Faulty tax assessments alleged
By Johnny Brannon
Advertiser Staff Writer
City officials knowingly sent out incorrect property tax bills, had appraisers do work on city time for a company owned by the head of the Assessment Division and his family, and retaliated against an appraiser who tried to blow the whistle, according to a federal civil rights lawsuit.
"Many taxpayers were likely assessed taxes they did not owe," according to the suit by appraiser Philip E. English, who says in the lawsuit he has been away from work for nearly a year because of a medical disability.
Rather than correct faulty tax bills, a supervisor stated that "if the taxpayers didn't like the assessments, they could file appeals," and that English "asked too many questions" and "would just have to learn to cut corners," according to the suit.
But officials discouraged taxpayers from challenging their bills, refused to provide information they needed, and rigged the outcome of some appeal hearings, English says in the 44-page complaint filed in U.S. District Court.
The suit raises questions about assessments for tax years 2001-2003, but does not specify how much taxpayers may have been overcharged or how widespread problems may have been.
City spokeswoman Carol Costa said it's too late for taxpayers to appeal assessments for those years. City attorneys have not reviewed the lawsuit and had no immediate comment, she said.
The suit charges that "many important decisions and determinations were being done on an ad hoc basis with no consistency and not necessarily with any relationship to proper appraisal practice," and that a city database contained "numerous and serious actual discrepancies."
Some 2003 appraisals of Waikiki condominiums were riddled with errors "which resulted in studio units being assessed at greater values than one-bedroom units" in the same building, according to the suit.
English says he pointed the problems out but was ordered to process faulty assessments, which were mailed to taxpayers.
He also charges that improper tax exemptions were granted to an administrator; that appraisers were allowed to watch sporting events at a bar while they were supposed to be working; that hit-and-run accidents with city vehicles were covered up; and that appraisers who failed to show up for tax appeal hearings "due to hangover" were not disciplined.
The accusations about private work being done on city time center on two unnamed city workers and GK Appraisals Inc., a Hilo company that state records show is owned by Honolulu Assessment Division administrator Gary Kurokawa and three family members.
English said he questioned the arrangement but that Kurokawa told those involved to simply be more discreet. Kurokawa could not be reached for comment yesterday.
English charges that he was shunned and retaliated against because he repeatedly questioned wrongdoing, and was improperly passed over for a promotion.
A supervisor dismissed him as "wacko" during a staff meeting, evaluations of his work performance declined, and three co-workers filed "confidential workplace violence reports" indicating they were frightened of him, according to the suit.
It says English suffered severe emotional and mental distress, was unable to sleep, and could not work since February 2003.
Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.
