New Real Property Long-Term Rental Exemption Takes Effect Jan. 1, 2022

The County of Maui Department of Finance’s Real Property Assessment Division established a new long-term rental classification and exemption as part of the Maui County Code.

Effective on Jan. 1, 2022, real property occupied as a long-term rental with a signed contract to lease for 12 consecutive months or longer to the same tenant, may qualify an owner for an exemption of up to $200,000.

Real property rented on a long-term basis – 12 consecutive months or longer – without a home exemption, will be eligible for the $200,000 long-term rental exemption and will be classified as Long-term Rental. Real property with a home exemption that also qualifies for the long-term rental exemption will be eligible for an additional $100,000 exemption and will be classified as owner-occupied.

The long-term rental exemption may be allowed on more than one home if located on separate parcels. If a portion of the property is used for commercial purposes, that portion will not be entitled to a long-term rental exemption.

If the property taxes are delinquent for more than a year, no long-term rental exemption will be allowed. Any change in the actual use of real property with a long-term rental exemption must be reported by the owner within 30 days of that change.

The long-term rental exemption application form can be found online. The application form must be filed by Dec. 31, 2021, along with a signed copy of a lease contract to qualify for the 2022 tax year.

Property owners may contact the Real Property Assessment Division by calling (808) 270-7297 with any questions or by email at [email protected]