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Monday is the Deadline to Apply for Tax Credit and Exemptions  


            More than 800 people have applied for the new real property tax credit, and there’s still time for more taxpayers to apply.

            The credit was established earlier this year, when Mayor Mufi Hannemann signed into law Bill 80 (2005), FD1, CD1. The bill provides a tax credit for owners granted a property tax home exemption where titleholders have an aggregate income of no more than $50,000. Eligible owners would receive a tax credit for any amount that exceeds 4 percent of their income.

             For example, say Mr. and Mrs. Taxpayer jointly own their home and receive a home exemption for it.  (Beginning next year, the standard homeowner’s exemption will be worth $80,000 or more off the assessed value of the home.) How much the couple owes in property taxes is determined by multiplying the net assessed value by the rate for residential property, which is $3.59 per $1,000 this fiscal year. If their house has a net assessed value of $600,000, the couple would owe $2,154 in property taxes.

            But let’s say their income totaled only $40,000 in 2005, and that they applied for the new tax credit. The credit applies to the amount in excess of 4 percent of their combined income for the past calendar year. In this case, that figure would be $1,600. The new ordinance credits them with the additional $554 they would otherwise owe in property taxes.

            The deadline for applying for the new credit is September 30. Because that falls on Saturday this year, applications postmarked before midnight October 2 will be accepted. Applications may also be submitted in person at Honolulu Hale, at the Treasury Office on the ground floor, or at some Satellite City Halls (check first).  

            In addition, Treasury Office staff can offer some assistance to walk-in applicants. Applicants should bring copies of their income tax returns and all other income documents.

            The application form can also be found on the website of the City Department of Budget and Fiscal Services. The link to the form is: Or, for more information on the tax credit, call the Treasury Division at 523-4856.

            Applicants will be notified by December 31, 2006, whether they are eligible for the credit. The credit will applied for the 2006-07 and 2007-08 fiscal years (or “tax years”). The fiscal year runs July 1 to the following June 30.

            In addition to the tax credit, September 30 is also the deadline for property owners to file for homeowner exemptions, multiple exemptions (property owners 65 and older are eligible) or changes in their exemptions. Again, because September 30 falls on Saturday, applications will be accepted as long as they’re postmarked no later than October 2.       

            Next year, the schedule of multiple exemptions based on the homeowner’s age will change from four tiers to two. Those under 65 will receive a standard $80,000 homeowner exemption. Those 65 and older will get a $120,000 exemption. (There are also exemptions for persons with physical disabilities, Hansen’s disease and for disabled veterans.)

            See the website  for more information or call the Real Property Assessment Division at 527-5539 (Honolulu) or 692-5541 (Kapolei).




Media contacts:

            Edlyn Taniguchi, Chief of Treasury, 527-5673

            Gary Kurokawa, Real Property Assessment Division Chief, 527-5502

Friday, September 29, 2006

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