Property Tax Rates 2019-2020 – Increases Just About Across the Board

Earlier this month, the Maui County Council’s budget committee ironed out property taxes rates for the upcoming 2019-2020 fiscal year and there will be an increase just about across the board (Agricultural, Apartment, and Timeshare being the exception) generating a revenue increase of approximately $17.7 million compared to the budget proposed by Mayor Michael Victorino.

In my opinion, this is a 1-2 combo punch from the budget committee because the assessed value of properties is going to go up approximately 5%, according to a Maui News article, and then the increase on rates. If the property values were decreasing, I could understand the need to increase the rates, but not when values are continuing to rise…

All rates are based on $1,000 of the net taxable assessed value. The highest rate hikes are for hotel and resorts and short-term rentals with a 17% & 16% increase respectively. Full-time residents under the homeowner bracket will also see a slight increase from $2.85 to $2.90.

Property Tax Increases

I understand that property taxes are the largest source of revenue for Maui County and that hotel/resort, short term rentals, and timeshares account for the biggest chunk of that revenue, but to approve such a jump in rates is kind of “nuts” to me. I hope they put the 5% increase in revenue, compared to the Mayor’s budget, to good use.

Here is what the current rates, Mayor’s proposed rates, and the Council’s approved rates look like:

• Homeowner: $2.85, $2.85, $2.90.
• Commercial residential: $4.55, $4.55, $4.60.
• Residential: $5.52, $5.52, $5.60.
• Agricultural: $6, $6, $5.94.
• Apartment: $6.31, $6.31, $6.31.
• Conservation: $6.35, $6.35, $6.43.
• Commercial: $7.25, $7.39, $7.39.
• Industrial: $7.45, $7.48, $7.48.
• Short-term rental: $9.28, $9.55, $10.75.
• Hotel/resort: $9.37, $9.60, $11.
• Timeshare: $15.41, $13.93, $14.40.

If you have any questions or would like more information about Maui real estate, feel free to get in touch!