Updated County Tax Rates for the New Fiscal Year and New Tax Classifications

On May 13, the Maui County Council approved new property tax rates for the upcoming fiscal year. There are a some particularly notable changes. The new rates decrease tax rates for owner occupied properties and apartments while significantly increasing rates on non owner occupied properties. Rates for the Short-Term Rental, Agricultural, Industrial and commercial classification also changed.

Another notable change for the coming fiscal year is the creation of a new long-term rental category. This is a lower tax rate category meant to incentivize more long term rentals. The county council created this classification last fall but this is the first fiscal year it will be in effect. Owners who qualify for this classification also get an exemption that reduces their assessed value by $200,000.

One last note, there was some modification to the tier system first implemented in the 2020/2021 fiscal year. For certain categories of property, this system created three different tiers of tax rates based on the assessed value of properties. The tier system was implemented for the homeowner, short-term rental and non-owner occupied classifications. The new long-term rental category is also part of the the tier system.

Previously, tier 1 was for properties assessed up to $800,000. Tier 1 is now for properties up to $1,000,000. Tier 2 was for places assessed between $800,001 to $1,500,000. The new tier 2 is $1,000,001 to $3,000,000 for owner occupied, short-term rental and long-term rental. The new tier 2 for non owner-occupied is $1,000,001 to $4,500,000. The old tier 3 was for properties assessed for more than $1,500,000. The new tier 3 is more than $3,000,000 for owner-occupied, short-term rental and long-term rental. The tier 3 for non owner occupied properties is more than $4,500,000.

2022/2023 Maui County Property Tax Rates

Here are the updated rates for this coming fiscal year. If there is any change in rates, last years rates are noted for reference. All rates shown below are per $1,000 of assessed value.

Owner Occupied

• Tier 1: up to $1,000,000 Formerly $2.41 now $2.00
• Tier 2: $1,000,001 to $3,000,000 Formerly $2.51 now $2.10
• Tier 3: more than $3,000,000 Unchanged $2.71

Non Owner Occupied

• Tier 1: up to $1,000,000 Formerly $5.45 now $5.85
• Tier 2: $1,000,001 to $4,500,000 Formerly $6.05 now $8.00
• Tier 3: more than $4,500,000 Formerly $8.00 now $12.50

Apartment

• Formerly $5.55 now $3.50

Hotel and Resort

• Unchanged $11.75

Timeshare

• Unchanged $14.60

Short-Term Rental

• Tier 1: up to $1,000,000 Formerly $11.11 now $11.85
• Tier 2: $1,000,001 to $3,000,000 Formerly $11.15 now $11.85
• Tier 3: more than $3,000,000 Formerly $11.20 now $11.85

Long-Term Rental

• Tier 1: up to $1,000,000 New Class $3.00
• Tier 2: $1,000,001 to $3,000,000 New Class $5.00
• Tier 3: more than $3,000,000 New Class $8.00

Agricultural

• Formerly $5.94 now $5.74

Conservation

• Unchanged $6.43

Commercial

• Formerly $6.29 now $6.05

Industrial

• Formerly $7.20 now $7.05

Commercial Residential

• Unchanged $4.50

About Maui Property Taxes

The new rates go into effect at the start of the new fiscal year on July 1st, 2022. Property taxes are due in two separate installments. The first installment is due in August 2022 with the second installment in February 2023. Owners should have received notification of their new assessed values in March of 2022.

Homeowner and Long Term Rental Exemptions

The deadline to file for the homeowner or long term rental exemptions and classifications passed. If you file by the end of 2022, you would be eligible for the exemption and tax rate for the 2023/24 fiscal year. Here is the link to the Long Term Rental Exemption and the Home Owner Exemption forms. The eligibility for the homeowner exemption can be confusing. It is worth reading the county Exemption FAQ to better understand eligibility requirements. Check out the county’s explanation for different property type classifications if there is any confusion on what category your current property or future property might fit into. Contact The Maui Real Estate Team for assistance buying or selling Maui property.

July 1 marks the start of the new fiscal year and that means updated property tax rates for Maui County. While there are quite a few rates that stayed the same this year, there were also a few notable changes.

Here are a couple of things to note about our tax rates before detailing the changes by property classification. Tax rates are impacted by the use and zoning of the property. The county has a tiered tax system based on the value of the property. Tier 1 is for properties assessed at a price of upto $800,000. Tier 2 is for properties assessed between $800,001 to $1,500,000. Tier 3 is for properties assessed for more than $1,500,000.

All tax rates below are per $1,000 of assessed value. Here are the tax rates for 21/22 with notes on any change in rate from the last fiscal year.

• Owner occupied Tier 1 $2.41 (down .10), Tier 2 $2.51 (down .10), Tier 3 $2.71 (up .10)
• Non-owner Occupied Tier 1 $5.45, Tier 2 $6.05, Tier 3 $8.00 (up $1.10)
• Apartment $5.55
• Short Term Rental Tier 1 $11.11 (up .03), Tier 2 $11.15 (up .07), Tier 3 $11.20 (up .12)
• Hotel & Resort $11.75 (up $1.05)
• Agricultural $5.94
• Conservation $6.43
• Timeshare $14.60 (up .20)
• Commercial $6.29
• Industrial $7.20
• Commercialized Residential $4.40

Property taxes are paid biannually in Maui county with payments due on August 20th and February 20th. Check out the Maui County Property Tax Frequently Asked Questions pages if you have additional questions on assessments and classifications.

