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Kokua Line June Watanabe |
How to appeal property
tax assessmentsQuestion: My real property tax assessment has gone up 62 percent this year. I want to appeal this, but the people in the city Real Property Tax Division tried to discourage me from appealing. I am not against paying taxes, but an increase like this is totally unfair. Who can I talk to who can help me out?
Answer: City officials told us there was some misinformation involved your case, but they would provide information to help you file an appeal before tomorrow's deadline.
It may be too late for others, but we'll use your question to explain what it takes to file an appeal with the city and what the chances of success are. (Taxpayers may also appeal the city's decision with the state Tax Appeal Court or the court's small claims division, or file first with either.)
Real property tax assessments for this year went up an average of 18 percent, said Gary Kurokawa, of the Real Property Assessment Division. Of about 262,000 assessments (including multiple notices to different owners of a parcel) sent out each year in December, 2,500 to 3,000 appeals typically are filed.
The city does not keep statistics on the number of successful appeals, but Kurokawa notes that between 35 percent and 40 percent of the taxpayers who pay the $25 appeals fee receive a refund.
"A refund of the filing fees occurs when an adjustment is made that is 50 percent of the value in dispute," he said.
By law, a taxpayer has four specific grounds for appeal: the assessment of the property exceeds the market value of the property by more than 10 percent; there is a lack of uniformity or inequality in the assessment, brought about by the use of illegal methods or by an error in applying the methods; the taxpayer is denied a qualified exemption; or there is a constitutional question.
The taxpayer needs to provide evidence supporting the basis of the appeal.
"Many taxpayers have refinancing appraisals done which should give some indication of value but should understand that the assessed values are as of Oct. 1, 2003," he said.
As of Monday, the city had received 767 appeals for this year's assessment. The city has two appeals boards and, "depending on the complexity of the appeal, the appeals for any given year should be heard within the fiscal year, Kurokawa said.
Regarding city employees "discouraging" you, they "want to make sure taxpayers understand the grounds for an appeal and not file a defective appeal where the filing fee of $25 is not refunded," he said.
For example, just saying that the building value went up or the percentage increase is so much are not, by themselves, grounds for an appeal. Taxpayers are encouraged to contact city appraisers before filing an appeal to clear up any questions.
Taxpayers can call 527-5500, 527-5510 or 527-5511 and ask to have an appraiser for their area review their assessments with them. "It is ultimately easier to explain with a face-to-face meeting where the appraiser can show the comparables being used to value properties," Kurokawa said.
Check the Web site www.co.honolulu.hi.us/rpa/genappl.htm for more information.
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Got a question or complaint?
Call 529-4773, fax 529-4750, or write to Kokua Line,
Honolulu Star-Bulletin, 500 Ala Moana Blvd., No. 7-210,
Honolulu 96813. As many as possible will be answered.
E-mail to kokualine@starbulletin.com