Great news for Oahu real estate - lower taxes in the future

Oahu real estate owners got some good news this week. The Advertiser reported that the City Council is going to hear a plan to make property taxes in Honolulu adjust each year based on inflation instead of assessed value under a bill.

The taxes on Oahu real estate are already low compared to states California, Texas, and New York, where people pay between 1-5% of the property value in taxes.

The bill is intended to make property taxes avoid spikes caused by rises in the Oahu real estate market. Oahu property taxes are currently $3.59 to $3.29 per $1,000 of assessed value.

"Under the proposal, the assessed value of taxable residential real property would be determined each year by adjusting the previous tax year's assessment for the property by the most recent change in Honolulu's consumer price index."

The growth in real estate taxes over the last several years has been a real burden. The Advertiser said that "about 7,000 owners appealed their assessments in 2006, according to the city."