Maui Real Estate & Lifestyle News

Maui Property Taxes: New Rates for July 1, 2025 to June 30, 2026

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Sun, 15 Jun 2025 12:55:00 -1000

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. The Maui County Council has proposed the rates below for 2025-2026 as well as a summary of how they've changed over the years. Maui County Property Tax Rates 2025 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 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Owner Occupied $1.65-$5.75 $1.80-$3.25 $1.90-2.75 $2.00-2.71 $2.41-2.71 $2.51-2.61 $2.90 $2.85 $2.86 $2.70 $2.78 Tier 1 <$1,300,000 $1,65 $1.80 $1.90 $2.00 $2.41 $2.51 NA NA NA NA NA Tier 2 $1,300,001-$4,500,000 $1.80 $2.00 $2.00 $2.10 $2.51 $2.56 NA NA NA NA NA Tier 3 $4,500,001> $5.75 $3.25 $2.75 $2.71 $2.71 $2.61 NA NA NA NA NA Non-Owner Occupied $5.87-$17.00 $5.87-$14.00 $5.85-12.50 $5.85-12.50 $5.45-8.00 $5.45-6.90 $5.60 $5.52 $5.54 $5.30 $5.40 Tier 1 <$1,000,000 $5.87 $5.87 $5.85 $5.85 $5.45 $5.45 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $8.60 $8.50 $8.00 $8.00 $6.05 $6.05 NA NA NA NA NA Tier 3 $3,000,001> $17.00 $14.00 $12.50 $12.50 $8.00 $6.90 NA NA NA NA NA Apartment $3.50 $3.50 $3.50 $3.50 $5.55 $5.55 $6.31 $6.31 $6.32 $6.00 $6.00 Hotel & Resort $11.80 $11.75 $11.75 $11.75 $11.75 $10.70 $11.00 $9.37 $9.37 $8.71 $8.85 Timeshare $14.70 $14.60 $14.60 $14.60 $14.60 $14.40 $14.40 $15.41 $15.43 $14.31 $14.55 Short Term Rental $12.50-$15.55 $12.50-$15.00 $11.85 $11.85 $11.11-$11.20 $11.08 $10.75 $9.28 NA NA NA Tier 1 <$1,000,000 $12.50 $12.50 $11.85 $11.85 $11.11 $11.08 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $14.00 $13.50 $11.85 $11.85 $11.15 $11.08 NA NA NA NA NA Tier 3 $3,000,001> $15.55 $15.00 $11.85 $11.85 $11.20 $11.08 NA NA NA NA NA Long Term Rental $2.95-$8.50 $3.00-$8.00 $3.00-$8.00 $3.00-$8.00 NA NA NA NA NA NA NA Tier 1 <$1,300,000 $2.95 $3.00 $3.00 $3.00 NA NA NA NA NA NA NA Tier 2 $1,300,001-$3,000,000 $5.00 $5.00 $5.00 $5.00 NA NA NA NA NA NA NA Tier 3 $3,000,001> $8.50 $8.00 $8.00 $8.00 NA NA NA NA NA NA NA Agricultural $5.74 $5.74 $5.74 $5.74 $5.94 $5.94 $5.94 $6.00 $6.01 $5.80 $5.90 Conservation $6.43 $6.43 $6.43 $6.43 $6.43 $6.43 $6.43 $6.35 $6.37 $5.80 $5.90 Commercial (all three tiers) $6.05 $6.05 $6.05 $6.05 $6.29 $6.29 $7.39 $7.25 $7.28 $6.60 $6.60 Industrial $7.05 $7.05 $7.05 $7.05 $7.20 $7.20 $7.48 $7.45 $7.49 $6.69 $6.85 Commercialized Residential $2.00-$10.00 $4.00-$8.00 $4.40 $4.40 $4.40 $4.40 $4.60 $4.55 $4.56 $4.35 $4.35 Tier 1 <$1,000,000 $2.00 $4.00 NA NA NA NA NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $3.00 $5.00 NA NA NA NA NA NA NA NA NA Tier 3 $3,000,001> $10.00 $8.00 NA NA NA NA NA NA NA NA NA How have Maui Property Taxes Changed? What increased in 2025 vs. 2024? Owner Occupied/Homeowner. Tier 1 (-18), Tier 2 (-18), Tier 3 (+77) Non-Owner Occupied. Tier 1 (-2), Tier 2 (+1), Tier 4 (+21) Short Term Rental: Tier 1 (0), Tier 2 (0), Tier 3 (+4) Commercialized Residential: Tier 1 (-50), Tier 2 (-40), Tier 3 (+25) No or Little Change: Apartment, Hotel& Resort, Timeshare (+1), Agriculture, Conservation, Commercial, Industrial It is important to note: In 2025, the Owner Occupant Tax tiers changed as follows: Tier 1 increased from $1,000,000 to $1,300,000, Tier 2 changed from $1,000,001 to $3,000,000 to $1,300,001 to $4,500,000 and Tier 3 changed from $3,000,001 to $4,500,001 The Long Term Rental tax ranges also increased tier 1 to $1,300,000 though the Tier 2 cap remained at $3,000,000. Classifications like Agricultural, Hotel & Resort, Timeshare, Commercial, Industrial and Conservation zoning have held steady. The largest increases have been to the highest Tier (3) of Owner-occupied, Non-owner occupied Residential, and Commercialized Residential. The County of Maui has been under pressure to keep housing affordable for local homeowners and residents and to provide affordable housing. To incentivize owners to rent long-term (12-month leases or longer), they've introduced a lower property tax rate and an exemption of $200,000. In December 2020, the County Council unanimously passed 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, and took effect in 2022. 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 for the next fiscal year is December 31st. Per the Maui County property tax website: "Property is classified based upon its highest and best use. Properties receiving home exemptions, long-term rental exemptions, permitted bed and breakfasts and permitted transient vacation rentals are exceptions." 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 that would not be classified as “owner-occupied,” “hotel and resort,” “time share,” “TVR-STRH,” “commercial,” “industrial,” “commercialized residential,” or “long-term rental." Commercialized Residential – real property that serves as the owner’s principal residence and has been granted a bed and breakfast home permit, a short-term rental home permit, or operates as a transient vacation rental, and cannot qualify for a home exemption. TVR-STRH – 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 ““TVR-STRH.” Commercial Industrial Agricultural Conservation 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 – real property owned and occupied as a principal home and for which a home exemption was filed and granted. Long-term rental – dwelling units occupied by long-term tenants for periods of twelve consecutive months or more to the same tenant and have been granted a long-term rental exemption. Note: No definition was provided for Commercial, Industrial, Agricultural or Conservation. *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. How do you calculate your property taxes given the new tiered system? Maui County has prepared this information, however, please note that the tiered amounts have changed since this was proposed. View How to Calculate Maui County Property Taxes using the Tiered System Note: this flier is prepared by Maui County and has not yet been updated with the new tiers for 2025-2026. As it's a bit confusing, below are some examples using the 2025 rates. I've also created an excel spreadsheet to perform the calculation. If you would like a copy or have questions, please email me: contact Courtney Brown Here are some examples using the different Tiers 1. Owner Occupied Property with a total value of $1,295,000 2. Non-Owner Occupied Proeprty with a total value of $2,995,000 3. Short Term Rental Property with a Total Value of $5,000,000 Maui County Property Tax 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 Rates: Fiscal Year July 1, 2024-June 30, 2025

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Thu, 30 May 2024 12:43:00 -1000

