Maui Real Estate & Lifestyle News

Maui Property Taxes 2021-2022 Update

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Fri, 11 Jun 2021 16:37:00 -1000

Maui Property Taxes 2021-2022Changes: Classifications & Rates Each year, Maui County does two things: assesses the value of the property AND sets new rates for the upcoming fiscal year, which runs from July 1st-June 30th. Also of note is the passing of Bill 129 (effective 2022) which provides an exemption for properties being rented long term and Bill 130 (effective 2021) which changes definitions relating to Non-Owner Occupied properties and Short-Term Rental classifications. How do you calculate your property taxes given the new tiered system? Fidelity National Title put together this helpful video when the new tiered system was introduced in 2020. Maui County Property Tax Rates 2021-2022 vs Prior Years Rates are per $1000 of assessed value. In 2020, the County introduced a new Tiered assessment. Prior to that, there was a flat rate per the classification. Classification 2021 2020 2019 2018 2017 2016 2015 Owner Occupied $2.41-2.71 $2.51-2.61 $2.90 $2.85 $2.86 $2.70 $2.78 Tier 1 (<$800,000) $2.41 $2.51 Tier 2 ($800,001-$1,500,000) $2.51 $2.56 Tier 3 ($1,500,001>) $2.71 $2.61 Non-Owner Occupied $5.45-8.00 $5.45-6.90 $5.60 $5.52 $5.54 $5.30 $5.40 Tier 1 (<$800,000) $5.45 $5.45 Tier 2 ($800,001-$1,500,000) $6.05 $6.05 Tier 3 ($1,500,001>) $8.00 $6.90 Commercialized Residential $4.40 $4.40 $4.60 $4.55 $4.56 $4.35 $4.35 Apartment $5.55 $5.55 $6.31 $6.31 $6.32 $6.00 $6.00 Short Term Rental $11.11-11.20 $11.08 $10.75 $9.28 NA NA NA Tier 1 (<$800,000) $11.11 $11.08 Tier 2 ($800,001-$1,500,000) $11.15 $11.08 Tier 3 ($1,500,001>) $11.20 $11.08 Hotel & Resort $11.75 $10.70 $11.00 $9.37 $9.37 $8.71 $8.85 Commercial (all three tiers) $6.29 $6.29 $7.39 $7.25 $7.28 $6.60 $6.60 Agricultural $5.94 $5.94 $5.94 $6.00 $6.01 $5.80 $5.90 Industrial $7.20 $7.20 $7.48 $7.45 $7.49 $6.69 $6.85 Conservation $6.43 $6.43 $6.43 $6.35 $6.37 $5.80 $5.90 Timeshare $14.60 $14.40 $14.40 $15.41 $15.43 $14.31 $14.55 Maui Property Taxes: how have they changed? 2021 vs. 2020 Owner Occupied. The rates went down for Tiers 1 & 2, and increased at Tier 3. Tier 1 (-4), Tier 2 (-2), Tier 3 (+4) Residential: The rate remained the same for Tiers 1 & 2, and increased at Tier 3 (+16) Short Term Rental: modest increases for all three tiers. Tier 1 (+.27), Tier 2 (+.63) and Tier 3 (+1.08) Hotel & Resort: +9.81 Timeshare: +1.39 Agriculture, Apartment, Commercial, Commercialized Residential, Conservation, Industrial: No Change Keep in mind that the rate is just part of the equation. While the rate may have gone up, the assessed value may have gone down. In this scenario, there may be little change to the total amount of property taxes due from 2020 for home owners. However, it may have gone up for those affected by Bill 130. Read more toward the end of this post on Bills 129 and 130 and how they affect Maui Property Taxes. Looking back over the past 5 years, the county has decreased the property tax rates for homeowners and apartment owners, and kept it fairly steady in others like Agricultural and Conservation zoning. The largest increases have been to Short Term Rentals, Hotels & Resorts, and second homeowners. What do Maui County Classifications mean? Per the Maui County website*, the County of Maui details the classifications of real property as follows: Time Share – real property that is subject to a time share plan as defined in section 514E-1, Hawaii Revised Statutes. Non-owner-occupied - real property improved with a dwelling, as defined in the comprehensive zoning ordinance, that would not be classified as “owner-occupied”, “hotel and resort”, “time share”, “short-term rental”, “commercial”, “industrial” or “commercialized residential”. Commercialized Residential – real property that serves as the owner’s principal residence and has been granted bed and breakfast home permit, a short-term rental home permit, or a conditional permit allowing a transient vacation rental use. Short Term Rental – lodging or dwelling units occupied by transient tenants for periods of less than six consecutive months, including real property that does not serve as the owner’s principal residence and has been granted a short-term rental home permit or a conditional permit allowing transient vacation rental use without regard to its highest and best use and cannot qualify for a home exemption. Apartment – multi-dwelling-unit improvements containing five or more dwellings that would not be classified “short-term rental”. Hotel and Resort – properties occupied by transient tenants for period of less than six consecutive months, have eight or more lodging or dwelling units and employ more than twenty full time persons. Owner-occupied – properties owned and occupied as a principal home and for which a home exemption was filed and granted. No definition was provided