division of the City Department of Budget and Fiscal Services to assist Oahu property owners seeking information on home exemptions. It explains how to qualify for exemptions which reduce the net taxable assessed value of the property used in determining the property tax. Background The first home exemption law was enacted in 1896 by the Republic of Hawaii to provide some tax relief, encourage home ownership and the settlement of land. In 1896, the home exemption amount was $300. Currently, the basic home exemption is $80,000. This means that $80,000 is deducted from the assessed value of the property and the homeowner is taxed on the balance. For homeowners 65 years and older the home exemption is $120,000. To qualify for this exemption, you must be 65 years or older on or before June 30 preceding the tax year for which the exemption is claimed. Property owners with an existing home exemption, with their date of birth on file, do not need to re-apply for the new exemption amounts. The exemption amounts will automatically increase depending on the age of the homeowner. Who Qualifies for the Home Exemptions? You are entitled to the home exemption if:
Single Home Exemption The law allows just one (1) home exemption; if a husband and wife live apart and own separate homes, each shall be entitled to one-half (1/2) of one exemption or to an exemption apportioned between their respective homes in proportion to the assessed value. In Lieu Of Home Exemption For Homeowners Age 75 Years And Older Whose Household Qualifies As Low-Income Purpose: Exemption for real property owned and occupied as the owner's principal home whereby the owner is age 75 years or older and the total household income qualifies as low income. When To File: On or before September 30th preceding the tax year. For example, if you file for the exemption on or before September 30, 2008, it will apply to the tax year that begins July 1, 2009, and ends on June 30, 2010. The exemption for qualified applicants will appear on the Real Property Assessment Notice mailed to you on December 15, 2008, and will also be included in the tax calculation and tax bill mailed to you on July 20, 2010. You must re-file prior to the beginning of each 5 year age bracket. What To File:
The forms and instructions are available at the Real Property Assessment Division and on the Internet at www.realpropertyhonolulu.com . You can also request the forms by calling the telephone numbers listed below.
Where To File: Real Property Assessment Division 842 Bethel Street Basement Honolulu Hawail 96813 Telephone: (808) 768-3799 Real Property Assessment Division 1000 Uluohia Street, #206 Kapolei, Hawaii 96707 Telephone: (808) 768-3169 If you mail the forms and supporting documentation to the Real Property Assessment Division, it must be postmarked by the United States Postal Service no later than September 30. Totally Disabled Veterans: If you are a totally disabled veteran, due to injuries received while on active duty with the U.S. Armed Forces, your home is exempted from all property taxes except the minimum tax. For this special exemption, veterans must file a claim on form BFS-RP-P-6B. The exemption shall take effect beginning with the next tax payment date, provided that the claimant shall have filed with the department a claim for a disability exemption along with a copy of a physician's certificate of disability on such form as the department shall prescribe on or before June 30 for the first payment or December 31 for the second payment. The home exemption will remain in effect as long as the veteran claiming the exemption remains totally disabled or the widow or widower of the totally disabled veteran remains unmarried. Hansen's disease: If you have Hansen's Disease and are confined because of the illness, you are exempt from real property taxes on your real property, up to but not exceeding a taxable value of $25,000. This is in addition to your regular or multiple home exemption. If you are on a temporary released status, you can retain your exemption during that period. Claims for this special exemption must be filed on form P-6 on or before September 30. Blind, Deaf or Totally Disabled: If you have impaired sight or hearing or are totally disabled, you may file a claim on form P-6 for a $25,000 real property tax exemption on property you own. This claim is in addition to the regular or multiple home exemption. Your condition must be certified by an authorized physician, who is licensed to practice medicine in the State of Hawaii. "Certification" will be determined on the basis of a written report resulting from an examination performed by the authorized physician.The following requirements must be satisfied to qualify for the exemption: Blind: An individual whose eyesight does not exceed 20/200 in the better eye with corrective lenses or whose visual sharpness is greater than 20/200. In this latter case, the field of vision must have a width of 20 degrees or less. Deaf: An individual whose average loss in the speech frequencies (500/2,000) hertz) in the better ear is 82 decibels, AS.A, or worse. Totally Disabled: A person who is totally and permanently disabled, either physically or mentally, which results in the person's inability to engage in any substantial gainful business or occupation. For example, medically-certified heart attack or stroke victims, unable to engage in any substantial gainful business or occupation may qualify for this exemption. Once filed and granted, these home and real property exemptions do not have to re-filed annually, as long as all requirements continue to be met.
