As a result of the disaster declaration by GovernorWaihee, victims of Hurricane Iniki are entitled to the reliefprovided in chapter 234, Hawaii Revised Statute (HRS), Tax Relieffor Natural Disaster Losses.
Based on this declaration, tax relief is available forreal property taxes on any property owned and general excise taxespaid for any trade or business conducted in the county within whichlosses were suffered. The tax relief, in the amount of lossescertified by the Natural Disaster Claims Commission, will beavailable to offset your real property and/or general excise taxliability in the county in which the losses were suffered.
If you are not subject to real property or generalexcise tax, the tax relief provided under chapter 234, HRS, cannotbe utilized, however, these losses may qualify as casualty lossdeductions on your individual income tax returns under Section 165of the Internal Revenue Code.
The maximum general excise tax relief allowed is$25,000. The combined general excise and real property tax reliefmay not exceed $35,000.
A Natural Disaster Claims Commission (Commission) willbe appointed by the Governor to receive, investigate, review, andprocess each claim. The findings of the Commission will becertified to the Director of Taxation. The Director shall remit,refund or forgive taxes for a period not to exceed 5 consecutiveyears beginning January 1, 1992, until the claimant recovers thefull amount of the certified loss or until the expiration of thefive year period, whichever occurs first. UNDER NO CONDITION WILLTHE TAX RELIEF EXCEED THE $25,000/$35,000 LIMIT.
To be eligible for any tax relief, you must timely andcompletely file a claim with the Commission on the official NaturalDisasater Claim Application, Form ND-1. Photocopies of theofficial form are acceptable. Claims submitted on other than theofficial form will be rejected. Currently, claim applicationpackets are being revised and will soon be available.
Completed applications must be post-marked (if mailed)or received (hand-carried) by March 10, l993. APPLICATIONS WILL NOT BE ACCEPTED AFTER MARCH 10, 1993.
PLEASE CONTACT YOUR NEAREST DISTRICT TAX OFFICE OF THE DEPARTMENTOF
TAXATION SHOULD YOU HAVE ANY QUESTIONS OR IF YOU NEED FURTHER ASSISTANCE.
RICHARD F. KAHLE, JR.
Director of Taxation