Maui Property Tax Rates 2020-2021

Posted by Courtney M. Brown on Monday, June 8th, 2020 at 7:08pm.

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

Courtney M. Brown, R(S) & Team
Vice President
Island Sotheby's International Realty

 

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