(a) As used in this section:“Alternative visual visitations” means the alternative visual access provided to the public from a viewing point on the property.“Average condition of property” means a finding by the director that all major components of a property are still functional and contributing toward an extended life expectancy and effective age and utility are standard for like properties of its class and usage; this finding will allow for some deferred maintenance and normal obsolescence with age, in that a few minor repairs and some refurbishing is needed.“Day” means the seven consecutive hours running from 9:00 a.m. to 4:00 p.m.“Historic property” means property that has been placed on the Hawaii Register of Historic Places.“Public way” means and includes any area open to the general public, such as a road, alley, street, way, right-of-way, lane, trail, bikeway, highway, bridge, sidewalk, park or beach and any private property usually open to the public, such as a parking lot.“Residential property” means property improved with a one or two-family detached dwelling or a duplex unit. This definition includes associated structures, such as carriage houses, ohana units and outbuildings. This definition specifically excludes vacant parcels, districts, areas, or sites, including heiaus, burial and underwater sites. “Visual access” means visual access at all times with the unaided eye from a distance of not more than 50 feet from the owner’s property line from a public way as defined in this section, of the entire front or rear of the one or two-family detached dwelling or duplex unit that is the subject of the petition for dedication under this section. (b) An owner of taxable historic residential property may dedicate a portion or portions of the residential property thereof for historic preservation by petitioning the director of budget and fiscal services, provided the residential property has visual access or the owner allows alternative visual visitations.
(c) The director shall prescribe the form of the petition. The petition shall be filed with the director by September 1st of any calendar year. The notice of assessment shall serve as notification of approval, approval in part, or disapproval of the petition for dedication. The owner may appeal any petition for dedication approved in part or disapproved, on or before the date for appealing an assessment as set forth in section 8-12.1. If the petition is approved or approved in part, the exemption provided for by this section shall be effective October 1st of the same calendar year. (d) The director shall review the petition and determine what portion or portions of the residential real property shall be exempted from real property taxes. Any building or portion of a building less than fifty years old shall not be exempted from real property taxes. The director shall consult with the state historic preservation office in making this determination. The director shall take into consideration whether the historic property has been maintained, at a minimum, in average condition, and shall determine the total area or areas of real property that shall be exempted. The director shall confirm that the historic residential property has visual access. If the director determines that the historic residential property does not provide visual access, then the director shall confirm that the petition provides the public with acceptable alternative visual visitations. (e) If the director determines that the historic residential property does not provide visual access to the public or that the petition does not provide the public with acceptable alternative visual visitations, the application for dedication shall be denied. (f) Portions of residential real property which are dedicated and approved by the director as provided for by this section, shall be exempt from real property taxation except as provided by Section 8-9.1. (g) The approval of the petition by the director shall constitute an obligation on the part of the owner to meet the following requirements:
(h) An owner may appeal any cancellation of the dedication or imposition of any rollback tax or penalty as in the same manner as an appeal from an assessment. (i) Any person who becomes an owner of historic residential property that is subject to a dedication under this section shall be subject to the requirements imposed under subsection (g). (j) The director shall cancel the dedication and disallow the tax exemption if:
(k) The director shall cancel the dedication and the retroactive assessment shall not apply: (1) where the owner submits the written notice of cancellation within the prescribed time as provided in subsection (g); and (2) where the subject property is destroyed by any natural disaster or by fire, and upon verification by the Historic Preservation Officer that the restoration or reconstruction of the property is not feasible.(l) The director shall adopt rules and regulations deemed necessary to accomplish the foregoing in accordance with HRS Chapter 91. (Sec. 8-10.22, R.O. 1978 (1987 Supp. to 1983 Ed.); Am. Ord. 96-15, 01-23, 11-7)
Sec. 8-10.20 Exemption - Low-income rental housing: (a) For the purposes of this section: gDwelling unith means a room or rooms connected together, constituting an independent living unit and containing a single kitchen and at least one bathroom. A dwelling unit shall not include a unit used for time sharing or as a transient vacation unit. "Housing project" means a rental housing project where at least 20 percent of the dwelling units are reserved for low income residents. The housing project must be situated on (i) a single parcel of land, (ii) multiple parcels of land that are contiguous, or (iii) noncontiguous multiple parcels of land which are separated from each other only by a road or roads. If the housing project is comprised of multiple parcels of land, or is comprised of individual dwelling units, each situated upon a subdivided parcel of land, the regulatory agreement must specifically identify each such parcel of land or dwelling units