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Honolulu County Hawaii Property Tax Exemption and Rate Information

By
Real Estate Agent with Hawaii Military Realty, Inc.

Honolulu County Hawaii Property Tax Information

DONT BE A FOOL AND GIVE AWAY MONEY!  FILE FOR YOUR HAWAII HOMEOWNERS TAX EXEMPTION NOW!  DEADLINE TO FILE IS SEP 30, 2007.

By: David Kucic, 1SG, USA (Ret)
Hawaii Home Buying and Selling Team

I am going to skip all of the fluff and get straight down to the points I want to make about Honolulu County Hawaii property taxes. 

As I give these figures and examples I want to make two points clear.  First of all, I am in the real estate business and am not an accountant.  This information that I am sharing is what I have gathered via telephone calls, emails, classes and web searching in order to seek out answers and better educate myself and my clients.

Secondly, if you have more specific questions, call your tax advisor or accountant!

There are Hawaii homeowners tax exemptions available to some homeowners in Hawaii as long as you meet certain criteria (see below).  The basic home exemption for homeowners under the age of 65 is $80,000 for tax year 2007-2008.  For homeowners 65 years and older, the exemption is $120,000. 

The next 3 paragraphs are copied directly from the Honolulu County Government Website:

1) You own and occupy the property as your principal home ("real property owned and

occupied as the owner's principal home" means occupancy of a home in the city with the intent to reside in the city. Intent to reside in the city may be evidenced by, but not limited to, the following indicia: occupancy of a home in the city for more than 270 calendar days of a calendar year; registering to vote in the city; being stationed in the city under military orders of the United States; and filing of an income tax return as a resident of the State of Hawaii, with a reported address in the city).

 

2) Your ownership is recorded at the Bureau of Conveyances, State Department of Land

and Natural Resources, in Honolulu on or before September 30 preceding the tax year for which you claim the exemption. In the case of a lease, the document must indicate that the lessee has a lease for residential purposes for a term of five years or more and will pay all property taxes.

 

3) You file a claim for home exemption (Form BFS-RP-P3)

www.honolulu.gov/rpa/forms.htm with the Real Property Assessment Division on or before September 30 preceding the tax year for which you claim the exemption.

When are taxes due?  Payment dates are August 20th for the first installment and February 20th for the second installment.  In most cases, you will not have to make the payment yourself.  Each month when you make your mortgage payment, part of the payment goes into your  "escrow account".  The money remains in the escrow account until the property taxes are due and then the money is sent on your behalf to pay the tax bill.  The same is normally done with your property insurance.  BE SURE TO CHECK WITH YOUR MORTGAGE COMPANY TO MAKE SURE THAT YOU ARE SET UP TO HAVE  YOUR TAXES AND INSURANCE PAID!  

How much are the Real Property Tax Rates in Honolulu County, Oahu, Hawaii?  

For fiscal year July 1, 2007 to June 30, 2008 the tax rate in Honolulu County are listed as follows:

County Class Per $1,000 Net

Taxable Property  

HONOLULU

A 1 Improved Residential $ 3.29

B 8 Unimproved Residential 5.70

C 2 Apartment 3.29

D 7 Hotel and Resort 12.40

E 3 Commercial 12.40

F 4 Industrial 12.40

G 5 Agricultural 5.70

H 6 Preservation 5.70

I 9 Public Service 0.00

J 0 Vacant Agricultural 8.50

Okay, here is the math for you now.  I will only deal with the categories A 1 and C 2.  You see that the tax rate per $1,000 for each of those properties is based on $3.29.

So first, if you don't know the assessed property value for your home (or the home you are going to buy through Team Kucic Real Estate), visit this website to find out the tax information for the property: Honolulu County Tax Assessor.  Make sure you get the TOTAL assessed value for the land and the improvement on the land.

Take the total assessed value and subtract the exemption if one has been claimed (see above paragraph dealing with homeowners tax exemptions).

