Real property assessments on the rise, city to send out notices

News

The price of living in paradise continues to rise.

The city completed its 2017 real property assessments and plans to send out approximately 300,000 notices applicable to the 2017-2018 fiscal year Thursday.

The notice is not a tax bill, but a statement of what the city has determined to be the property’s assessed value, tax classification, granted exemption amount, net taxable value, and any applicable special assessment.

Officials say the total assessed valuation of all taxable real property on Oahu has increased from $227.87 billion to $241.36 billion, an overall increase of 5.9 percent.

Among residential properties, the biggest jump was in Leeward Oahu, where the assessed value of homes increased 12.6 percent, followed by the North Shore at 9.7 percent, and Kaaawa to Kahuku at 9.5 percent.

Officials say new developments and improvements to existing properties are contributing factors.

The assessed value is just one part of the equation used to figure out a homeowner’s tax bill. The property tax rate, which is set by the city council, is the other part used to determine how much you’ll owe.

Hotel and resort class increased 15.9 percent, commercial property values increased 7.1 percent, and industrial property values increased 5.6 percent.

The 2017 assessed valuations were set as of Oct. 1, 2016, and are based on sales of similar properties through June 30, 2016.

The Department of Budget and Fiscal Services has set up an “Appeal Hotline” during the period of Dec. 15, 2016 through Jan. 13, 2017, between the business hours of 7:45 a.m. and 4:30 p.m. The public may call (808) 768-7000 with any question they may have or if they feel there is a discrepancy in their property description and/or value. Questions and inquiries may also be submitted via email to bfsrpmailbox@honolulu.gov.

Owners who wish to dispute their real property assessment may file an appeal during the period of Dec. 15, 2016 to Jan. 15, 2017, and can download a form online here. Website visitors may also file an online appeal to the Board of Review by clicking the “File An Appeal” icon.

“There were 3,112 appeals filed for last year. It is not possible to determine how many taxpayers may have forgotten to file for a home exemption. There are a variety of reasons why a homeowner may forgo filing such an exemption. For example, the property is being rented or is vacant.”– Gary Kurokawa, deputy director, Department of Budget and Fiscal Services

In an effort to expedite the appeal process and to minimize your wait time for a Board of Review hearing date, the Department of Budget and Fiscal Services is requesting appellants to submit their evidence and supporting documentation with their appeal or shortly thereafter. If submitting supporting documents separately from the appeal form, please include your name, Parcel ID (Tax Map Key), year of the appeal, contact information such as phone number, mailing address, or email address, and submit to either office noted below.Click here for additional real property tax information.

Property owners may also register to receive their real property assessment notices via email, pay property taxes electronically, file a home exemption claim, and file an appeal to the Board of Review. Property owners who reside in their property are encouraged to file a home exemption claim if they have not already done so.

If you’ve already signed up for it, you don’t have to do anything. If you’re not sure, look for the box marked exemption on your assessment notice.

Currently, the basic home exemption is $80,000. This means that $80,000 is deducted from the assessed value of the property and the homeowner is taxed on the balance. For homeowners 65 years and older the home exemption is $120,000. To qualify for this exemption, you must be 65 years or older on or before June 30 preceding the tax year for which the exemption is claimed.

You are entitled to the home exemption if: 1) You own and occupy the property as your principal home, 2) Your ownership is recorded at the Bureau of Conveyances, State Department of Land and Natural Resources, in Honolulu on or before September 30 preceding the tax year for which you claim the exemption, and 3) You file a claim for home exemption (Form P-3) with the Real Property Assessment Division on or before September 30 preceding the tax year for which you claim the exemption.

Property owners who have not received their 2017 Assessment Notice by Dec. 31, 2016, are advised to contact the Real Property Assessment Division at either of the locations listed below:

Real Property Assessment Division

842 Bethel Street, Basement

Honolulu, HI 96813

Phone: (808) 768-3799

Real Property Assessment Division

1000 Uluohia Street, #216

Kapolei, HI 96707

Phone: (808) 768-3799

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