On an annual basis, the Real Property Division sends a notice of assessment to property owners, showing the assessed value of their property, the general land class of their property, and the amount of exemption or tax relief, if any. If a property owner objects to any part of their assessment, they are entitled to file an appeal. The process is quite simple and does not require legal counsel. Prior to filing an appeal, property owners are encouraged to contact appraisers at 4444 Rice Street, Suite 454, Līhuʻe, HI 96766 to discuss any questions they may have; in many instances, misunderstandings are cleared up during this discussion.
INFORMATION FOR PROPERTY OWNERS
REGARDING APPEALS TO THE BOARD OF REVIEW
The appeal process is outlined in Chapter 5A of the Kauaʻi County Code. The procedure is quite simple and does not require legal counsel. An appeal form must first be completed, and a $75.00 fee must be paid. Appeals are heard by a five-member Board of Review composed of fellow community members. The property owner (appellant) is asked to state their case first, followed by the County appraiser, who then explains how the property assessment was determined. Tax assessment appeals can only be made between December 1st and December 31st. Unless an Amended Notice is issued, which would provide the taxpayer 30 days from the date of mailing to an appeal.
The Board of Review believes it would be helpful for appellants to understand fully their obligations and responsibilities when filing an appeal. Considerable time can be saved by all parties involved if all requirements are met when presenting cases at appeal hearings.
The County of Kauaʻi is required by Chapter 5A of the Kauaʻi County Code, to assess all real property in its entirety.
A property owner who files an appeal is obligated to present "proper evidence" to the Board of Review in support of their case at the scheduled hearing. The law clearly provides that the assessment made by the Director of Budget and Fiscal Services is presumed to be correct. This means that every person who appeals must show "proper evidence" that the assessment made by the Real Property Division is incorrect.
Some examples of "proper evidence" include sales of similar properties or construction cost estimated by the replacement of improvements by an experienced licensed contractor or cost estimator, if improvement valuations are appealed. While sales of similar properties are "proper evidence", sales transactions between relatives, close friends, and persons with close business relationships are usually NOT considered "proper evidence." The fact that a nearby property is assessed lower than that of the property under appeal is NOT sufficient evidence for the Board to decide against the County's assessment. Appraisers for the Real Property Division use valid arm's length comparable sales to arrive at annual market values as of October 1, each year.
The appraisers and office clerks at the Real Property Division are always willing to answer questions and review assessment matters with property owners. In most instances, discussions result in a clearer understanding of standards and practices utilized by the Division, which provides a high degree of fairness in property assessments.
When you file an appeal, you must state the basis for your objection. For real property tax cases, the law specifies five grounds for appeal.
- The assessed value of the property exceeds by more than fifteen percent (15%) the ratio assessment to market value.
- There is lack of uniformity or inequity resulting from the use of illegal assessment methods or an error in the application of the methods.
- Denial of an exemption or dedication to which you are entitled for which all requirements are met.
- Illegal or unconstitutional methods used to arrive at an assessment.
- Use Tax Classification: Owner believes the property should be classified as _______________________.
Board of Review - Owner must remit a cost deposit of $75 for each appeal.
Small Claims section of the State Tax Appeal Court - A $25 non-refundable deposit.
Tax Appeal Court - A $100 non-refundable deposit.
Board of Review forms (Form P-51) are available from the county at:
Real Property Assessment
4444 Rice Street, Suite 454
Līhuʻe, Hi 96766
Appeal Form (P-51) Appeal to Real Property Board of Review(PDF, 489KB)(PDF, 392KB)
Tax Appeal and Small Claims form are available from the state at:
The Court House in Honolulu
Land & Tax Appeal Court
777 Punchbowl Street
Honolulu, Hawaiʻi 96813
If you filed an appeal last year and the appeal is pending, an appeal on your behalf will automatically be placed on the year's assessment, provided the new assessment was not changed from the assessment under appeal. If the current year's valuation differs from the valuation under appeal, you must file a new appeal if you want to contest the current year's assessment.
As the appealing taxpayer, you must prove that the assessor's assessment of your property is incorrect. You can best do this by submitting construction cost data or data from sales from comparable properties which support your position.
(NOTE: Property is assessed on its FEE SIMPLE basis)
If a property owner has an appeal pending, they are required to pay all property taxes by the due dates, or a penalty will be assessed. If the property owner wins their case, any overpayment will be refunded.
If a property owner files a tax appeal with the Board of Review and disagrees with the Board's decision, the property owner is entitled to appeal to the State Tax Appeal Court pursuant to Hawaii Revised Statutes (HRS) Section 232-17.
Appeals may be submitted under the small claim's procedure of the State Tax Appeal Court if the amount of property tax in dispute is less than $1,000. Under this procedure, appeals are initiated by filing an appeal notice (one original and three copies) with the clerk of State Tax Appeals Court and by paying a non-refundable $25 fee. Unlike appeals to the State Tax Appeal Court, appellants waive their right of appeal to the State Supreme Court if they elect to go through the small claim's procedure.
An appeal of the Board of Review's decisions may also be filed through the small claim's procedure, and it must be filed within 30 days after the decision Board of Review's has been filed. The Small Claims appeals may be filed at the court House in Līhuʻe.