If you're considering purchasing property on Kauai, it's important to understand the unique assessment process for taxes.
One important tip: Head over to the property tax department and apply for a homestead exemption after purchasing your property. This is a fantastic way to save on taxes while enjoying Kauai. Make sure you file your application before the deadline of September 30th!
As a Kauai homeowner, understanding your property is classified and
taxed by the county or tax department is important. You should know that if renters reside in your home, irrespective of its zoning status, you will be taxed at the "commercialized home use" rate. This has nothing to do with whether or not the planning department approves it as a multi-family dwelling. It's simply how the tax basis is determined.
Unlike in some states where properties reassess at the sales price, Kauai assesses based on comparable properties, with the county reserving the right to be within 20% high or low. This can make the appeal process adversarial for taxpayers.
Due diligence is key when exploring properties. Take the time to understand the system and make informed decisions.
?? WATCH Kauai County Property Tax Rates.
[00:00:02] Introduction: Kauai County Property Tax Rates
[00:49] Save with homestead exemption
[02:02] What to know about residential investor rate