Updated Maui County Property Tax Rates for the New Fiscal Year

The new fiscal year for Maui County starts on July 1 and that means new property tax rates. The Maui County Council approved a new budget that saw a reduction in property tax rates for almost every property tax classification. Some of the reduction in rates may be offset by increased assessed values for properties. This is following a general pattern with Maui County Property tax rates. When the market is going up rates are decreased. When market values go down, property tax rates go up. You can see the new rates compared to the old rates below.

• The Residential tax rate will be $5.30 per $1,000 of assessed value. That is a decrease of 10 cents from the 2015/2016 tax rate of $5.40.
• The Apartment tax rate will be $6.00 per $1,000 of assessed value. That is unchanged from last year’s tax rate.
• The Commercial tax rate will be $6.60 per $1,000 of assessed value. That is also unchanged from last year.
• The Industrial tax rate is $6.69 per $1,000 of assessed value. That is a decrease from $6.85 last year.
• The Agricultural tax rate is $5.66 per $1,000 of assessed value. That is down from $5.75 in 2015/2016.
• The Conservation tax rate is $5.80 per $1,000 of assessed value. That is a decrease from last year’s rate of $5.90.
• The Hotel and Resort tax rate is $8.71 per $1,000 of assessed value. That is a decrease from the previous rate of $8.85.
• The Time Share rate is $14.31 per $1,000 of assessed value. That is a healthy decrease from the old rate of $14.55.
• The Homeowner rate is $2.70 per $1,000 of assessed value. That is a down from last year’s rate of $2.75.
• The Commercialized Residential rate is $4.35 per $1,000 of assessed value. That rate remains unchanged.

Property tax rates are paid biannually in Maui County. The first bill comes due in August with the next payment made in February. Tax rates for the next fiscal year will be debated again in the Spring with the County Council approving new rates sometime in late May or June.

The first property tax bill of the 2015/2016 fiscal year went out to Maui Property owners last week. That was a good reminder for me that we have yet to publish the property tax rates for this fiscal year on this blog. This post gives prospective property buyers a sense of what type of property taxes they might expect when purchasing a place on Maui. This is another year where we have seen a decrease in rates. Maui County Council has been trying to offset increases in assessed values by decreasing the rates per assessed value. Here are the rates for the next fiscal year as compared to the rates from last year.

• The Residential rate decreased from $5.57 to $5.40.
• The Apartment rate decreased from $6.20 to $6.00.
• The Commercial rate decreased from $6.83 to $6.60.
• The Industrial rate decreased from $7.07 to $6.85.
• The Agricultural rate decreased from $5.86 to $5.75.
• The Conservation rate decreased from $6.06 to $5.90.
• The Hotel and Resort rate decreased from $9.11 to $8.85.
• The Time Share rate decreased from $15.07 to $14.55.
• The Homeowner rate decreased from $2.78 to $2.75.
• The Commercialized Residential rate decreased from $4.46 to $4.35.

All of the rates above are per $1,000 of assessed value. Homeowners are also eligible for a $200,000 exemption which may be deducted from their assessed value. For example, someone who qualifies for the homeowner classification that has a property assessed for $700,000 would have $200,000 deducted from their assessment for a net taxable value of $500,000. Applications for homeowner exemptions should be submitted to the county by December 31st. Check with the county for the latest and most up to date eligibility guidelines. The minimum property tax rate bill for Maui County is $150. Taxes are paid in two installments with bills sent in August and February. The county has an online resource available entitled Understanding Property Taxes which goes into more details on assessments, how properties are classified and timelines.

Decreasing property values over the last five years have posed challenges for Maui County government. Lower property values have been followed by decreases in the assessed value of island properties. With limited new construction to offset the lowering assessed values, the county of Maui has had to raise tax rates to match the prior year’s tax revenues. There has also been a need for additional revenue to fund county pensions and the county health fund . This was the case again this year as the Maui County Council just voted to raise property tax rates. The council also voted to raise the county minimum property tax $100. Decreased assessed values have resulted in a growing body of residents who paid the minimum property tax rate. Homeowners are able to get a $200,000 exemption from their assessed value. If your home is assessed low enough, you qualify for the minimum rate. The new minimum rate will be $250. Here are the new Maui County Property Tax rates by classification:

• The homeowner rate increases from $2.50 to $2.75
• The residential rate would go from $5.55 to $5.75
• Apartment rises from $5.50 to $6.20
• Hotel/resort bumps from $9 to $9.15
• Commercial residential increases from $4.20 to $4.50
• Conservation rises from $5.60 to $6.20
• Agricultural escalates from $5.80 to $6
• Time share increases from $15 to $15.50
• Industrial increases modestly from $7 to $7.10
• Commercial goes from $6.25 to $6.90

All of the above property tax rates are per $1,000 of assessed value. The new rates go into effect on July 1, 2012. Property taxes are paid twice annually in August and February.