Property tax credit available to eligible residents on Oahu

Question: I know you don’t have to apply for the homeowner’s exemption every year, once you have it, but what about the tax credit? Is that still available?

Answer: Yes, the Real Property Tax Credit for Homeowners is available for eligible Oahu residents, and yes, claimants do have to apply every year, said Wayne Fujita, chief of the Treasury Division in the city’s Department of Budget and Fiscal Services. To qualify, homeowners must:

>> Have a home exemption certifying owner-occupancy at the time of the application and for the subsequent tax year.

>> Own no other property anywhere. This requirement applies to all titleholders on the property for which the credit is sought.

>> Have a combined gross annual income among all titleholders of $60,000 or less.

Oahu real property titleholders who meet those requirements can get a tax credit equal to the amount of their property-tax bill that exceeds 3 percent of their combined gross income. The credit is applied to the following year’s property taxes. Otherwise, eligible titleholders whose property-tax bill does not exceed 3 percent of combined gross income do not get the credit.

Applications for this tax credit will be available beginning July 1 at:

>> Satellite City Halls

>> Honolulu Hale, 530 S. King St., Room 111, Honolulu, HI 96813

>> Tax Relief Section, 715 S. King St., Room 115, Honolulu, HI 96813

>> 808ne.ws/taxcredinfo

The filing deadline for the 2018-19 tax year will be Oct. 2, 2017, Fujita said.

For more information, see the website or call the Real Property Tax Relief Office at 768-3205.

Also, you are correct that an owner-occupant who has a homeowner’s exemption need not reapply for it every year. Claimants should ensure the city has their birth date on file, so they’ll automatically receive the higher exemption after they turn 65.

Q: If that special property-tax break for poor people over 75 was repealed, how come some people are still getting it?

A: Because they were grandfathered in when Oahu’s “in lieu of home exemption” program was repealed in 2013. Claimants were allowed to retain the benefit for up to five years if they were under age 90 at that time, or for life or until 2039 if they were 90 or older, according to Bill 40 (2013), CD2, which was signed into law as Ordinance 13-32.

The program was limited to owner-occupants who met income and age requirements. It provided an exemption ranging from $140,000 (at age 75) to $200,000 (at age 90), meaning the amount was deducted from a property’s assessed value and the owner was taxed on the balance.

About 1,260 Oahu residents claimed a combined total of $221.5 million “in lieu of home exemptions” in fiscal year 2016-17, according to the city.

Although the repeal ended new claims, older owner-­occupants still get a break on Oahu property taxes. The basic homeowner’s exemption rises to $120,000 at age 65, regardless of income.

Q: Is the emergency proclamation on homelessness still in force?

A: No, it expired Oct. 19, 2016, one year after Gov. David Ige signed it (on Oct. 16, 2015) to expedite temporary housing and other services for homeless people in Hawaii.

Auwe

I hate to complain and I try not to, but I am getting fed up with people who don’t want to pitch in and do their share to make life on this island decent for themselves and others.

By this I mean, buckle down, work hard, try to pay your own way, pick up after yourself, all those things that represent self-control and self-reliance. We need to get back to “we, we, we” and away from “me, me, me.” — An old-timer

Mahalo

A big mahalo to all the motorists in Kaneohe who helped us push our stalled vehicle out of the way Monday night at about 8:30 p.m. on Luluku Road. — Two grateful ladies

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