New long-term rental exemption for real estate comes into effect on January 1, 2022
March 12, 2021, 8:08 a.m. HST
* Updated March 15 at 7:18 am
The Maui County Department of Finance’s Real Estate Appraisal Division has established a new classification and long-term rental exemption under the Maui County Code.
As of January 1, 2022, a property occupied as a long-term rental with a signed rental contract for 12 consecutive months or more to the same tenant, may give an owner the right to an exemption of up to 200,000 $.
Real estate that is rented long-term – 12 consecutive months or more – without a housing exemption, will qualify for the long-term rental exemption of $ 200,000 and will be classified as long-term rental. Real estate with a residential exemption that also qualifies for the long-term rental exemption will be eligible for an additional exemption of $ 100,000 and will be classified as owner occupied.
Long-term rental exemption may be allowed on more than one house if it is located on separate plots. If any part of the property is used for commercial purposes, that part will not be entitled to a long term rental exemption.
If property taxes have been overdue for more than a year, no long-term rental exemption will be granted. Any change in the actual use of a property with a long-term rental exemption must be reported by the landlord within 30 days of such change.
The long-term rental waiver request form is available online. The application form must be filed by December 31, 2021, along with a signed copy of a rental agreement to be eligible for tax year 2022.
Homeowners can contact the Property Assessment Division by calling (808) 270-7297 with any questions or by emailing [email protected]