Question

Regal moved to Hawaii County from Arizona and signed a 10-year lease. She's responsible for paying the property taxes on her condo. She just learned she's not eligible for the homeowner exemption. Why might that be?

a) Leasees aren't eligible for the homeowner exemption.
b) Only natives of Hawaii are eligible for the homeowner exemption.
c) Regal must demonstrate a full year of tax filing before she's eligible.
d) The amount of Regal's lease doesn't meet the exemption threshold.

Answer 1

Regal might not be eligible for the homeowner exemption option (a) possibly because leasees generally don't qualify, she hasn't filed taxes in Hawaii for a full year, or other local rules. Consulting Hawaii County's guidelines or a tax professional is advisable.

Step-by-step explanation:

Regal may not be eligible for the homeowner exemption in Hawaii County because of several possible reasons. However, without more specific information about Hawaii County's property tax rules, we can't say definitively which applies to her situation. Let's explore the possible reasons given:

• Leases often do not have the same rights as property owners when it comes to tax exemptions.
• The exemption is generally not limited to natives of Hawaii; instead, it usually depends on residency status and other qualifications.
• Many jurisdictions require a person to demonstrate a full year of tax filing in the state to qualify for a homeowner exemption.
• Lastly, the amount of a lease having an impact on tax exemptions is not a typical qualification, but local rules vary.

Regal needs to review the specific guidelines set by Hawaii County for the homeowner exemption qualifications or consult a local tax professional.