LIHU‘E — Mayor Derek Kawakami signed Bill No. 2803, amending homestead-exemption status for full-time Kaua‘i residents for property-tax purposes.
“Initiated and guided by the Real Property Assessment Division under the leadership of Real Property Tax Manager Brad Cone, the intent of the homestead exemption is to provide tax relief for qualifying Kaua‘i residents,” said Kawakami.
With the signing of this bill, residents must occupy their homes on island for at least 270 days of the calendar year, possess a valid Hawai‘i driver’s license, state ID or valid green card and claim residency in Hawai‘i with an address on Kaua‘i, or be stationed in the county under U.S. military orders, in order to claim the homestead exemption.
Additionally, residents must file an income-tax return as a resident of the state with a reported address in the county the year prior to the effective date of the exemption. Non-residents and part-year residents of the state who file state income-tax returns do not qualify for the home exemption.
The county homestead exemption provides an exemption amount of $160,000 off of the assessed value of land and building(s) and qualifies residents for the assessment cap, which limits assessed values from varying by more than 3% each year.
Additionally, it also opens the door for numerous other exemptions provided by the county, according to a county press release. This exemption is meant specifically for residents who reside on Kaua‘i as full-time occupants of their primary dwelling.