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The Honolulu Advertiser
Posted on: Monday, October 2, 2006

Today is last day to apply for new property-tax credit

By Robbie Dingeman
Advertiser Staff Writer

DEADLINE LOOMS

Today is the last day to change exemptions or apply for a new tax credit for those with household income of $50,000 or less.

Tax credit information

On the Web: The link to the tax credit form is: www.honolulu.gov/budget /t-rpt100.pdf. By phone: Call the Treasury Division at 523-4856. In person: Honolulu Hale, Room 115, and some satellite city halls (call first).

Exemption information

On the Web: See www.honolulu.gov/rpa/real+property+exemption +information.pdf. By phone: Call the Real Property Assessment Division at 527-5510 (Honolulu) or 692-5541 (Kapolei), and some satellite city halls (call first).

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Today is the deadline to apply for a new property-tax credit designed to give a break to Honolulu property owners with a household income of $50,000 or less.

Last week, the number of owner-occupants who applied for the new credit doubled as more people realized it was available. Some of them were among the hundreds of residents who had complained that another year of soaring property tax assessments was hitting their budgets hard.

City Treasury chief Edlyn Taniguchi asks residents to be patient while filling out the new forms as city workers try to help with the application process.

She said some residents got frustrated when workers asked for more information than was specifically listed on the application. "We're sorry that we're inconveniencing them," Taniguchi said. "For us, it's the first time, too."

Residents got a couple of extra days this year for this new credit because the usual deadline of Sept. 30 fell on Saturday, pushing the actual deadline to today. That means that applications must be postmarked by midnight.

Taniguchi and other city officials said the phone lines have been busy since Sept. 25, when a story appeared in the Advertiser about the deadline. It is also the deadline for owner-occupants to file any claim for an exemption or change an exemption.

The credit application is available at the Department of Budget and Fiscal Services office at Honolulu Hale in Room 115, at satellite city halls and on the Web.

The city will notify applicants by Dec. 31 whether they are eligible for the credit. The credit will be applied for the 2006-07 and 2007-08 fiscal years, which run July 1 to June 30.

Honolulu's basic homeowner's exemption has been set at $40,000 for decades. That means that $40,000 is subtracted from the assessed value of the property, and the homeowner pays a tax on the balance.

Next year, the schedule of multiple exemptions based on the homeowner's age will change from four tiers to two. Those under age 65 will receive a standard $80,000 homeowner exemption. Those 65 and older will get a $120,000 exemption. There are also exemptions for people with physical disabilities or Hansen's disease, and for disabled veterans.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.