Maui Property Tax Mitigation

In Maui County, it is possible to get your land assessed at a different rate than the normal “market rate” property tax assessment values. The resulting annual property tax savings per acre is typically around 70%, but can be even higher. A $10,000 tax bill becomes a $3,000 tax bill, in other words. An agricultural assessment also allows for the negation of space deemed “unsuitable or unusable” for agriculture, such as rocky areas, steep areas, and gulches, which can further reduce your tax liability.

This can all be achieved by submitting the correct documents and demonstrating to the County that there is a legitimate and active agricultural operation of some kind on your land. Easier said than done.

We are here to help you from start to finish, setting up a legitimate revenue generating agricultural or silvicultural operation, handling document submittal, and maintaining the project.

If you want to run it yourself we can provide advice and assistance. If you would like to be more hands off, we can manage the entire program without any owner involvement. It is often possible for the property tax savings alone to offset the development costs.

From planning to planting, harvesting to sales, we have you covered. We will deposit the revenue from the operation in your specified accounts, and furnish the info that your tax prep software or accountant needs to file both a federal and state 'Schedule F' for farming income and expenses, which is critical for an agricultural exemption.

We also handle the submitting of required forms to Maui County, due by December 31st every year. Get in touch today and we can discuss a strategy to increase the agricultural value of your property while also reducing your tax burden.

Agriculture Use as defined by Rules and Regulations MCC 3.48.325:

“Agriculture Use” shall mean lands actually put to agricultural use adhering to acceptable standards to produce crop, specific livestock including ranching use. Actually put to agricultural use shall be deemed to be when crops are actually in cultivation, and farm management efforts such as weed or pruning control, plowing, including housing, fencing and water facilities for livestock and pasturing of animals are clearly evident. It does not include nor apply to areas used primarily as yard space, setbacks, or open landscape associated with residential use planted with fruit and ornamental trees, flowers, and vegetables primarily for home use.

Unusable or unsuitable land as defined by Rules and Regulations MCC 3.48.325:

“Unusable or unsuitable” land shall mean that portion of the land parcel, in the agricultural district classified and used for agriculture, that is wholly unsuitable for any agricultural use of whatever nature such as gulches, mountains or palis, eroded bedrocks, rocky, hilly or barren lands that are incapable of being put to an agricultural use.