LĪHU‘E, HI – April 07, 2009 – (RealEstateRama) — County officials announced that a new value allocation approach is now being applied to Kaua’i condominiums and resort-zoned properties.
After conducting site visits to all condominium properties on the island, the real property assessment office determined that the allocation of values between building and land for these properties needed to take into account differences in view plains and location within each project to better mirror their market values.
“Assessments of individual condominiums may have increased, decreased, or remained level in comparison to their 2008 values, depending on supporting market data and any relevant changes made to more accurately characterize views and locations,” said Finance Director Wallace Rezentes, Jr. “In as much as land tax rates are presently lower than building tax rates, we feel that we have achieved the overall goal of having a more accurate and equitable distribution of the total assessment between land and building for this class of property.”
He noted that the net impact of this change in methodology on total value in this class of property on Kaua’i was negligible for 2009 versus 2008.
The total assessed value of a condominium unit was calculated using the final price per square foot multiplied by the gross living area.
Adjustments in the price per square foot were made for differences in unit size, view, location and date of sale.
In determining land values, the following allocation table was devised for condominium projects:
a) One-story condominium, 40 percent of the total assessed value
b) Two-story condominium, 35 percent
c) Three- to six-story condominium, 30 percent
d) Seven- to 10-story condominium, 25 percent
e) 11-story or higher condominium, 20 percent
Factors that were also taken into consideration for the 2009 tax year include:
– Active listings not subject to distress situations were utilized as collateral data.
– Listings were viewed as ceiling values as well as market trend indicators, especially in instances where the listing price was lower than the most recent prior sale prices.
– Short sales, real estate owned properties (REOs) and foreclosures were regarded as indicators of liquidation value rather than market value.
Pursuant to Section 5A-8.1 of the Kaua’i County Code: The finance director shall cause the fair market value of all taxable real property to be determined and annually assessed by the market data and cost approaches to value using appropriate systematic methods suitable for mass valuation of properties for taxation purposes, so selected and applied to obtain as far as possible, uniform and equalized assessments throughout the county.
For more information on real property taxes, please log on to www.kauaipropertytax.com or call 241-6222.
WALLACE REZENTES JR., DIRECTOR
Tel (808) 241-4200
Fax (808) 241-6529