Home Exemption Law
The home exemption law was
enacted in 1896 by the Republic of Hawaii to provide tax relief,
encourage home ownership. In 1896, the exemption amount was $300. There is a $100 minimum real property tax.
Currently, the basic home exemption is $40,000. This means $40,000 is
deducted from the assessed value of the property and the homeowner is
taxed on the balance.
You are entitled to the home
1) You own and occupy the
property as your principal home. This is evidenced by, occupancy of a
home for more than 270 calendar days of a calendar year; registering to
vote; being stationed under military orders; and filing of an income tax
return as a resident of the State of Hawaii, with an address in the city
your home resides in;
2) Your ownership is recorded
at the Bureau of Conveyances, on or before Sept. 30 preceding the tax
year for which you claim the exemption. For lessees, the lease should be
for residential purposes for a term of five years or more and lessee
will pay all property taxes;
3) You file a claim for home
exemption with the Real Property Assessment Division on or before Sept.
30 preceding the tax year for which you claim the exemption.
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 an amount
in proportion to the assessed value.
Multiple Home Exemptions for
This exemption was established
to lighten the tax burden for senior citizens who have relatively fixed
incomes. Citizens who are 55 years or older are eligible to apply.
Additional exemptions are added as age increases capping at 3 times the
basic home exemption rate for homeowners age 70 and older.
The law allows for additional
exemptions for totally disabled Veterans; Hansen's disease and blind,
deaf or totally disabled persons.
If You Sell, Rent or
Purchase Another Home
If there is a 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, then you must report the change within 30 days. Failure to
file a report within 30 days may result in a penalty and additional
taxes being assessed.
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