HomeMy WebLinkAbout2026-05-05 Real Property Tax LetterCounty of Hawai‘i
DEPARTMENT OF FINANCE - REAL PROPERTY TAX
Aupuni Center • 101 Pauahi Street • Suite No. 4 • Hilo, Hawai‘i 96720-4679 • Fax (808) 961-8415
Appraisers (808) 961-8354 • Clerical (808) 961-8201 • Collections (808) 961-8282
West Hawai‘i Civic Center • 74-5044 Ane Keohokalole Hwy. • Bldg. D, 2nd Flr. • Kailua Kona, Hawai‘i 96740
Fax (808) 327-3538 • Appraisers (808) 323-4881 • Clerical (808) 323-4880
Hawai‘i County is an Equal Opportunity Provider and Employer
C. Kimo Alameda, Ph.D.
Mayor
Diane Nakagawa
Finance Director
Malia A. Kekai
Deputy Director
William V. Brilhante Jr.
Managing Director
May 5, 2026
To: Ashley Kierkiewicz, County of Hawai’i Council Member
From: Lisa Miura, Real Property Tax Administrator
Subject: Downtown Pāhoa Special District Bills 126, 124 & 125
Specific questions that have been raised regarding how the creation of this special
district would have an effect on real property taxes. This response is based on the bills
as they are currently written.
Does the change in a zoning designation in or of itself trigger a tax increase?
No. Real Property Taxes are a result of the taxable value and the tax rate (tax
classification).
taxable value x tax rate = real property taxes
The taxable value in itself will not change if the use has not changed. For future
years, values are dependent on sales. If sales increase in future years, then the
values would increase.
The tax rates are based on the tax classifications. There is no separate tax
classification for special districts.
Does the tax rate change?
No. As there are no separate tax classifications for special districts. The typical
use and zoning is residential or commercial for this particular area. While zoning
is a contributing factor to tax classification, it is not the only factor utilized in
determining a tax class for real property tax purposes.
If there is a residential improvement and is utilized as a residence, the tax
classification would remain as residential until a time when it is utilized as
commercial.
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