In April 2017, the Honolulu City Council passed Bill 8 (17) will allows certain condominium owners to consider dedicating their properties for Residential Use for a five-year period if their units are being used as a primary residence, or a long-term rental (more than 30 days at a time).
The dedication allows the properties that are currently on land zoned as mixed use, hotel, or commercial, and whose Declaration of Condominium or Horizontal Property Regime specifically states that the unit is allowed to be used as residential, to be classified as Residential, and thereby eligible for the historically lower real property tax rate.
This Residential Use Dedication will replace any previous methods by which condominiums on non-residential zoned lands were allowed to be classified as Residential. Previously approved Declaration Regarding Condominium Use forms are deemed to be invalid. A Home exemption will no longer automatically qualify a property for a classification as Residential.
For questions, contact the Real Property Assessment Division at 768-3799.