Hawaii Kai Property Tax Assessments
O'ahu property assessments are down about 6.7 percent from a year ago, according to notices being mailed out this week to 284,000 property owners islandwide. The 6.7 percent is less than the 10 percent drop in assessments that had been projected by budget officials just last week
By geographical district, the Wai'anae Coast's 13.3 percent drop in values was the biggest decrease.
The 'Ewa-Waipahu area, Wahiawa, Windward and Central O'ahu all saw residential valuations drop by more than 6 percent.
The drop in the assessed values means less income for the city, unless the City Council raises tax rates. Property taxes are the city's main revenue source, accounting for the bulk of the $1.8 billion operating budget. It's not a certainty the council will raise tax rates to offset the drop in assessments. Rates are not set until late May or early June.
Property owners can appeal if they do not agree with the assessed value of the property, the classification of the property, or the amount of the exemption allowed, according to the city. By law, the city must put 50 percent of the taxes being disputed in an escrow account.
Anticipating that there may be a need to increase rates next year, the Hannemann administration pushed for and the council approved creation of a separate owner-occupant classification. Hannemann administration officials argued that owner-occupants may need to be shielded from higher taxes. It's likely that those who live in their own homes will be paying a lower rate than those who own rentals or other types of residential properties as investments.
Contact me if you aren't sure how to find out about your Hawaii Kai property assessment.
(resource: Honolulu Advertiser)