TAX CREDITS

The City enacted the County Tax Credit several years ago to help alleviate the tax burden faced by many taxpayers already struggling to make ends meet.  There is still some confusion about this credit—which limits the property tax burden to a small percentage of the income of a homeowner whose assets are limited.  To qualify, you must be a homeowner with no other property and a gross income of less than $50,000 a year.  If you qualify, your property tax liability is limited to 4% of your income.  To be eligible you must be the titleholder, currently receive the standard exemption, own no other real property anywhere (local or otherwise) and the gross income of all titleholders must be less than $50,000.  The Council also amended the credit to provide additional relief to our low-income senior citizens.  If a titleholder is  older than  75 and found to be eligible, the tax liability will be limited to 3% of  annual income.  The deadline to apply for the credit or for any tax exemptions for next year is September 30, 2009.   That means your application MUST be postmarked no later than September 30, 2009!!

TAX EXEMPTIONS

FILING DEADLINE:

An exemption is an amount by which your assessed valuation is reduced—not a credit on your taxes.  So, for example, if your home has an assessed valuation of $540,000, the standard homeowner's exemption will reduce it to $460,000 and this is the amount on which you pay property taxes. September 30 is also the deadline for filing of any property tax exemptions.

STANDARD EXEMPTION:

All owners who live in their own homes are entitled to an $80,000 exemption.  You only need to apply once, but if you have purchased a pre-owned home, even if the prior owner had the exemption, you need to apply for the exemption for yourself. Once granted, the exemption will be in place for the entire time you own and live in the home.  A note here, however:  If you later move into another home and rent the original, you must notify the city and you can no longer claim the exemption for that house.  YOU MUST LIVE IN THE HOME TO CLAIM THE HOMEOWNER'S EXEMPTION.

INDIVIDUALS 65 AND OLDER: 

Homeowners who reach the age of 65 qualify for a $120,000 exemption. You must reach the age of 65 by June 30 of the year preceding the tax year for which the exemption is claimed.

EXEMPTION FOR INDIVIDUALS 75 AND OLDER WITH LOW-INCOME:

If you are 75 or older and your household meets the HUD definition of low income, you may qualify for a further exemption as follows :

 Age of Taxpayer: Home Exemption Amount:

 75-79 $140,000

 80-84 $160,000

 85-89 $180,000

    90+   $200,000

Again—you must apply for the credit and all exemptions by September 30th.

If you have any additional questions regarding real property assesments and taxation, please call the Real Property Assessment office at 527-5511.

OTHER EXEMPTIONS

There are other exemptions for disabilities, for some Native Hawaiians, etc., spelled out in the ordinances.  If you believe you qualify for these and are not currently receiving them, please contact the Real Property Assessment office.

 Again—you must apply for the credit and all exemptions by September 30th.

 If you have any additional questions regarding real property assesments and taxation, please call the Real Property Assessment office at 527-5511.