Proposes constitutional amendment to transfer the power to tax real property from the counties to the State.

A BILL FOR AN ACT

SECTION 1. The legislature finds that returning the functions, powers, and duties of real property taxation to the State will result in greater efficiency, simplicity, and uniformity of taxation across and within counties.

The legislature further finds that disparities between the counties' tax bases on their relative abilities to raise revenue may lead to the proliferation of local taxes, which has occurred in states granting broad taxing powers to political subdivisions. Taxes are never popular, but efficient and fair tax administration makes it easier for the public to view taxes as a necessary expense of government's function to provide public services.

The purpose of this Act is to propose an amendment to article VIII, section 3, of the Constitution of the State of Hawaii to repeal the delegation to the counties of the functions, powers, and duties relating to the taxation of real property, thereby transferring the power to tax real property from the counties back to the State.

SECTION 2. Article VIII, section 3, of the Constitution of the State of Hawaii is amended to read as follows:

"TAXATION AND FINANCE

Section 3. The taxing power shall be reserved to the State, except so much thereof as may be delegated by the legislature to the political subdivisions[, and except that all functions, powers and duties relating to the taxation of real property shall be exercised exclusively by the counties, with the exception of the county of Kalawao]. The legislature shall have the power to apportion state revenues among the several political subdivisions."

SECTION 3. The question to be printed on the ballot shall be as follows:

SECTION 4. Constitutional material to be repealed is bracketed and stricken.

SECTION 5. This amendment shall take effect upon

compliance with article XVII, section 3, of the Constitution of the State of Hawaii.