KCC §5A-7.2

When property owners must pay higher taxes after a lease

Read the official text at ecode360.com ↗

If you own property that is leased for 15 years or more, and the property's tax classification is changed to a higher use during the lease (without the tenant asking for it), you must pay the extra tax. You cannot pass this tax on to your tenant. The tax is the difference between the new and old assessed values times the tax rate.

landlords

The ordinance, as written (Kauaʻi County) — Imposition of Real Property Taxes on Reclassification

A copy, taken August 22, 2026. The version published by Kauaʻi County is the one that governs, and it may have changed since. Check it before relying on anything here.

A portion of real property taxes shall be imposed upon and paid by the owner or owners thereof when:The property of the owner has been leased for a term of 15 years or more.The classification of the property has been changed to a classification of a higher use during the life of the lease.The classification to a higher use has occurred without the lessee, who occupies the property, petitioning for such higher classification.Taxes which are imposed upon the owners of property under this Section shall be paid by the owner of such property without being transferred to the lessee who occupies the property and such tax shall be the difference between the assessed valuation of the property after the classification change times the applicable tax rate less the assessed valuation of the property as it existed prior to the classification change times the applicable tax rate.

Read the official text at ecode360.com ↗as published Jan 1, 2026our copy taken Aug 22, 2026

The County of Kauaʻi publishes this code through eCode360 and states that it is provided for information only and should not be considered the official version of the Code.

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.