Hawaii House Bill HB2506

Hawaii 2022 Regular Session

• Introduced: 1/26/22
• Refer: 1/28/22

Caption

Proposing Amendments To Articles Viii Of The Constitution Of The State Of Hawaii To Authorize The Legislature To Freeze Any Increase In State Residential Property Tax.

Impact

The proposed amendment seeks to amend Article VIII, Section 3 of the Hawaii Constitution, whereby the legislature would have the authority to establish a property tax freeze for eligible homeowners. This change is expected to relieve the financial burden that rising property taxes place on older homeowners, potentially enhancing their ability to retain ownership of their homes. Additionally, the amendment would permit homeowners over fifty-five to transfer their home's assessed value to their children without triggering property tax re-assessment, thus facilitating family continuity in homeownership.

Summary

House Bill 2506 proposes a constitutional amendment to allow the Hawaii legislature to freeze any increase in state residential property tax, particularly aimed at providing relief to homeowners aged fifty-five and older. The bill identifies a significant issue facing residents in Hawaii, where high property prices have made it increasingly difficult for individuals to purchase and maintain homes, leading to financial pressures among homeowners, especially those nearing or in retirement. The current context indicates a median price for single-family homes on Oahu surpassing $1,060,000, contributing to the urgency of this legislative effort.

Contention

Despite the potential benefits of HB2506, there may be points of contention regarding its implications on local governance and the balance of taxation authority. Critics might argue that such measures could limit county governments' ability to adjust tax rates according to local economic conditions or housing markets. Additionally, discussions surrounding the longstanding fiscal frameworks and property tax structures could emerge, as stakeholders weigh the need for tax relief against the retention of sufficient revenue for local governmental functions.