Maui Property Taxes Fiscal Year July 1, 2024-June 30, 2025Changes: 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. The Maui County Council has proposed the rates below for 2024-2025 as well as a summary of how they've changed over the years. Maui County Property Tax Rates 2024 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 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Owner Occupied $1.80-3.25 $1.90-2.75 $2.00-2.71 $2.41-2.71 $2.51-2.61 $2.90 $2.85 $2.86 $2.70 $2.78 Tier 1 <$1,000,000 $1.80 $1.90 $2.00 $2.41 $2.51 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $2.00 $2.00 $2.10 $2.51 $2.56 NA NA NA NA NA Tier 3 $3,000,001> $3.25 $2.75 $2.71 $2.71 $2.61 NA NA NA NA NA Non-Owner Occupied $5.87-$14.00 $5.85-12.50 $5.85-12.50 $5.45-8.00 $5.45-6.90 $5.60 $5.52 $5.54 $5.30 $5.40 Tier 1 <$1,000,000 $5.87 $5.85 $5.85 $5.45 $5.45 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $8.50 $8.00 $8.00 $6.05 $6.05 NA NA NA NA NA Tier 3 $3,000,001> $14.00 $12.50 $12.50 $8.00 $6.90 NA NA NA NA NA Apartment $3.50 $3.50 $3.50 $5.55 $5.55 $6.31 $6.31 $6.32 $6.00 $6.00 Hotel & Resort $11.75 $11.75 $11.75 $11.75 $10.70 $11.00 $9.37 $9.37 $8.71 $8.85 Timeshare $14.60 $14.60 $14.60 $14.60 $14.40 $14.40 $15.41 $15.43 $14.31 $14.55 Short Term Rental $12.50-$15.00 $11.85 $11.85 $11.11-11.20 $11.08 $10.75 $9.28 NA NA NA Tier 1 <$1,000,000 $12.50 $11.85 $11.85 $11.11 $11.08 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $13.50 $11.85 $11.85 $11.15 $11.08 NA NA NA NA NA Tier 3 $3,000,001> $15.00 $11.85 $11.85 $11.20 $11.08 NA NA NA NA NA Long Term Rental $3.00-$8.00 $3.00-8.00 $3.00-8.00 NA NA NA NA NA NA NA Tier 1 <$1,000,000 $3.00 $3.00 $3.00 NA NA NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $5.00 $5.00 $5.00 NA NA NA NA NA NA NA Tier 3 $3,000,001> $8.00 $8.00 $8.00 NA NA NA NA NA NA NA Agricultural $5.74 $5.74 $5.74 $5.94 $5.94 $5.94 $6.00 $6.01 $5.80 $5.90 Conservation $6.43 $6.43 $6.43 $6.43 $6.43 $6.43 $6.35 $6.37 $5.80 $5.90 Commercial (all three tiers) $6.05 $6.05 $6.05 $6.29 $6.29 $7.39 $7.25 $7.28 $6.60 $6.60 Industrial $7.05 $7.05 $7.05 $7.20 $7.20 $7.48 $7.45 $7.49 $6.69 $6.85 Commercialized Residential $4.00-$8.00 $4.40 $4.40 $4.40 $4.40 $4.60 $4.55 $4.56 $4.35 $4.35 Tier 1 <$1,000,000 $4.00 NA NA NA NA NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $5.00 NA NA NA NA NA NA NA NA NA Tier 3 $3,000,001> $8.00 NA NA NA NA NA NA NA NA NA How do you calculate your property taxes given the new tiered system? Maui County has prepared this information, however, please note that the tiered amounts have changed since this was proposed. View How to Calculate Maui County Property Taxes using the Tiered System How have Maui Property Taxes Changed? What increased in 2024 vs. 2023? Owner Occupied/Homeowner. Tier 1 (-5), Tier 2 (0), Tier 3 (+18) Non-Owner Occupied. Tier 1 (0), Tier 2 (+6), Tier 4 (+12) Short Term Rental: Tier 1 (+5), Tier 2 (+14), Tier 3 (+27) Commercialized Residential: Tier 1 (-9), Tier 2 (+14), Tier 3 (+82) No Change: Apartment, Hotel& Resort, Timeshare, Agriculture, Conservation, Commercial, Industrial Looking back over the past 5 years, the county introduced a tiered system, which assesses taxes in three tiers: 1. Up to $1M2. $1,000,001 to $3,000,0003. $3,000,000 and over It has decreased the property tax rates for the first tier of value for homeowners, as well as in apartment owner. Other classifications like Agricultural and Conservation zoning have held steady. The largest increases have been to Short Term Rentals, Hotels & Resorts, and second homeowners, and this year in commercialized residential. The County of Maui has been under pressure to keep housing affordable for local homeowners and residents and to provide affordable housing. To incentivize owners to rent long-term (12-month leases or longer), they've introduced a lower property tax rate and an exemption. In December 2020, the County Council unanimously passed 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, and took effect in 2022. 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 for the next fiscal year is December 31st. Per the Maui County property tax website: "Property is classified based upon its highest and best use. Properties receiving home exemptions, long-term rental exemptions, permitted bed and breakfasts and permitted transient vacation rentals are exceptions." 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 that would not be classified as “owner-occupied,” “hotel and resort,” “time share,” “TVR-STRH,” “commercial,” “industrial,” “commercialized residential,” or “long-term rental." Commercialized Residential – real property that serves as the owner’s principal residence and has been granted a bed and breakfast home permit, a short-term rental home permit, or operates as a transient vacation rental, and cannot qualify for a home exemption. TVR-STRH – 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 ““TVR-STRH.” Commercial Industrial Agricultural Conservation 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 – real property owned and occupied as a principal home and for which a home exemption was filed and granted. Long-term rental – dwelling units occupied by long-term tenants for periods of twelve consecutive months or more to the same tenant and have been granted a long-term rental exemption. . Note: No definition was provided for Commercial, Industrial, Agricultural or Conservation. *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. Maui County Property Tax 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 Short Term Rental Update: May 4, 2024

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Mon, 06 May 2024 13:36:00 -1000

