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Real Property Tax - Condominium Use

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1. How to Contact Us

Office and Contact Information

2. I have a leasehold condo. Why is it assessed as if fee simple ownership?

County ordinance states in Section 3.48.150 B of the Maui County Code that, “…real property shall be assessed in its entirety...” Leasehold ownership reflects only a partial interest in the property, whereas property assessments are based on the fee simple interest in the property. Maui County Code

3. Why is a leasehold sale not used?

When a comparable fee simple sale is available, this reflects a sale in its entirety. A leasehold sale is only a partial interest in the property.

4. My condo is not in the rental pool. Why is it classified as hotel/resort?

The hotel/resort class means that “Units occupied by transient tenants for periods of less than six consecutive months…shall be classified as hotel resort” (MCC 3.48.305 C(4). If you are not in the rental pool or do not rent for six months or less, you should submit a Condominium Classification Declaration attesting to the actual use of your unit.

5. If the previous owner had the condo in vacation rental and I plan on using it for long-term rental, should I change the classification?

Yes, as a condo owner it is your responsibility to notify the Real Property Tax office of any changes in use to determine the right classification for tax purposes. Complete the Condominium Classification Declaration form. Condominium Classification Declaration form

6. My condo is not a hotel. Why are you assessing it as hotel/resort?

The hotel/resort class includes condominiums that are occupied by transient tenants for periods of less than six consecutive months. It also includes units advertised for occupancy by transient tenants. If during the course of any assessment year, the actual use of a unit entails more than one classification, the unit shall be classified at the use with the highest applicable tax rate. For example, if you occupy your unit for eight months and rent it short term for four months, the appropriate classification is hotel/resort.