for Commercial, Industrial, Agricultural or Conservation. Property is classified based upon its highest and best use. Properties receiving home exemptions, condominiums, permitted bed and breakfasts and permitted transient vacation rentals are exceptions. Condominiums are classified upon consideration of their actual use (Non-owner-occupied, Commercial, Short-term rental, Timeshare, Owner-occupied). *This information taken from https://www.mauicounty.gov/755/Classification-for-Tax-Rate-Purposes as of the date of this post. It is subject to change. Important Dates July 1—Tax year commences. Taxes are calculated based upon January 1 assessed values and fiscal year tax rates. July 20 — First half of fiscal year tax bills mailed. August 20 — First half of fiscal year tax payments due. September 1 — Deadline for filing dedication petitions. December 1 — Condominium AOAO use declaration. December 31 — Deadline for filing circuit breaker applications for the next fiscal year. December 31 — Deadline for filing exemption claims and ownership documents. January 1 — Assessed values established for use during the next tax year. January 20 — Second half of fiscal year tax bills mailed. February 20 — Second half of fiscal year tax bills due. March 15 — Assessment notices mailed. April 9 — Deadline for filing appeals. May 1 — Certified assessments forwarded to the County Council for budget purposes. June 20 — Tax rates established by the County Council For additional information, all dates to remember, and appeals information visit the Maui County website Maui Property Tax: What has Changed for 2021 and What is Changing for 2022? Change of Classifications As Maui's property tax assessments were mailed out in Spring of 2021, I received several inquiries from condominium owners about a change to their property tax classification. This change was brought about by the passing of Bill 130 (Ordinance 5160) Per the Maui County property tax website: "Property is classified based upon its highest and best use. Properties receiving home exemptions, condominiums, permitted bed and breakfasts and permitted transient vacation rentals are exceptions. Condominiums are classified upon consideration of their actual use (Non-owner-occupied, Commercial, Short-term rental, Timeshare, Owner-occupied)." What Changed? Two important bills were unanimously passed in December, 2020: Bill 130 (Ordinance 5160) and Bill 129. Bill 130 took effect immediately upon its approval and applies to the 2021/2022 tax year. Here are important changes 1. Bill 130 Bill 130 amended the Maui County Code relating to classification of Real Property, particularly as it relates to Non-Owner Occupied Properties and condominiums where Short-Term Rentals are permitted. 'Non-Owner Occupied Classification:' Non-owner-occupied. [Only those units] Units occupied by the owner for personal use where transient vacation rental use is prohibited by the comprehensive zoning ordinance or units occupied by a lessee for a term of at least six consecutive months or more [will be classified as "non-owner-occupied."]" Short Term Rental Classification: Short-term rental. Unless classified as "time share," "hotel and resort," or "commercialized residential," lodging or dwelling units, as defined in the comprehensive zoning ordinance, occupied by transient tenants for periods of less than six consecutive months. [will be classified as "short-term rental,"] including properties granted a short-term rental home permit or conditional permit allowing transient vacation rental use and units occupied by the owner for personal use or are vacant where transient vacation rental use is allowed by the comprehensive zoning ordinance. Material to be repealed is bracketed. New material is underscored."--source Bill 130 (Ordinance 5160) Effectively, this changes the classification for owners of condominiums that used them as second homes and did not rent them short term from "non-owner occupied" to "short-term rental" where vacation rentals are permitted. 2. Bill 129 In an effort to bolster housing for local residents, the county passed Bill 129 which creates an additional tax advantage to someone choosing to rent their property on a long term basis. This bill essentially creates a "long-term rental" tax classification and exemption. The long-term-rental exemption form is available with other forms at: https://www.mauicounty.gov/1953/RPA-Forms-andInstructions. The deadline to file for the long-term rental exemption is December 31, 2021 Information pulled from multiple county sources (MauiPropertyTax.com, Mauicounty.gov and the Municipal Code as of the date of this post. However, it is subject to change as these websites are updated. Please check with the County of Maui's real property tax division with any questions or to verify what rate applies to your property. This post is informational in purpose and does not constitute legal or tax advice.

