New Property Tax Assesments Are Out

And yes, the assessed values are down. My principal residence is assessed at 89.2% of what it was last year. The county of Hawaii vowed not to raise rates (a popular shell game that often goes on; when the assessed value goes down, the rate goes up so likely as not, you end up paying the same), and they kept that promise!tax-stamp.jpg

One logical question though, is how much real value has my property lost? Somehow I got a hunch it may be more than the 10.8% decrease reflected in the lower assessment. But since I can’t do anything about the market, I’ll take the lower taxes.

If you are curious, here’s how the property taxes are calculated.

Net Taxable Value x Tax Rate / $1000 = Taxes Due

Of course, there’s a lot more that goes into understanding the property tax levied on a particular property so I have included a copy of the Real Property Tax General Information here. 2008-2009-real-prop-tax-rates-info.pdf

The basics to understand is that if you are a homeowner (defined as owning the home and occupying it more than 200 calendar days/year), your’re eligible for the lowest tax rate available (unless of course, you’re a Charlie Rangle, Tim Geithner or one of the special people). It doesn’t happen automatically though, you must notify the county of your declared owner occupancy status on or before December 31st or June 30th of the year it becomes your principal residence, or you’ll automatically pay the higher (“Investor” rate) non-owner occupant rate until you do notify them. That could be an expensive mistake if you miss the deadline as the higher rate is currently $8.10/$1000 of assessed value vs the Homeowner rate of $5.55/$1000 of assessed value.

Some other items taken into consideration to arrive at your particular ‘net taxable value’ are:  age, whether or not you have certain disabilities (sight or hearing impairment or Hansens’s Disease, for example) or if you are a totally disabled veteran. At any rate, nobody likes to throw money away (considering they spend it so wisely . . .  ;o) so it definitely pays to check it out. If you have any questions, call (808) 961-8282, the County of Hawaii’s Real Property Tax office.

That’s my Tip of the Day!

Aloha, “Mikie”

Mikie Likes It LLC
Realtor Referrals

Michelle Kerr
(Principal Broker/Owner)

Phone: (808) 896-1943

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