What are tax rates like in Maui and how would you compare that to the rest of the United States? Roy & Betty Sakamoto sit down to discuss one of the questions that comes up on a regular basis. - Ask our Maui experts!
Betty: We’re going to move on to another question here. Okay, one of the questions that comes up which is kind of interesting, I think, is “what are tax rates like in Maui and how would you compare that to the rest of the United States?”
Roy: Okay, Maui has the lowest tax rates of anything any county in Hawaii; our tax rates are second to none. We are much lower than California. In California, under proposition…I forget the proposition number but let’s say you buy a property for 1 million dollars, you’re instantly taxed, your property tax assessment is 1 million dollars and there’s nothing you can do to fight it. Here our assessments are usually based on a little bit less than market value and depending on the usage of your property, whether it's a second home, a principal residence, a vacation rental property, various tax rates but I think Maui rates are the lowest anywhere in the country.
B: I think you’re right, I think no question. Every time somebody, especially, we do a lot of California investors, New York investors and when they take a look at our tax rates it is one of those happy moments, whereas they’re really…
R: Yeah, they can’t believe we’re as low as we are…
R: That’s great.
B: So that’s interesting by itself.