You can qualify for an exemption on your real property taxes of up to $200,000.00 if you own property that is currently under a long-term lease agreement.
Maui County is offering a Long-Term Rental Exemption to encourage more long-term housing on island. This can amount to up to $200K in real property tax exemption for a rental property. You can apply for the long-term rental exemption for multiple properties if located on separate parcels. You can also qualify for up to $100K in exemption if you occupy your home and also have a long-term rental on property. This would be in addition to the homeowner exemption.
Qualifying
Property owners must submit their application by December 31, 2022. Owners must be current on tax liability. Additionally, a lease must be submitted with application showing that property is occupied on January 1, 2023 by same tenant for at least a 12-month period.
Timing
January 1, 2023 is also the date the exemption begins. The exemption will be reflected in the upcoming July tax bill. You will have to reapply if the lease qualifying the application ends before December 31st of the assessment year.
Deadline for Applying
Application must be received by December 31, 2022.
Resources and Application
Maui Real Property Tax Assessment
Claim for Long-Term Rental Exemption and FAQs
Property owners can also contact the Real Property Assessment Division by calling (808) 270-7295 or by email at rpa@co.maui.hi.us.
Please also feel free to reach out to me with any questions as I am personally navigating this process as well. Happy to help!
About Me
As a lifelong resident of Maui and realtor for over 20 years, I have a unique long-standing relationship with residents and visitors alike. I bring a deep understanding of the many layers and subtleties of Maui’s Real Estate industry. My broad ranging experience allows me to better understand and meet your needs. Whether you are buying or selling your first home, a second home, an investment property, looking to do a 1031 exchange or even large land transactions and subdivisions, I have done it all. I love water sports, mainly international competition in canoe paddling, one man canoe, surfing, paddle boarding, Jiu jitsu training, soccer, rugby, family time, friends, socializing, food, pets, work and staying active.
If you ever want to chat about what’s happening in the Real Estate market on Maui or have any questions on your equity, current options and their tax advantages or disadvantages or to discuss any other real estate needs, feel free to call, text or email. I am here for you!
Carol spulnik
December 15, 2022
Wish we had the new long term lease agreement like Maui does to reduce the property tax here on big island. Would definitely add a lot more rentals to the market. I know I would add a dwelling for sure!