Local Option Circuit Breaker (Honolulu, Kauai, and Maui Counties)

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State

Hawaii

Year

2017

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Varies with Property Value

Minimum Tax Amount Must be Paid

Benefit Type

Circuit Breaker

Benefit

This credit is provided when property taxes exceed a certain percentage of homeowner's gross annual income. Honolulu, Kauai, and Maui counties have circuit breaker programs.

How is Benefit Disbursed

Credit to the property tax bill

Eligible Property Type

Residential

Characteristics of Eligible Property

Only homestead properties are eligible.

Eligibility Criteria

Homeowner

Income Ceiling

Principal Residence

Property Value Limit

Other Criteria

Description of Eligibility Criteria

Each county may establish its own program. In Honolulu, the maximum income is $60,000. In Kauai, the homeowner must have the Home Exemption, and income that does not exceed 50% of the Kauai median household income. In Maui, the homeowner must have been granted the homestead exemption for at least five out of the prior six years. Household income cannot exceed $100,000 and assessed value cannot exceed $550,000.

Local Option in Adoption of Program

Local government must take action to opt in

Local Option Regarding Program Features

Local option regarding program features

State Funding for Local Tax Loss

Local government covers all of its tax loss

Record ID

HI103_RR17

Footnotes

Honolulu City and County credit is available to those with income level up to $60,000. Relief is taxes in excess of 3% of income, regardless of age. Previously, the credit was two tiered; 4% for those under 75 years old and 3% for those 75 years old or over. Kauai Very Low Income Tax Credit is available to homeowners who have been granted a home exemption whose income is does not exceed 50% of Kauai median income. The credit is taxes that exceed 3% of income. Maui has a circuit breaker providing a maximum tax credit of $5,000 for property taxes that exceed 2% of income when household income. Household income cannot exceed $100,000. The credit is phased out from 100% of credit to 20% of the credit as assessed value increases up to $550,000. This amount was increased from $450,000, effective beginning with the tax year ending 30 June 2018. In Maui, the applications may be filed between August 1 and December 31 immediately preceding the tax year the credit is claimed.

Sources

Honolulu Revised Ordinances Article 13 sec. 8-13.1~13.3;
Kauai Ordinance §5A-11.4(e);
Maui ordinance 3.48.800 ~3.48.825 (in effect for 2017)

City and County of Honolulu Department of Budget and Fiscal Services, Real Property Tax Credit for Homeowners Application Form T-PRT100, (2017 income for filing in 2018)
[http://www.honolulu.gov/rep/site/bfs/treasury_docs/2019_Tax_Credit_Application.pdf accessed 07/06/2018]
View Archived Source

City and County of Honolulu Department of Budget and Fiscal Services, Real Property Tax Credit for Homeowners Brochure and Instructions, (2017)
[http://www.honolulu.gov/rep/site/bfs/2017_Tax_Credit_Information_Brochure.pdf Accessed 07/06/2018]
[https://www.lincolninst.edu/sites/default/files/gwipp/upload/sources/Hawaii/2017/HI_Real_Property_Tax_Credit_for_Homeowners_City_and_County_of_Honolulu_Department_of_Budget_and_Fiscal_Services_Division_of_Treasury_Accounts_Receivable_Branch_Tax_Relief_Section_2017.pdf]

Maui County Circuit Breaker Application form Online, Real Property Assessment Division, (2017)
[https://www.mauicounty.gov/DocumentCenter/View/8169/Circuit-Breaker-Credit-Instructions--Application Accessed 07/06/2018]
[https://www.lincolninst.edu/sites/default/files/gwipp/upload/sources/Hawaii/2017/HI_Circuit_Breaker_Application_Maui_County_Real_Property_Assessment_Division_2018.pdf]

Kauai County Department of Finance "Understanding Your Real Property Taxes" rev. 2018
[https://www.kauai.gov/Portals/0/Finance_RP/TaxReliefDocs/2020%20Understanding%20RPTaxes_12_14-2018.pdf?ver=2019-04-16-090954-967 Accessed 09/26/2019]
View Archived Source

Maui Ordinance No. 4789

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