Property tax assessed values may differ from true market values for several reasons:
1.) Once every year the new tax assessed values for properties in Honolulu County are established based on â€˜comparable salesâ€™ (similar size & location) that recorded during the prior 12 months. That means tax assessed values lag behind the real market value by about a year.
2.) The tax assessor hardly ever inspects the inside / condition of the house. That means there are no adjustments for expensive upgrades versus original or even termite eaten tear down condition.
3.) The tax assessor does not adjust for views or property frontage. For example an oceanfront property with 100 feet of beach frontage might have the same tax assessed value as a similar property just two lots away located on the busy highway without ocean view or beach access. While both properties might have the same tax assessed value, the true market value for both properties could be different by Millions!
Hope that helps.