Some relief is coming for Honolulu homeowners soon as Mayor Rick Blangiardi signed into law two measures Wednesday. Both measures expand existing forms of tax relief to offer tax credits for Honolulu homeowners.

Tax Credit For Honolulu Homeowners: Who Will Get It?

On Wednesday, Mayor Blangiardi signed into law two legislations: Bill 37 and Bill 40. Both bills were approved by the Honolulu City Council earlier this month. The primary objective of the property tax relief measures is to provide residents with tax relief to offset the high cost of living.

Bill 37 offers a real property tax credit to homeowners whose property tax is more than 3% of their income. To qualify for the tax credit for Honolulu homeowners, the total income of the property titleholders must not be more than $80,000 (up from $60,000).

Also, qualified titleholders must not own any other real property during the applicable tax year. Another requirement is that the property tax, after applying the credit, must be more than the minimum tax amount of $300.

As for Bill 40, it raises the exemption amount from $100,000 to $120,000 for homeowners (from $140,000 to $160,000 for senior citizens). To qualify for the tax credit for Honolulu homeowners, you need to meet the following requirements:

• Residents must own and occupy the property, and it must be their primary residence.
• Live in the city and plan to stay in the home for over 270 days in a year.
• Must be a registered voter in the city of Honolulu.
• Must file an income tax return as a resident of the state of Hawaii.

More Savings For Homeowners

Both of the bills will result in more savings, as well as offer credit to more homeowners. For example, a person with an annual salary of $70,000 and a house worth $900,000 would not have qualified for the tax credit earlier. Also, the homeowner would have to pay taxes if their house were worth $800,000.

Now, after the two new bills, the same homeowner will qualify for the credit. Also, the homeowner will now pay taxes as if the house is worth $780,000.

It is estimated that the new bills could result in an average savings of about $700 for a qualifying homeowner.

Eligible residents will have to apply for the Honolulu tax credit by September 30. It is unclear how many people will qualify for the tax credit for Honolulu homeowners as the city doesn’t collect data on homeowner salaries.

In addition to the tax credit for Honolulu homeowners, residents can also claim a home exemption with the real property assessment division if their property is their principal home. This, in turn, will help homeowners get a reduction in their real property assessment and taxes.

This article originally appeared on ValueWalk

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