Posted on: Friday, January 24, 2003

Kaua'i offers property tax break

By Jan TenBruggencate
Advertiser Kaua'i Bureau

LIHU'E, Kaua'i — Homeowners on Kaua'i who have been hit with increased property tax assessments may apply next month for a one-time "circuit-breaker" tax credit.

Islandwide property values increased 10 percent last year. Major areas such as the county seat of Lihu'e had virtually no change in assessments, while some north shore areas had dramatic increases, driven in part by high-priced land sales.

The County Council in December responded with legislation to provide one-time relief for lower-income homeowners. The bill has a number of restrictions, which will limit its use for some residents.

It can be used only by homeowners whose property taxes are higher this year than last year, and whose property tax bill for their home represents more than 3 percent of their adjusted gross income. The county will review both state and federal tax forms for 2001, and will use the higher adjusted gross income to make its calculations. The incomes of all listed homeowners living in the house will be added. There are other restrictions as well.

For eligible homeowners, the amount of increase in taxes that is more than 3 percent of adjusted gross income will be credited. If the adjusted gross income is $40,000, 3 percent is $1,200. If the tax bill is $1,500, the homeowner would receive a $300 credit.

The credit is only good for this year's tax bills.

Applications for the credit may be filed during the month of February. For more information, call the Real Property Assessment Division at (808) 241-6222 or visit www.kauaipropertytax.com. Exemption forms are available at the Real Property Assessment office in the new county municipal building, Suite 454 in Lihu'e.