Are our property taxes fair?

[lo-ka-hi]

Like many others we Just received the bill for the 2nd installment of the property taxes.
What are your ideas, is it fair to make us pay in full though our properties have been unsellable since the insurance moratorium in September?

[terracore]

Unsellable is inconvenient however it does not equal no value. Your monthly mortgage might be less than what your property could rent for. Don't tell the county that, or they might double your taxes.

[leilanidude]

How is it unsellable? People pay cash for properties all the time.

[dakine]

What are your ideas, is it fair to make us pay in full though our properties have been unsellable...

Since you asked for them.. my ideas..

Your property's not unsellable. It's just not salable the way you'd like it.. but hey if you give it to me for pennies on the dollar.. with seller financing etc., I'll buy it... sight unseen if you make it attractive enough.

But for reals, the salability of a property has nothing to do with the taxes on the same methinks. Keep in mind that to buy property is a gamble.. some win while other's take a loss. And again, it doesn't really have anything to do with taxes. Though I would expect the County to adjust your taxes to reflect it's fair market value. And, as you point out there might be a reason to think it's value has declined. If so, you might be able to use that as a reason to have your taxes lowered?

[ironyak]

I believe "unmarketable" is the term being used. If you feel your assessment, and resulting property tax, is wrong you can appeal the assessment. Given the mess in the much of the Puna real estate market, many appeals are likely when the new assessments are mailed by March 15th. Appeals must be filed by April 9th. All the details here:

http://www.hawaiipropertytax.com/appeals.html
"As the appealing taxpayer, the burden of proof is on you to show that the assessment is incorrect. For the majority of assessments, the assessed value is also the market value of the parcel. If there is a difference you need to find out why, and remember that you can
only appeal the assessed values. Also you need to remember that the assessment is as of the statutory date of January 1st."

[Mimosa]

We pay our county land and dwelling taxes 2 years in advance .In FULL .
This is a very prudent way to avoid more bills and it is also a smart business deduction .
We have traveled the whole U.S.A. and have found that our county of Hawaii Island land and dwelling taxes are very fair and quite reasonable.
We just picked up 3 more single acre lots for a grand total of $2000.00 each.Total of six thousand in a very desirable area of Puna.
We will hold for several years,making necessary county approved improvements and sell at 40 to 50 times our initial investment on the 3 one acre lots .
We buy low and sell below fair market value and this strategy has proven successful in all 50 of the states since 1945.

[bystander]

How can you pay your real estate tax two years in advance when you don't know what the assessed value will be? I never knew you could do this. Does the county have some kind of escrow account that they use for this?

[Mimosa]

Go down personally to the little window office with CASH only and request to pay your property and dwelling taxes 2 years in advance.
This locks you in to the current taxing rate for 24 months.
And why should they tell you or any one for that matter ?
If you have a trust or foundation / corporation as we do and or understand trust or foundation / corporation applicable taxation then it will be a way to work this in your favor as a deduction on investments.
Take a series of classes at UH Hilo and not online to educate yourself on smart business investments and minimizing taxes .Good Luck.

[bystander]

Okay but if you're locked in for two years and the assessed value goes way down like it probably will, then you're better off paying year to year. Paying in advance would only be good if property values keep going up. Sort of like how some airlines hedged on higher fuel prices and are now losing money.

[Mimosa]

Either way - it is a business deduction on corporation taxes.
If you are a VET from any conflict as we are - our taxes are $25.00 a year max.
If you are a disabled person you get 50K off your property as a deduction .
If you are a home owner and under the age of 62 or 65 which we are not,a person receives a 30K home owners deduction .
If a person is over the age of 65 , which we are by several decades,that individual receives a 40K home owners deduction on land and dwelling taxes.
There are more deductions as approved by county law but these are the basic that every one should know verbatim.