“Recent changes to the law state that delinquent taxpayers will lose their homeowner’s exemption, resulting in high taxes,” Maui Mayor Alan Arakawa said in a news release.
The same penalty does not apply to Honolulu property owners, said county revenue collections administrator Stephanie Hokushin.
“That law hasn’t been enacted here,” said Hokushin.
Late payers on Oahu can still be assessed penalties of up to 10 percent plus interest of 12 percent a year. And a fee of $25 will also be charged for dishonored payments.
On Maui, residential owner-occupants who don’t pay their tax bills on time can lose the homeowner’s exemption, which excludes up to $200,000 from tax assessment.
“The parcel will not only lose the $200,000 exemption, you will also be taxed based on the underlying land classification established by zoning. This means you will be taxed at a higher rate,” said Arakawa.
“Once you lose your homeowners exemption, you will not be allowed to reapply until you completely pay off your balance. Only then can a homeowner reapply for the following year,” said the mayor.