Question: When should people expect to hear back on their property tax appeals? What is the usual timeline?
Answer: “The city began scheduling property tax appeal hearings in February, and the first round of those hearings took place on March 2, 2023.
After an appeal has been heard by the Board of Review, it takes between four and eight weeks from the hearing date to notify appellants of the Board of Review’s decision. This means some appellants could begin hearing about the status of their property tax appeal this week, if they haven’t already,” Ian Scheuring, a spokesperson for Honolulu Mayor Rick Blangiardi, said in an email.
By the Jan. 15 deadline, Oahu property owners had filed 2,134 property-value assessment appeals for fiscal year 2024, he said. The city tries to close all appeals by the end of the tax year, but that isn’t always possible, for a variety of reasons. “Last year, for example, 1,699 appeals were filed, and 313 of those appeals are still classified as open,” he said.
Appeals filed through the city are heard by the Real Property Tax Assessment Board of Review, whose members are volunteers, many from the real estate industry. Historically, about 70% of appeals are rejected.
Many Oahu homeowners were upset in December when they received their 2023 Real Property Notice of Assessment showing large increases from the year before. Overall, Oahu’s residential assessments were up 13.3%, with the highest jump on the North Shore, up 20.4%, according to the city. Property taxes rise along with valuations.
An increase alone is not a valid basis for an appeal, according to Honolulu’s Real Property Assessment Division, which lays out four grounds for appeal, based on the Revised Ordinances of Honolulu Section 8-12.3:
>> “Assessment of the property exceeds by more than 10% the market value of the property.”
>> “Lack of uniformity or inequality, brought about by illegality of the methods used or error in the application of the methods to the property involved.”
>> “Denial of an exemption to which the taxpayer is entitled and for which such person has qualified.”
>> “Illegality, on any ground arising under the Constitution or laws of the United States or the laws of the state or the ordinances of the city in addition to the ground of illegality of the methods used mentioned in clause 2.”
Q: Will they help me do my taxes at the IRS office if I go on Saturday? I’m way behind.
A: No. “Tax return preparation is not a service provided by IRS Taxpayer Assistance Centers,” IRS spokesperson David A. Tucker II said in an email. This is true on any day, not only during the special hours this Saturday from 9 a.m. to 4 p.m. Honolulu’s TAC is at 300 Ala Moana Blvd., in the federal building.
While TAC staff don’t prepare tax returns, they do share information about where you might be able to get your tax return completed for free, according to an IRS news release. Here are some options listed on the IRS website:
>> Volunteer Income Tax Assistance or Tax Counseling for the Elderly programs: To find a site, call 800-906-9887 or use the locator tool at irs.treasury.gov/freetaxprep.
>> AARP Tax-Aide: Call 888-227-7669 or use the locator at bit.ly/3UbJw8z.
>> IRS Free File: Tax-preparation software on the IRS website (irs.gov) is available to any person or family earning $73,000 or less in 2022.
>> MilTax: This Department of Defense program offers free tax preparation software and electronic filing for federal tax returns and up to three state income tax returns. “It’s available for all military members, and some veterans, with no income limit,” the IRS says. Find the link at www.militaryonesource.mil.
Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.