MAUI VACATION RENTAL (TRANSIENT ACCOMMODATIONS) & SHORT TERM RENTAL UPDATE: MAY 2024 Maui, like many places around the US that are popular vacation destinations, has grappled with affordable housing and workforce housing for decades. The wildfire that swept through Lahaina town on August 8, 2023 has highlighted the critical need for affordable housing in Maui County. Since the fire, the Hawaii State Legislature passed SB2919 on May 2, 2024. It was signed into law by Governor Josh Green on May 4, 2024. Per the governor's website, "By addressing the issue of illegal short-term rentals, SB 2919 aims to alleviate Hawaiʻi’s housing crisis and increase housing levels throughout the state. This bill provides counties with home rule authority to see that vacation rentals are not allowed in communities that do not want them." Read More In anticipation of the governor signing the bill into law, Maui County's Mayor Richard Bissen held a press conference on May 3rd. During that conference, he announced his intent to present a bill that “If successful, this legislation will support the return of approximately 7,000 transient vacation rentals (TVRs) to the local housing market and specifically 2,200 in West Maui, again, for long-term rental consideration.” It should be noted that these rentals have not been operating illegally, but rather these are legal short term rentals through a section of the Maui County Code, Chapter 19.12.020 It should be noted that draft of the Mayor's proposed bill is not yet available. As described by the Mayor, the measure would: Phase out all STRs on the Minatoya List located in West Maui effective July 1, 2025. Phase out all STRs on the Minatoya List located in all other parts of Maui effective January 1, 2026. The Bill is scheduled to be heard by the Maui Planning Commission on June 25, 2024 with Molokai and Lanai Planning Commission hearings to follow. Below are some frequently asked questions and links to resources and source information. As always, interested parties are advised to do their own due diligence and consult with the appropriate professional, as county zoning rules and ordinances may change over time. MAUI TRANSIENT/SHORT-TERM/VACATION RENTAL FAQS For the purpose of the information below, "Transient Vacation Rental" or "TVR" is used interchangeably with the terms short-term rentals and vacation rentals. 1. What is a Transient Vacation Rental (TVR)? Per Maui County's website, a TVR (short-term or vacation rental) is any rental of a housing unit for less than 180 days. The Maui County Code Chapter 19.37 prohibits transient vacation rentals outside of the hotel district. List of Maui's Hotel Zoned Condos 2. What if the condominium property I'm considering does not fall under Maui County's Code's Hotel District? Can I still rent it short-term as a TVR? What is the Minatoya List? Per the Maui County TVR FAQ webpage: "An estimated 16,000-plus TVRs may operate legally in the County, many in multi-unit buildings, along with several hundred single family units. They operate legally because they are in an approved zoning district (hotel, business, historic, etc). Those that are not in approved districts and are operating legally, have applied for and received a “conditional permit” that is required to conduct a vacation rental business in a residential, rural or agricultural zoned district." Per the current county code (County Code Chapter 19.12.020 section G), TVRs of condominiums are currently permitted in apartment zoning (A-1 and A-2) if they meet the following criteria: 1. The building or structure received a building permit, special management area use permit, or planned development approval that was lawfully issued by and was valid, or is otherwise confirmed to have been lawfully existing, on April 20, 1989.2. Transient vacation rental use was legally conducted in any lawfully existing dwelling unit within the building or structure prior to September 24, 2020 as determined by real property tax class or payment of general excise tax and transient accommodations tax.3. The number of rooms or units allowed for transient vacation rental use may not increase beyond those allowed for such use as of January 7, 2022. Existing transient vacation rentals may be reconstructed, renovated, or expanded if no new rooms or transient vacation rental units are added.4. The property owner or operator holds general excise tax and transient accommodations tax licenses and is current in payment of State and County taxes, fines, or penalties assessed in relation to the transient vacation rental.5. The planning director and director of finance must maintain a publicly available list of all transient vacation rental units allowed under this section to the best of the departments' knowledge at the time the list is posted. The list is informational only and is not a confirmation of zoning or allowable uses. Inclusion of a property on the list does not establish any right to operate a transient vacation rental unit, and no person may rely upon the list to establish the right to operate as a transient vacation rental unit. Any interested person must consult the department with respect to any specific property's ability to operate as a transient vacation rental unit.6. Advertisements for transient vacation rental use must include the subject property's registration number, which is the subject property's tax map key number, without punctuation marks.7. A declaration in accordance with section 19.12.025 must not have been filed. This section of the county code and the vested rights to conduct transient vacation rental use may change under the Mayor's proposed bill. List of Condominiums under the County of Maui Short Term Rental List as of 3.20.2024. Updated List of Condominiums per the County of Maui Short Term Rental List updated 6.27.2024 3. What is the Minatoya List? In 2001, Maui County's Deputy Corporate Counsel, Richard K. Minatoya, issued a legal opinion that was later codified in Chapter 19.12.020. Subsequently, there is a list of condominiums, apartments and planned developments that meet the criteria outlined above in question 2. The County of Maui maintains "a list of Apartment-zoned properties that are generally recognized to have the vested right to conduct transient vacation rental use under the current county code." This list is often referred to as the "Minatoya List". It is noted on the list "This list does not grant any entitlement that is not allowed by zoning or any other provisions of the Maui County Code. This list is subject to error; to determine if short-term occupancy is allowed on any property, confirmation should be obtained from the Department of Planning." If the mayor's proposed legislation passes, the apartment-zoned condominiums on this list would be affected. It is not known if other zonings would be affected or those rentals allowed by ordinances. The proposal may go through revisions at the Planning Department and at the County Council. It is advised to seek confirmation from the Department of Planning and keep updated on the legislation. 4. What if I am considering a single-family residence or ohana? For a single-family and/or ohana home in the Apartment, Residential and Agricultural Districts, if an exemption is not in place for the subdivision, an owner would have to apply for and gain approval for one of the following in order to use the property as a TVR: B&B Permit (County Code Chapter 19.64), per the zoning ordinances, the owner/proprietor of a B&B shall be a resident of the County and shall reside, on a full-time basis, on the same lot being used as the bed and breakfast home. Short Term Rental Home (STRH) Permit (County Code Chapter 19.65). It should be noted that short-term rental home permits are subject to a variety of conditions, the owner must have owned the home for five years prior to the application, they are currently non-transferable, and the county has placed caps on the number allowed in each area. Conditional Use Permit: Outside of the above zoning districts, there are short-term rentals that have received approval to operate with a Conditional Permit. 5. For homes with Short-Term Rental Home Permits. Any Updates since originally the permit process was introduced? Yes. The following are some key updates to the code: Update as of 4/12/2018: Maui County has passed a law that changes one of the requirements for the ability to apply for a permit to rent for any period of less than 180 days if the property does not have hotel zoning. Previously, the application required that the home be at least five years old. With the new law, the applicant must have owned the home for five years prior to applying for the short-term rental home permit. This new law was passed on 3/27/2018 takes effect on 9/27/2018. Update as of 1/7/2022: Maui County Council passed a two-year moratorium on new short-term rentals (Ordinance 5316) Update 4/8/2022: The Maui County Council’s Planning and Sustainable Land Use Committee recently advanced legislation that would essentially codify the moratorium, and function to cap the number of visitor accommodations at existing levels (Resolution 22-70)Any interested parties should investigate current legislation and proposals at the time of your purchase, as well as the applicable county zoning ordinances that apply to the property that is of interest. 6. With the 2-Year Moratorium on Transient Accommodations in Ordinance 5316 how does that affect buying a condominium at a property where rentals are permitted but the unit isn't currently rented? This is something the Realtor's Association of Maui's Government Affairs department has been asked, and they responded that "this legislation should not impact any units that are allowed to conduct transient accommodations, even if those units aren’t actually conducting transient accommodations now. This specific point was discussed at the PSLU Committee’s March 23, 2022 meeting, and the original bill was amended to ensure that this right would be preserved, even if vacation rentals aren’t being conducted." For details on these changes, and a clearer understanding of the legislative intent on this matter, they point us to the meeting minutes from March 23rd beginning around page 34. 7. The Resolution also changes Section 19.32.040 of the Maui County Code to say that “transient vacation rentals are not permitted in planned developments.” Does this mean that transient vacation rentals will become unlawful in planned developments? Again turning to our Government Affairs Department: "According to Section 20 of the proposed legislation, these changes will only apply “to new transient accommodation applications that have not received final discretionary approval prior to January 7, 2022.” Therefore, existing planned developments that currently allow transient accommodations will continue to be allowed to conduct transient accommodations. Notwithstanding, TVR use will likely be considered a “lawful non-conforming use,” which means it is allowed but it may potentially be susceptible to elimination through legislation down the line." 8. Can I manage a vacation rental or long-term rental property myself? Can a relative or an employee manage the property for me? An owner can manage their vacation rental or long-term themselves, but they must be on island to do so. If the owner are not on island, they do need to provide their renters with a Local Contact and/or managing agent, who resides on island. Per Hawaii Landlord Tenant Code, Chapter 521, "An absentee landlord shall designate an agent to act on the landlord's behalf. The agent must reside on the same island as the rental unit." Per the DCCA, the designated on-island agent must be licensed if engaging in any activity for which a real estate license is required or manages property for more than one owner. 9. Is a landlord obligated to collect General Excise Tax (GET) and Transient Accommodations Tax (TAT)?Yes. The landlord must collect and pay GET and TAT per the Revised Statute 237. MCTAT is also collected (Maui County Transient Accommodations Tax) GET=4.5 (4 Hawaii State GET and .5 Maui County GET)TAT=13.25 (10.25 Hawaii State TAT and 3 Maui County TAT) These tax rates are subject to change. 10. When advertising a vacation rental online, are there any requirements? Yes...enter Act 204 in 2016 and requirements relating to providing the registration, tax ID and provide the Local Contact information. In addition to helping to ensure owners of transient vacation rental properties collect and pay the appropriate taxes, it also helps consumers investigate whether an online rental advertisement is real or fraudulent and provides a contact in case of an emergency at the property. Per the website for the Governor of the State of Hawaii, Act 204: "authorizes DOTAX to enforce civil penalties for operators and plan managers who fail to display the certificate of registration and registration ID numbers for transient accommodations and resort time share vacation plans. Authorizes DOTAX to issue citations for failure to provide the registration identification number or link to the number and the contact information of the local contact in an advertisement for a transient accommodation or resort time share vacation plan." 11. Does operating a TVR affect my property tax rate? Does owning a condominium where TVR's occur impact my tax classification? Yes. Per Maui County's Website on the date of this post, the county classifies real property tax for properties 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 that would not be classified as “owner-occupied,” “hotel and resort,” “time share,” “TVR-STRH,” “commercial,” “industrial,” “commercialized residential,” or “long-term rental." Commercialized Residential – real property that serves as the owner’s principal residence and has been granted a bed and breakfast home permit, a short-term rental home permit, or operates as a transient vacation rental, and cannot qualify for a home exemption. TVR-STRH – 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 ““TVR-STRH.” Commercial Industrial Agricultural Conservation 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 – real property owned and occupied as a principal home and for which a home exemption was filed and granted. The exemption is $200,000 as of the date of this post. Long-term rental – dwelling units occupied by long-term tenants for periods of twelve consecutive months or more to the same tenant and have been granted a long-term rental exemption. As of the date of this post, the exemption up to $200,000 on a parcel that is occupied as a long-term rental for twelve (12) consecutive months or longer to the same tenant. The website notes: "Property is classified based upon its highest and best use. Properties receiving home exemptions, long-term rental exemptions, permitted bed and breakfasts and permitted transient vacation rentals are exceptions." 12. What about using my property as a Long Term Rental? 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. On January 1, 2022, lodging or dwelling units occupied by long-term tenants for periods of 12 consecutive months or more to the same tenant may be granted a long-term rental exemption. Six-month and month-to-month leases do not qualify. Properties without a home exemption will be eligible for a $200,000 long-term rental exemption. Those that have a home exemption and qualify for a long-term rental exemption will be eligible for an additional $100,000 exemption and will be classified as Owner-Occupied. To Apply, an owner must complete the Long Term Rental Exemption Form and a copy of the valid signed lease agreement by visiting www.mauipropertytax.com. The deadline for filing is at the end of each calendar year. A long-term rental is subject to GET (General Excise Tax) but is not subject to TAT (Transient Accommodations Taxes) 13. Any other comments? When purchasing real estate, it is always advised to consult with the appropriate legal and tax professionals. If considering a property that would be used as a TVR and not living on island, it is recommended to speak with and interview licensed professional management companies. There are sometimes on-site rental management offices, as well as independent real estate companies that specialize in the management of transient vacation rentals. If you are considering purchasing a property here on Maui to use as a Transient Vacation Rental (TVR), you should be sure to check with the Planning Department, as well as on the current state and county zoning laws, rules and regulations, and tax laws, as well as the Residential Landlord-Tenant Code. Per the Maui County website, there are proposed legislative bills that may change the permitting process, requirements and areas. Find more information on these resource sites: HELPFUL RESOURCES:Information in this post is taken from the Maui County website and the Maui County Municipal Code website. Landlord Tenant Code and Short Term Rentals/Taxation are addressed in chapters 237, 467, and 521 of the Hawaii Revised Statutes Maui County Codes: Chapter 19 Zoning Ordinances and Permitted Uses Maui Real Property Tax Assessments: search properties Maui County: Real Property Division Act 204 Short Term Rental Permit Information Minatoya Opinion Brochure Renting Residential, April 2016 Brochure Transient Accommodations April, 2016 For Consumers booking a vacation rental: "Per Maui County Website, there are more than 16,000 units (i.e., apartments, condos, houses) that are legally eligible to operate as short-term (less than six months) rentals without requiring a Bed & Breakfast Permit or Conditional Permit. These units are generally located in districts zoned for hotel use, but some are also located in apartment districts, or are covered by other pre-existing situations. The operation of short-term rentals in these zoning districts is consistent with current County of Maui zoning ordinances, Community Plans, General Plan, and State law. All short-term rentals are also required to pay State of Hawaii General Excise Tax (GET) and Transient Accommodation Tax (TAT). It is recommended that you inquire with the owner as to whether they are operating in compliance with all current laws." Lists of Permitted B&B's, STRH's, TVR's can be found on the county website using the link above. Disclaimer: Information is taken from the above listed resources on the date of this post, May 15, 2017 and updated in 2018, June 13, 2022, and May 6, 2024. While every effort has been made to ensure the accuracy of this article, it is not intended to provide legal, zoning & property use, or tax advice as individual situations will differ and should be discussed with your property management company, tax professional and/or attorney. Zoning and land use questions should be directed to the Maui County Department of Planning. Updates and amendments may be made to the county and state laws and rules and regulations cited above, so all information contained herein should be not be relied upon without independent verification and should be researched at the time of purchase.

