Category Archives: Real Property (HRS 246)

SB 2922, SD-1

Real Property (HRS 246), Transient Accommodations Tax (HRS 237D)

SUBJECT:  REAL PROPERTY, TRANSIENT ACCOMMODATIONS, Education Surcharge on Residential Investment Properties and Visitor Accommodations

BILL NUMBER:  SB 2922, SD-1

INTRODUCED BY:  Senate Committee on Judiciary

EXECUTIVE SUMMARY:  Constitutional amendment to allow the legislature to impose a surcharge on real property tax for residential investment property, and on transient accommodations.  We question why this type of increase is being sought given that the Department of Education already has a gargantuan share of the State budget but is still beset with such issues as frustrated teachers and students roasting in our classrooms.  Limits should be written into the amendment or the voters should be apprised that they are voting only on granting power to the legislature to impose a state level real property tax surcharge, with no limitations on that power.

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SB2922; HB2608

Constitutional Amendment, Real Property (HRS 246), Transient Accommodations Tax (HRS 237D)

SUBJECT:  REAL PROPERTY, TRANSIENT ACCOMMODATIONS, Education Surcharge on Residential Investment Properties and Visitor Accommodations

BILL NUMBER:  SB 2922; HB 2608 (Similar)

INTRODUCED BY:  SB by KIDANI, S. CHANG, ESPERO, GALUTERIA, HARIMOTO, K. RHOADS, K. KAHELE; HB by WOODSON, AQUINO, BROWER, CREAGAN, DECOITE, EVANS, GATES, ING, JOHANSON, KEOHOKALOLE, C. LEE, LOPRESTI, LOWEN, MORIKAWA, NISHIMOTO, SAN BUENAVENTURA, TODD, Nakamura, Nakashima, Yamashita

EXECUTIVE SUMMARY:  Allows the legislature to impose a surcharge on real property tax for residential investment property, and on transient accommodations.  We question why this type of increase is being sought given that the Department of Education already has a gargantuan share of the State budget but is still beset with such issues as frustrated teachers and students roasting in our classrooms.  Limits should be written into the amendment or the voters should be apprised that they are voting only on granting power to the legislature to impose a state level real property tax surcharge, with no limitations on that power.

Continue reading SB2922; HB2608 →

Honolulu Rail Informational Briefing, August 14, 2017

General Excise (HRS 237), Real Property (HRS 246)

SUBJECT:  Honolulu Rail Informational Briefing, August 14, 2017.  This information is submitted in response to the Notice of Informational Briefing by the Senate Committees on TRE, PSM, and WAM, and the House Committees on TRN and FIN.

EXECUTIVE SUMMARY:  The Committees are considering various options to assist the City & County of Honolulu in financing a rapid transit system.  This testimony discusses various financing options and constitutional and statutory restrictions on them.

General Excise Tax Surcharge:  It must be remembered that this surcharge is not the State’s money.  The State authorized the counties to adopt taxing ordinances under certain conditions and is assisting with collecting and remitting the surcharge funds to the counties; however, the tax is imposed by county ordinance, not state statute.  The county ordinance only impacts businesses and residents of the county enacting it.  The State’s ability to enact oversight restrictions and conditions affecting this money is limited.

State Tax Monies:  Monies raised from statewide taxes, such as the General Excise Tax and the Transient Accommodations Tax, do belong to the State and may be disbursed by the State.  Because the tax is imposed by state statute, it impacts businesses and residents throughout the State.  The State’s ability to enact oversight restrictions and conditions affecting this money is broad.

County Property Tax Monies:  Monies raised from real property taxes unquestionably belong to the counties under the Hawaii Constitution as it now exists.  The State has no ability to enact oversight restrictions and conditions affecting this money.

