Queries about real property tax changes classified as short-term rentals have been discussed in Maui. With that, the County is implementing that condominiums are to be classified as short-term rentals and pay taxes implied with this classification, whether or not they are being rented at all and for as long as it is permitted under Maui’s zoning laws to be rented short-term. However, if an owner rents to the same tenant for at least twelve (12) consecutive months, the property will not be classed as a short-term rental.
According to the Maui County Department of Finance’s statement, starting January 1, 2022, lodging or dwelling units occupied by tenants on a long-term basis (12 consecutive months or more) without a home exemption will be eligible for a $200,000 exemption. On the other hand, real properties with a home exemption can also qualify for an additional $100,000 exemption and will be classified as owner-occupied.
These tax exemption programs are part of the County’s elaborate plans to lessen weighty tax burdens and address the housing shortage. Creating real property tax incentives can urge property owners to grant long-term rentals to residents.
To apply, have a completed long-term rental exemption application form, and prepare a copy of your valid signed lease agreement. Send this to the County of Maui’s Department of Finance. The deadline for application is December 31, 2021. Upon qualification, exemptions and classifications will take effect at the start of 2022.
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