Land's assessed valuation increase

[Hanalei]

I just received the 2006 Real Property Assessment Notice from Hawaii County today. They tripled last year's market value (HPP). The appeals must be posted by 4/10/06. Has anyone received theirs? I wonder if it's across the board?

[mella l]

Yes we received ours and our assessment was $8,000.00 more than we paid for our ag lot. So I'm wondering if we should appeal this. Why would they increase the assessment to more than we paid? What will they do when we build? Makes one wonder what is going on. What do others think about this? Is it customary? What has changed? No new services. Yes appeals must be made and posted 4/10 or sooner.

mella l

Edited by - mella l on 03/17/2006 19:28:03

[John S. Rabi]

I own several lots in Puna and the assessment is lower on ALL of them than the real market value (including the one I own in HPP.) I assume that is the case with yours too. The assessment has nothing to do with your purchase price. Be careful with the appeal, if you make them angry they will assess your lot at real market value.

Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB,RB
http://www.JohnRabi.com
Typically Tropical Properties
75-5870 Walua Road, Suite 101
Kailua-Kona, HI 96740
(808)327-3185

[allensylves]

I just received one of ours today for a lot and house in HPP. The value on the house went up about 5%, but the land value almost tripled: from $22,000 to $64,000. It may not be advisable to appeal but that is a ridiculous increase and is $24,000 more than the appraised value of the land in October 1993!!
The assessed value for house plus land is $13,300 more than the appraised value in 1993!
It seems like we ARE being assessed at the market value.

Allen
Baton Rouge, LA & HPP

[Aki and Laura]

Our assessment also arrived today, in Canada, so the Postal Service is working well in both countries! Our lot in HPP tripled from $18K to $55K. Has there been any discussion in the media about whether rising assessments will translate proportionately into higher property taxes? If the additional money was directed towards improved services, where and what are the greatest needs that should be addressed first? When is the annual budget for the county established and do they seek input from the taxpayers through public meetings or forums?

Laura

[Carey]

We haven't received our assessment yet, but since we closed in Nov. '05, the sales price is very recent. Not to be a bearer of weird news, but the price of a lot in HPP (and most of the island) went up a lot last year. (We were looking to buy from April through October...and were caught in two cases that seemed like "gee, my neighbor just put their lot up for much more than we accepted... can we get more too? type deals. Both fell through when the sellers could not (would not?) close on cash offers with no buyers contigencies, other than survey). Soo, the land market went crazy last year, the prices doubled and tripled (or more in some areas, esp close to ocean or ocean view))on many lots in the county, now the county has reassessed the land. It is cruel for those who have limited incomes, and for those saving for their future house, but is what happens when speculation hits an area. The price of paradise may be higher now. Bummer. Hopefully the county will make it easier on the fixed low income households to stay in their homes with the new taxes.
Aloha, Carey

[David D]

I have no problem with paying my fair share with taxes, but this is crazy! Our Property Tax has gone from $566 in 2004 to $821 in 2005 and it is going to be $1510 for 2006.
This kind in increase, my friends, is mad! Maybe the local government needs a whiff of Perfume de “Prop 13” by Howard Jarvis.

David D

[lkrider]

Aloha all-

Just got the assessment on our 3rd St HPP lot. It went from $24K to $92K which is quite a bit more than we paid for it in Dec '04 and way above market value (I think). What makes good grounds for appeal, other than the fact that such an increase is way outta line? They don't give ya much time either.

Linda in CO

[Howard]

I don't know anything about the basis for assessments here. However, I do know that a couple of years ago, when the assessments on our condo in Philadelphia (and those of our fellow owners) were all raised substantially, the condo board hired a lawyer to appeal all of the increases; our taxes were subsequently reduced on appeal by considerably more than the pro-rated cost of the attorney.

Since so many people here are being similarly affected, perhaps you would benefit from organizing a similar joint effort. I don't know whether there are any attorneys in this area with any special expertise in this matter, but it shouldn't be too difficult to find someone who could handle these appeals.

Howard

[Carey]

Linda, I appealled an assessment once, in the Chicago area. I had a property in an area that was experiencing high speculation sales at the time. The property had been appraised by 3 appraisers before I married my husband (he was buying out a tenant in common share). The next tax assesment was higher than these fair market appraisals. We filed an appeal, but the appeal was eventually turned down as the difference in valuations was only 20% - or over $50k, which I didn't think was fair. However, in less than a year, the value of the house had exceeded this difference, due to the land speculation. If you check the MLS, you may be surprised to find that most lots on 3rd do list above $92k, some much more (I hope that this is good news for you). If you do not think that your assessment is fair, you must first have appraisals (usually more than one is required) and still remember that they may still do nothing. This is what happens when an area undergoes the land speculation Hawaii County has had in the last year.
Aloha, Carey