One-Time $350 Property Tax Rebate For Owner-Occupant Homes in Hawaii; Check If You Are Eligible
Here's good news for homeowners in Aloha State. The city of Honolulu in Hawaii has approved a one-time property tax rebate for owner-occupant houses, The US Sun reported.
The rebates will be worth $350. Of the eligible residents, about 152,000 are expected to benefit from the offer. Around $53 million will be used to distribute these rebates, the report said.
Mayor Rick Blandiardi hopes the extra cash will help homeowners deal with the spike in home values and tax bills.
The rebate benefits people who own houses of lower value and they don't need to take any action to get the money. The rebate amount will be automatically deducted from their next tax bill.
What Are Property Taxes?
Property tax is paid by the real estate owner to the county or local tax authorities. The amount is assessed on the number of factors. Most residents have to pay these taxes on a monthly basis in combination with their mortgage. The money used for the property taxes is used for the community and supports the maintenance of public places and local public schooling, as per Rocket Mortgage.
The City Budget
The Honolulu City Council has approved the city budget for the upcoming fiscal year. The budget focuses on eliminating homelessness, community revitalization, and public safety. That includes a one-time $350 Real Property Tax Credit to homeowners, $170 million for budget housing, $20 million for housing to tackle homelessness, and also $400,000 to the Honolulu Police Department's Chinatown Task Force.
Property Tax Rate in Honolulu
Property tax is $3.50 per $1,000 of a home’s value in Honolulu. So those whose properties went up in value last year faced a significant jump in property tax. The $350 rebate will cover the tax bill for up to $100,000 of a property’s value.
How Are Property Taxes Calculated?
Property taxes are based on your local tax rate and your property's value. Your local assessor will determine your home's assessed value, which is likely to be less than its fair market value, as per Bankrate. The home in its totality is considered, like any significant renovations, remodeling and where your property is located, the land value as per location, everything is taken into consideration when it comes to calculating the property tax.
Why Does Property Tax Vary From State To State?
As per the World Population Review, the typical household spends around $2,459 in property taxes annually. The amount varies based on where you live, the standard of living of the city, locality, and the exact property price, hence it differs from state to state.
How To Lower Your Property Tax?
Some homeowners are eligible for tax exemption, like, people in military service, senior citizens in certain states, widows and widowers, and disabled people and some are eligible based on their income. Some properties like religious and nonprofit properties, religious property are also eligible for exemptions.
Apart from these and the rebates, you can always get your property reassessed. If you ever suspect that your property value has declined you should get it reassessed as you may be paying more than required.