as comprising the housing project. gKitchenh means a facility in a dwelling unit that exists when there are fixtures, appliances of devices for all of the following: (1) heating or cooking of food, (2) washing of utensils used for dining and food preparation and/or for washing and preparing food, and (3) refrigeration of food. gLow-incomeh means the annual income of a household that does not exceed 80 percent of the area median income for the county as determined by the United States Department of Housing and Urban Development. "Nonprofit or limited distribution mortgagor" means a mortgagor who qualifies for and obtains mortgage insurance under Sections 202, 221(d)(3) or 236 of the National Housing Act as a nonprofit or limited distribution mortgagor. gOwnerh shall include a lessee of the property whose lease term extends at least as long as the regulated period. gRegulatory agreementh means an agreement between an owner and the federal government, state government or a political subdivision of the state government, or agency of the federal government, agency of the state government or agency of the political subdivision of the state government, embodying provisions regulating rents, charges, profits, dividends, development costs, and methods of operation, in accordance with the laws, policies, or rules of the federal government, state government or of the political subdivision of the state government, or agency of the federal government, agency of the state government or agency of the political subdivision of the state government. gRegulated periodh means the period during which a housing project is subject to a regulatory agreement, which shall not be less than 15 years. (b) Real property which is owned and operated by (i) a nonprofit, limited distribution mortgagor, or (ii) a person, corporation, trust, partnership or association which is used for a housing project that is subject to a regulatory agreement shall be exempt from property taxes for the duration of the regulated period. This exemption shall be incorporated into any and all agreements, including regulatory and loan agreements as applicable.
(d) Where a housing project is situated upon a single parcel of land, if any portion of the property is ineligible for the property tax exemption under this section:
(Sec. 8 10.20, R.O. 1978 (1983 Ed.); Am. Ord. 90 31, 02-68) Sec. 8-10.21 Claim for exemption. (a) Notwithstanding any provision in this chapter to the contrary, any real property determined by the director to be exempt from property taxes under Section 8 10.20 shall be exempt from property taxes effective as of the date the application is filed with the director; provided, that the initial application for exemption shall be filed with the director within 60 days of the qualification or in the failure thereof by September 30th preceding the tax year for which the exemption is claimed. A copy of the regulatory agreement that has been recorded with the registrar of the bureau of conveyances or filed with the assistant registrar of the land court, whichever is applicable, shall be filed with the application along with any additional documents determined by the director to be necessary to supplement the application. As used herein, the date of the qualification shall be the earlier of: (i) the date when the mortgage made by the nonprofit or limited distribution mortgagor and insured under Section 202, 221(d)(3) or 236 of the National Housing Act is recorded or (ii) the date the regulatory agreement is recorded with the registrar of the bureau of conveyances or the assistant registrar of the land court of the state, whichever is applicable. For a housing project that qualified for an exemption from real property taxation under Section 8-10.20 before the effective date of this ordinance, the first application filed after the effective date of this ordinance shall be deemed the initial filing under this subsection. After the initial year for which the real property has qualified for an exemption, a claim for an exemption shall be filed annually on or before September 30th, together with a document from the agency regulating the housing project certifying that the housing project continues to be in compliance with the initial regulatory agreements and is in compliance with the applicable low-income rental requirements in the manner provided by applicable law or rule. (b) In the event property taxes have been paid to the county in advance for real property that subsequently qualifies for the exemption, the director shall refund to the owner that portion of the taxes attributable to and paid for the period after the qualification. (c) Cancellation of Exemption-Penalties.
If You Sell, Rent or Purchase Another Home If there is any change which might affect your home exemption, such as no longer occupying the property as your home, ceasing to own the property, and/or renting the property during the tax year, then you must report the change (Form P-43) to the Real Property Assessment Division, Department of Budget and Fiscal Services, City and County of Honolulu. The report must be submitted within 30 days of the change. Failure to file a report within 30 days of any change in status may result in a penalty and additional real property taxes being assessed. Minimum $300 Real Property Tax There is a $300 minimum real property tax. This means that every parcel of taxable real property, for which the computed tax amounts to less than $300, is liable for this minimum real property tax. Know Your Parcel ID (Tax Map Key Number) All real property is mapped and indexed by number according to a tax key system kept by the Real Property Assessment Division. The tax map key identifies your property and homeowners should know their numbers when inquiring about their property. Refer to your assessment notice for your tax map key number. Real Property Assessment Division 842 Bethel Street Basement Honolulu, Hawaii 96813 Telephone: (808) 768-3799 OR Real Property Assessment Division 1000 Uluohia Street, #206 Kapolei, Hawaii 96707 Telephone: (808) 768-3169 |