Continue reading Honolulu Rail Informational Briefing, August 14, 2017 →

SB 686; SD-2 [Implementing Legislation]; SB 683, HD-1 [Constitutional Amendment]

Real Property (HRS 246), Transient Accommodations Tax (HRS 237D)

SUBJECT:  REAL PROPERTY, TRANSIENT ACCOMMODATIONS, Education Surcharge on Residential Investment Properties and Visitor Accommodations

BILL NUMBER:  SB 686; SD-2 [Implementing Legislation]; SB 683, HD-1 [Constitutional Amendment]

INTRODUCED BY:  Senate Committees on Ways and Means and Judiciary and Labor [SB 686], House Committee on Judiciary [SB 683]

EXECUTIVE SUMMARY:  Proposes a substantial surcharge on real property tax for residences where the home exemption is not claimed, and on transient accommodations.  Proposes a constitutional amendment, because the surcharge would not be constitutional now.  With a tax increase of this magnitude, economic ripple effects are likely to be enormous.  We also question why such a massive increase is being sought given that the Department of Education already has a gargantuan share of the State budget but is still beset with such issues as frustrated teachers and students roasting in our classrooms.

Regarding the constitutional amendment language, we do not recommend returning the language to the “mandatory funding” language in HB 182 HD 2.

Also regarding the constitutional amendment language, either limits should be written into the amendment or the voters should be apprised that they are voting only on granting power to the legislature to impose a state level real property tax surcharge, with no limitations on that power.

Continue reading SB 686; SD-2 [Implementing Legislation]; SB 683, HD-1 [Constitutional Amendment] →

SB 686; SD-2 [Implementing Legislation]; SB 683, SD-2 [Constitutional Amendment]

Real Property (HRS 246), Transient Accommodations Tax (HRS 237D)

SUBJECT:  REAL PROPERTY, TRANSIENT ACCOMMODATIONS, Education Surcharge on Residential Investment Properties and Visitor Accommodations

BILL NUMBER:  SB 686; SD-2 [Implementing Legislation]; SB 683, SD-2 [Constitutional Amendment]

INTRODUCED BY:  Senate Committees on Ways and Means and Judiciary and Labor

EXECUTIVE SUMMARY:  Proposes a substantial surcharge on real property tax for residences where the home exemption is not claimed, and on transient accommodations.  Proposes a constitutional amendment, because the surcharge would not be constitutional now.  With a tax increase of this magnitude, economic ripple effects are likely to be enormous.  We also question why such a massive increase is being sought given that the Department of Education already has a gargantuan share of the State budget but is still beset with such issues as frustrated teachers and students roasting in our classrooms.

Regarding the constitutional amendment language, we do not recommend returning the language to the “mandatory funding” language in HB 182 HD 2.

Also regarding the constitutional amendment language, either limits should be written into the amendment or the voters should be apprised that they are voting only on granting power to the legislature to impose a state level real property tax surcharge, with no limitations on that power.

Continue reading SB 686; SD-2 [Implementing Legislation]; SB 683, SD-2 [Constitutional Amendment] →

SB 686; SD-1 [Implementing Legislation]; SB 683, SD-1 [Constitutional Amendment]

Real Property (HRS 246), Transient Accommodations Tax (HRS 237D)

SUBJECT:  REAL PROPERTY, TRANSIENT ACCOMMODATIONS, Education Surcharge on Residential Investment Properties and Visitor Accommodations

BILL NUMBER:  SB 686; SD-1 [Implementing Legislation]; SB 683, SD-1 [Constitutional Amendment]

INTRODUCED BY:  Senate Committee on Education

EXECUTIVE SUMMARY:  Proposes a substantial surcharge on real property tax for residences where the home exemption is not claimed, and on transient accommodations.  Proposes a constitutional amendment, because the surcharge would not be constitutional now.  With a tax increase of this magnitude, economic ripple effects are likely to be enormous.  We also question why such a massive increase is being sought given that the Department of Education already has a gargantuan share of the State budget but is still beset with such issues as frustrated teachers and students roasting in our classrooms.  The proposed constitutional amendment language is especially dangerous because it would enable court challenges to the sufficiency of the amounts appropriated for public education similar to the challenges made by DHHL.

