Tax assessments jump 26%
| • | Chart: Assessments fluctuate across O'ahu |
By Johnny Brannon and Curtis Lum
Advertiser Staff Writers
Many O'ahu homeowners may have to pay significantly higher property taxes next year, according to new city assessment figures released yesterday.
Driven by a red-hot real-estate market, the total value of the island's residential properties skyrocketed 26 percent, meaning most tax bills will rise unless the tax rate is lowered.
In general, residential properties on the North Shore and Leeward Coast increased in value by the highest percentage.
But the amount tax bills will increase will be highest in pricier neighborhoods, such as East Honolulu, because most homes there have higher market value.
Mabel Ann Spencer has rented the same Waimanalo home for more than 25 years and is about to close a deal to purchase it. The average 28.9 percent increase in property assessments in her area — from Waimanalo to Waikane — did not sit well with her.
"That's really a lot, when the average cost of living hasn't gone up that much. So that's not good," Spencer said. "That's an awful big jump for one year."
She said the city will have to come up with a formula that will be fair to families such as hers that are on fixed incomes.
"They want more homeless people? Because it seems as though that's what they're looking at doing," she said. "I think that there should be more fairness with the land issues. I think they should do it according to income right across the state."
The city mailed out 268,347 new assessments yesterday, and owners should receive them within a few days, city spokeswoman Carol Costa said.
Property owners have until Jan. 18 to appeal their assessments. The first of two installments for 2005 tax bills will be due on Aug. 22.
The value of some single-family homes, apartments and condominiums increased more than 26 percent, so taxes for them could climb higher than the average.
Property owners who have questions, or do not receive their 2005 assessment notice by late next week, should get in touch with the city's Real Property Assessment Division at the following addresses and phone numbers: In Honolulu: 842 Bethel St. (basement), Honolulu, HI 96813 (phone: 527-5539 or 527-5510) In Kapolei: 1000 Uluohia St. #206, Kapolei, HI 96707 (phone: 692-5541) To check the status of your current assessment, go to www.honolulupropertytax.com
But the increase in value of other residential properties was more modest and, in some cases, values declined, depending on the neighborhood, amount of new housing construction nearby, and improvement or deterioration of properties, officials said.
To find out more
Hotel and resort property values rose by 1.6 percent. Commercial and industrial properties rose in value by 5.9 percent and 9.4 percent, respectively.
Waipi'o Gentry resident Marty Burke said that while he doesn't like the idea of paying higher property taxes, he believes that O'ahu residents are getting a bargain compared with other areas. The retired Air Force officer said he owns a small condo in Connecticut and pays twice as much in taxes there.
"Obviously nobody wants to pay more. But I think we get a pretty good bang for the buck on our property taxes here," Burke said. "We're the 11th largest city in the country and when you look at the previous 10, I think we're getting a pretty good deal."
Burke said the city provides pretty good services, such as twice-a-week garbage pickup and clean parks.
The current tax rate for single-family homes, apartments and condos is $3.75 per $1,000 of assessed value. Although the tax rate is not changing, your tax payment will go up with an increased assessment.
Mayor-elect Mufi Hannemann said that it's too early to say whether he will seek to raise or lower the rate, but that he will thoroughly review the city's finances before making any proposals. "I've really got to defer judgment on that until I really get in and I have a better handle on what's going on," said Hannemann, who will become mayor on Jan. 2.
The median sales price for single-family homes was $469,000 at the end of September, compared with $380,000 for the full year in 2003, according to the Honolulu Board of Realtors. The median price for condominiums was $215,000 as of September, compared with $175,000 for the full year in 2003.
Hannemann said he's very concerned that his administration will inherit a heavy burden of debt incurred during Mayor Jeremy Harris' years in office, along with added costs of maintaining new parks and facilities.
"The good news is that we're seeing the benefits of a robust economy," Hannemann said. "The bad news is we still have a very muddled picture of our financial obligations."
Costa said that some city costs are sure to increase next year, such as payments for employee retirements, healthcare and workers' compensation, but that Harris should be recognized for restraining the size of the city's workforce.
Hannemann's proposed budget, including tax rates, must be sent to the City Council by March 1. The council has until the end of June to approve or change the rates.