For example, lets say the total assessed value for the land and the improvement was $700,000.  Lets also say that the homeowners qualified for an $80,000 exemption.  The adjusted taxable value is $620,000 which is equal to 620 at a rate of "per $1,000".  Multiply the 620 by the tax rate from the chart above ($3.29) in order to get the tax.  In this case it would equal $2,039.80 for the year or approximately $1,019.90 due on August 20th and $1,019.90 due on February 20th.

Does it pay to file for the home exemption?  Let see.  Take the exact same example above except we will not subtract the $80,000 exemption.  This would make the taxes $2,303.  So by filing the exemption, you save yourself $263.20 for fiscal year 2007-2008.

If it seems overwhelming don't worry about it.  Team Kucic has ALWAYS assisted clients in filing their Homeowners Tax Exemption Paperwork immediately after closing on their homes to lessen the burden on you as you move into your new home.

Learn more about Hawaii real estate on the most comprehensive real estate website on Oahu at www.davidkucic.com

 

Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE
Good reminder Dave!  Before I commented I went back and emailed all my client's to make sure they sent them in! :)
Aug 11, 2007 02:44 PM
1SG (Ret.) David Kucic
Hawaii Military Realty, Inc. - Ewa Beach, HI
President and Owner

Its always nice to save a few bucks!  So many people that are eligible for the exemption still do not file for it.  Do you think its because they dont know or they are too lazy to do it?  I send reminders every quarter in my newsletter that I send out but I dont think some of the folks realize that they are missing out on a bit of savings.

Aug 11, 2007 07:57 PM
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE
I know it's one of the first things I learned when going through closing. I don't rely on escrow to give it to them....I type it out and at signing give it to them with a self addressed stamped envelope included and ask escrow to make copies of their id's (since they are doing for notary) so they can stick it in. I think a lot of it is they do not know. I already got responses from all I sent emails yesterday that they all did it. Whew.
Aug 12, 2007 05:37 AM
1SG (Ret.) David Kucic
Hawaii Military Realty, Inc. - Ewa Beach, HI
President and Owner

Thats called taking care of clients and going above and beyond the call but how come everyone doesnt do that?  We also send out the HUD 1's at the end of the year so that they have it available at tax time.  You probably do that too.  Looks like Sally and Team Kucic have the same philosphies! Last year, I had one transaction close on Sept 28th or 29th out in Ewa Beach so I gathered all the paperwork together, got the signatures and copies of the ID cards and drove my clients paperwork over to the tax assessors office.  When I told the lady that I was the owners realtor and was turning it in so that they didnt miss the deadline, she said "Wow, I have never seen a realtor do that before."  Small things like that make people like you and us stand out in the crowd.  We can proudly wear the pin that says "Full Service Agents".

 

Aug 12, 2007 06:04 AM
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate

David,

I'm still wondering our tax situation...they are not even sure what our taxes will be ..and how can I even tell a buyer their future taxes if it is so screwed up?:)

Aug 12, 2007 11:24 PM
1SG (Ret.) David Kucic
Hawaii Military Realty, Inc. - Ewa Beach, HI
President and Owner
Neal-You guys have interesting tax laws in Florida.  My parents own a home in New Port Richey.  Apparently, they pay taxes on the value of the home from when they bought it however, when they sell it, the new owners will be paying taxes on what the home is worth now.  Is that correct?  If so, good for my parents, bad for the buyers.  What does that do to the market in Florida or is this law only in Pasco County?
Aug 13, 2007 05:30 AM
John Occhi
AZ Veteran Notary Services - Marana, AZ
Mobile Notary Public/Certified Loan Signing Agent

If this real estate thing doesn't work out for you, you try being an accountant - you are so good at explaining this stuff.

Now Have a Blessed Day,

John Occhi, Hemet CA REALTOR®
Mission Grove Realty

Aug 14, 2007 04:26 PM
1SG (Ret.) David Kucic
Hawaii Military Realty, Inc. - Ewa Beach, HI
President and Owner

Thanks for the compliment John Occhi!  I love working with the sort of numbers that make other peoples heads spin in circles!  I have a wierd ability to SEE the answer in my head before I work out the problem on paper.  Aloha!

Aug 15, 2007 04:26 AM
Anonymous
Cpa Hawaii

nice post

Nov 20, 2012 07:11 PM
#9