Continue reading SB 686; SD-1 [Implementing Legislation]; SB 683, SD-1 [Constitutional Amendment] →

HB 1474, HD-1

Real Property (HRS 246)

SUBJECT:  REAL PROPERTY, Mandated Property Tax Classification of Lands Growing Industrial Hemp

BILL NUMBER:  HB 1474, HD-1

INTRODUCED BY:  House Committee on Agriculture

EXECUTIVE SUMMARY:  Requires that land used for cultivation of industrial hemp qualify for the minimum dedication period and least expensive classification for country real property tax purposes.

With the Hawaii Constitution having been amended to give all real property taxing power to the counties, the validity of this requirement is questionable.

Continue reading HB 1474, HD-1 →

HB 180, HD-1 [Implementing Legislation]; HB 182, HD-1 [Constitutional Amendment]

Real Property (HRS 246), Transient Accommodations Tax (HRS 237D)

SUBJECT:  REAL PROPERTY, TRANSIENT ACCOMMODATIONS, Education Surcharge on Residential Investment Properties and Visitor Accommodations

BILL NUMBER:  HB 180, HD-1 [Implementing Legislation]; HB 182, HD-1 [Constitutional Amendment]

INTRODUCED BY:  House Committee on Education

EXECUTIVE SUMMARY:  Proposes a substantial surcharge on real property tax for residences where the home exemption is not claimed, and on transient accommodations.  Proposes a constitutional amendment, because the surcharge would not be constitutional now.  With a tax increase of this magnitude, economic ripple effects are likely to be enormous.  We also question why such a massive increase is being sought given that the Department of Education already has a gargantuan share of the State budget but is still beset with such issues as frustrated teachers and students roasting in our classrooms.

Continue reading HB 180, HD-1 [Implementing Legislation]; HB 182, HD-1 [Constitutional Amendment] →

HB 1474

Real Property (HRS 246)

SUBJECT:  REAL PROPERTY, Mandated Property Tax Classification of Lands Growing Industrial Hemp

BILL NUMBER:  HB 1474

INTRODUCED BY:  CREAGAN, ING, THIELEN, DeCoite

EXECUTIVE SUMMARY:  Requires that land used for cultivation of industrial hemp qualify for the minimum dedication period and least expensive classification for country real property tax purposes.

With the Hawaii Constitution having been amended to give all real property taxing power to the counties, the validity of this requirement is questionable.

Continue reading HB 1474 →

SB 686; HB 180 (Identical) [Implementing Legislation]; SB 683, HB 182 (Identical) [Constitutional Amendment]

Constitutional Amendment, Real Property (HRS 246), Transient Accommodations Tax (HRS 237D)

SUBJECT:  REAL PROPERTY, TRANSIENT ACCOMMODATIONS, Education Surcharge on Residential Investment Properties and Visitor Accommodations

BILL NUMBER:  SB 686; HB 180 (Identical) [Implementing Legislation]; SB 683, HB 182 (Identical) [Constitutional Amendment]

INTRODUCED BY:  SB by KIDANI, K. RHOADS, SHIMABUKURO, Dela Cruz, Espero, Gabbard, Inouye, K. Kahele; HB by SAIKI

EXECUTIVE SUMMARY:  Proposes a substantial surcharge on real property tax for residences where the home exemption is not claimed, and on transient accommodations.  Proposes a constitutional amendment, because the surcharge would not be constitutional now.  With a tax increase of this magnitude, economic ripple effects are likely to be enormous.  We also question why such a massive increase is being sought given that the Department of Education already has a gargantuan share of the State budget but is still beset with such issues as frustrated teachers and students roasting in our classrooms.

Continue reading SB 686; HB 180 (Identical) [Implementing Legislation]; SB 683, HB 182 (Identical) [Constitutional Amendment] →