Timeshare Property Tax Rates Reflect Priorities

The Maui County property tax system has evolved over the years as county leaders recognized changes in the way properties were used.

The County Council establishes the tax rates, set at so many dollars per $1,000 of assessed valuation, based on the overall worth of the timeshare property as determined from the selling prices of comparable property.

Maui County recognizes 10 different classes of property, setting different rates based on use. Homeowners get a preferred rate, proposed to be $2.50. Agricultural and conservation lands also get lower rates, to support farmers and ranchers and land kept in open space.

Income-producing properties as timeshares have the highest rates. At the top of the scale are timeshares, reflecting a general belief that the use takes more from the community than it returns. Hotels have a lower rate because they provide more residents with income in the form of paychecks than do timeshares.

Timeshare units and condo units used by the owner part time and rented most of the time are basically investments. One of the costs of that investment is the property tax.

The No. 1 priority is to keep the taxes for family homes as low as possible. As for the other timeshare properties, let the buyer beware.