Since the eruption last Thursday of Kilauea volcano, located in the County and Island of Hawaii, at least 35 structures have burned down. Owners of this damaged property are eligible for property tax refunds.
Section 19-36 of the Hawaii County Code provides for the refund of property taxes to property owners in cases of certain disasters, including tidal waves, earthquakes, fire, landslides, volcanic eruptions, and floods. The refund is based on the value of the property lost multiplied by the percentage of the tax year remaining after the loss. Property owners have until the later of June 30 or 60 days after the disaster to apply. In the case of damage occurring last Thursday, this brings the deadline to July 2.
On Oahu and Kauai, property owners have until June 30 to apply for property tax refunds for property damaged or destroyed by the April 13 – 16 floods on those islands. An estimated 532 homes were damaged or destroyed by those floods. Under Section 5A-4.2 of its County Code, Kauai County provides the same relief and filing deadlines as does Hawaii County. Honolulu County, which comprises the island of Oahu, provides similar relief under Section 8-4.2 of its County Code but caps the refund amount at $25,000 per property.
Although not affected by these disasters, Maui County provides similar relief under its County Code, without the $25,000 cap applicable in Honolulu. The state’s remaining county, Kalawao, has no property tax or elected government. With more damage from Kilauea to come, more taxpayers are likely to qualify for tax relief from Hawaii County.
Can counties refunding tax on properties damaged in natural disasters make up the lost revenue without reducing services? Continue the discussion on Bloomberg Tax’s State Tax Group on LinkedIn.
Get a free trial to Bloomberg Tax: State, a comprehensive research service that provides deep analysis and time-saving practice tools to help practitioners make well informed decisions.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)