HOUSE OF REPRESENTATIVES	H.B. NO.	1208
THIRTY-FIRST LEGISLATURE, 2021
STATE OF HAWAII

A BILL FOR AN ACT

Proposing an amendment to article viii, section 3 of the hawaii constitution relating to the functions, powers, and duties of real property taxation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Hawaii has one of the highest income tax rates and the lowest real property tax rates in the nation. These tax strategies result in a disproportionate amount of the overall tax burden being placed on the residential workforce, who in turn effectively subsidize non-residents' real estate investments in Hawaii.

The legislature further finds that removing the exclusivity of county authority over real property taxes will provide the State with greater flexibility and control of its taxation policies.

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 exclusive authority of the counties to exercise the functions, powers, and duties of real property taxation, and thereby authorizing the State to also exercise those powers.

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] may 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:

"Shall the exclusivity of the counties as to the functions, powers, and duties relating to the taxation of real property be repealed and the State be authorized to also exercise the functions, powers, and duties relating to the taxation of real property?"

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 Constitutional material to be repealed is bracketed and stricken.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

SECTION 5. This amendment shall take effect upon

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

INTRODUCED BY:

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Report Title:

Real Property Taxation; Constitutional Amendment

Description:

Proposes an amendment to the Hawaii State Constitution to repeal the exclusive power of the counties as to the functions, powers, and duties relating to the taxation of real property and authorize the State to also exercise those functions, powers, and duties.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.