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        <title>Maui Real Estate &amp; Lifestyle News</title>
        <link>http://www.luxuryrealestatemaui.com/blog/2018-07/</link>
        <description>Courtney M. Brown, Realtor (S) Blog: information on the Maui real estate market, trends, and listings. Homes, condos and land for sale.</description>
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    <guid>http://www.luxuryrealestatemaui.com/blog/champagne-pop-up-at-the-cliff-house-kapalua.html</guid>
    <link>http://www.luxuryrealestatemaui.com/blog/champagne-pop-up-at-the-cliff-house-kapalua.html</link>
        <author>cb@luxuryrealestatemaui.com (Courtney M. Brown)</author>
        <title>Champagne Pop Up at the Cliff House, Kapalua</title>
    <description> <![CDATA[ 
Veuve Clicquot and the Cliff House at Kapalua: a perfect pairing





Dates: Thursdays - Sundays through September 1 (excluding August 4)Time:  4:30 - 8:30 p.m.What: Rosé Celebration, Exclusive Pours &amp; New Food Pairings


The Montage Kapalua Bay, is a five-star resort with private residences, situated overlooking Kapalua Bay.  The grounds are home to one of my favorite spots on the whole island, the Cliff House.  When I was growing up, I would accompany my father to meetings there.  In spite of being bored at the meetings, the journey always thrilled me, because I knew we would be swimming in the crystal clear waters below as soon as he finished.


The Cliff House is usually only available for private rental, so this pop-up bar and lounge provides one of the best vantage points to view Maui's spectacular sunsets.  Enjoy light bites with specialty cocktails and tasting flights of Veuve Clicquot Champagnes, the signature Yellow Label, Riche Rosé and La Grande Dame.


No reservations required. Open to all ages 21 years and older.Dates are subject to change. For more details, please call (808) 662-6600
 ]]> </description>
    <pubDate>Wed, 18 Jul 2018 13:03:00 -1000</pubDate>
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    <guid>http://www.luxuryrealestatemaui.com/blog/maui-county-property-tax-rates-for-the-2018-2019-fiscal-year.html</guid>
    <link>http://www.luxuryrealestatemaui.com/blog/maui-county-property-tax-rates-for-the-2018-2019-fiscal-year.html</link>
        <author>cb@luxuryrealestatemaui.com (Courtney M. Brown)</author>
        <title>Maui County Property Tax Rates for the 2018-2019 Fiscal Year</title>
    <description> <![CDATA[ 
Maui Property Tax Rates for 2018-2019 Fiscal Year


The Maui County Council approved the new property tax rates for the July 1, 2018-June 30, 2019 Fiscal Year.


The figures below show the rates for each year.  Traditionally, the lowest tax rate is for Homeowner, where this is their declared primary residence.  The highest tax rate remains the Time Share Classification.   This is the first year the county has added the category of Short Term Rental for those condominiums that are rented for a period of time less than 180 days.  Read More on Maui Short Term Rentals.


Maui County assesses taxes based on the tax rate multiplied by the assessed value of the property.  The county assesses values each year based on the sales in the prior fiscal year.  Therefore, the assessed value will seldom line up with current market conditions.  For example, the 2018 rates were based on sales of similar properties from July 1, 2016 to June 30, 2017.


Note: The figures below are the Rate($)/Million of Assessed ValueThe county website calculates them per $1000 of assessed value, however, I find having the rates charted below an easier way to make calculations quickly.  Instead of the calculation of (value/$1000) * Rate, the calculation is (assessed value/$1,000,000) * Rate Below.  So a property that is assessed at $500,000 would be half of the applicable amount listed per the owner's use below.





Per the county website:




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.


Condominiums are classified upon consideration of their actual use (Apartment, Commercial, Hotel / Resort, Timeshare, Homeowner).


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.




Read more about how the Maui County assesses real property taxes, classifications, and important dates.


