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

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2009 proved to be a challenge for most of the major sectors of the island's economy, the end of fiscal year 2010 and beginning of fiscal year 2011 showed the early signs of an impending economic recovery." Although available statistics show that the County has not escaped from tlae Great Recession, it benefits from its economic and ecological diversity and high levels of government employment, as the trends in Figure 1 suggest. Although statistics on the County's fiscal situation are not readily available, the declining trend in property tax revenues could signal the distress that led to the Furloughs that were mentioned. Other statistics suggest that housing prices on the island are lower than in Hawai`i's other counties. Figure 1: Selected Trends in Hawaii County graphic Sources: County of Hawaii, City and County of Honolulu, and Zillow. The County of Hawaii has a mayor-council form of government. For administrative purposes (including real property taxation), the County is organized into nine zones. County employees are unionized. The Real Property Tax Division (the Division) is a unit of the Department of Finance, the director of which is officially responsible for property taxation under the County's code. As will be discussed, the Division relies on data and services from other agencies. It receives information on property transfers from the Bureau 6