“On a million dollar residence in Maui, Hawaii, what would the property tax be?”------>Maui’s residential homeowner taxes are the lowest in all of Hawaii. For improved residential, owners should pay $5.75 per $1,000 of assessed value for both land and b/d (effective July 1, 2012,). For homeowners who file for a home exemption on their taxes as they use the property as their primary residence, they are entitled to a $300,000 exemption off the top of the assessed value and taxed at the homeowner rate. Maui County Council is evaluating a proposal to lower the exemption to $200,000. The County of Maui will likely drop the exemption to $200,000 and raise the minimum tax to about $300 per year rather than the current $150 annual amount. However, you need to differentiate properties that will be used as a primary residence, and are thus eligible for a homeowner’s exemption and a lower tax rate versus those properties that are considered second homes or investment properties where there is no exemption and properties are taxed at a higher rate. There are no exemptions in place for Second Homes or Investment Property and the rate is $5.75 per $1,000 of assessed value and thus the property taxes are a little more than twice as high than primary residences. The County of Maui’s assessed values typically trail market values anywhere from 12-24 months. This is why in a declining market, like right now, many homeowners will be paying taxes on assessed values that are actually higher than what their property is worth. Conversely, in an appreciating market—owners will be paying taxes on assessed values that are lower than what their property is worth. The County of Maui has improved this process, but this is my observation from my own professional experience. for a homeowner’s exemption, you need to submit ‘Claim for home exemption form, before Dec. 31 to apply for the following fiscal year of taxes.
For more info; http://www.co.maui.hi.us/documents/2...o%2012-053.PDF