Here is what you need to know about Kauai County real property taxes.
Everything is based off your assessed value. Property is being assessed at 100% of fee simple market value. Because our County has only a few appraisers for approximately 35,000 taxable parcels, a personal inspection of your property is normally undertaken only at the time of construction or remodeling and then every 3-5 years, according to the International Association of Assessing Officers Standards of Conduct. “Mass Methodology” and “Market Modeling” are used to annually update your property value.
Once you have your assessed value, you need to determine what exemptions, if any, you qualify for.
Here is a complete list of real property tax exemptions for Kauai:
Standard exemption for owner occupant: $160,000
Owner occupants ages 60-70: $180,000
Owner occupants over 70: $200,000
Owner occupants with income less $61,000 are also eligible for an additional $120,000 over other exemptions.
Blind, deaf, or totally disabled can apply for an additional $50,000 exemption.
Disabled veterans are tax exempt, but still pay minimum $150 tax per year. Minimum is $75 per year for an owner occupant earning less than $61,000 per year.
Exemption amounts are taken off of the gross assessed value reducing the tax basis for the owners.
Once you have your net assessed value, multiply it by your tax classification rate. Here is a list of the tax classifications and their rates:
Tax rates (Per $1,000 net assessed valuation) for fiscal year July 1, 2015 to June 30, 2016
Commercialized Home Use: $5.05
Single Family Residential: $6.05
Agricultural & Conservation: $6.75
Residential Investor: $7.05
Commercial & Industrial: $8.10
Vacation Rental: $8.85
Hotel & Resort: $10.85
Assessments are calculated annually and taxes are due twice per year, February 20th & August 20th.
Let’s look at a couple examples.
Suppose you are 65 and decide to retire on Kauai and you purchase a home in the Wailua Homesteads that is assessed at $850,000. As an owner occupant age 60-70 you qualify for a $180,000 exemption. Your net assessed value would then be $670,000. Multiply this by the homestead rate of $3.05 / $1,000 = $2,043.50 annual property taxes.
Now lets say you buy a condo in Princeville assessed at $650,000 that you plan to use as a vacation rental. Since you are only staying in it yourself a few weeks per year you would not qualify for any exemption. Net assessed value would be $650,000 multiplied by the vacation rental rate of $8.85 / $1,000 = $5,752.50 annual property taxes.
If anyone has questions about the taxes they can call the Kauai County Real Property Assessment Division at (808) 241-4224 but if you call me instead, I’ll answer your questions AND take you for lunch ;).
Aloha and Mahalo for reading!