[ OUR OPINION ]

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Cut backlog
of property tax
assessment appeals

THE ISSUE More than 2,800 property owners from past years still are awaiting hearings on the appeals of tax assessments.

MAYOR Hannemann can add to his list of basic services in need of repair the handling of property tax assessment appeals. More than 2,800 property owners are lined up waiting for their appeals to be heard by two review boards, 300 since 2002, not counting the appeals to arise from the most recent appraisals. The new mayor and City Council should find ways to eliminate this deplorable logjam.

Such disputes over property assessments occur throughout the country. The National Taxpayers Union last year estimated that as many as 60 percent of all homes are overassessed, so it is natural that many homeowners challenge the inflated price tags affixed to their abodes.

Stan Ditus says his Ilikai apartment was valued by city assessors at $324,000 to $344,200 over a three-year period, during which an identical unit next door was assessed at $90,000. Last October, a unit at Diamond Head Apartments sold for $1.5 million less than three weeks after city assessors pegged that very apartment's value at $2.12 million.

The amount of taxes involved is not paltry, even though an analysis of 2001 property tax rates showed Honolulu's rates as lowest among the largest cities in each of the states. However, when property values are added to the equation, Honolulu ranked 23rd, with property tax bills ranging from $512 for a family of four with a $25,000 income to $3,238 for a family with a $150,000 income.

Gary Kurokawa, the Real Property Assessment Division's administrator, told the Star-Bulletin's Rob Perez that he hopes to have the bulk of the backlog of cases resolved by the end of next year, but that might be wishful thinking. Delays have been caused by the departure of appraisers assigned to certain areas. Lawsuits have added to the workload, he says.

The agency's funding has remained about the same during the past decade while the properties to be evaluated have increased, Kurokawa added. "Basically, your assessment program is only as good as its funding," he says.

Councilman Charles Djou of Waikiki proposes creation of a third review board to hear appeals. He also calls for more compensation for those serving on the boards; a member now is paid $25 for each of the twice-a-week afternoon hearings, hardly an incentive for adequate attendance.

Hannemann was elected on the promise that his administration would allocate more time and funding to "basic city services." He specifically mentioned repairs of potholes and sewers lines, but an efficient and accurate method of assessing property taxes, the city's primary source of revenue, belongs on that list.