By now, Oahu residents have received their real property valuations. Hawaii real property valuations are calculated based on 100% of the home’s value as of October 1. Assessments are sent out on December 15. That is, the information sent for the 2014-2015 year is based on October 1, 2014 and is effective with the next tax year beginning July 1, 2015. [Real Property Assessment – Important Dates]
The Real Property Assessment Division of the Honolulu City and County puts out summary valuation reports for each year. These data represent the fiscal year from July 1 to June 30 of the next year. These data are useful for comparison purposes and to see where tax income is being produced over the years. Using the 2013-14 and 2014-15 reports, it appears that on average, the real estate tax base for residential properties rose 10.5 percent. Data for the next fiscal year (based on the amount shown on your current statement) should be available sometime around August 2015.
To explain the above table, in early 2014, the State Legislature passed a bill for a second type of residential tax rate. The “Residential A” tax rate is for second homes valued at over 1 million dollars. Instead of the usual $3.50 per $1,000 of net taxable property, “Residential A” properties are taxed at $6.00 per $1,000. [2014-15 property tax rates] The sum of these two categories comprise the sum of the residential property tax base.
Homeowners disputing next fiscal year’s valuation have until January 15, 2015 to submit an appeal.