Tag: Maui Property Taxes

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.

July 1 brought the start of the new fiscal year for Maui County. That means new property tax rates are going into effect. The majority of the tax rates for this fiscal year were increased over the 2010/2011 rates to help offset decreases in assessed value. Here is the list of 2011/2012 year tax rates. These rates are per $1,000 of assessed value.

• Improved Residential $5.55
• Apartment $5.50
• Commercial $6.25
• Agricultural $5.80
• Conservation $5.60
• Hotel and Resort $9.00
• Unimproved Residential $6.25
• Homeowner $2.50
• Timeshare $15.00
• Commercialized Residential $4.20

Also of note, homeowners are allowed to deduct $300,000 from their current assessed value. That being said, a Maui News article from this weekend indicates that this figure may be subject to change in the near future. The county council gave an initial ok to a reduced homeowner deduction of $200,000. The council is exploring this issue as revenues continue to be a challenge, and the growing body of residents who are now paying the minimum tax due to the deduction. We will let you know if this change officially goes into effect on the Maui Real Estate Blog.