Maui Property Taxes: Proposed Rates for Fiscal Year July 1, 2024-June 30, 2025

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Fri, 05 Apr 2024 10:18:00 -1000

Update May 15, 2024The rates have been finalized by the county council with some changes: Read Maui Property Tax Rates 2024-2025 Maui Property Taxes: What is proposed for this year? Each year the county council reviews the proposed budget and sets property tax rates for the fiscal year (July 1, 2024-June 30, 2025) This year, the Mayor of Maui County has proposed increases to the Owner Occupant Rate, Residential Rate (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”), Short Term Rental Rate. There are no proposed changes to the Long Term Rental Category, Commercial, Agricultural, Conservation, Industrial, Hotel & Resort or Timeshare Rates. The county council is taking input from taxpayers on how they feel the proposed budget should be prioritized at https://tinyurl.com/2ztautkh View the Maui County Mayor's Proposed Budget Synopsis * note there is an error in the document provided on the county website. The changes noted in the PDF version of the Budget synopsis for STRs state the increase is 2.6. The actual changes range between 5-27 Classification 2024 (Proposed) 2023 Change Owner Occupied $2.00-$3.25 $1.90-2.75 Tier 1 <$1,000,000 $2.00 $1.90 5 Tier 2 $1,000,001-$3,000,000 $2.50 $2.00 25 Tier 3 $3,000,001> $3.25 $2.75 18 Residential $6.00-$14.00 $5.85-12.50 Tier 1 <$1,000,000 $6.00 $5.85 3 Tier 2 $1,000,001-$4,500,000 $8.50 $8.00 6 Tier 3 $4,500,001> $14.00 $12.50 12 Commercialized Residential $5.00 $4.40 14 Long Term Rental $3.00-$8.00 $3.00-8.00 Tier 1 <$1,000,000 $3.00 $3.00 0 Tier 2 $1,000,001-$3,000,000 $5.00 $5.00 0 Tier 3 $3,000,001> $8.00 $8.00 0 Apartment $3.50 $3.50 0 Short Term Rental $12.5-$15.00 $11.85 Tier 1 <$1,000,000 $12.50 $11.85 5 Tier 2 $1,000,001-$3,000,000 $13.50 $11.85 14 Tier 3 $3,000,001> $15.00 $11.85 27 Commercial (all three tiers) $6.05 $6.05 0 Agricultural $5.74 $5.74 0 Conservation $6.43 $6.43 0 Industrial $7.05 $7.05 0 Hotel & Resort $11.75 $11.75 0 Timeshare $14.60 $14.60 0 The following chart may help illustrate how the proposed changes compare with prior years. Classification 2024 (Proposed) 2023 2022 2021 2020 2019 Owner Occupied $2.00-$3.25 $1.90-2.75 $2.00-2.71 $2.41-2.71 $2.51-2.61 $2.90 Tier 1 <$1,000,000 $2.00 $1.90 $2.00 $2.41 $2.51 NA Tier 2 $1,000,001-$3,000,000 $2.50 $2.00 $2.10 $2.51 $2.56 NA Tier 3 $3,000,001> $3.25 $2.75 $2.71 $2.71 $2.61 NA Residential $6.00-$14.00 $5.85-12.50 $5.85-12.50 $5.45-8.00 $5.45-6.90 $5.60 Tier 1 <$1,000,000 $6.00 $5.85 $5.85 $5.45 $5.45 NA Tier 2 $1,000,001-$4,500,000 $8.50 $8.00 $8.00 $6.05 $6.05 NA Tier 3 $4,500,001> $14.00 $12.50 $12.50 $8.00 $6.90 NA Commercialized Residential $5.00 $4.40 $4.40 $4.40 $4.40 $4.60 Long Term Rental $3.00-$8.00 $3.00-8.00 $3.00-8.00 NA NA NA Tier 1 <$1,000,000 $3.00 $3.00 $3.00 NA NA NA Tier 2 $1,000,001-$3,000,000 $5.00 $5.00 $5.00 NA NA NA Tier 3 $3,000,001> $8.00 $8.00 $8.00 NA NA NA Apartment $3.50 $3.50 $3.50 $5.55 $5.55 $6.31 Short Term Rental $12.5-$15.00 $11.85 $11.85 $11.11-11.20 $11.08 $10.75 Tier 1 <$1,000,000 $12.50 $11.85 $11.85 $11.11 $11.08 NA Tier 2 $1,000,001-$3,000,000 $13.50 $11.85 $11.85 $11.15 $11.08 NA Tier 3 $3,000,001> $15.00 $11.85 $11.85 $11.20 $11.08 NA Commercial (all three tiers) $6.05 $6.05 $6.05 $6.29 $6.29 $7.39 Agricultural $5.74 $5.74 $5.74 $5.94 $5.94 $5.94 Conservation $6.43 $6.43 $6.43 $6.43 $6.43 $6.43 Industrial $7.05 $7.05 $7.05 $7.20 $7.20 $7.48 Hotel & Resort $11.75 $11.75 $11.75 $11.75 $10.70 $11.00 Timeshare $14.60 $14.60 $14.60 $14.60 $14.40 $14.40 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”. Commercial Industrial Agricultural Conservation 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. NEW Long-term rental – lodging or dwelling units as defined in the comprehensive zoning ordinance occupied by long-term tenants for periods of twelve consecutive months or more to the same tenant and have been granted a long-term rental exemption. Note: No definition was provided for Commercial, Industrial, Agricultural or Conservation. *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 Taxes Fiscal Year July 1, 2023-June 30, 2024 Rates

