Real Property Tax: Highest and Best Use, and Why You Should Care
- Published: August 29, 2017
By Tom Yamachika, President, Tax Foundation of Hawaii
Earlier this year, the City & County of Honolulu tinkered with its real property tax system. People who aren’t aware of what happened may find themselves with property tax bills many times what they are now.
In Honolulu, as in most other counties here and in many jurisdictions on the Mainland, there are several property tax classifications. For example, there is residential use that is taxed at $3.50 per $1,000 of assessed value; commercial use, taxed at $12.40; and hotel/resort, taxed at $12.90. The classification that you fall in is determined by the “highest and best use” of your property.