Honolulu property tax is about to get a big overhaul.
The Honolulu Board of Commissioners is expected to vote on a resolution this week that would make it easier for taxpayers to report a property tax bill.
The changes will make the property tax assessor’s office more accessible to the public.
The tax assessors office, which is based in Honolulu, has been dealing with a backlog of tax bills since it was created in 2013.
Under the new rules, a taxpayer could send in a tax bill to the assessor office directly.
The amount of the bill would then be subtracted from the assessed value of the property.
The proposed changes will help improve the efficiency of the tax process.
The new tax structure, if approved by the Hawaii Supreme Court, would reduce the number of audits needed to collect the assessed property tax.
The tax assessorate is required to collect and pay a tax on the assessed values of properties owned by residents.
The assessor must file tax bills for all the properties that the assessors has assessed and assessor offices must collect and report on those property tax bills.
The change will make it simpler for taxpayers who do not have an address or who have not filed property tax returns in a certain time frame to get the property taxes.
“The new tax rate is going to have a really positive impact on the ability of taxpayers to file their taxes,” said Richard Kealoha, director of Honolulu Taxpayers Association.
Under current law, it is up to the property owner to file tax returns.
The Honolulu Board voted 3-2 to increase the number from two to three years, allowing more time for tax returns to be filed.
The new changes also will reduce the cost of tax filing.
The city’s assessor already charges $15 to file a tax return, which costs taxpayers about $600 a year.
The current tax rate of 3 percent is lower than the state’s 5.25 percent tax rate, which would cost taxpayers about a half a million dollars.
The proposed changes would lower the tax rate to 3 percent and eliminate the tax deduction for property taxes paid in Hawaii.
In addition, the new tax rates will provide an incentive for property owners to file property tax return.
The plan to simplify the tax system has been in the works for years.
The Board of Trustees recommended the changes last year.
The board voted to adopt the changes after more than two years of work.
The board will vote on the proposal again this week.