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Thu, 18 May 2023 10:32:00 -1000

Maui Property Taxes Fiscal Year July 1, 2023-June 30, 2024Changes: 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. Below is a snapshot of the new Maui County Property Tax Rates for 2023-2024 as well as a summary of how they've changed over the years. 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. Note the tier amounts have changed in 2022 from prior years. Maui County Property Tax Rates 2023 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 2023 2022 2021 2020 2019 2018 2017 2016 2015 Owner Occupied $1.90-2.75 $2.00-2.71 $2.41-2.71 $2.51-2.61 $2.90 $2.85 $2.86 $2.70 $2.78 Tier 1 <$1,000,000 $1.90 $2.00 $2.41 $2.51 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $2.00 $2.10 $2.51 $2.56 NA NA NA NA NA Tier 3 $3,000,001> $2.75 $2.71 $2.71 $2.61 NA NA NA NA NA Residential $5.85-12.50 $5.85-12.50 $5.45-8.00 $5.45-6.90 $5.60 $5.52 $5.54 $5.30 $5.40 Tier 1 <$1,000,000 $5.85 $5.85 $5.45 $5.45 NA NA NA NA NA Tier 2 $1,000,001-$4,500,000 $8.00 $8.00 $6.05 $6.05 NA NA NA NA NA Tier 3 $4,500,001> $12.50 $12.50 $8.00 $6.90 NA NA NA NA NA Commercialized Residential $4.40 $4.40 $4.40 $4.40 $4.60 $4.55 $4.56 $4.35 $4.35 Long Term Rental $3.00-8.00 $3.00-8.00 NA NA NA NA NA NA NA Tier 1 <$1,000,000 $3.00 $3.00 NA NA NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $5.00 $5.00 NA NA NA NA NA NA NA Tier 3 $3,000,001> $8.00 $8.00 NA NA NA NA NA NA NA Apartment $3.50 $3.50 $5.55 $5.55 $6.31 $6.31 $6.32 $6.00 $6.00 Short Term Rental $11.85 $11.85 $11.11-11.20 $11.08 $10.75 $9.28 NA NA NA Tier 1 <$1,000,000 $11.85 $11.85 $11.11 $11.08 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $11.85 $11.85 $11.15 $11.08 NA NA NA NA NA Tier 3 $3,000,001> $11.85 $11.85 $11.20 $11.08 NA NA NA NA NA Commercial (all three tiers) $6.05 $6.05 $6.29 $6.29 $7.39 $7.25 $7.28 $6.60 $6.60 Agricultural $5.74 $5.74 $5.94 $5.94 $5.94 $6.00 $6.01 $5.80 $5.90 Conservation $6.43 $6.43 $6.43 $6.43 $6.43 $6.35 $6.37 $5.80 $5.90 Industrial $7.05 $7.05 $7.20 $7.20 $7.48 $7.45 $7.49 $6.69 $6.85 Hotel & Resort $11.75 $11.75 $11.75 $10.70 $11.00 $9.37 $9.37 $8.71 $8.85 Timeshare $14.60 $14.60 $14.60 $14.40 $14.40 $15.41 $15.43 $14.31 $14.55 Maui Property Taxes: how have they changed? 2024 vs. 2023 Owner Occupied/Homeowner. The rates went down for Tiers 1 & 2, and held steady at Tier 3. Tier 1 (-5 vs. -17 las year), Tier 2 (-4.67), Tier 3 (+1.48) No other significant changes 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. The County of Maui has been under pressure to keep housing affordable for local homeowners and residents and to provide affordable housing. To incentivize owners to rent long-term (12-month leases or longer), they've introduced a lower property tax rate and an exemption (see Bill 129 below). Per the Maui County property tax website: "Property is classified based upon its highest and best use. Properties receiving home exemptions, long-term rental exemptions, permitted bed and breakfasts and permitted transient vacation rentals are exceptions." 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”. Commercial Industrial Agricultural Conservation 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. NEW Long-term rental – lodging or dwelling units as defined in the comprehensive zoning ordinance occupied by long-term tenants for periods of twelve consecutive months or more to the same tenant and have been granted a long-term rental exemption. Note: No definition was provided for Commercial, Industrial, Agricultural or Conservation. *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 Changed in 2022? In December 2020, the County Council unanimously passed 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. This took effect on January 1, 2022. 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 for the next fiscal year is December 31, 2022 What could change in 2023? Update August 16, 2022 In July, the County Council met and passed the FIRST READING of Bill 93 (2022) to amend Sections 3.48.450 and 3.48.466, Maui County Code, to increase the homeowner exemptions for a principal home to $300,000, and amends the long-term rental exemptions, beginning January 1, 2023. Note: 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.

Maui Vacation Rental (Transient Accommodations) FAQ: 2022 Update

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Mon, 13 Jun 2022 14:08:00 -1000

