Property values on Oahu are on the rise.
So, what does that mean for property owners?
“It is just going to increase taxes overall because they do their assessments from year to year. Everybody agrees that the real estate market has been going up and up and up,” said real estate analyst Stephany Sofos. “So this will provide a basis for them for their income stream. The city gets most of their money from real property taxes.”
The city will be sending 295,000 real property assessments for 2016 to property owners this week.
The total assessed valuation for all taxable real property on Oahu has increased from $214.89 billion to $227.90 billion, which is an increase of 6.1 percent.
So what is driving up the property values? New developments, condominiums, construction of new buildings and increases in the values of properties were contributing factors for the overall increase.
Residential property values saw an increase of 5.1 percent. In fact all property zones around Oahu saw an increase.
Windward and leeward Oahu saw the highest jump with more than 8 percent, Central Oahu saw a 4.6 percent increase, Urban Honolulu nearly 6 percent, and East Honolulu increased the least with an increase of 1.4 percent.
The City says the net taxable value is one of two components used to calculate the real property tax rate. The tax rate will be set by the City Council during June 2016, as it finalizes the budget for fiscal year 2017. The real property tax bill of an individual property is determined by multiplying the net taxable value by the appropriate tax rate and the application of any tax credits.