The County Council just recently set its new Tax Rates which will be implemented for the 2020-2021 Tax Year. It is important to understand how Kauai assesses your Real Property Tax as well as understanding the different Tax Classifications and dates, which will ultimately set your rate and amount due. The first thing to know is your rate is determined by how you use the property, which sets the Tax Classification so knowing your Tax Classification and making sure you are being taxed correctly is one of the most important steps.
We often hear stories of property owners not realizing that they are in the wrong classification which resulted in years of overpayment with no action for reimbursement.
The County of Kauai Real Property Assessment Division sets the Tax Classification for improved properties based on their actual use rather than their underlying zoning. It is important to make sure you have filed your proper use with the County Real Property Assessment Division no later than Sept 30, to be assured that you will be taxed correctly. If you recently purchased a home as your Primary Residence than you would qualify for the Owner Occupant Rate “Homestead,” however, keep in mind this is not something that automatically happens during the escrow process and there is an additional step that needs to take place to qualify for the Homestead rate.
Current Tax Classifications and Rates
The County of Kauai deadline for correcting your tax classification is quickly approaching. Be sure to check your current Tax Classification to double-check that you are in the correct use category as well as be on the lookout for the 2020-2021 Assessments that will be mailed in the near future. Below is a list of important dates to remember.
The fiscal year begins on July 1 and extends until the following June 30. Below are the important dates to remember:
- Sept 30 – Deadline for filing exemption claims and recordation of ownership documents Deadline for applying for additional home exemptions based on income
- Oct 1 – Date of Assessment for upcoming tax year
- Dec 1 – Assessment notices mailed
- Dec 31 – Deadline for assessment appeals
- Jan 20 – Second half year tax bills mailed
- Feb 20 – Second half tax year payments due
- June 20 – Tax Rate set by County Council
- July 1 – Tax year commences Deadline for filing dedication petitions
- July 20 – First half year tax bills mailed
- Aug 20 – First half tax payments due
Each year, Kauai residents make an investment in their County when they pay their real property taxes. Every dollar is returned in the form of vital services we often take for granted. Services such as fire and police protection, civil defense, road maintenance, street lighting, sewer treatment, refuse collection, transportation, maintenance of parks and recreational facilities, housing projects, and elderly services and activities are supported by tax revenue.
While many of these services are partially financed through a variety of other revenue sources including federal and state grants, sewer fees, fuel taxes, motor vehicle weight taxes, transient accommodations taxes, and golf fees, slightly more than 80% of the County’s general fund revenue comes from real property taxes.
How Can We Help?
We believe that our role for our clients extends beyond the sale or purchase of a home, and we strive to have an ongoing relationship with our clients to assist and guide them on all aspects of real estate. We believe that keeping our clients well informed on the current market, county rules and regulations, and well as advising on issues relating to Property Taxes, Property Maintenance, Improvements, as well as Market Value. Being able to assist on these topics play into our role of offering Full Service to our clients. We often see ourselves more as Real Estate advisors rather than a Salesperson, and we take a real interest in staying up to date on all aspects of Real Property that affect our clients.
If you have questions on your value or would like us to check on your current Tax Classification, feel free to give us a call.