A question that is often asked is “How much will I pay for Maui property taxes?” Property taxes in Maui are paid in 2 installments a year. In most cases, if you have a mortgage, taxes will be paid by mortgage holder. Properties in Maui are reassessed every year. The assessments are usually pretty close to the market value at the time the assessment was put in place. The clause to that statement is there is often a 18-24 month lag. For example, right now, the market in Kihei is increasing slightly. The assessments were done late last year to take effect on July 1, 2012. Owners get a new assessment statement around March 15. Property taxes are due in 2 installments in August and the following February. The rates per $1000 assessed value for the 2012-2013 tax year as listed below:
A. Residential $5.75
B. Apartment $6.20
C. Commercial $6.90
D. Industrial $7.10
E. Agricultural $6.00
F. Conservation $6.20
G. Hotel & Resort $9.15 (Includes most vacation rental condominiums)
H. Time Share $15.50
I. Homeowner $2.75
J. Commercialized Residential $4.50
- Property is classified based upon its highest and best use.
- Properties receiving homeowner exemptions, condominiums, permitted bed and breakfasts and permitted transient vacation rentals are exceptions.
- Properties which have been granted a homeowner exemption are classified as Homeowner. Here is the form to complete for Homeowner Exemption.
- Condominiums are classified upon consideration of their actual use (Apartment, Commercial, Hotel / Resort, Timeshare, Homeowner). Here is the form for Condominium classification.
- Properties which have been granted a bed and breakfast permit, a transient vacation rental permit, or a conditional permit to operate a transient vacation rental are classified as Commercialized Residential.
Understanding the tax year and timing is important when purchasing a property. As the buyer, you assume the rate that the previous owner had for the current tax year. If the previous owner had the homeowner exemption, that is great for you for the remainder of the tax year. If you qualify for exemptions, they must be filed according to strict schedules and exceptions are rare.