LIHU‘E — Most Kaua‘i homeowners believe their county property tax assessments this year are acceptable, if the volume of appeals is any indication. Though the number of tax appeals rose this year, the majority were in the hotel and resort
LIHU‘E — Most Kaua‘i homeowners believe their county property tax assessments this year are acceptable, if the volume of appeals is any indication.
Though the number of tax appeals rose this year, the majority were in the hotel and resort class, said County Real Property Officer Steve Hunt. Homesteaders, those who reside in the home they own, filed just 17 appeals.
Tax appeals in total rose 35 percent over last year to 1,030, up from 763 in 2010. The increase was due mainly to several condominium property regime (CPR) projects, Hunt said.
Kealanani filed 250 to 300 appeals, Cornerstone filed 400 to 500 and Marriott Kaua‘i Beach Club filed 356. These three developments’ filed appeals on the entire property, he said, which encompasses each individually taxed unit.
“There were very few residential, condominium, commercial, industrial or homestead appeals,” he said. “While the actual count was high, given that the vast majority was isolated to three projects, it seemed like an uneventful year.”
In terms of tax appeal hearings, the three resort properties represent only three cases, he said. He believed the appeals should be heard within the year because Kaua‘i’s appeals system is not backlogged.
When property owners file an appeal, they are still required to pay their full taxes by the given due date. The county sets half of the monies paid aside until the appeal case is settled rather than immediately add the monies to the General Fund.
In dollars, the appeals represents a few hundred thousand, Hunt said, which is nothing of great significance relatively speaking.
This year’s number of appeals surpasses the previous peak of 961 in 2009. Hunt attributed this to changes in the county’s method of allocating value between land and improvements. That year, 547 of the 961 were in the apartment and resort and hotel classes.
The Kaua‘i County Council recently shot down a proposal that would have raised hotel and resort property tax rates by 60 cents per $1,000 square feet, from $7.53 to $8.13. Even with such a hike, an idea supported by Council members Tim Bynum and JoAnn Yukimura, the RPT rate still would have been the lowest in the state for resort properties.
For the current fiscal year, which ends June 30, property taxes comprise $81.5 million of the county’s $147 million total operating budget, or 55 percent. It represents 89 percent of all revenues going into the county’s General Fund.
Property tax revenues have declined since the housing bubble burst and the council is bracing for a continuation of the trend. The decline for the next fiscal year is estimated to be 6 percent.
The council last week approved an operating budget for Fiscal Year 2012, which starts July 1, that totals $185.97 million. While this represents an increase of more than $38 million, or approximately 25 percent over last year’s budget, roughly $25.5 million of the increase is for a new reserve fund.
Council Chair Jay Furfaro said the council would be researching comprehensive real property tax reform in all categories within the next 45 to 90 days.
Year Amount
2005 619
2006 319
2007 334
2008 203
2009 961
2010 763
2011 1,030
