Oahu residents opening their property assessment notices this week are experiencing sticker shock as valuations soar to unprecedented levels. One homeowner reported their property assessment jumping from approximately $1.3 million last year to just under $2.4 million – an 85% increase that exemplifies the dramatic changes hitting the island.
The sharp increases stem from KITV reporting on the city’s annual assessment process, where properties are evaluated so the City and County of Honolulu can determine tax assessments for the year. Some properties, including a Hawaii Kai waterfront villa, saw nearly 50% increases in assessed value.
City Points to Uncaptured Improvements
According to KITV, the city often explains dramatic increases by citing previously unrecorded property improvements. One homeowner was told the increase reflected “the number of renovations that had been done since 1965 that had not been captured.”
Real estate professional Dan Madden, who tracks the city’s assessment patterns, told KITV he has “helped dozens of homeowners appeal their property tax assessments, because they felt they were high.” His analysis reveals systemic accuracy issues with the city’s process.
Widespread Assessment Inaccuracies
The problems extend beyond isolated cases. According to Honolulu Star-Advertiser analysis, about 20% of properties had assessed values exceeding sale prices by at least 10%, suggesting roughly 60,000 residences were overvalued for tax purposes…