MAUI VACATION RENTAL (TRANSIENT ACCOMMODATIONS) & SHORT TERM RENTAL FAQs May 7, 2024 Since this post there have been significant changes and proposed changes in Maui County and the State of Hawaii with regard to short term rentals. Read the updated post: May, 2024 Original Post Follows This is an update to a post I wrote in 2017. Since writing that post, there have been updates to the county code and new legislative proposals affecting short-term rentals. Maui, like many places around the US that are popular vacation destinations, has grappled with affordable housing and workforce housing. In 2022, a moratorium was passed on the approval of new transient accommodations, as well as the implementation of a new long-term rental tax category to incentivize owners to tenants for 12 months or longer to create more housing. When purchasing a property on Maui, it's important to understand the possible uses of the property with regard to how it can be rented (long-term, short-term, limited short-term (by virtue of AOAO or HOA rules for example), or both). As a realtor here on Maui, working primarily in resort areas, the most frequently asked questions I encounter are "can I vacation rent this property when I'm not using it?" and, if so, "can I manage the property myself on a website like VRBO or AirBnB?". The answer is, it depends. It isn't always straightforward, as there are several factors to consider that may govern the use of the property as a short-term Transient Vacation Rental (TVR), including, but not limited to, state laws and statutes, Maui county zoning rules and regulations, and CC&R's (Declaration of Covenants, Conditions, and Restrictions). For the most part, it is easier to rent condominiums short-term than homes due to zoning, county ordinances, particularly the 5-year ownership requirement prior to application to permit a home for short-term rentals, along with the limited number of available permits, which are capped by area. The county has put some regulations in place, which do require an on-island manager, and my recommendation is to hire a licensed property manager specializing in either short or long-term rentals (whichever you need). While this does come at an expense to owners and guests alike, it is important to have an on-island manager for tenants in case there is a leak or issue with the property, as well as for owners, to prevent property damage. It also protects consumers from online scams for both short and long-term rentals. I often get calls from people planning their vacation here on Maui and considering a home instead of a condo or hotel. The calls sometimes come when it just seems too good to be true; at other times, it's after they've paid deposits and can't reach their contact; and some come after they google the address and see the home is listed for sale. Unfortunately, in almost all of these cases, the property is not a legitimate rental. Photos are simply taken from websites and used in online ads in a rental scam. Below are some of the questions I'm asked most often and links to helpful resources and source information. As always, interested parties are advised to do their own due diligence, as county zoning rules and ordinances may change over time. TRANSIENT/SHORT-TERM/VACATION RENTAL FAQS For the purpose of the information below, "Transient Vacation Rental" or "TVR" is used interchangeably with the terms short-term rentals and vacation rentals. 1. What is a Transient Vacation Rental (TVR)? Per Maui County's website, a TVR (short-term or vacation rental) is any rental of a housing unit for less than 180 days. The Maui County Code Chapter 19.37 prohibits transient vacation rentals outside of the hotel district. 2. What if the property I'm considering does not fall under Maui County's Code's Hotel District? Can I still rent it short-term as a TVR? Per the Maui County TVR FAQ webpage: "an estimated 16,000-plus TVRs may operate legally in the County, many in multi-unit buildings, along with several hundred single-family units. They operate legally because they are in an approved zoning district (hotel, business, historic, etc). Those that are not in approved districts and are operating legally, have applied for and received a “conditional permit” that is required to conduct a vacation rental business in a residential, rural or agricultural zoned district." Per the current county code (County Code Chapter 19.12.20 section G), TVRs of condominiums are permitted in apartment zoning (A-1 and A-2) if they meet the following criteria: 1. The building or structure received a building permit, special management area use permit, or planned development approval that was lawfully issued by and was valid, or is otherwise confirmed to have been lawfully existing, on April 20, 1989.2. Transient vacation rental use was conducted in any lawfully existing dwelling unit within the building or structure prior to September 24, 2020 as determined by real property tax class or payment of general excise tax and transient accommodations tax.3. The property owner or operator holds general excise tax and transient accommodations tax licenses and is current in payment of State and County taxes, fines, or penalties assessed in relation to the transient vacation rental.4. If a building or structure is reconstructed, renovated, or expanded, transient vacation rental use is limited to the building envelope and number of bedrooms that can be confirmed as approved or lawfully existing on April 20, 1989.5. Advertisements for transient vacation rental use must include the subject property's registration number, which is the subject property's tax map key number, without punctuation marks. View a List of Condominiums that fall under the Maui County Short Term Rental List as of 4.27.2022 This is a list of Apartment zoned properties that are generally recognized to have the vested right to conduct transient vacation rental use. Note: This list does not grant any entitlement that is not allowed by zoning or any other provisions of the Maui County Code. This list is subject to error; to determine if short-term occupancy is allowed on any property, confirmation should be obtained from the Department of Planning. For a single-family and/or ohana home in the Apartment, Residential and Agricultural Districts, if an exemption is not in place for the subdivision, an owner would have to apply for and gain approval for one of the following in order to use the property as a TVR: B&B Permit (County Code Chapter 19.64), per the zoning ordinances, the owner/proprietor of a B&B shall be a resident of the County and shall reside, on a full-time basis, on the same lot being used as the bed and breakfast home. Short Term Rental Home (STRH) Permit (County Code Chapter 19.65). It should be noted that short-term rental home permits are subject to a variety of conditions, the owner must have owned the home for five years prior to the application, they are currently non-transferable, and the county has placed caps on the number allowed in each area. Conditional Use Permit: Outside of the above zoning districts, there are short-term rentals that have received approval to operate with a Conditional Permit. 3. Short Term Rental Homes. Any Updates since originally the permit process was introduced? Yes. The following are some key updates to the code: Update as of 4/12/2018: Maui County has passed a law that changes one of the requirements for the ability to apply for a permit to rent for any period of less than 180 days if the property does not have hotel zoning. Previously, the application required that the home be at least five years old. With the new law, the applicant must have owned the home for five years prior to applying for the short-term rental home permit. This new law was passed on 3/27/2018 takes effect on 9/27/2018. Update as of 1/7/2022: Maui County Council passed a two-year moratorium on new short-term rentals (Ordinance 5316) Update 4/8/2022: The Maui County Council’s Planning and Sustainable Land Use Committee recently advanced legislation that would essentially codify the moratorium, and function to cap the number of visitor accommodations at existing levels (Resolution 22-70)Any interested parties should investigate current legislation and proposals at the time of your purchase, as well as the applicable county zoning ordinances that apply to the property that is of interest. 4. With the new 2-Year Moratorium on Transient Accommodations in Ordinance 5316 how does that affect buying a condominium at a property where rentals are permitted but the unit isn't currently rented? This is something the Realtor's Association of Maui's Government Affairs department has been asked, and they responded that "this legislation should not impact any units that are allowed to conduct transient accommodations, even if those units aren’t actually conducting transient accommodations now. This specific point was discussed at the PSLU Committee’s March 23, 2022 meeting, and the original bill was amended to ensure that this right would be preserved, even if vacation rentals aren’t being conducted." For details on these changes, and a clearer understanding of the legislative intent on this matter, they point us to the meeting minutes from March 23rd beginning around page 34. 5. The Resolution also changes Section 19.32.040 of the Maui County Code to say that “transient vacation rentals are not permitted in planned developments.” Does this mean that transient vacation rentals will become unlawful in planned developments? Again turning to our Government Affairs Department: "According to Section 20 of the proposed legislation, these changes will only apply “to new transient accommodation applications that have not received final discretionary approval prior to January 7, 2022.” Therefore, existing planned developments that currently allow transient accommodations will continue to be allowed to conduct transient accommodations. Notwithstanding, TVR use will likely be considered a “lawful non-conforming use,” which means it is allowed but it may potentially be susceptible to elimination through legislation down the line." 6. Can I manage a vacation rental or long-term rental property myself? Can a relative or an employee manage the property for me? An owner can manage their vacation rental or long-term themselves, but they must be on island to do so. If the owner are not on island, they do need to provide their renters with a Local Contact and/or managing agent, who resides on island. Per Hawaii Landlord Tenant Code, Chapter 521, "An absentee landlord shall designate an agent to act on the landlord's behalf. The agent must reside on the same island as the rental unit." Per the DCCA, the designated on-island agent must be licensed if engaging in any activity for which a real estate license is required or manages property for more than one owner. 7. Is a landlord obligated to collect General Excise Tax (GET) and Transient Accommodations Tax (TAT)?Yes. The landlord must collect and pay GET and TAT per the Revised Statute 237. 8. When advertising a vacation rental online, are there any requirements? Yes...enter Act 204 in 2016 and requirements relating to providing the registration, tax ID and provide the Local Contact information. In addition to helping to ensure owners of transient vacation rental properties collect and pay the appropriate taxes, it also helps consumers investigate whether an online rental advertisement is real or fraudulent and provides a contact in case of an emergency at the property. Per the website for the Governor of the State of Hawaii, Act 204: "authorizes DOTAX to enforce civil penalties for operators and plan managers who fail to display the certificate of registration and registration ID numbers for transient accommodations and resort time share vacation plans. Authorizes DOTAX to issue citations for failure to provide the registration identification number or link to the number and the contact information of the local contact in an advertisement for a transient accommodation or resort time share vacation plan." 9. Does operating a TVR affect my property tax rate? Does owning a condominium where TVR's occur impact my tax classification? (Updated 6.12.2021) Yes. Read more on Maui County Property Taxes: new bills, assessments, and rates for 2022-23 10. What about using my property as a Long Term Rental? 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. On January 1, 2022, lodging or dwelling units occupied by long-term tenants for periods of 12 consecutive months or more to the same tenant may be granted a long-term rental exemption. Six-month and month-to-month leases do not qualify. Properties without a home exemption will be eligible for a $200,000 long-term rental exemption. Those that have a home exemption and qualify for a long-term rental exemption will be eligible for an additional $100,000 exemption and will be classified as Owner-Occupied. To Apply, an owner must complete the Long Term Rental Exemption Form and a copy of the valid signed lease agreement by visiting www.mauipropertytax.com. The deadline for filing is at the end of each calendar year. A long-term rental is subject to GET (General Excise Tax) but is not subject to TAT (Transient Accommodations Tax) Update July 26, 2022: The County Council met and passed the FIRST READING of Bill 93 (2022) to amend Sections 3.48.450 and 3.48.466, Maui County Code, to increase the homeowner exemptions for a principal home to $300,000, and for a long-term rental to $400,000, beginning January 1, 2023. 11. Any other comments? When purchasing real estate, it is always advised to consult with the appropriate legal and tax professionals. If considering a property that would be used as a TVR and not living on island, it is recommended to speak with and interview licensed professional management companies. There are sometimes on-site rental management offices, as well as independent real estate companies that specialize in the management of transient vacation rentals. If you are considering purchasing a property here on Maui to use as a Transient Vacation Rental (TVR), you should be sure to check on the current state and county zoning laws, rules and regulations, and tax laws, as well as the Residential Landlord-Tenant Code. Per the Maui County website, there are proposed legislative bills that may change the permitting process, requirements and areas. Find more information on these resource sites: HELPFUL RESOURCES:Information in this post is taken from the Maui County website and the Maui County Municipal Code website. Landlord Tenant Code and Short Term Rentals/Taxation are addressed in chapters 237, 467, and 521 of the Hawaii Revised Statutes Maui County Codes: Chapter 19 Zoning Ordinances and Permitted Uses Maui Real Property Tax Assessments: search properties Maui County: Real Property Division Act 204 Short Term Rental Permit Information Minatoya Opinion Brochure Renting Residential, April 2016 Brochure Transient Accommodations April, 2016 For Consumers booking a vacation rental: "Per Maui County Website, there are more than 16,000 units (i.e., apartments, condos, houses) that are legally eligible to operate as short-term (less than six months) rentals without requiring a Bed & Breakfast Permit or Conditional Permit. These units are generally located in districts zoned for hotel use, but some are also located in apartment districts, or are covered by other pre-existing situations. The operation of short-term rentals in these zoning districts is consistent with current County of Maui zoning ordinances, Community Plans, General Plan, and State law. All short-term rentals are also required to pay State of Hawaii General Excise Tax (GET) and Transient Accommodation Tax (TAT). It is recommended that you inquire with the owner as to whether they are operating in compliance with all current laws." Lists of Permitted B&B's, STRH's, TVR's can be found on the county website using the link above. Disclaimer: Information is taken from the above listed resources on the date of this post, May 15, 2017 and updated in 2018 and again in June 13, 2022. While every effort has been made to ensure the accuracy of this article, it is not intended to provide legal, zoning & property use, or tax advice as individual situations will differ and should be discussed with your property management company, tax professional and/or attorney. Zoning and land use questions should be directed to the Maui County Department of Planning. Updates and amendments may be made to the county and state laws and rules and regulations cited above, so all information contained herein should be not be relied upon without independent verification and should be researched at the time of purchase.

