Looking to save money on your property tax bill?
The City and County of Honolulu's home exemption applications are due Sept. 30.
But if you have questions, the Honolulu Board of Realtors and the city's Department of Budget and Fiscal Services Real Property Assessment Division, or RPAD, have free open houses planned in an effort to help O‘ahu homeowners learn more.
The first open houses were held last weekend, but more are set to take place at FarmLovers Markets in September.
"We started this last year to try and raise more awareness for the real property exemptions and dedication," Suzanne Young, CEO of the Board of Realtors, told Aloha State Daily.
Deadlines are once a year through RPAD, she said, "and we just find that every year, we meet people or hear about people who actually are homeowners who qualify for the property tax exemptions but had no idea that they didn't have one filed with their property, didn't pay attention that there's a deadline."
Last year, the program was held at the BOR offices with very little turnout, she noted.
"We shifted this year and said we need to go out to the communities, and the farmers markets are so well attended, they're out in the neighborhood," Young said. "This past weekend, we were in Kaka‘ako on Saturday and Kailua on Sunday and it blew our expectations."
They were able to find 11 homeowners out of 70 groups across both days who had not filed an exemption, she noted.
The home exemption reduces the taxable value of a home by $120,000 for homeowners under 65, and by $160,000 for homeowners 65 and older.
With the basic homeowner exemption, that means, for example, if your property is valued at $500,000, you'll only be taxed on $380,000, Young explained.
According to Young, a $120,000 reduction in tax valuation equates to a savings of $420 on your real property tax bill each year. With a $160,000 reduction, that's a $560 annual savings.
To qualify, you have to own and occupy the property as your principal home; your ownership is recorded at the state Bureau of Conveyances in Honolulu on or before Sept. 30 the year before you'll claim the exemption; and you file a claim for home exemption on or before Sept. 30, RPAD notes. You only have to file for the exemption once.
"Our Realtors are all about housing," Young said. "We are the people who are the closest to housing issues, because our Realtors are experts and work with buyers and sellers every single day. This is just part of our community outreach."
According to RPAD, the first home exemption law was enacted in 1896, "to provide some tax relief, encourage homeownership and the settlement of land. In 1896, the home exemption amount was $300."
Learn more about Honolulu's home exemption here, call 808-768-3799 or contact your Realtor.
If you go
Real Property Assessment Division Open House
FarmLovers Markets, 8 a.m. to noon all three days
— Saturday, Sept. 6, at Kaka‘ako, 919 and 1011 Ala Moana Blvd. in Honolulu
— Sunday, Sept. 7, at 640 Ulukahiki St. in Kaillua, near Adventist Health Castle
— Saturday, Sept. 13, at Pearlridge Mall Wai Makai, 98-180 Kamehameha Hwy. in ‘Aiea.
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