40th Kapalua Wine & Food Festival

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Wed, 02 Jun 2021 11:36:00 -1000

The Kapalua Wine & Food Festival Week: June 6-13, 2021 The Kapalua Wine & Food Festival will celebrate its 40th anniversary with a modified format hosted by several Kapalua Resort partners. The events will be intimate affairs with wonderful food and outstanding wine. As of this post, the following events still have availability: THE RITZ-CARLTON, KAPALUA Banyan Tree Restaurant at The Ritz-Carlton, KapaluaWinemaker Dinner featuring Hartford Court Wines & Cardinale Vineyards Hosted by winemakers Jeff Stewart/Hartford Court & Chris Carpenter/Cardinale Featuring….One Master Sommelier (Five-time “Sommelier of the Year”)Two World Famous Winemakers (Both famous for making wines with perfect “100 Point” score)Four Great Wineries: Cardinale, Hartford Family, La Jota and Mt. BraveSix Amazing Wines paired with an awesome menu by Chef Meridith ManeeTwo seatings: 5:00 pm & 7:30 pm$275++Reservations – Lani Clarion @1 808.665.7230lani.clarion@ritzcarlton.com Champagne Laurent-Perrier and Haleakala Creamery Pairing SeminarThursday, June 10 at 2pm, 4pm and 6pmLocation: Sunset RoomA delicious pairing seminar with the beautiful cheeses of Haleakala Creamery Maui's own goat farm creamery and Champagne Laurent-Perrier. $135 per personReservation links:2pm - https://kwff-jun10-2pm.eventbrite.com4pm - https://kwff-jun10-4pm.eventbrite.com6pm - https://kwff-june10-6pm.eventbrite.com THE MONTAGE KAPALUA BAY Al Fresco Champagne Lunch at Montage Kapalua BaySaturday, June 12 at 11:30amLocation: Cliff HouseFeaturing a five-course lunch menu with Laurent-Perrier Champagnes. $350 per person Reservation link:https://kwff-jun12.eventbrite.com THE PLANTATION HOUSE RESTAURANT Walkabout Tasting stations featuring Justin VineyardsSaturday, June 12th 5-8 pm$149/per personJoin Executive Chef Jared Krausen as he expertly pairs his island inspired creations with Justin Vineyards premier wines. Set on the Lawn with views of The award-winning Plantation Course and neighboring island of Molokai, this walkabout tasting features food, wine and cocktail stations featuring Grey Goose Essence offer a evening under the stars. Secure Booking Portal >Or Reservations: Deborah Van Alstyne Event Sales Manager | Plantation Housedebbie@theplantationhouse.com For more information on the Kapalua Wine & Food Festival and the event schedule, visit https://kapaluawineandfoodfestival.com/

Kapalua Resort: Market Update June, 2021

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Tue, 01 Jun 2021 17:00:00 -1000

