In today’s lLiving Akamai segment, Kay Mukaigawa of Engel and Volkers is helping homeowners save a little money with a focus on property taxes with an ‘Owner Occupant vs Investor.

“Although it is a large expense for many, Hawaii has the lowest effective property tax rate in the Nation – provided you are an owner occupant.

Let’s go through the tax rates…

For owner occupants living on the Island of Oahu, the rate is $3.50 per one thousand dollars of net value.

For a non-owner occupant, the rate is two tiered.

$4.50 for the first $1 million and $10.50 for values over $1 million

As you can see anything over $1million is triple the cost of the owner occupant rate”

And Kay has advice to help save some money in this area.

“It’s important to ensure you get the lower, owner occupant rate, if you are indeed living in the property as your primary residence. To be eligible, you need to fill out form P-3 with the Real Property Assessment Division and claim your exemption by September 30th of the preceding year.  So, to claim an owner occupant exemption for 2023, you would need to fill out form P-3 by September 30, 2022. If you already filed, you do not need to do it again, unless you have made some change to your occupancy status.  It’s important to ensure you are getting the home exemption, as you will not be reimbursed for taxes paid on previous years, if you did not have the property P-3 form filed. Also, there are additional exemptions available to homeowners to lessen the tax burden. A few examples include exemptions for Disabled Veterans, those have impaired sight or hearing or are totally disabled.  The City & County of Honolulu website is a wonderful resource to get more information. Another tip I’d like to share is Home Exemption Continuance.  An example would be a Senior, who moves into a Care Home or Senior Community, and keeps their primary residence vacant.  By applying for this continuance, you may continue to pay the lower owner occupant property tax provided you complete the Annual Notice of Relocation to Care Home or Facility for Continuance of Exemption of Home.  Long name, but a form that could save a senior a ton of money.  The last thing I wanted to cover are the Home Exemption brackets as they have changed in recent years.

Standard exemption amount for all homeowner’s up to age 64 is $100,000 For those age 65 or older it’s $140,000”

For more information, call (808) 725-2000