Property values on Oahu were up over the past year, driven largely by an increase in hotel and resort property value assessments, according to the city administration.

Overall, total gross assessed valuation of all taxable real property on Oahu was $214.9 billion, an overall increase of 7.1 percent from $200.7 billion a year ago.

The city is sending approximately 295,000 real property assessments for 2015 to property owners beginning on Monday. Assessed valuations were set as of Oct. 1 and are based on sales of similar properties through June 30.

Gary Kurokawa, city deputy director of budget and fiscal services, said the market value of properties was among the factors leading to the overall increase in valuation. New developments, including residential subdivisions, condominiums, commercial and industrial projects, the construction of new buildings and improvements to existing parcels, and increases in the values of properties contributed to the overall increase.

"When we look at the numbers, I think that it’s pretty similar to last year’s increases," Kurokawa said. "The market has been relatively stable as far as the values of properties.

"We see that construction has been relatively stable with the number of new buildings and permits that we’ve encountered over the year."

The largest increase in valuations was among hotel and resort properties, which were up 16.4 percent compared to a year ago. Gross residential properties were valued at $174.5 billion, up 7.2 percent from $162.9 billion last year. Commercial property values increased 4.8 percent and industrial property values increased 3.9 percent, the city said.

Across Oahu, the highest rate of increase was in Leeward Oahu, where residential property valuations were up 11.1 percent from a year ago. Property values increased across all nine zones of Oahu, with the smallest increase occurring in Windward Oahu, where values were up 3.9 percent from a year ago.

"It could possibly be there’s a lot of sales in certain areas that increase the value (in that zone) whereas the previous year, sales activity was not as great," Kurokawa said.

The assessment notice being sent Monday is not a tax bill, but a statement of what the city has determined to be the property’s value for tax assessment purposes. Actual tax bills will be determined after the City Council sets the rate in June.

The standard residential tax rate is $3.50 per $1,000 of assessed property value. For those in the Residential A class — property owners with a parcel worth more than $1 million that they do not live in — the rate is $6 per $1,000 of assessed value.

The Residential A tax class was adopted last year and was aimed at residential properties valued at $1 million or more, but to exclude those with homeowner exemptions in an effort to shield owner-occupants from higher tax rates. But after tax bills went out, a larger-than-expected number of Residential A property owners complained that they live in their homes but, for a variety of reasons, never filed to receive a homeowner exemption.

Increased property values are expected to bump some homes that were close to the $1 million mark over that threshold and into the higher tax rate.

City Councilwoman Ann Kobayashi, the Council’s budget chairwoman, said she is concerned that property owners are likely to pass the burden of higher taxes on to renters.

"As assessments go up, then we may have to look at that threshold," Kobayashi said. "We’re worried about the local, long-term renters."

Kurokawa said he did not have an estimate on how many properties were bumped into the Residential A class.

He said the total gross valuation for all properties in the Residential A class was about $15.4 billion for 2015, compared to $13.9 billion last year.

"It’s possible that there are more properties added, because of the value increase, but I just don’t have that number," Kurokawa said.

WHOM TO CONTACT

Real property tax assessments are being mailed to homeowners beginning Monday. Those who have signed up to receive their assessments via email should receive it shortly after midnight on Sunday.

Property owners who have not received their 2015 Assessment Notice by Dec. 31 are advised to contact the Real Property Assessment Division at:

» 842 Bethel St., basement
Honolulu, HI 96813
Phone: 768-3799

» 1000 Uluohia St., #206
Kapolei, HI 96707
Phone: 768-3169

Owners who wish to dispute their real property assessment may file appeals between Monday and Jan. 15. For more information, call 768-3799 or visit the Real Property Assessment Division’s website at www.realpropertyhonolulu.com and click on the "Assessment Appeals" link.

The city encourages property owners to register to receive their real property assessment notices via email and utilize other digital services to reduce paper and postage costs.

Questions regarding real property assessments may be directed to the Real Property Assessment Division at 768-3799 or emailed to bfsrpmailbox@honolulu.gov.