The Kapalua Resort: Market Update June 1, 2021 Market Overview: Kapalua Resort Condos, Homes and Land Active Listings: 54Price Range: $750,000-$9,900,000Avg LP/Sq. ft.: $779Avg DOM: 264Pending Sales: 46Price Range: $760,000-8,500,000Avg LP/Sq. Ft.: $786Avg DOM: 174 KAPALUA RESORT YTD 2021 YTD 2020 YTD Change 2020 Change Sales 99 17 482 65 52 Volume $228,099,750 $29,759,100 666 $173,329,500 32 Avg LP $2,422,861 $1,878,000 29 $3,065,305 -21 Avg SP $2,304,038 $1,684,471 37 $2,666,607 -14 SP/LP 96 93 3 93 3 Avg SP/Sq. Ft. $803 $800 0 $897 -10 Avg DOM 183 151 21 176 4 Note: Data is through 5.31.2021 and compares the same period of time in 2020. Fractional sales at the Montage Residences, Kapalua Bay are not included in this summary Similar to the housing markets across the US, the Kapalua Resort market is seeing a remarkable amount of activity in 2021 vs. the same period in 2020. The total number of sales is up 482 and volume 666. The average sales price is up 37 over the same period in the prior year. It's noteworthy that the average sales price/sq. ft. is level. This would be influenced by more vacant land sales (22 compared with 2 in 2020) added into the mix, with a 15-acre parcel selling in Honolua Ridge at just $2/sq. ft in 2021. It is noteworthy that in 2021, the high SP/sq. ft. year to date is at the Montage Residences, where an oceanfront residence closed at $2101/sq. ft. In 2020, the high was $1842/sq. ft. for an oceanfront residence at the Ironwoods. With pending sales currently at 46, the resort is on track to see sales volume 123 over that of 2020 at a very minimum. Market Overview: Kapalua Resort Condominiums Active Listings: 24Price Range: $785,000-8,700,000Avg LP/Sq. ft.: $1403Avg DOM: 212Pending Sales: 29Price Range: $769,000-8,500,000Avg LP/Sq. Ft.: $1141Avg DOM: 193 KAPALUA CONDOS YTD 2021 YTD 2020 YTD Change 2020 Change Sales 59 12 392 40 48 Volume $106,792,250 $16,166,000 561 $68,617,500 56 Avg LP $1,876,784 $1,420,917 32 $1,806,947 4 Avg SP $1,810,038 $1,347,167 34 $1,715,438 6 SP/LP 96 95 1 94 2 Avg SP/Sq. Ft. $1,035 $937 10 $1,000 4 Avg DOM 193 162 19 165 17 Kapalua has seven different condominium communities. There are the Bay Villas, Golf Villas, and Ridge Villas, which are a mix of one and two-bedroom condominium units (sometimes three-bedroom villas will pop up, when a two-bedroom villa has been modified) that can be rented short term. The Ritz-Carlton Residences, Kapalua and Montage Kapalua Bay are luxury residences situated in five-star hotels. The Coconut Grove and Ironwoods are low density, low-rise communities, with private garages. Both the Coconut Grove and Ironwoods have restrictions in place regarding short-term rentals, lending a more residential feel to the properties. The number of sales is up 392, and volume is up 561. Average Sales Price is up 34. It's noteworthy that the DOM on market is also up, but the market is currently moving very swiftly at the lower end of the market, so this may be reflective of older, higher-priced inventory selling. View Kapalua Condos for Sale Market Overview: Kapalua Resort Homes Active Listings: 7Price Range: $2,850,000-$9,900,000Avg LP/Sq. ft.: $1105Avg DOM: 342Pending Sales: 4Price Range: $2,600,000-$4,695,000Avg LP/Sq. Ft.: $690Avg DOM: 211 KAPALUA HOMES YTD 2021 YTD 2020 Change 2020 Change Sales 18 3 500 17 6 Volume $95,627,500 $10,870,000 780 $90,787,000 5 Avg LP $5,654,611 $4,391,667 56 $6,473,563 -13 Avg SP $5,312,639 $3,623,333 47 $5,321,063 0 SP/LP 94 87 8 91 3 Avg SP/Sq. Ft. $1,009 $781 29 $1,043 -3 Avg DOM 165 158 4 156 6 As people revaluated their living spaces shifting to homes over condos in both late 2020 and early 2021, the residential market in Kapalua saw an unprecedented amount of activity. Condo sales seemed to pick up a bit later, as travel restrictions started to lift. Sales increased dramatically, particularly in the Pineapple Hill and Plantation Estates communities. There are fewer homes in Honolua Ridge and Mahana Estates, though that is starting to change with some new construction underway. View Kapalua Homes for Sale Market Overview: Kapalua Resort Land Active Listings: 22Price Range: $750,000-$7,250,000Avg LP/Sq. ft.: $29Avg DOM: 295Pending Sales: 13Price Range: $850,000-$2,900,000Avg LP/Sq. Ft.: $23Avg DOM: 119 KAPALUA LAND YTD 2021 YTD 2020 Change 2020 Change Sales 22 2 1000 8 175 Volume $25,680,000 $1,600,000 1505 $13,925,000 84 Avg LP $1,243,182 $850,000 55 $2,061,250 -40 Avg SP $1,167,273 $800,000 46 $1,740,625 -33 SP/LP 95 94 1 89 7 Avg SP/Sq. Ft. $15 $11 36 $32 -53 Avg DOM 173 74 134 284 -39 Across the Kapalua Resort, vacant land sales had the most dramatic increase of all, with sales in the new Mahana Estates development picking up. There are only a handful of undeveloped lots left in Pineapple Hill and Pineapple Hill Estates. View Kapalua Land for Sale View all properties for sale in Kapalua