SB2861

Report Title:

Real Property Taxation; Constitutional Amendment

 

Description:

Proposes amendments to the Hawaii State Constitution to provide that the taxation of real property shall be under the concurrent jurisdiction of the State and counties.

 

THE SENATE	S.B. NO.	2861
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

 

Proposing amendments to the constitution of the state of hawaii relating to the taxation of real property.

 

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

SECTION 1. The purpose of this Act is to propose amendments to the Constitution of the State of Hawaii to repeal the counties' exclusive jurisdiction over real property taxation, and provide instead that the taxation of real property shall be under the concurrent jurisdiction of both the State and counties in order to allow the State to also levy real property taxes.

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] concurrently by both the State and 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. Article XVIII, section 6, of the Constitution of the State of Hawaii is repealed.

["EFFECTIVE DATE AND APPLICATION OF REAL

PROPERTY TAX TRANSFER

Section 6. The amendment to Section 3 of Article VIII shall take effect on the first day of July after two full calendar years have elapsed following the ratification of such amendment [November 7, 1978]; provided that for a period of eleven years following such ratification, the policies and methods of assessing real property taxes shall be uniform throughout the State and shall be established by agreement of a majority of the political subdivisions. Each political subdivision shall enact such uniform policies and methods of assessment by ordinance before the effective date of this amendment [July 1, 1981], and in the event the political subdivisions fail to enact such ordinances, the uniform policies and methods of assessment shall be established by general law. Any amendments to the uniform policies and methods of assessment established by the political subdivisions may only be made by agreement of a majority of the political subdivisions and enactment thereof by ordinance in each political subdivision.

Real property tax exemptions and dedications of land for specific use for assessment at its value in such use as provided by law and in effect upon ratification of the amendment to Section 3 of Article VIII [November 7, 1978] shall be enacted by ordinance and shall not be eliminated or diminished for a period of eleven years following such ratification; provided that increases in such exemptions, or the additions of new and further exemptions or dedications of lands, may be established or granted only by agreement of a majority of the political subdivisions, and such increases or additions shall be enacted by ordinance in each political subdivision."]

SECTION 4. The question to be printed on the ballot shall be as follows:

Shall the Constitution of the State of Hawaii be amended by repealing the counties' exclusive jurisdiction over real property taxation, and providing instead that the taxation of real property shall be under the concurrent jurisdiction of both the State and counties, thereby allowing the State to also levy real property taxes?

SECTION 5. Constitutional material to be repealed is bracketed and stricken. New constitutional material is underscored.

SECTION 6. This amendment shall take effect upon compliance with article XVII, section 3, of the Constitution of the State of Hawaii.

INTRODUCED BY:	_____________________________