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Executive Summary
<br />
<br />Overview
<br />The Real Property Tax Division (RPT) is tasked with assessing, managing, and collecting from
<br />approximately 140,698 parcels. Real property tax collections are the primary source of revenue
<br />for the County of Hawaii, generating over $355 million and accounting for nearly 70% of General
<br />Fund revenues in FY2021*. While most assessments are straightforward with billing and
<br />subsequent collection taking place every six months, an increasing number of delinquencies are
<br />requiring more of RPT's finite time and attention.
<br />
<br />Sometimes, taxpayers are unable to meet their immediate tax obligations. In those cases, RPT
<br />needs to have flexibility to help the taxpayer recover. Alternatively, sometimes taxpayers are
<br />unwilling to meet their tax obligations. In those cases, RPT should have graduated
<br />consequences to incentivize participation. RPT's collection system will function most effectively
<br />when it can distinguish the difference between unable and unwilling and has developed tools to
<br />handle either scenario.
<br />
<br />To further complicate matters, large numbers of delinquent parcels are state-owned properties.
<br />The county can send tax bills to government lessees, but RPT is unable to foreclose.
<br />Before 1981 all real property tax collections were assessed and collected by the State Department
<br />of Taxation. When authority was delegated to county governments in 1981, RPT acquired debts
<br />dating back to 1976, some of which still show as actively owing. $9.4 million in delinquent
<br />outstanding taxes are owed from a period between FY1976 to FY2011. Graph 1 below illustrates
<br />the year-over-year collections (Green) against delinquent taxes outstanding (orange).
<br />
<br />
<br /> Current Tax Collections and Running Total Delinquencies
<br /> Running Total Delinquent Taxes â– Current Tax Collections
<br />Axis Title 400,000,000
<br /> 350,000,000
<br /> 300,000,000
<br /> 250,000,000
<br /> 200,000,000
<br /> 150,000,000
<br /> 100,000,000
<br /> 50,000,000
<br /> 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
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<br />
<br />Vertical Grouped Bar Chart.
<br />
<br />Current Tax Collections and Running Total Delinquencies.
<br />
<br />Running Total Delinquent Taxes in Orange.
<br />
<br />Current Tax Collection in Green.
<br />
<br />Y - Axis: $50,000,000; $100,000,000; $150,000,000; $200,000,000;$250,000,000; $300,000,000; $350,000,000; and $400,000,000.
<br />
<br />X - Axis: 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, and 2021.
<br />
<br />2012: 9,829,701 running total delinquent taxes; 204,457,906 current tax collection.
<br />
<br />2013: 10,283,899 running total delinquent taxes; 196,588,866 current tax collections.
<br />
<br />2014: 10,808,630 running total delinquent taxes; 216,745,094 current tax collection.
<br />
<br />2015: 11,425,128 running total delinquent taxes, 232,639,421 current tax collections.
<br />
<br />2016: 12,148,670 running total delinquent taxes; 243,343,668 current tax collections.
<br />
<br />2017: 12,991,370 running total delinquent taxes; 265,555,651 current tax collections.
<br />
<br />2018: 14,498,575 running total delinquent taxes; 300,981,070 current tax collections.
<br />
<br />2019: 16,467,316 running total delinquent taxes; 314,443,022 current tax collections.
<br />
<br />2020: 19,109,781 running total delinquent taxes; 326,940,296 current tax collections.
<br />
<br />and
<br />
<br />2021: 23,508,807 running total delinquent taxes; 351,149,669 current tax collections.
<br />
<br />
<br />RPT FY2021 Statistical Information Table 7 Update Eff 18 May 22., Graph 1 Courtesy County Auditor
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