2012-COH-A Technical Assistance Report Evaluating Property Tax Policies and Administrative Practices in Hawaii County

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to ascertain whether benefits received from these programs apply as intended by the Council. Furthermore, although the value of the exemptions is reported, there is no attempt to convert this value into an overall analysis of how much tax benefit (incorporating rate differentials as well as exemption type) accrues to any particular type of property or ownership situation. This is a serious gap that could be addressed by Code changes to require extensive analysis of these tax effects. • Lack of ongoing, regular analysis of effects of exemptions. Regardless of the outcome of the analysis indicated in the preceding bullet, ongoing, annual analysis of exemption effects, expressed in overall and individual (say, per $100,000 of market value) properties should be undertaken. This too requires direction from the Council in the form of Code changes. • Complex multi-tiered tax rates. Similar to the complex exemption system, use of multi-tiered tax rates, with different rates applying to different types of property, leads to questions about how much benefit is accruing to particular low rate types and how much added cost is being shifted to high rate types. We found no evidence of any analysis of the effects of these multiple tax rates. • Lack of formal complaint investigation and reporting system. Part of the reason for undertaking this report was the appearance that complaints are not thoroughly reviewed and resolved. Since there is no higher (i.e. State) investigative authority, it is important to have an effective internal control system under which complaints are not only investigated and issues resolved, but these processes are adequately tracked and documented. • Limited documentation about sales validation and ratio studies. While staff appear to understand sales validation and ratio study principles, there is little documentation and this could lead to inconsistencies as various staff analyze sales. • Limited opportunities for consistent ongoing communication between staff. Although managers have periodic meetings to review activities, it appears that staff are not directly involved and do not meet regularly. Such contacts and communications can promote cohesiveness and encourage effective problem solving, as well as common understanding and consistent application of policies and procedures. • Limited training opportunities for staff. Currently, there are no requirements for ongoing, continuing appraisal related education for staff. This is a serious gap and makes it more difficult to improve appraisal techniques or implement new, technologically advanced, mass appraisal processes. xi