Home preservation tax limit: who qualifies and how to apply

Definitions. For purposes of this section:means a spouse; child by blood, adoption or marriage; and the following blood relatives: parent; sibling; grandparent; grandchild; aunt, uncle, niece, nephew.means a person who owns the property and has a home exemption under Sec. 5A-11.4.means the property with regard to which a homeowner filed and was granted a home exemption under Sec. 5A-11.4.means gross income as defined in Sec. 5A-11.4(d) for the calendar year preceding the year of application.refers to the act of having, or those persons vested with, legal title of property.has the meaning as provided in Sec. 5A-11.4(d).A homeowner who meets the criteria in Subsection (c) shall pay as real property taxes the higher of an amount equal to 3% of all the owners' income(s) or the amount of $500.In order to receive the home preservation tax limit, the homeowner shall meet the following criteria at the time of application:The homeowner property receives the Owner-Occupied tax rate or qualifies for the Owner-Occupied tax rate for the tax year the home preservation tax limit is to be applied.The homeowner does not own real property other than the property at issue in the application.The homeowner property has had a home exemption for a minimum of ten (10) years without change in ownership other than transfers between family members.If there are multiple dwellings on the property, each dwelling is occupied by an owner-occupant.The homeowner property has a net taxable assessed value exceeding one million dollars ($1,000,000.00).The income of all owners does not exceed two hundred thousand dollars ($200,000.00).There are no delinquent real property taxes on the homeowner property.The homeowner shall apply for the home preservation tax limit annually on or before September 30th preceding the tax year the home preservation tax limit is to be applied. The Director shall prescribe appropriate forms for applications and require proof of income which shall include, but is not limited to, the following:A copy of the State personal income tax returns or records for all owners which set forth their State gross income; andA copy of the Federal personal income tax returns for all owners which set forth their Federal gross income.In the event that any of the owners were not required to file an income tax return pursuant to the Internal Revenue Code of the United States of 1954, as amended, or Hawai'i Revised Statutes, Chapter 235, as amended, the owner-occupant shall sign an affidavit stating the reason there was no requirement to file, and attesting to the amount of income received. The applicant may refuse to provide such proof or any additional information requested by the Director, but upon such refusal, the Director may deny the application and there shall be no appeal from such a denial.The application form, which shall be signed by the owner(s), shall contain authorization to the State Department of Taxation and the Internal Revenue Service for release to the County Finance Director, a certified copy of the income tax records showing gross income. The Director may charge the owner(s) the fee necessary to obtain said certified copies.The Director shall approve the application if the homeowner meets all of the criteria for the home preservation tax limit. If the Director determines that the application cannot be approved or the information contained therein verified, the Director shall so notify the homeowner and provide the reason for the denial on or before December 1st preceding the tax year.