More comprehensive information can be found at the county of Maui’s Property Tax website. www.mauipropertytax.com &gt; Real Property Tax Info. Please consult with your tax professional or contact the County of Maui with any questions about Property Taxes and Rates.  Information taken from the county website as of the date of this post.  Information is subject to change and should be independently verified.
 ]]> </description>
    <pubDate>Tue, 17 Jul 2018 16:51:00 -1000</pubDate>
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    <guid>http://www.luxuryrealestatemaui.com/blog/harpta-what-is-harpta-the-new-law-and-harpta-exemptions.html</guid>
    <link>http://www.luxuryrealestatemaui.com/blog/harpta-what-is-harpta-the-new-law-and-harpta-exemptions.html</link>
        <author>cb@luxuryrealestatemaui.com (Courtney M. Brown)</author>
        <title>HARPTA: what is HARPTA, the New Law, and HARPTA exemptions</title>
    <description> <![CDATA[ 
What is HARPTA, the new law, and are there any exemptions?





What is HARPTA?


HARPTA is the Hawaii Real Property Tax Act.  HARPTA is a Withholding Tax on Sales of Hawaii Real Property by Nonresident Persons.  The &quot; withholding obligation is generally imposed on the transferee/buyer when a Hawaii real property interest is acquired from a nonresident person. This withholding serves to collect Hawaii income tax that may be owed by the nonresident person.&quot;*  This is similar to the withholding in California, often referred to as CalFIRPTA, and the federal withholding tax on the disposition of real property known as FIRPTA (Foreign Investment in Real Property Tax Act).&quot; Read More in Tax Information Release No. 2017-01


Per the State of Hawaii's Department of Taxation: &quot;Hawaii residents and nonresidents alike must pay Hawaii income tax on capital gains recognized on the sale of real property located in Hawaii unless the gain can be excluded under Hawaii income tax law. Many nonresidents never realized that they were subject to Hawaii taxation and did not file a Hawaii income tax return or pay the tax due when they sold a Hawaii property. HARPTA legislation requires a purchaser to withhold a percentage of the sales price when acquiring Hawaii real property from a nonresident seller and remit the amount withheld directly to the State.&quot;  Read More detailed information about HARPTA in a Message from the Hawaii Department of Taxation*


Section §235-68, Hawaii Revised Statutes (HRS), provides for the withholding of tax on the disposition of Hawaii real property by nonresident persons and is commonly referred to as &quot;HARPTA.&quot; Section §235-68, HRS, requires every transferee/buyer1 to withhold and pay to the Department of Taxation (Department) 5 percent of the amount realized on the disposition of Hawaii real property, unless the disposition is exempt from withholding.&quot;


Hawaii is an escrow state, and while escrow is not responsible to withhold the required amount, per the Purchase Contract, escrow is instructed to collect and disburse the funds to the State Department of Taxation.


The New Law: Hawaii Revised Statutes §235-68


A new law has been passed that increases the amount of the HARPTA withholding from 5 to 7.25 . This applies to transactions for sale of real property that close on or after September 15, 2018.


Are there any HARPTA Exemptions?


In addition to participating in an IRC 1031-Tax Deferred Exchange, a Seller may currently apply for an Exemption from the HARPTA Withholding if they meet certain exceptions:1) the seller is a Hawaii resident2) the gain on the sale of the property is not recognized (i.e., not taxable) under the federal Internal Revenue Code as adopted by Hawaii3) the property was the principal residence of the seller in the year preceding the sale and the amount realized from the sale of that property is not more than $300,000. 


Required forms for filing a tax return or an exemption can be found on the Department of Taxation website. It is always helpful to retain your closing statement on file, along with your title insurance policy, and/or fully executed purchase contract.


If the property was inherited, the estate tax return and any supporting documents may also be required. It is noteworthy that the annual real property tax assessment notice does not substantiate a seller’s basis in the sale of the property.


The Seller must file a return for the year of the sale.  Any overpayment would be refunded after the return is processed. 


*The sources used in this post were downloaded from the Hawaii Department of Taxation was downloaded from the State of Hawaii Tax Department's website on the date of this post, July 10, 2018. Newer information may be available and any interested party should check the Department of Taxation website.This blog is for informational purposes only and is not intended to serve as legal, business, or tax advice.  Please consult with the appropriate legal, accounting, or qualified 1031-exchange professional before making any decisions in this matter.The document Message from Hawaii Department of Taxation has not yet been updated to reflect the 7.25 amount per the Hawaii Revised Statutes §235-68.  The document Tax Information Release No. 2017-01 is dated June 28, 2017.


 


 
 ]]> </description>
    <pubDate>Tue, 10 Jul 2018 16:24:00 -1000</pubDate>
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