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Real Property Tax - Agricultural Use Assessment

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1. How to Contact Us

Office and Contact Information

2. How can I get an agriculture use assessment?

If the property is zoned agriculture and in actual agricultural use, you need to file the Agriculture Notification Memo. If the property is not zoned for agriculture, contact an Appraiser at our office at (808) 270-7297 for further details.

3. I farm my land or I have agriculture land. Why am I not assessed as agriculture?

The farming of land or the zoning of agriculture land does not mean you automatically are assessed as agricultural use. The main criterion is the agricultural use of the land zoned agriculture. Agricultural use as defined by Rules and Regulations MCC 3.48.325 are as follows: “Agricultural 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 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.” Once the agriculture use is determined and the proper application forms are submitted to the Real Property Tax office, a site inspection will be conducted. If approved, the assessment shall be effective January 1st of the following assessment year.

4. If a person loses his agriculture use assessment, will that affect his zoning?

No, the Real Property Tax office has no jurisdiction over a parcel’s zoning. But, there can be different real property tax classifications in every zoning district (i.e., in the agricultural districts, properties can be classified as homeowner, agriculture, etc.). The real effect will be on the assessed value of the property. A parcel approved for an agricultural use assessment is assessed lower than the highest-and-best use value of market to account for agricultural use. If there is no agricultural use assessment, the assessed value will be higher.

5. Could a person conceivably be required to pay back taxes now or in the future as a result of this re-classification?

First of all, a non-use is not a re-classification. It is an agricultural use assessment that is no longer qualified to receive (see above).

If a parcel is under a 10 or 20 year agricultural dedication and does not fulfill the term of the dedication, rollback taxes will apply retroactive to the date of the dedication.

For non-dedicated parcels receiving an agricultural use assessment, rollback taxes apply if the parcel is subdivided into parcels five acres or less. The deferred tax shall commence from the date the conversion was made retroactive to the date the assessment was made, but for not more than ten years. Non-use will result in the parcel being assessed at its highest and best use assessment. In this case, the owner is required to notify the division prior to the calendar year in which the parcel shall no longer be in use.

6. Do gardens for personal use "count" as agricultural use assessment?

No, (In accordance with the "Rules and Regulations of the Director of Finance relating to the assessment of agricultural lands and the imposition of the deferred tax under section 3.48.325, Maui County Code" adopted in September 1981), the term "agricultural 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 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.

7. What if someone has a large property and is growing flowers commercially in a greenhouse on a small section of his property. Would the unused portions of land be reclassified?

First of all, this is not considered a re-classification. Refer back to previous answer whereby only lands that are put to agricultural use shall receive the agricultural use assessment.

8. What if someone owns property and rents or leases it to another person who is engaging in active agriculture?

This is acceptable; however, the owner is required to sign and certify the application.

9. Why do I need to provide a plot plan?

It is used for field inspection verification purposes and to accurately identify areas being claimed as agriculture.

10. Does the plot plan need to be to scale?

Not to the level where a survey is needed, however, to the best of their ability. The property owner is recommended to measure the lengths of the farm area.

11. Do I need to submit pictures?

Pictures are a good way for the owner to provide quick documentation and proof. It is for the office file and used to verify actual use in production.

12. Will someone be coming to inspect?

Yes, regular inspections are on-going and will continue into the future

13. How much area must I need to qualify?

The current rules and regulations state that only those portions of land used for agriculture shall receive an agricultural use assessment. There is no minimum lot size requirement, but the Maui County Code does set the minimum lot size for agricultural lots at 2 acres in the agriculture district.

14. When are the applications due?

For agricultural dedications, they are due Sept 1st preceding the tax year for which it is being claimed. The non-dedication agricultural use assessments are due by Dec 31st, so that they can be applied for the next tax year for which is being claimed.

15. If I no longer use my property for agriculture, will I lose my agriculture exemption?

Agriculture is not an exemption. It is a preferential assessment for those portion of lands in actual agricultural use.

16. Do I need a fence for pasture use?

Yes, all types of acceptable pasture use (i.e.: cattle, horses, goats) require fencing. Pasture use should be clear and evident, which is expected for fencing to confine animals.

17. What if I don't submit my form?

Any parcel that fails to submit the form by 4:00 pm HST December 31 shall no longer qualify for an agricultural use assessment and be assessed similar to all other properties that are not receiving an agricultural use assessment.

18. I turned in my farm plan with the building permit application. Why doesn't my property have agriculture use assessment?

Your farm plan is a plan turned into the Development Services Administration (Building Permits Section) for their purposes only. You need to notify the Real Property Tax Division of your actual agriculture use. See the Agriculture Notification Memo. (Link to form) Once the agriculture use is determined and the proper application forms are submitted to the Real Property Tax office, a site inspection will be conducted. If approved, the assessment shall be effective January 1st of the following assessment year.

19. I own agriculture land. Why is it classified hotel/resort? Apartment?

Section 3.48.305 of the Maui County Code pertaining to real property tax valuation and classification of land states that when property is subdivided into condominium units, each unit shall be classified for tax purposes as Apartment, Commercial, Homeowner, Hotel/Resort or Timeshare based upon its actual use. Refer to the “Condominium Classification Declaration” form for the definitions for each classification and also for instructions and deadlines to change your classification. Condominium Classification Declaration form

20. Why do I have to call your office for the market value of my agricultural property when I receive an agricultural use or dedicated assessment? Why isn't it on the assessment notice?

Once you receive an agricultural use or agricultural dedication land assessment, a market value land assessment is no longer maintained. If you have questions regarding your agricultural use or dedication assessment call our office to speak with an appraiser.

21. Why am I classed "homeowner" when I live on agricultural land?

If you have applied for and been granted a homeowner exemption you will be classified as homeowner, regardless of your zoning. If you are no longer eligible for the homeowner exemption, contact the division immediately. If you qualify, you can receive both an agricultural use or dedication assessment and the homeowner exemption.