Maui Property Taxes: Fiscal Year 2023 Tax Rates

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Mon, 13 Jun 2022 13:50:00 -1000

Maui Property Taxes Fiscal Year 2023 (July 1 2022- June 30, 2023)Changes: 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. Below is a snapshot of the new Maui County Property Tax Rates for 2022-2023 as well as a summary of how they've changed over the years. 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. Note the tier amounts have changed in 2022 from prior years. Maui County Property Tax Rates 2022-2023 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 2022 2021 2020 2019 2018 2017 2016 2015 Owner Occupied $2.00-2.71 $2.41-2.71 $2.51-2.61 $2.90 $2.85 $2.86 $2.70 $2.78 Tier 1 <$1,000,000 $2.00 $2.41 $2.51 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $2.10 $2.51 $2.56 NA NA NA NA NA Tier 3 $3,000,001> $2.71 $2.71 $2.61 NA NA NA NA NA Residential $5.85-12.50 $5.45-8.00 $5.45-6.90 $5.60 $5.52 $5.54 $5.30 $5.40 Tier 1 <$1,000,000 $5.85 $5.45 $5.45 NA NA NA NA NA Tier 2 $1,000,001-$4,500,000 $8.00 $6.05 $6.05 NA NA NA NA NA Tier 3 $4,500,001> $12.50 $8.00 $6.90 NA NA NA NA NA Commercialized Residential $4.40 $4.40 $4.40 $4.60 $4.55 $4.56 $4.35 $4.35 Long Term Rental $3.00-8.00 NA NA NA NA NA NA NA Tier 1 <$1,000,000 $3.00 NA NA NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $5.00 NA NA NA NA NA NA NA Tier 3 $3,000,001> $8.00 NA NA NA NA NA NA NA Apartment $3.50 $5.55 $5.55 $6.31 $6.31 $6.32 $6.00 $6.00 Short Term Rental $11.85 $11.11-11.20 $11.08 $10.75 $9.28 NA NA NA Tier 1 <$1,000,000 $11.85 $11.11 $11.08 NA NA NA NA NA Tier 2 $1,000,001-$3,000,000 $11.85 $11.15 $11.08 NA NA NA NA NA Tier 3 $3,000,001> $11.85 $11.20 $11.08 NA NA NA NA NA Commercial (all three tiers) $6.05 $6.29 $6.29 $7.39 $7.25 $7.28 $6.60 $6.60 Agricultural $5.74 $5.94 $5.94 $5.94 $6.00 $6.01 $5.80 $5.90 Conservation $6.43 $6.43 $6.43 $6.43 $6.35 $6.37 $5.80 $5.90 Industrial $7.05 $7.20 $7.20 $7.48 $7.45 $7.49 $6.69 $6.85 Hotel & Resort $11.75 $11.75 $10.70 $11.00 $9.37 $9.37 $8.71 $8.85 Timeshare $14.60 $14.60 $14.40 $14.40 $15.41 $15.43 $14.31 $14.55 Maui Property Taxes: how have they changed? 2023 vs. 2022 Owner Occupied/Homeowner. The rates went down for Tiers 1 & 2, and held steady at Tier 3. Tier 1 (-17), Tier 2 (-16.33), Tier 3 (0) Residential: The rate increased at all categories, particularly at the high end. Tiers 1 (+7.34), Tier 2 (+32.33), Tier 3 (+56.25) Short Term Rental: modest increases for all three tiers. Tier 1 (+6.66), Tier 2 (+6.28) and Tier 3 (+5.80) No Change (0): Hotel & Resort, Timeshare, Commercialized Residential, Conservation Major Decrease: Apartment: -36.94 Modest Decreases: Agriculture (-3.37) Commercial (-3.82), Industrial (-2.08) 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. The County of Maui has been under pressure to keep housing affordable for local homeowners and residents and to provide affordable housing. To incentivize owners to rent long-term (12-month leases or longer), they've introduced a lower property tax rate and an exemption (see Bill 129 below). Per the Maui County property tax website: "Property is classified based upon its highest and best use. Properties receiving home exemptions, long-term rental exemptions, permitted bed and breakfasts and permitted transient vacation rentals are exceptions." 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”. Commercial Industrial Agricultural Conservation 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. NEW Long-term rental – lodging or dwelling units as defined in the comprehensive zoning ordinance occupied by long-term tenants for periods of twelve consecutive months or more to the same tenant and have been granted a long-term rental exemption. Note: No definition was provided for Commercial, Industrial, Agricultural or Conservation. *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 Changed in 2022? In December 2020, the County Council unanimously passed 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. This took effect on January 1, 2022. 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 for the next fiscal year is December 31, 2022 What could change in 2023? Update August 16, 2022 In July, the County Council met and passed the FIRST READING of Bill 93 (2022) to amend Sections 3.48.450 and 3.48.466, Maui County Code, to increase the homeowner exemptions for a principal home to $300,000, and amends the long-term rental exemptions, beginning January 1, 2023. Note: 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.

