Hawaii tax relief for flood victims

Those of us who live in cold and wet climates on the continental United States may assume the weather is always pleasant in Hawaii. But heavy rains this past September caused damaging floods in Maui and Kalawao counties. These have now been declared state and federal disaster areas and affected residents are eligible for tax relief.

A general excise tax (GET) exemption is available for “amounts received under property and casualty insurance policies for damage or loss of inventory used in a trade or business located within an area declared a disaster by the governor.” Casualty losses may also be deducted from income tax returns. Additional information is available from the Hawaii Department of Taxation.