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September 9, 2014 Mayor Caldwell's Press Office 768-5768   Caldwell Administration and City Council providing relief for property taxpayers who failed to file for homeowner's exemption   Honolulu - Mayor Caldwell announced that, as of this past Friday, the Real Property Tax Division is processing 173 compromise applications for relief from homeowners who neglected to file for a Real Property homeowner's exemption and as a result faced higher property taxes in the new Residential A property tax category.   The application form is posted at http://www.realpropertyhonolulu.com/.  Applications must be accompanied by a homeowner exemption claim and postmarked with all required documents by September 30, 2014.   If all 173 pending applications were approved, the compromises would cost the city $719,235.  In addition, 13 ineligible applications have already been denied because the properties are not classified as Residential A.    "The Residential A property tax category was created in order to avoid raising taxes on average Oahu homeowners," said Mayor Caldwell.  "It was intended to allow the City Council to limit the rate increase exclusively to those who own second homes or investment properties on O'ahu valued at over $1 million.      "Those who owned and lived in their homes as of October 1, 2013 may be eligible to be exempted from this increase, and I'm pleased to announce that the real property tax division is processing applications for relief for these owner occupants.  The deadline is the last day of this month."   On August 13, 2014, the Honolulu City Council passed Resolution 14-179, which requested the Department of Budget and Fiscal Services (BFS) to make these specific compromises.    In order to be considered, homeowners must: Have been living in the residence on October 1, 2013, and would have qualified for a home owner's exemption on that date. Submit application form accompanied by a homeowner exemption claim and supporting documents to BFS for a one-time tax compromise by September 30, 2014. Provide Hawaii State Resident tax return, Federal tax return (to show that the subject property is not being rented), and proof of 270-day occupancy, such as utility bills covering the period that includes October 1, 2013.    After reviewing the requests and determining which properties are eligible, BFS Real Property Assessment Division will submit a list of properties, owners, and proposed compromise amounts to the Honolulu City Council for approval as required under Section 8-1.3 (l).    BACKGROUND Certain residents who live in their homes valued at over $1 million neglected to file for a homeowner's exemption, and are now responsible for paying the higher Residential A property tax.  For some million dollar homeowners, the difference in their tax bill is significantly higher based on the value of their property.  This is an unintended consequence of the Residential A classification that BFS is addressing provided that the homeowner meets all qualifications.   -END-