Kauai Property Tax Reform - What and When?
Real Property Tax Reform Bill 2274 was introduced this summer and is an issue of interest and concern to Kaua`ians and absentee owners alike. Download the 147-page bill to read it.
You can also download video from the county's website and a slide presentation of the key points. Two proposed changes include raising the tax exemption amount for fulltime residents, and designating a special "resort tax" for those property owners who vacation rent out their properties here. When I first arrived on Kauai in 2004, the real estate market was in a huge upswing. I saw transactions where the selling price was sometimes 3 times the assessed value of the property being sold. Now after 2+years of market correction, many homes are selling at or below their assessed values. Needless to say, assessed values went up with the real estate market as the tax assessors finally caught up to the racing market.
It's important for second home owners to know the implications of the new taxes since it will certainly affect any cash flow projections of ownership on Kauai if you plan to rent your property out when you are not on island.
We will keep you posted on these developments!
Ron Margolis, RA, CDPE, ABR Hawaii Life Real Estate Services 808.346.7095 email: firstname.lastname@example.org