Property tax question

[rocketman]

Wife and I were looking at a house to buy in Hawaiian Shores last week. Thinking of retiring there in a few years. I heard the property tax is different if you are a non resident of Hawaii. Anyone know any of the details?
Thanks.
Ed

[PaulW]

I'm sure others can give more detailed information, but I believe you pay significantly more tax if the house isn't your primary residence. If you're not a resident of Hawaii then that will be the case.

[lquade]

9.10 per thousand residential rate, vs 5.5 homeowner rate. you must fill out homeowner exemption like you do in most states to qualify. also if you are not a hawaii resident, i believe there is a tax on selling the property but maybe someone else can help there...

[John S. Rabi]

In addition, as an owner occupant, you get exemptions based on your age too. There is no special tax on selling a property here. If you are a non-resident than escrow will withhold 5% of the selling price for HARPTA and you will need to file Form N-288 with the State Tax Department to show your gain/loss. You will get your money back within 2-3 months if you show a loss. There is an additional 10% FIRPTA withholding if you are not a US citizen or Permanent Resident. You will need to deal with IRS the same way as you deal with the State Tax Department, b ut the process will take 9-12 months.

Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
888.819.9669
johnrabi@johnrabi.com
http://www.JohnRabi.com
Typically Tropical Properties
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[pslamont]

Where might I find the forms for Hawaii State Tax exemption??? I think we filed them but I don't have a copy so would like to double check. Seeing the blank forms would be a good start. Mahalo. Pam

[pslamont]

Where might I find the forms for Hawaii State Tax exemption??? I think we filed them but I don't have a copy so would like to double check. Seeing the blank forms would be a good start. Mahalo. Pam

[cynmkolohe]

The State of Hawaii Dept. of Taxation forms are here.

The form (PDF) for the Hawaii County Homeowner Tax Exemption is here.


Cynthia Hoskins, R(S)
Clark Realty Corporation
www.clarkhawaii.com