Many have told us that their Real Property Taxes seem to be going up. This may be true since our property taxes are a direct relation with the City’s value of the property. The higher the assessed value of your property, the higher your property taxes will be..
We have clients from all over the world. And believe it or not, our property taxes are not as high as some states. As of the 2008 U.S. Census, the state of New Jersey holds the #1 position for the highest median property tax paid per year at $6,320. The lowest median property tax paid was Louisiana at just $188.
Home exemptions reduce the net taxable assessed value of the property used in determining your property tax and apply only to your primary residence. You can only have one primary residence which is tracked by your Social Security number. The current basic home exemption is $80,000. This means that $80,000 is deducted from the assessed value of the property and the homeowner is taxed on the balance. If you’re 65 years and older, the home exemption is $120,000. To qualify for the higher exemption you must be 65 years or older on or before June 30 preceding the tax year for which the exemption is claimed. Your exemption amounts will automatically increase depending on the age of the homeowner. The current property tax rate is $3.50 per $1,000 of assessed value. This rate is set in May or June by the City Council and may be adjusted for the July statement of this year.
If you believe your property taxes are too high, there is a way you can file for an appeal. These are what you need to know:
You’ll need to complete the Notice of Real Property Assessment Appeal form and submit a $25.00 deposit. This form as well as other valuable information can be found online at www.realpropertyhonolulu.com.
There are 4 ways to appeal. The most common is based on your belief that the assessment of the property exceeds more than 10% the market value of the property.
Once the form is completed a hearing is scheduled before the Board of Review. This board is made up of private citizens in an informal setting. You’ll want to bring documentation to validate your statement and then they’ll remedy a decision.
If you purchase a property, remember to file for the exemption immediately, so you don’t forget later. Ownership must be recorded at the Bureau of Conveyances on or before September 30 preceding the tax year.
We’ve known seniors who have lived in their home for years and never took advantage of their home exemptions and they’ve paid more property taxes than needed — imagine the extra savings.