Property assessments

[allensylves]

We own two houses in HPP and just got the assessment notices today.

The one on 22d just off Makuu had a $4,100 increase in the building and a $6,000 decrease in the land, for a net decrease of $1,900.

The one on 29th a few lots toward Hilo from Paradise had an increase of $3,800 in the building and an increase of $2,500 in the land, for a net increase of $6,300.

We have not made any significant changes in either house or lot.
Figure out the logic in those assessments!!

Allen
Baton Rouge, LA & HPP

[Lokahi]

Allen
LOL...you think there is logic in the assessments. I own property in Hawaiian Shores and made no improvement, valuation up while friend's property on Kohala coast with some significant improvement and valuation remained unchanged. Seems whatever they can get away with?

[adias]

Hi Allen,

What I heard from a source at the planning department is that the assessment is made using "multiple criteria", including house/property values in your immediate neighborhood.

If property values around your neighborhood increases, assessment value of you house/property goes up as well.

Basically, if your neighbor builds a big expensive house next to yours, your values/taxes goes up as well.




Edited by - adias on 03/19/2007 20:23:52

[Carey]

Adias, It would be wonderful if this county used even that, but looking at our neighbors tax bills, 8 houses, all about the same age (built in the late '60s to mid '70's, 3-4 bedrooms, city lots) of eight neighbors there is a at the low end a $75 yearly real estate tax and at the high end $1462. The lowest tax rate is an owner who has lived in the house a little over 8 years, has one of the larger lot sizes and is middle aged. The highest is for a neighbor who built the house 30+ years ago & is in her early sixties. We are middle aged & bought a little over a year ago & pay just a little under the median of the houses we checked. None of the houses checked have had permitted work done recently.
Based on the info we have from our neighborhood, my uneducated guess is that there is a giant real estate tax dart board.
It is always good to go to the county web site & check out your taxes with similar ones in your area. We knew when we bought there there was this diversity in the neighbors taxes & just hoped that the real estate dart would land on the more reasonable area of the tax board.
Aloha, Carey

Edited by - carey on 03/19/2007 21:22:10

[adias]

Hi Carey,

It might just as well be a giant dart board ;-). We were tying to figure out why some houses have very low tax $75 and others $1400, just as you mentioned.

Some of the other criteria the guy mentioned are age, quality, square footage of house, recent sales of comparable houses in the area, residency/non residency, age of occupant, VA status (I think) etc.

What is interesting is that if a house is valued at X and you buy it for 2X, your taxes do not increase by 2X.

However he was reluctant to elaborate on the formula, which implies they change the formula or there are other subjective factors.




Edited by - adias on 03/20/2007 01:19:24

[Jeffhale]

Ergh, mine went down. I had been considering calling to see that they went down, as my street has been getting hit by mainland owners dumping their property. However, no need to call, the county surprised me and brought em down on their own.

Actually total contrast to what I expected from a county tax commissioner or assessor, as just last year in the Midwest, I had to argue with my local assessor about valuating two properties of mine 3 times higher than their worth. It took three months and I had to have a trial where finally the judge agreed with me. The three assessors, were great in saying my properties had this value, but when it came down to it, I offered to sell to anybody in that court, for one third of the assessment. There were no takers, although one assessor made a comment about, not having any investment money. My values were reduced to one third of the assessment.

Last year when Hawaii county raised mine by about 75 percent I called, and the lady I spoke to said; I was lucky, that somebody sold one on my street for 15k while most were up to 70k which brought the curve down to where it was.

This year I’ve watch almost every property on the big island in my subdivision sell or be listed, the county pretty much nailed the average sales values.

I asked, last year, why some people only have 'like' 100 dollar tax bills and are in my same area.

They said, something to the effect, if I become a permanent resident in Hawaii to let them know and they would reduce my taxes to those same levels.

I cannot remember exactly what they said but, it was to the effect that, If you are a permanent resident in Hawaii you get a special tax discount. It is kind of like, and the lady I spoke to agreed with my humor, investors or none residents pay the tax and road bills, ha.


I do not want to pay anymore than I have to, but don't want my value to go lower either, Ha, ha. When and if I manage to get there, get my house finished, you'll find me standing in that line claiming permanent residence.




Edited by - Jeffhale on 03/20/2007 04:34:57

[loffelkopffl]

wondering if the lot with the $1400 taxes filed for their homeowners exemption? i know someone who moved into my neighborhood and didn't until i told him that's why his tax bill was three times higher than mine.

[bystander]

quote:

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wondering if the lot with the $1400 taxes filed for their homeowners exemption? i know someone who moved into my neighborhood and didn't until i told him that's why his tax bill was three times higher than mine.

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I know someone who did the exact same thing. You have to live in your home and it has to be your primary residense to get the $40K exemption so I don't know if it applies to the original poster. The county doesn't make this exemption well known.

[sansei]

Information on the tax rates and exemptions are on the County's Property Tax Web site. The rate for improved property is $8.10 per $1000 but the home owner rate is $5.50 / $1000 according to this page: http://www.hawaiipropertytax.com/template.asp?page=2003taxrates.htm&mnu=Home&submnu=CurTaxRate

There is also a basic home exemption of $40,000 which goes up to $80,000 when 60 or older and $100,000 at 70 or older. The exemptions are not automatic and they have to be applied for. They are explained on a brochure here: http://www.hawaiipropertytax.com/pdffile...ochure.pdf

[mikewj]

I also just received my assessment. I have one lot with a home on it and the building assessment went up but the land went down, for a net decrease!
The other two vacant lots in the same area remained the same, but are significantly higher than the land on the built up lot.
Re the exemptions: they are spelled out on the blue sheet which came with the assessment forms. (Hawaii seems to be the only place where it pays to get old!)