Real Property Tax Relief

You may be looking for some tax relief with the increase in property values and the increase in property tax rates for residential investment properties with an assessed value of $1,000,000 or more.  The following information may help you reduce your property taxes.

Residential A

We recently had an increase in real property tax for non owner-occupant homes with an assessed value of $1,000,000 or more.  As of July 1, 2014, Resolution 14-53, CD1 which passed the City Council increased the residential tax rate from $3.50 for every $1,000 of assessed value to $6.00 for every $1,000 of assessed value for properties which do not have a homeowner exemption known as Residential  A.

Homeowner Exemption

If you do not have a homeowner exemption for your principal residence you can file one with the real property tax office.  The basic exemption is $80,000.  With the exemption you are reducing the amount of your assessed value which is subject to tax, thereby lowering the property tax you pay.  The filing deadline is September 30th of each year and will take effect in the following tax year.

Important Dates related to Property Tax and Homeowner Exemption

September 30 – Deadline for filing an exemption for the coming Fiscal Year.

October 1 – Date of property valuation.

December 15 – Assessment notices mailed out to residents.

January 15 – Deadline for filing appeals.

June 15 – Tax rates are set by the City Council.

July 1 – Beginning of the fiscal year.

July 20 – First-half year bills mailed.

August – First-half year payments due.

January 20 – Second-half year bills mailed.

February 20 – Second-half year payments due.

Appeal Your Property Tax

A taxpayer may file an appeal to the Board of Review which needs to provide sufficient evidence for change in the assessed value.  This may include sales of comparable properties, a comparison of land area, interior square footage, condition, age or amenities.  This appeal form should be filled out and 1 copy and 1 original submitted to these locations.

842 Bethel Street BasementHonolulu, Hawaii 96813Tel: (808) 768-3799 1000 Uluohia Street, #206Kapolei, Hawaii 96707Tel: (808) 768-3169

If a taxpayer is not satisfied with the Board of Review’s decision they can file an appeal with the Tax Review Court (TAC).  A person does not have to file with the Board of Review first, and can file directly with the TAC.  The cost of filing an appeal is a $100 non-refundable deposit.  1 original and 3 copies can be filled at this location.

Tax Appeal Court

777 Punchbowl Street

Honolulu, Hawaii 96813

If satisfaction is still not found with the TAC, a taxpayer can enter a small claims procedure for a $25 non-refundable fee.  1 original and 3 copies can be submitted to the following same location.

Tax Appeal Court

777 Punchbowl Street

Honolulu, Hawaii 96813


About the Author

Brandon Lau grew up in Kailua and currently resides in Honolulu with his wife Andee and children Caylah, Elijah, and David. His eighteen years in real estate led him to become a Partner at ChaneyBrooks Choice Advisors. Over the past 10 years he has developed the team and systems that has created a high level of service and value for his clients.

What differentiates Brandon and his team is his consultative approach to real estate. He advises clients with relevant data and expert insight to help them make the best choices in real estate. Good choices in planning for long term dispositions, negotiating for the best price or knowing when not to pursue an investment are ways his consultative services will give you an advantage in the marketplace. His bottom line is providing service with the utmost integrity and expertise.