Farm Dedication of Kauai Agricultural Land

A significant property tax break can be achieved by dedication of Kauai agricultural and open zoned land for a period of 10 or 20 years.  This is an agreement between owner and the County of Kauai that the land will be used for farming (crops or livestock) for the specified period.  Procedures outlined herein are a best understanding based on June 2010 discussions with county personnel.

Procedures

• Administered by the Kauai Real Property Assessments Division, 4444 Rice St, Ste. 404,Lihue, HI 96766, phone 808-241-4224
• Application deadline is September 1 of each year
• Application form is on the county website
• A county inspector will visit the property, inspect, take photos and notify of a decision by January 15
• Re-assessment for approved applications is effective January 1
• Agreement is recorded with Bureau of Conveyances and is binding on current and subsequent owners
• The farm plan must show a good faith effort to produce a profit within a "reasonable" time period
• 10-year and 20-year plans are available
• Current assessment is $2,000/acre for a 10-year crop plan and $1,000/acre for a 20-year plan
• Current assessment for a livestock plan is "around" $210/acre varying by soil quality (more if good soil)
• No longer a need to reserve homesite in advance. When start to build will lose dedication for the portion associated with the home and its drive, landscaping, etc.
• OK to have a lessee but owner is responsible for abiding by agreement
• Breach of the agreement cancels the dedication & tax privileges with back taxes and penalties due
• For FY 2011, the agricultural land tax rate is $6.90 per $1,000 of assessed value

This information is deemed reliable at time of publication but rules change and this information may not be current.  Those contemplating agricultural land dedication are advised to check with the county on current procedures, benefits, and penalties for breach

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