Appeals to the Tax Board of Review

[Bob Orts]

quote:

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Originally posted by David M

OK, someone explain to me (and convince me) of the logic of setting property taxes based on sales value.

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Because, if like Hawaii, the tax is based on "market value", what better way to arrive at "market value" than sales? People pay what the value the market will support. So, all that's needed is to comp a property to property that sold. It’s in line with almost all other percentage tax like sales tax on cost or income tax on income. There for it's an equitable method of determining taxes.

Now, if your ridiculous nature of this is based on what real estate taxes support and determining what a person should pay, well sales price does not equate to equitable from that standpoint. A 20 acre property with a 2 million dollar home occupied by a retired financially well off couple may use less community/government services than a .2 acre fire trap home with 7 school age children, 2 unemployed criminally minded drunk adults, with no health insurance and a leaking septic system.

But Hawaii law requires an equitable method of assessing and collecting taxes based on the market value, nothing else.