Approximately 295,000 real property assessments for 2016 should have been received in the mail by property owners. The total assessed valuation of all taxable real property on Oahu has increased from $214.89B to $227.9B, an overall increase of 6.1 percent.
New developments, including residential subdivisions, condominiums, commercial and industrial projects, construction of new buildings and improvements to existing parcels, and increases in the values of properties were contributing factors for the overall increase.
Residential property gross valuations increased from $174.52B to $183.36B, or by 5.1 percent. Hotel and resort property values increased 14.6 percent, commercial property values increased 10.4 percent, and industrial property values increased 7.3 percent. These percentage changes represent broad totals, while the change in the assessed value of a particular property could be more or less than the island-wide figures.
The 2016 assessed valuations were set as of Oct. 1, 2015, and are based on sales of similar properties through June 30, 2015. The assessment notice is not a tax bill, but a statement of what the city has determined to be the property’s value for tax assessment purposes. The notice includes property assessment information, including any exemption that the owner has been granted in accordance with city ordinance. The standard homeowner’s exemption for an owner-occupied property is $80,000, and increases to $120,000 when the homeowner reaches age 65 or older.
The net taxable value is one of the two components used to calculate the real property taxes for next fiscal year of July 1, 2016, to June 30, 2017. The other component is the tax rate. The tax rate will be set by City Council in June of 2016, as it finalizes the budget for fiscal year 2017. The real property tax bill of an individual property is determined by multiplying the net taxable value by the appropriate tax rate and the application of any tax credits.
Property owners who have not yet received their 2016 Assessment Notice are advised to contact the Real Property Assessment Division (RPAD) at 768-3799. Owners who wish to dispute their real property assessment may file appeals from Dec. 15, 2015, to Jan. 15, 2016. For more information, call 768-3799 or visit the Real Property Assessment Division’s website at www.realpropertyhonolulu.com and click on the “Assessment Appeals” link.
In an effort to expedite the appeal process and to minimize wait time for a Board of Review hearing date, the RPAD is requesting appellants submit evidence and supporting documentation with their appeal or shortly thereafter. If submitting separately from the appeal form, please include 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. During the appeal period of Dec.15-Jan. 15, please call the appeal hotline number of 768-7000 with any questions.
The Real Property Assessment Division’s website offers online services to reduce paper and postage costs, while providing an efficient service option to the public. Property owners may register to receive their real property assessment notices via email, pay property taxes electronically, submit a Change of Status form and file online for home exemptions or real property tax appeals. Visit www.honolulupropertytax.com to use the division’s online services to search and view additional information regarding tax records, exemptions, and tax billing information.
