Question: First, I want to thank you for a column back in June that alerted us to a property tax break my brother was not receiving. Now he will. But that same column also had information that worries me. It said a married couple who live apart can’t each have a full home exemption. They are supposed to share. Is that right? I’ve never heard this before. It doesn’t say it on the claim form. My wife and I don’t live together because we get along better that way. We each own our own home and claim a full exemption.
Answer: Yes, it’s true that a married couple living apart on Oahu is entitled to only one homeowner’s exemption, the value of which they share, as we reported in the June 7 Kokua Line column, 808ne.ws/6717kline.
You are not the only reader wondering about this. Others asked whether they would face back taxes and/or penalties if they come forward to rectify the situation, and how the city would find out if they don’t.
We followed up with the Department of Budget and Fiscal Services’ Real Property Assessment Division on those points, but first a refresher: The home exemption lowers the property tax burden for owner-occupants on Oahu. The exemption for those under age 65 is $80,000, which means that $80,000 is deducted from the assessed value of the property, and the owner-occupant is taxed on the balance. The exemption rises to $120,000 for those 65 and older.
When we first starting getting questions about this, RPAD Administrator Steven Takara said that a situation like yours likely would result in back taxes and penalties, but he couldn’t specify amounts without more details.
He encouraged taxpayers to contact RPAD at 768-3799 or via an online form at 808ne.ws/contactrpad. However, it seems prudent to consult a tax attorney first before you consider outing yourself to the city.
The penalty for failing to alert the city about a change in status of a property tax exemption is $300 each year the change goes unreported. That does not include back taxes.
It’s true that the home exemption claim form doesn’t explicitly mention the shared exemption, and that none of the questions would seem to raise red flags for couples like you and your wife. However, the form does have signers certify that they are in accordance with Section 8-10.4 of the Revised Ordinances of Honolulu. That law, which you can read at 808ne.ws/roh8104, states in subsection 8-10.4(a)(2)(D) that “spouses will not be permitted exemption of separate homes owned by each of them, unless they are living separate and apart, in which case each is entitled to one-half of one exemption.”
As to the questions about enforcement, Takara said that RPAD maintains a compliance unit that “investigates and examines” exemptions and dedications granted or approved under the city’s property tax relief programs.
Mahalo
Mahalo to Kirk Williams, who helped me change my tire on Kahekili Highway and Kahuhipa Street in Kaneohe on Sept. 6 at 1 p.m. He also followed me to Firestone to be sure I got there safely. Thank you and God bless you, my friend. — Bill S.
Mahalo
After waiting in line at Ala Moana Center Satellite City Hall, I learned that handicap placards are not processed there. Friendly Charlene explained that applications must be mailed in with proper identification and doctor’s signature. She checked that I had the proper information and printed my ID and mentioned that there is no charge for placards and to mail the application before the expiration date. I was most impressed at the short wait and the efficiency of this outlet. Mahalo to Charlene, a gracious, helpful city employee. — A Makiki senior
Write to Kokua Line at Honolulu Star-Advertiser, 7 Waterfront Plaza, Suite 210, 500 Ala Moana Blvd., Honolulu 96813; call 529-4773; fax 529-4750; or email kokualine@staradvertiser.com.
