2022-05 Department of Finance Real Property Tax Division Revenue Cycle Management

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Data Analysis An interactive dashboard is accessible at Auditor Dashboard (Ctrl + Click), compiled courtesy Office of the County Auditor. The audit includes some notable data trends below. Tax Debt by Category Type, 510 -Accounts Receivables Report Visuals Al, A2, and A3 • Average balances are just over $3,000. Billing cycles average 7.36, or 4.17 years. When adjusting and removing active and less two years categories, the amounts grow to approximately $8,000 owed and 16.63 cycles, or 8.78 years • Lava represents the longest average outstanding type of debt, 21.8 years on average. • Process bottlenecks force accounts into the time and cost category when looking at debts historically and over time In-state Tax Debt 316 -Aged Parcel Detail Report Visuals B2, B3 • Over time more of Hawaii Island's outstanding delinquent debt has come to be owed by its residents • In 2006, outstanding delinquencies began to take on exponential growth trajectories rather than linear ones. That is, amounts are rapidly increasing rather than growing at a constant rate of change All Tax Debt by Location 316 -Aged Parcel Detail Report Visuals C1 • Over time, more of Hawaii Island's outstanding delinquent debt has come to be owed by mainland interests, 24.6% (all years) • California ownership represents the largest portion of mainland owed debt, 39% (all years) • Japan and Canada represent the largest portion of the foreign owed debt, 75% (all years) o Japan, 53.15% o Canada, 21.85% • Between 1976 and 2010, foreign debt was 6.39% of the total debt owing • Between 2010 and 2020, foreign debt decreased to 4.6%, indicating a slow down relative to other debt types Debt-to-Valuation Visuals D1 • Using 13,871 parcels and $41.8 million as a point in time baseline - subtracting "less than two years" parcels, a remaining total totaling 6,582 parcels and $36.1 million, and using the division's time and cost calculations: o Of 6,582 parcels, 1,178 parcels in the total population, 17.9% exceed the market value by division calculation o Of 2,910 parcels, 172 in the "active" category population, 5.9% exceed the market value by division calculation o Of 120 parcels, 98 in the "unsold at prior auction" category population, 81.7% exceed the market value by division calculation o Of 464 parcels, 70 in the"foreign" category population, 15.1% exceed the market value by division calculation o Of 224 parcels, 35 in the "time and cost" category population, 15.6% exceed the market value by division calculation o Of 224 parcels, 189, in the "time and cost" category, population, 84.4% do not exceed the market value by division calculation 23 Page