As a result of the disaster declaration by Governor Waihee, victims of Hurricane Iniki are entitled to the relief provided in Chapter 234, Hawaii Revised Statute (HRS), Tax Relief for Natural Disaster Losses.
Based on this declaration, tax relief is available for real property taxes on any property owned and general excise taxes paid for any trade or business conducted in the county within which losses were suffered. The tax relief, in the amount of losses certified by the Natural Disaster Claims Commission, will be available to offset your real property and/or general excise tax liability in the county in which the losses were suffered.
If you are not subject to real property or general excise tax, the tax relief provided under chapter 234, HRS, cannot be utilized, however, these losses may qualify as casualty loss deductions on your individual income tax returns under Section 165 of the Internal Revenue Code.
The maximum general excise tax relief allowed is $25,000. The combined general excise and real property tax relief may not exceed $35,000.
A Natural Disaster Claims Commission (Commission) will be appointed by the Governor to receive, investigate, review, and process each claim. The findings of the Commission will be certified to the Director of Taxation. The Director shall remit, refund or forgive taxes for a period not to exceed 5 consecutive years beginning January 1, 1992, until the claimant recovers the full amount of the certified loss or until the expiration of the five year period, whichever occurs first. UNDER NO CONDITION WILL THE TAX RELIEF EXCEED THE $25,000/$35,000 LIMIT.
To be eligible for any tax relief, you must timely and completely file a claim with the Commission on the official Natural Disasater Claim Application, Form ND-1. Photocopies of the official form are acceptable. Claims submitted on other than the official form will be rejected. Currently, claim application packets 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 DEPARTMENT OF
TAXATION SHOULD YOU HAVE ANY QUESTIONS OR IF YOU NEED FURTHER ASSISTANCE.
RICHARD F. KAHLE, JR.
Director of Taxation