Property Taxes – Part 1
One of the most common questions I am asked is how property taxes are figured. Since many of our buyers are from CA, where the sale of property triggers a re-assessment at the new sales price, they usually ask if taxes will go up after they purchase. Taxes may go up but not due to the sale at that time.
Property is assessed annually at full market value, based on values established by the County of Kauai Real Property Assessment Division as of January 1 which are used for the following tax year which begins July 1. In other words, last years sales are the basis for the current year’s assessments.
Due to the shortage of assessors, a personal inspection of your property is usually only undertaken at the time of construction or remodeling. After that, the “Mass Appraisal Method of Valuation” is applied. In a rapidly appreciating market, like the seller’s market of 2004-2005, appraisals went up every year while in the present buyer’s market, you may see some properties advertised as being “below appraised value.” If you do buy a property like this, find out if the seller is referring to the Real Property Tax appraisal or an appraisal done by a private appraiser for a loan. If your County appraised value is more than what you paid for your property, you can file an appeal with the County.
More on tax rates and exemptions tomorrow.
Aloha,
Elaine Schaefer (R, GRI, ABR)
Broker in Charge – Princeville Resort Office
Graduate, Realtor’s Institute
Accredited Buyer’s Representative
Top Producer 100% Club
RE/MAX Kauai
Princeville Resort Office
POB 223632
Princeville, HI 96722
cell: 808 639 2935
home fax: 1 808 440 4552
email:soldonkauai@yahoo.com
website: www.kauaiforsale.com
blog: www.blogs.alohaliving.com/princeville-condo-sales
……you can have your own piece of paradise
ask me how!
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