Posted on: Saturday, December 14, 2002
O'ahu property values raised
By James Gonser
Advertiser Staff Writer
The assessed value of real properties on O'ahu increased by 6.64 percent this year, which could translate into higher property tax bills for homeowners unless Mayor Jeremy Harris or the City Council act to reduce property tax rates.
The city Budget and Fiscal Services Department put a value of $95.1 billion on O'ahu real property for 2003 compared to $89.2 billion last year.
Council budget chairwoman Ann Kobayashi said the council will take a close look at the figures before deciding if any action should be taken to reduce rates.
"Maybe the administration doesn't want to raise property tax rates. However, that doesn't mean we arbitrarily raise assessments," Kobayashi said. "That's what I worry about."
More than 900 homeowners filed appeals on their 2002 assessments after property values were increased last year. With another property value increase, Kobayashi expects another rash of appeals this year.
City tax bills are calculated by multiplying the taxable value of land and improvements by a tax rate. Those tax rates are set by the City Council each spring. The tax rate for residential homes is $3.65 per $1,000 of assessed value.
About a third of the city's budget comes from real property tax revenues each year.
The overall increase was the result of higher assessments for residential homes and apartments, up 8.7 percent and 11.47 percent, respectively. The new assessments could mean several million dollars more in property tax revenues.
City spokeswoman Carol Costa said 255,000 assessment notices are being sent to property owners and should be arriving in most homeowners' mailboxes next week.
Mayor Harris last year submitted a $1.1 billion city budget that did not raise taxes. An estimated $383.7 million of that was from property tax. Kobayashi said the increased property value would help with the expected $150 million budget shortfall this year but not completely cover it.
"It will help, but it won't solve the problem," she said. "We are just too much in debt."
The value of homes increased everywhere except on the North Shore, which dropped 2.43 percent and Wahiawa, which went down 2.74 percent. Apartment assessments rose across the board.
The largest increase were for homes is on the Windward side which rose 10.87 percent. The largest increase for apartments is in Central O'ahu which increased in value by 18 percent.
Property values decreased in all other categories including preservation (8.8 percent), unimproved residential (4.19 percent), hotel and resort (2.5 percent), agricultural (2.2 percent), commercial (0.76 percent) and industrial (0.22 percent).
The city is in the final year of a three-year conversion to a new system, Computer Assisted Mass Appraisal, which calculates sale prices and analyzes comparable property values.
Kobayashi questioned the accuracy of the computer system because it has raised property values for the second straight year.
"They say this new automated system is why evaluations went up this past property tax sequence because it brought up properties that were down before," she said. "So why is it going up again this year if the new system is already in place?"
Anyone who wants to dispute their assessment must file an appeal by Jan. 15. Forms are available at satellite city halls, the Real Property Assessment Office at 842 Bethel St. and online at www.co.honolulu.hi.us/rpa/forms.htm.
Reach James Gonser at jgonser@honoluluadvertiser.com or 535-2431.