Maui Property Tax Assessments & Appeals: March 2022

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Fri, 18 Mar 2022 14:37:00 -1000

Each year, the County of Maui sends out a notice of the assessed value of a property on March 15th. This is the first step in determining the taxes that each property owner will owe for the upcoming fiscal year, that starts July 1, 2022 and ends June 30, 2023. The next step is the county council will meet in June and establish the new rates for each land class. Read More about the Maui County 2021-2022 Real Property Tax Rates The Notice of Real Property Assessment-January 1, 2022 for real property taxes due July 1, 2022 through June 30, 2023 are now available online. These notices were mailed to property owners on 3/15/22. The letters note that the assessed valuations were "derived using comparable sales that recorded up to June 30, 2021. The assessed values represent 100 of the full, unencumbered fee simple market value. The Assessor uses acceptable mass appraisal methods and standards. A separate notice of assessment will be sent for each land class" If a property owner disagrees with the valuation or a refusal to allow an exemption, they may file an appeal to the Board of Review. They must cite the reason for the appeal which can be the following: Assessment of property exceeds by more than 20 the assessment of market value used by the County. There is a lack of uniformity or inequality, brought about by inability of the methods used or error in the application of the methods to the property involved. You have been denied an exemption to which you are entitled. Please indicate your opinion of the exemption amount and type of exemption The assessment methods are unconstitutional or in violation of State laws or County ordinances. The General Land Class is incorrect. Please indicate your opinion of general land class You have been denied a circuit breaker tax credit to which you are entitled. The deadline for filing an appeal is April 11, 2022 (the 9th falls on a Saturday). For more information visit the Maui County Real Property Tax websiteFile appeal online at https://mauismartfile.tylerhost.net/mauihi_sfAppeal Form: https://www.mauicounty.gov/DocumentCenter/View/8716/Appeal-Instructions-and-Form?bidId= Important Dates* Date Event 15-Mar Assessment notices mailed. 9-Apr Deadline for filing appeals. 1-May Certified assessments forwarded to the County Council for budget purposes. 20-Jun NEW tax rates established by the County Council for the 2022-2023 Fiscal Year 1-Jul Tax year commences. Taxes are calculated based upon January 1 assessed values and fiscal year tax rates. 20-Jul First half of fiscal year tax bills mailed. 20-Aug First half of fiscal year tax payments due. 1-Sep Deadline for filing dedication petitions. 1-Dec Condominium AOAO use declaration. 31-Dec Deadline for filing circuit breaker applications for the next fiscal year. 31-Dec Deadline for filing exemption claims and ownership documents. 1-Jan Assessed values established for use during the next tax year. 20-Jan Second half of fiscal year tax bills mailed. 20-Feb Second half of fiscal year tax bills due. Important information regarding real property assessments**: APPEALS: The assessment covers the value, exemption, and classification of all taxable real property. Any taxpayer, who may deem themselves aggrieved by an assessment or refusal to allow an exemption, may file an appeal to the Board of Review. The deadline to appeal is April 11, 2022. The filing fee is $75.00. Online filing through the forms link at www.mauipropertytax.com is highly encouraged. MAILING ADDRESS CHANGE: If your mailing address has changed, online filing through the forms link at www.mauipropertytax.com is highly encouraged. CONDOMINIUM CLASSIFICATION (IMPORTANT CHANGES): In December 2020, Ordinance No. 5159, Bill No. 129 (2020) repealed Maui County Code 3.48.305(C). Effective January 1, 2022, all real property must be classified upon consideration of its highest and best use. Exceptions include real property that has been granted a homeowner exemption or a long-term rental exemption. LONG-TERM RENTAL EXEMPTION FOR 2023 ASSESSMENT YEAR: Real property occupied as a long-term rental under a signed contract to lease for twelve consecutive months or more on January 1, 2023 may qualify for an exemption up to $200,000. The filing deadline for the exemption is December 31, 2022. HOME EXEMPTION FOR THE 2023 ASSESSMENT YEAR: Real property occupied as a principal home as of January 1, 2023, for more than 270 days, may qualify for an exemption up to $200,000. The applicant must file an income tax return as a resident of the State of Hawaii with a reported address in the County prior to January 1, 2023. The filing deadline for the exemption is December 31, 2022. Online filing through the forms link at www.mauipropertytax.com is highly encouraged. AINA KUPUNA DEDICATION: In 2021, Ordinance No. 5307, Bill No. 118 (2021) was enacted which established a tax relief program for real property located in the Special Management Area and owned in whole or in part in fee simple by one or more descendants of the person who owned the property at least 80 years prior to the application. The filing deadline for this program is December 31, 2022. LEARN MORE ABOUT REAL PROPERTY TAX ASSESSMENT ONLINE: Real property applications, forms, general information, and detailed assessment information, including agricultural use values, multiple owners, building descriptions, sales and Geographic Information System parcel maps can be found at www.mauipropertytax.com. *Dates are taken from the Maui County website: https://www.mauicounty.gov/1111/Dates-to-Remember**Information taken from the Notice of Real Property Assessment January 1, 2022 for real property taxes due July 1, 2022 through June 30, 2023. These notices were mailed to property owners on 3/15/22

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.

Maui Property Tax Rates 2020-2021

cb@luxuryrealestatemaui.com (Courtney M. Brown) — Mon, 08 Jun 2020 19:08:00 -1000

Maui Property Tax Rates 2020-2021 Note: This article was updated on July 1, 2020 The Maui County Council approved the new property tax rates for the July 1, 2020-June 30, 2021 Fiscal 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. Maui County assesses taxes based on the tax rate (usage/zoning) 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 2020 rates were based on sales of similar properties from July 1, 2018 to June 30, 2019. This is the first year the county has implemented Tiers for Owner Occupied Properties, Non-Owner Occupied Residential and Commercial Properties. This also marks the second 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 Property Tax Rates 2020-2021 vs Prior Years Rates are per $1000 of assessed value Classification 2020 2019 2018 2017 2016 2015 Owner Occupied $2.510-2.61 $2.90 $2.85 $2.86 $2.70 $2.78 Tier 1 (<$800,000) $2.51 Tier 2 ($800,001-$1,500,000) $2.56 Tier 3 ($1,500,001>) $2.61 Non-Owner Occupied $5.45-6.90 $5.60 $5.52 $5.54 $5.30 $5.40 Tier 1 (<$800,000) $5.45 Tier 2 ($800,001-$1,500,000) $6.05 Tier 3 ($1,500,001>) $6.90 Commercialized Residential $4.40 $4.60 $4.55 $4.56 $4.35 $4.35 Apartment $5.55 $6.31 $6.31 $6.32 $6.00 $6.00 Short Term Rental $11.08 $10.75 $9.28 NA NA NA Hotel & Resort $10.70 $11.00 $9.37 $9.37 $8.71 $8.85 Commercial (all three tiers) $6.29 $7.39 $7.25 $7.28 $6.60 $6.60 Agricultural $5.94 $5.94 $6.00 $6.01 $5.80 $5.90 Industrial $7.20 $7.48 $7.45 $7.49 $6.69 $6.85 Conservation $6.43 $6.43 $6.35 $6.37 $5.80 $5.90 Timeshare $14.40 $14.40 $15.41 $15.43 $14.31 $14.55 How do you calculate your property taxes given the new tiered system? Fidelity National Title put together this helpful video. If you'd like the excel worksheet that they created, please contact me. Maui Property Taxes: how have they changed? 2020 vs. 2019 Owner Occupied. The rates went down across all three tiers. Tier 1 (-13), Tier 2 (-12), Tier 3 (-10) Non Owner Occupied. The rate decreased for Tier 1 (-3), but increased for Tier 2 (+8) and Tier 3 (+23) Commercialized Residential: -4 Apartment: -2 Short Term Rental: +3 Hotel & Resort: -3 Commercial (all three Tiers): -15 Industrial:-4 Agriculture, Conservation and Timeshare: No Change 0 Keep in mind that the rate is just part of the equation. While the rate may have gone down, the assessed value may have gone up. In this scenario, there may be little change to the total amount of property taxes due from 2019. Looking back over the past 5 years, the county has decreased the property tax rates for homeowners and apartment owners. The largest increases have been to Short Term Rentals, Hotels & Resorts, and second homeowners. What do Maui County Classifications mean? Per the county website County of Maui details the classifications as follows: Owner-occupied – properties owned and occupied as a principal home and for which a home exemption was filed and granted. 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”, “timeshare”, “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. Apartment – multi-dwelling-unit improvements containing five or more dwellings that would not be classified as “short-term rental”. 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. Hotel and Resort – properties occupied by transient tenants for a period of less than six consecutive months, have eight or more lodging or dwelling units and employ more than twenty full-time persons. Time Share – real property that is subject to a timeshare plan as defined in section 514E-1, Hawaii Revised Statutes. No definitions were given for Commercial, Agricultural, Industrial, Conservation Important Dates DECEMBER 1: Condominium AOAO use declaration. It is important to fill this out, especially if you are NOT renting your unit out short term, otherwise, it will be assessed at the highest and best use. DECEMBER 31: Deadline for filing exemption claims and ownership documents that affect the tax year. FEBRUARY 20: Second half-year tax payment due. MARCH 15: Assessment notices mailed. APRIL 9: Deadline for filing appeals. AUGUST 20: First half-year tax payment due. 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). For additional information, all dates to remember, and appeals information visit the Maui County website